<SEC-DOCUMENT>0001477932-16-013313.txt : 20161109
<SEC-HEADER>0001477932-16-013313.hdr.sgml : 20161109
<ACCEPTANCE-DATETIME>20161108192925
ACCESSION NUMBER:		0001477932-16-013313
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20160930
FILED AS OF DATE:		20161109
DATE AS OF CHANGE:		20161108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVINO SILVER & GOLD MINES LTD
		CENTRAL INDEX KEY:			0000316888
		STANDARD INDUSTRIAL CLASSIFICATION:	METAL MINING [1000]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35254
		FILM NUMBER:		161982514

	BUSINESS ADDRESS:	
		STREET 1:		570 GRANVILLE STREET
		STREET 2:		SUITE 900
		CITY:			VANCOUVER BC CANADA
		STATE:			A1
		ZIP:			V6C 3P1
		BUSINESS PHONE:		6046823701

	MAIL ADDRESS:	
		STREET 1:		570 GRANVILLE STREET
		STREET 2:		SUITE 900
		CITY:			VANCOUVER
		STATE:			A1
		ZIP:			V6C 3P1

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL AVINO MINES LTD
		DATE OF NAME CHANGE:	19950607

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AVINO MINES & RESOURCES LTD
		DATE OF NAME CHANGE:	19950607
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>avino_6k.htm
<DESCRIPTION>FORM 6-K
<TEXT>
<html><head><title>avino_6k.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: 0px 7%" scroll="yes"><div style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: rgb(0,0,0) 4px solid; MARGIN: 0px"></div><div style="FONT-SIZE: 1pt; WIDTH: 100%; MARGIN-TOP: 2px; BORDER-BOTTOM: rgb(0,0,0) 1px solid"></div><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="3">UNITED STATES</font></b></p><p style="MARGIN: 0px" align="center"><b><font size="3">SECURITIES AND EXCHANGE COMMISSION</font></b></p><p style="MARGIN: 0px" align="center"><font size="3"><b>Washington, D.C. 20549</b></font></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="5">FORM 6-K</font></b></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="2">REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16</font></b></p><p style="MARGIN: 0px" align="center"><b><font size="2">UNDER THE SECURITIES EXCHANGE ACT OF 1934</font></b><font size="2"></font></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><strong><u>September,&nbsp;2016</u></strong></p><p style="MARGIN: 0px" align="center"><font size="2"></font>&nbsp;</p><p style="MARGIN: 0px" align="center"><font size="2">Commission File Number: <b>001-35254</b></font></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><table style="WIDTH: 75%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: auto; font-size-adjust: none; font-stretch: normal" cellspacing="0" cols="1" cellpadding="0" width="75%" align="center" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center"><b><font size="5">AVINO SILVER &amp; GOLD MINES LTD.</font></b><font size="2"></font></p></td></tr></table></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><u><font size="2">Suite 900, 570 Granville Street, Vancouver, BC V6C 3P1</font></u></b></p><p style="MARGIN: 0px" align="center"><font size="2">(Address of principal executive offices)</font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font size="2">Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.&nbsp;&nbsp;&nbsp;<font style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">x </font></font><font size="2">Form 20-F&nbsp;&nbsp; </font><font size="2"><font face="Wingdings"><font style="FONT-FAMILY: Wingdings">&#168; </font></font></font><font size="2">Form 40-F</font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font size="2">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): </font><font size="2"><font face="Wingdings"><font style="FONT-FAMILY: Wingdings">&#168;</font></font></font><font size="2"></font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font size="2">Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): </font><font size="2"><font face="Wingdings"><font style="FONT-FAMILY: Wingdings">&#168;</font></font></font><font size="2"></font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font size="2">Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes&nbsp;</font><font size="2"><font face="Wingdings"><font style="FONT-FAMILY: Wingdings">&#168;</font></font></font><font size="2">&nbsp;&nbsp; No <font style="FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">x</font></font></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font size="2">If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): </font></p><p style="MARGIN: 0px">&nbsp;</p><div style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: rgb(0,0,0) 1px solid; MARGIN: 0px"></div><div style="FONT-SIZE: 1pt; WIDTH: 100%; MARGIN-TOP: 2px; BORDER-BOTTOM: rgb(0,0,0) 4px solid; PAGE-BREAK-AFTER: always"></div><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>SUBMITTED HEREWITH</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Exhibits:</b></p><p style="MARGIN: 0px"><strong></strong>&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: auto; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr bgcolor="#cceeff"><td width="8%"><p style="MARGIN: 0px">99.1</p></td><td width="92%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="left">Condensed Consolidated Interim Financial Statements For the nine months ended September 30, 2016 and 2015</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">99.2</p></td><td><p style="MARGIN: 0px">Management Discussion and Analysis</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">99.3</p></td><td><p style="MARGIN: 0px">CEO Certification</p></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">99.4</p></td><td><p style="MARGIN: 0px">CFO Certification</p></td></tr></table>&nbsp; </p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: auto; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%" border="0" ></table></p><p style="MARGIN: 0px"><table id="pagebreakaf7982e8-ad23-4b6a-9082-08cd817d0b0c" class="pagebreak" style="WIDTH: 100%; FONT: 10pt TIMES NEW ROMAN; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">2</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><b>SIGNATURES</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.&nbsp;&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: auto; font-size-adjust: none; font-stretch: normal" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr height="15"><td valign="top"></td><td valign="top" colspan="2"><p style="MARGIN: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p></td><td valign="top"></td></tr><tr height="15"><td valign="top"></td><td valign="top" colspan="2"><p style="MARGIN: 0px">(Registrant)</p></td><td valign="top"></td></tr><tr height="15"><td valign="top"></td><td valign="top" colspan="2"></td><td valign="top"></td></tr><tr height="15"><td valign="top" width="50%"><p style="MARGIN: 0px">Date:&nbsp;November 8, 2016</p></td><td valign="top" width="3%"><p style="MARGIN: 0px">By:</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="35%"><p style="MARGIN: 0px"><i>/s/&nbsp;Dorothy Chin</i></p></td><td valign="top" width="12%"></td></tr><tr height="15"><td valign="top"></td><td valign="top"></td><td valign="bottom"><p style="MARGIN: 0px">Dorothy Chin</p></td><td valign="top"></td></tr><tr height="15"><td valign="top"></td><td valign="top"></td><td valign="top"><p style="MARGIN: 0px">Corporate Secretary</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: auto; font-size-adjust: none; font-stretch: normal" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td width="80%"><p style="MARGIN: 0px" align="center">3</p></td><td width="10%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: rgb(0,0,0) 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p></BODY></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>avino_ex991.htm
<DESCRIPTION>CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
<TEXT>
<html><head><title>avino_ex991.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: 0px 7%" scroll="yes"><p style="MARGIN: 0px" align="right"><strong>EXHIBIT 99.1</strong></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><img src="avino_ex991img1.jpg"></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b><font size="6">AVINO SILVER &amp; GOLD MINES LTD.</font></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="center"><b><font size="3">Condensed Consolidated Interim Financial Statements</font></b></p><p style="MARGIN: 0px" align="center"><strong><font size="3">&nbsp;</font></strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b><font size="3">For the nine months ended September 30, 2016 and 2015</font></b></p><p style="MARGIN: 0px"><br><table id="pagebreake0f5325e-f309-4e86-b857-0082f78b807e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>MANAGEMENT&rsquo;S RESPONSIBILITY FOR FINANCIAL REPORTING</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The condensed consolidated interim financial statements of Avino Silver &amp; Gold Mines Ltd. (the &ldquo;Company&rdquo;) are the responsibility of the Company&rsquo;s management. The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and reflect management&rsquo;s best estimates and judgments based on information currently available. </p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Management has developed and is maintaining a system of internal controls to ensure that the Company&rsquo;s assets are safeguarded, transactions are authorized and properly recorded, and financial information is reliable. </p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Board of Directors is responsible for ensuring that management fulfills its responsibilities. The Audit Committee reviews the results of the annual audit and reviews the condensed consolidated interim financial statements prior to their submission to the Board of Directors for approval. </p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The condensed consolidated interim financial statements as at September 30, 2016, and for the periods ended September 30, 2016 and 2015 have not been audited by the Company&rsquo;s independent auditors. </p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="2" cellpadding="0" width="100%" align="center" border="0" >    <tr><td width="70%"><p style="MARGIN: 0px"><em>&ldquo;David Wolfin&rdquo;</em></p><p style="MARGIN: 0px"><em></em>&nbsp;</p><p style="MARGIN: 0px">David Wolfin</p><p style="MARGIN: 0px">President &amp; CEO</p><p style="MARGIN: 0px">November 8, 2016</p></td><td width="30%"><p style="MARGIN: 0px"><em>&ldquo;Malcolm Davidson&rdquo;</em></p><p style="MARGIN: 0px"><em></em>&nbsp;</p><p style="MARGIN: 0px">Malcolm Davidson, CPA, CA</p><p style="MARGIN: 0px">Chief Financial Officer</p><p style="MARGIN: 0px">November 8, 2016</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak89c04891-7696-4d92-9fda-60f6da69b392" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid">&nbsp;</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Condensed Consolidated Interim Statements of Financial Position</p><p style="MARGIN: 0px" align="justify">(Expressed in Canadian dollars)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Note</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>September 30, </b></p><p style="MARGIN: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>December 31, </b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>(unaudited)</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>ASSETS</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Current assets</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Cash</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">14,908,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">7,475,134</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Amounts receivable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,906,514</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,730,317</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Taxes recoverable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>3</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,205,765</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,053,035</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Prepaid expenses and other assets</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,210,597</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,177,053</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Inventory</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>4</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">8,460,219</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">4,612,234</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">33,691,158</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">20,047,773</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Exploration and Evaluation Assets</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>5</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,438,735</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">41,376,974</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Plant, Equipment and Mining Properties</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>7</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">34,335,397</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">25,733,033</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Reclamation Bonds</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">145,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">145,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Investments </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">52,120</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">38,712</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">104,662,910</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">87,341,992</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>LIABILITIES</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Current liabilities </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,924,086</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">4,178,571</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Amounts due to related parties</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>9<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">277,763</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">217,822</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Taxes payable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">963,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,151,224</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Current portion of term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>10</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,497,867</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,458,660</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Current portion of equipment loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>11</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,290,610</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">222,192</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Current portion of finance lease obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>12</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,764,566</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,815,747</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 0.25in">Current portion of warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>13</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">271,012</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">11,989,200</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">14,044,216</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term Facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>10</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">8,744,667</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">7,381,340</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment Loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>11</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,862,473</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">731,918</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance Lease Obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>12</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,339,837</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,305,534</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Warrant Liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>13</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">65,060</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Reclamation Provision</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>14</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,644,856</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,047,369</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Deferred Income Tax Liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">6,582,123</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">4,892,916</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total liabilities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">36,228,216</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">35,403,293</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>EQUITY</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share Capital </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">79,884,125</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">62,262,954</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equity Reserves </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">9,245,284</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">9,531,512</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Treasury Shares (14,180 shares, at cost)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(101,869</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td></td><td><p style="MARGIN: 0px" align="right">(101,869</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">)</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accumulated Other Comprehensive Income </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,950,978</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,652,534</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accumulated Deficit</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(24,543,824</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(25,406,432</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total Equity</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">68,434,694</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">51,938,699</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">104,662,910</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">87,341,992</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Commitments &#8211; Note 18</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Subsequent Events &#8211; Note 21</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px">Approved by the Board of Directors on November 8, 2016:</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="5" cellpadding="0" width="100%" align="center" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid" width="20%"><p style="MARGIN: 0px"><em>Gary Robertson</em></p></td><td width="2%"></td><td width="20%"><p style="MARGIN: 0px">Director </p></td><td style="BORDER-BOTTOM: black 1px solid" width="20%"><p style="MARGIN: 0px"><em>David Wolfin</em></p></td><td width="2%"></td><td><p style="MARGIN: 0px">Director</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><i>The accompanying notes are an integral part of the condensed consolidated interim financial statements</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak4a3b2e52-f1ef-44e3-9477-bfb9f98e77e0" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 2 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the three and nine months ended September 30, 2016 and 2015</p><p style="MARGIN: 0px">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;   <p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" colspan="6"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Three months ended September 30,</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Nine months ended September 30,</b></p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Note</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><b>2016</b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><b>2015</b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><b>2016</b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><b>2015</b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="left"><b>Revenue from Mining Operations</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>16</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">13,218,226</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">5,028,314</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">27,888,924</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">15,222,738</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Cost of Sales</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>16</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">7,255,272</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">2,839,746</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">16,932,153</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">8,573,411</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Mine Operating Income</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,962,954</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,188,568</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10,956,771</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,649,327</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Operating Expenses</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 0.25in">General and administrative expenses</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>17</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,825,697</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,130,009</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,820,978</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,152,046</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 0.25in">Share-based payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,026,135</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">32,472</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,026,135</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">40,820</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Income before other items </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,111,122</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,026,087</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,109,658</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,456,461</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Other Items</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Foreign exchange gain (loss)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(50,127</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(898,991</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">279,445</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,035,368</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Unrealized gain (loss) on investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">14,020</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(53,194</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13,408</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,440</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Interest and other income (expense)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(28,004</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">27,317</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,169</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Fair value adjustment on warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">334,180</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,942</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(336,073</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">212,118</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Interest expense</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(49,497</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(59,477</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(130,386</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(136,178</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Accretion of reclamation provision</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">60,590</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(34,374</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(89,027</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(101,929</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Net Income Before Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,392,284</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">44,310</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,860,025</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,435,833</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Current income tax recovery (expense)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,369,058</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">655,746</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(3,281,489</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,522,232</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Deferred income tax recovery (expense) </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">143,473</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,325,249</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,803,878</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(786,852</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,225,585</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(669,503</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(5,085,367</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,309,084</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Net Income (Loss)</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,166,699</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(625,193</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">774,658</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">126,749</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px; TEXT-INDENT: -15px" align="left"><b>Other Comprehensive Income (Loss) - </b>Items that may be reclassified subsequently to income or loss</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 22.5pt; TEXT-INDENT: -4.5pt">Currency translation differences of foreign operations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,035,309</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,501,548</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,701,556</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">3,111,102</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Comprehensive Income (Loss)</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,202,008</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">876,355</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(926,898</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,237,851</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Earnings (Loss) per Share</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 17.85pt">Basic</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(e)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.03</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(0.02</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.02</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.00</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 17.85pt">Diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(e)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">0.03</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(0.02</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">0.02</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">0.00</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Weighted Average Number of Common Shares Outstanding </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 17.85pt">Basic</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">41,220,102</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,453,755</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">40,974,524</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,037,472</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 17.85pt">Diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">42,216,480</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">36,800,790</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">41,576,017</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">36,600,853</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table>&nbsp;   <p style="MARGIN: 0px" align="center"><i>The accompanying notes are an integral part of the condensed consolidated interim financial statements</i></p><p style="MARGIN: 0px" align="center"><i>&nbsp;   <p style="MARGIN: 0px"><p style="MARGIN: 0px" align="center"><table id="pagebreak4b03ffe6-84e3-4921-9a8f-39ee3711595a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 3 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></i><p style="MARGIN: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN: 0px">Condensed Consolidated Interim Statements of Changes in Equity</p><p style="MARGIN: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="MARGIN: 0px">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Note</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Number of Common Shares</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Share Capital Amount</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Equity Reserves</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Treasury Shares</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Accumulated Other Comprehensive Income (Loss)</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Accumulated Deficit</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Total Equity</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance, December 31, 2014</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>35,374,813</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>58,606,898</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>10,797,709</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>(101,869</b></td><td valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>1,672,009</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>(25,924,356</b></td><td valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>45,050,391</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="left">Common shares issued for cash:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Brokered public offerings</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">953,589</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,480,397</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,480,397</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less share issuance costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(102,457</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(102,457</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Exercise of stock options</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">381,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">385,920</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">385,920</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="left">Carrying value of stock options exercised</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">330,613</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(330,613</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share-based payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">40,820</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">40,820</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net income for the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">126,749</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">126,749</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="left">Currency translation differences of foreign operations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">3,111,102</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">3,111,102</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance, September 30, 2015</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>36,709,402</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>60,701,371</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>10,507,916</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>(101,869</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>4,783,111</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>(25,797,607</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right"><b>50,092,922</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance, December 31, 2015</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>37,298,009</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>62,262,954</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>9,531,512</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>(101,869</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>5,652,534</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>(25,406,432</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="7%" align="right"><b>51,938,699</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Common shares issued for cash:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Brokered public offerings</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">6,919,562</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">15,726,891</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">15,726,891</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less share issuance costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(622,594</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(622,594</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Exercise of stock options</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,011,900</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,163,470</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,163,470</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="left">Carrying value of stock options exercised</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,324,304</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(1,324,304</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="left">Stock options cancelled or expired</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">(87,950</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">87,950</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="left">Shares issued for exploration and evaluation property</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>5<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">10,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">29,100</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">29,100</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="left">Share-based payments (net of costs of $4,539)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px" align="center"><b>15<b>(b)</b></b></p></td><td valign="bottom" width="1%"><b></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,126,026</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,126,026</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net income for the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">774,658</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">774,658</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="left">Currency translation differences of foreign operations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(1,701,556</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(1,701,556</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance, September 30, 2016</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>45,239,471</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right"><b>$ </b></p></td><td style="BORDER-BOTTOM: black 3px double"><p style="MARGIN: 0px" align="right"><strong>79,884,125</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>9,245,284</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>(101,869</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>3,950,978</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>(24,543,824</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b>)</b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right"><b>68,434,694</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><i>The accompanying notes are an integral part of the condensed consolidated interim financial statements</i></p><p style="MARGIN: 0px" align="center"><i>&nbsp;   <p style="MARGIN: 0px"><p style="MARGIN: 0px" align="center"><table id="pagebreak677320c3-d7a9-45b9-88da-49d211281cab" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 4 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p></i><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Condensed Consolidated Interim Statements of Cash Flows</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="MARGIN-BOTTOM: 0px; BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; MARGIN-TOP: 0px; PADDING-RIGHT: 0in; MARGIN-RIGHT: 0px">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Note</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>2016</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><b>2015</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash Provided By (Used In):</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Operating Activities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net income </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">774,658</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">126,749</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Adjustments for non-cash items:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Deferred income tax expense </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,803,878</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">786,852</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Depreciation and depletion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,480,252</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">950,515</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Share-based payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,026,135</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">40,820</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Fair value adjustment on warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">336,073</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(212,118</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Accretion of reclamation provision</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">89,027</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">101,929</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Foreign exchange loss (gain)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(664,067</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(313,306</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Unrealized loss (gain) on investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(13,408</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">9,440</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,832,548</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,490,881</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net change in non-cash working capital items</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>19</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(2,998,442</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(3,905,970</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,834,106</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(2,415,089</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Financing Activities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Shares and units issued for cash, net of issuance costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">16,267,767</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,763,860</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance lease payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,508,113</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,176,373</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term facility payment</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(861,134</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment loan payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(505,374</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Proceeds from term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">13,345,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">13,393,146</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">13,932,487</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Investing Activities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery of exploration costs from concentrate proceeds</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,020,183</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">15,604,659</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Exploration and evaluation expenditures </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(10,061,555</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(19,745,457</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Additions to plant, equipment and mining properties </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(3,378,791</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(2,806,526</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(7,420,163</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(6,947,324</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Change in cash </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">7,807,089</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,570,074</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Effect of exchange rate changes on cash</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(374,160</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">325,720</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Cash, Beginning</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">7,475,134</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">4,249,794</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Cash, Ending</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">14,908,063</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">9,145,588</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Supplementary Cash Flow Information (Note 19)</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><i>The accompanying notes are an integral part of the condensed consolidated interim financial statements</i></p><p style="MARGIN: 0px" align="center"><em></em>&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakb6ded75f-6c55-4af3-8034-5449c07db009" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 5 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>1.</strong></td><td valign="top" width="96%"><strong>NATURE OF OPERATIONS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="left"></b>Avino Silver &amp; Gold Mines Ltd. (the &ldquo;Company&rdquo; or &ldquo;Avino&rdquo;) was incorporated in 1968 under the laws of the Province of British Columbia, Canada. The Company is engaged in the production and sale of silver, gold, and copper and the acquisition, exploration, and advancement of mineral properties. </p><p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s head office and principal place of business is Suite 900, 570 Granville Street, Vancouver, BC, Canada. The Company is a reporting issuer in Canada and the United States and trades on the TSX Venture Exchange (&ldquo;TSX-V&rdquo;), the NYSE MKT, and the Frankfurt and Berlin Stock Exchanges.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company owns interests in mineral properties located in Durango, Mexico, as well as in British Columbia and the Yukon, Canada. On October 1, 2012, the Company commenced production of silver and gold at levels intended by management at its San Gonzalo Mine, and on April 1, 2016, the Company commenced production of copper, silver, and gold at levels intended by management at its Avino Mine. Both of these mines are located on the Company&rsquo;s Avino property in the state of Durango, Mexico. </p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>2.</strong></td><td valign="top" width="96%"><strong>BASIS OF PRESENTATION</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"></b><b>Statement of Compliance </b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (&ldquo;IAS&rdquo;) 34 &#8211; Interim Financial Reporting under International Financial Reporting Standards (&ldquo;IFRS&rdquo;) issued by the International Accounting Standards Board (&ldquo;IASB&rdquo;). These condensed consolidated interim financial statements follow the same accounting policies and methods of application as the most recent annual consolidated financial statements of the Company, except for the accounting policies which have changed as a result of the adoption of new and revised standards and interpretations which are effective January 1, 2016. These condensed consolidated interim financial statements do not contain all of the information required for full annual financial statements. Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the Company&rsquo;s December 31, 2015 annual consolidated financial statements, which were prepared in accordance with IFRS as issued by the IASB. </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px"><b>Basis of Presentation </b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">These condensed consolidated interim financial statements are expressed in Canadian dollars and have been prepared on a historical cost basis except for financial instruments that have been measured at fair value. In addition, these condensed consolidated interim financial statements have been prepared using the accrual basis of accounting on a going concern basis. The accounting policies set out below have been applied consistently to all years presented in these condensed consolidated interim financial statements as if the policies have always been in effect.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px"><b>Significant Accounting Judgments and Estimates</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s management makes judgments in its process of applying the Company&rsquo;s accounting policies to the preparation of its condensed consolidated interim financial statements. In addition, the preparation of financial data requires that the Company&rsquo;s management make assumptions and estimates of the impacts on the carrying amounts of the Company&rsquo;s assets and liabilities at the end of the reporting period from uncertain future events and on the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company&rsquo;s assets and liabilities are accounted for prospectively. </p><p style="MARGIN: 0px"><br><table id="pagebreakffe43c6d-84ee-4537-b8c6-a2b07abb81b2" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 6 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>2.</strong></td><td valign="top" width="96%"><strong>BASIS OF PRESENTATION</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px"></b><b>Significant Accounting Judgments and Estimates</b> (continued)</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The critical judgments and estimates applied in the preparation of the Company&rsquo;s unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2016, are consistent with those applied and disclosed in note 2 to the Company&rsquo;s audited consolidated financial statements for the year ended December 31, 2015. Effective April 1, 2016, management determined that the Avino Mine, located in the &ldquo;ET zone&rdquo; on the La Platosa property, had commenced production at levels intended by management, as explained in the section &ldquo;commencement of production at levels intended by management&rdquo; below.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b><i>Commencement of production at levels intended by management </i></b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Prior to reaching production levels intended by management, costs incurred are capitalized as part of the costs of related exploration and evaluation assets, and proceeds from concentrate sales are offset against costs capitalized. Depletion of capitalized costs for mining properties and depreciation of plant and equipment begin when operating levels intended by management have been reached. Management considers several factors in determining when a mining property has reached the intended production levels, including production capacity, recoveries, and number of uninterrupted production days. The results of operations of the Company during the periods presented in these condensed consolidated interim financial statements have been impacted by management&rsquo;s determination that the Avino Mine had achieved production levels intended by management as of April 1, 2016. </p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The basis for achievement of production levels intended by management as indicated by technical feasibility and commercial viability is generally established with proven reserves based on a NI 43-101-compliant technical report or a comparable resource statement and feasibility study, combined with pre-production operating statistics and other factors. In cases where the Company does not have a NI 43-101-compliant reserve report on which to base a production decision, such as with the Avino Mine, the technical feasibility and commercial viability of extracting a mineral resource are considered in light of additional factors including but not limited to:</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td width="4%"></td><td valign="top" width="4%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top" width="92%">Acquisition and installation of all critical capital components to achieve desired mining and processing results has been completed. Capital components have been acquired directly and are also available on an as-needed basis from the underground mining contractor;</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">The necessary labour force, including mining contractors, has been secured to mine and process at planned levels of output;</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">The mill has consistently processed at levels above design capacity and budgeted production levels with consistent recoveries and grades; and,</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">The Company has entered into a long-term sales agreement for Avino Mine concentrates.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak3bd2f8f7-7bb1-4695-a0f4-373a54d995f5" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 7 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px; punctuation-wrap: simple"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>2.</strong></td><td valign="top" width="96%"><strong>BASIS OF PRESENTATION</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px; punctuation-wrap: simple"></b><b>Basis of Consolidation</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The condensed consolidated interim financial statements include the accounts of the Company and its Canadian and Mexican subsidiaries as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="92%" align="center" border="0" >    <tr height="15"><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="justify"><strong>Subsidiary</strong></p></td><td width="2%"><strong></strong></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="15%"><p style="MARGIN: 0px" align="justify"><strong>Ownership Interest</strong></p></td><td width="2%"><strong></strong></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="15%"><p style="MARGIN: 0px" align="justify"><strong>Jurisdiction</strong></p></td><td width="2%"><strong></strong></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="25%"><p style="MARGIN: 0px" align="justify"><strong>Nature of Operations</strong></p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="justify">Oniva Silver and Gold Mines S.A. de C.V.</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">100%</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Mexico</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="left">Mexican operations and administration</p></td></tr><tr height="15" bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="justify">Promotora Avino, S.A. de C.V. (&ldquo;Promotora&rdquo;)</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">79.09%</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Mexico</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Holding company</p></td></tr><tr height="15" bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px" align="justify">Compa&#241;&#237;a Minera Mexicana de Avino, S.A. de C.V. </p><p style="MARGIN: 0px" align="justify">(&ldquo;Avino Mexico&rdquo;)</p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="left">98.45% direct </p><p style="MARGIN: 0px" align="left">1.22% indirect (Promotora)</p><p style="MARGIN: 0px" align="left">99.67% effective</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Mexico</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Mining and exploration </p></td></tr><tr height="15" bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px" align="justify">Bralorne Gold Mines Ltd.</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">100%</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Canada</p></td><td></td><td valign="top"><p style="MARGIN: 0px" align="justify">Mining and exploration</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Intercompany balances and transactions, including unrealized income and expenses arising from intercompany transactions, are eliminated in preparing the condensed consolidated interim financial statements.</p><p style="MARGIN: 0px 0px 0px 67px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">On October 20, 2014, the Company acquired a 100% ownership interest in Bralorne Gold Mines Ltd. (&ldquo;Bralorne&rdquo;).</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">On August 26, 2015, the Company converted existing loans advanced to Avino Mexico into new additional shares, resulting in an increase of the Company&rsquo;s ownership by 0.01% to an effective 99.67%. The intercompany loans and investments are eliminated upon consolidation of the financial statements. The Company had a pre-existing effective ownership interest of 99.66% in Avino Mexico prior to the 0.01% increase. The issuance of shares to the Company by Avino Mexico on August 26, 2015, resulted in a reduction in the non-controlling interest from 0.34% to 0.33%.</p><p style="MARGIN: 0px 0px 0px 67px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Financial Instruments</b></p><p style="MARGIN: 0px 0px 0px 67px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">All financial assets are initially recorded at fair value and classified into one of four categories: held to maturity, available for sale, loans and receivables, or fair value through profit or loss (&ldquo;FVTPL&rdquo;). All financial liabilities are initially recorded at fair value and classified as either FVTPL or other financial liabilities. Loans and receivables and other financial liabilities are subsequently measured at amortized cost. Financial instruments comprise cash, amounts receivable, investments, reclamation bonds, accounts payable, amounts due to related parties, term facility, equipment loans, finance lease obligations, and warrant liabilities.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company has classified its cash, amounts receivable, investments, and warrant liabilities as FVTPL. Reclamation bonds are classified as loans and receivables. Accounts payable, amounts due to related parties, term facility, equipment loans and finance lease obligations are classified as other financial liabilities.</p><p style="MARGIN: 0px"><br><table id="pagebreak8f8e31eb-27be-4ebc-a9cf-299550406de0" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 8 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>2.</strong></td><td valign="top" width="96%"><strong>BASIS OF PRESENTATION</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"></b><b>Financial Instruments </b>(continued)</p><p style="MARGIN: 0px 0px 0px 67px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Subsequent to initial recognition, financial assets are measured in accordance with the following: </p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top" width="92%">Financial assets classified as fair value through profit or loss are measured at fair value. All gains and losses resulting from changes in their fair value are included in net income (loss) in the period in which they arise.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">Held-to-maturity investments and loans and receivables are initially measured at fair value and subsequently measured at amortized cost. Amortization of premiums or discounts and transaction costs are amortized into net income (loss), using the effective interest method less any impairment.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iii)</td><td valign="top">Available-for-sale financial assets are measured at fair value, with unrealized gains and losses recorded in other comprehensive income (loss) until the asset is realized, at which time they will be recorded in net income (loss). Other than temporary impairments on available-for-sale financial assets are recorded in net income (loss).</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Subsequent to initial recognition, financial liabilities are measured in accordance with the following: </p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top" width="92%">Financial liabilities classified as other financial liabilities are initially recognized at fair value less transaction costs. After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability or, where appropriate, a shorter period.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">Financial liabilities classified as fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as fair value through profit or loss. Fair value changes to financial liabilities classified as fair value through profit or loss are recognized in net income (loss). At September 30, 2016, the Company classified share purchase warrants with an exercise price in U.S. dollars (see Note 13) as financial liabilities at fair value through profit or loss. As these warrants are exercised, the fair value of the recorded derivative liability on date of exercise is included in share capital along with the proceeds from the exercise. If these warrants expire, the related decrease in the derivative liability is recognized in net income (loss).</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Share-based payment transactions</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s share option plan and restricted share unit (&ldquo;RSU&rdquo;) plan allow directors, officers, employees, and consultants to acquire common shares of the Company. All options and RSUs granted are measured at fair value, and are recognized in the condensed consolidated interim statement of operations and comprehensive income (loss) as an expense or in the condensed consolidated interim statement of financial position as exploration and evaluation assets over the vesting period with a corresponding increase in equity reserves in the condensed consolidated interim statement of financial position.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The fair value of equity-settled RSUs is measured at the grant date based on the market value of the Company&rsquo;s common shares on that date, and each tranche is recognized using the graded vesting method over the period during which the RSUs vest. At each financial position reporting date, the amount recognized as share-based payment is adjusted to reflect the actual number of RSUs that are expected to vest.</p><p style="MARGIN: 0px"><br><table id="pagebreakd79fb894-3b44-463b-b56d-d28aada5ec00" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 9 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%">2.</td><td valign="top" width="96%"><strong>BASIS OF PRESENTATION</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"></b><b>Recent Accounting Pronouncements</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The following accounting standards were issued but not yet effective as of September 30, 2016:</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b><i>IFRS 15 &#8211; Revenue from Contracts with Customers</i></b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">In May 2014, the IASB issued IFRS 15 &#8211; Revenue from Contracts with Customers ("IFRS 15") which supersedes IAS 11 &#8211; Construction Contracts, IAS 18 &#8211; Revenue, IFRIC 13 &#8211; Customer Loyalty Programmes, IFRIC 15 &#8211; Agreements for the Construction of Real Estate, IFRIC 18 &#8211; Transfers of Assets from Customers, and SIC 31 &#8211; Revenue &#8211; Barter Transactions Involving Advertising Services. IFRS 15 establishes a comprehensive five-step framework for the timing and measurement of revenue recognition. The standard is effective for annual periods beginning on or after January 1, 2018. The Company is currently evaluating the impact the final standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b><i>IFRS 9 &#8211; Financial Instruments </i></b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The IASB intends to replace IAS 39 &#8211; Financial Instruments: Recognition and Measurement in its entirety with IFRS 9 &#8211; Financial Instruments (&ldquo;IFRS 9&rdquo;) which is intended to reduce the complexity in the classification and measurement of financial instruments. The standard is effective for annual periods beginning on or after January 1, 2018. The Company is currently evaluating the impact the final standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b><i>IFRS 7 Financial instruments: Disclosure</i></b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">IFRS 7 was amended to require additional disclosures on transition from IAS 39 to IFRS 9. The standard is effective on adoption of IFRS 9, which is effective for annual periods commencing on or after January 1, 2018. The Company is currently evaluating the impact this standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b><i>IFRS 16 Leases</i></b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">IFRS 16 was issued on January 13, 2016, and will be effective for accounting periods beginning on or after January 1, 2019. Early adoption is permitted, provided the Company has adopted IFRS 15. This standard sets out a new model for lease accounting. The Company is currently evaluating the impact this standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Annual improvements</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">In September 2014, the IASB issued the Annual Improvements 2012-2014 cycle, effective for annual periods beginning on or after July 1, 2016. These annual improvements made necessary but non-urgent amendments to existing IFRSs. These amendments are not expected to have a significant impact on the Company's condensed consolidated interim financial statements.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakc7aa0ed5-6ad7-4de0-b0cc-5213ab8d6f70" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 10 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>3.</strong></td><td valign="top" width="96%"><strong>TAXES RECOVERABLE</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"></b>The Company&rsquo;s taxes recoverable consist of the Mexican I.V.A. (&ldquo;VAT&rdquo;) and income taxes recoverable and Canadian sales taxes (&ldquo;GST/HST&rdquo;) recoverable. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="92%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">VAT recoverable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">2,806,460</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,641,023</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Income taxes recoverable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,268,258</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,240,685</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">GST/HST recoverable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">131,047</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">171,327</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">4,205,765</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,053,035</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr height="15"><td valign="top" width="4%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><strong>4.</strong></p></td><td valign="top" width="96%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><strong>INVENTORY</strong></p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="92%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Process material stockpiles</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">4,094,047</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,369,961</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Concentrate inventory</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,950,970</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">221,437</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Materials and supplies</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,415,202</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,020,836</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">8,460,219</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">4,612,234</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The amount of inventory recognized as an expense for the nine months ended September 30, 2016 totalled $16,932,153 (September 30, 2015 &#8211; $8,573,411), and includes production costs and depreciation and depletion directly attributable to the inventory production process.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakd419707e-2d2b-4a27-bee5-e98a8151b52d" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 11 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>5.</strong></td><td valign="top" width="96%"><strong>EXPLORATION AND EVALUATION ASSETS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="left"></b>The Company has accumulated the following acquisition, exploration and evaluation costs which are not subject to depletion:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Durango,</strong></p><p style="MARGIN: 0px" align="center"><strong>Mexico</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>British</strong></p><p style="MARGIN: 0px" align="center"><strong>Columbia,</strong></p><p style="MARGIN: 0px" align="center"><strong>Canada</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Yukon,</strong></p><p style="MARGIN: 0px" align="center"><strong>Canada</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Total</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Balance, January 1, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">19,281,859</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">10,627,360</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">29,909,220</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Costs incurred during 2015:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Mine and camp costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">20,171,792</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,233,511</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">25,405,303</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Provision for reclamation</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,860,437</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,860,437</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,560,711</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,560,711</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Depreciation of plant and equipment </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,002,747</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">153,575</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,156,322</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Drilling and exploration</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">81,545</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">700,920</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">782,465</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Interest and financing costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">240,338</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">259,659</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">499,997</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Geological and related services </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">119,262</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">133,331</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">252,593</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Assessments and taxes</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">137,586</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">41,909</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">179,495</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Assays</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">45,727</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">45,727</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Sale of concentrate</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(21,501,272</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(774,024</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(22,275,296</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Balance, December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">21,094,568</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">20,282,405</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">41,376,974</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Costs incurred during 2016:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Acquisition costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">210,596</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">210,596</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Mine and camp costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,522,132</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,161,718</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">8,683,850</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Depreciation of plant and equipment </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">272,209</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">220,463</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">492,672</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Interest and other costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">136,128</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">487,623</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">623,751</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Drilling and exploration</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">361,783</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">95,421</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">457,204</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Geological and related services </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">15,690</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">188,651</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">204,341</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Assessments and taxes</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">108,057</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">27,614</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">135,671</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Assays</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,349</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,349</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Transfers</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,222,913</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,222,913</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Sale of concentrate</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(6,020,183</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(6,020,183</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(504,577</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(504,577</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Balance, September 30, 2016</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">10,762,894</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">25,675,840</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">36,438,735</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><br><table id="pagebreak25126c0f-a0de-45ec-b001-439ef38c50a1" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 12 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>5.</strong></td><td valign="top" width="96%"><strong>EXPLORATION AND EVALUATION ASSETS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px 0px 0px 45px">Additional information on the Company&rsquo;s exploration and evaluation properties by region is as follows:</p><p style="MARGIN: 0px 0px 0px 17.75pt">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top" width="92%">Durango, Mexico</td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="justify">The Company&rsquo;s subsidiary Avino Mexico owns 42 mineral claims and leases 4 mineral claims in the state of Durango, Mexico. The Company&rsquo;s mineral claims in Mexico are divided into the following four groups:</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top" width="88%">Avino mine area property</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Avino mine area property is situated around the towns of Panuco de Coronado and San Jose de Avino and surrounding the historic Avino mine site. There are four exploration concessions covering 154.4 hectares, 24 exploitation concessions covering 1,284.7 hectares, and one leased exploitation concession covering 98.83 hectares. Within the Avino mine site area is the Company&rsquo;s San Gonzalo mine which achieved production levels intended by management as of October 1, 2012, and on that date accumulated exploration and evaluation costs for the San Gonzalo mine were transferred to mining properties.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ii)</td><td valign="top" width="88%">Gomez Palacio property</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Gomez Palacio property is located near the town of Gomez Palacio, and consists of nine exploration concessions covering 2,549 hectares.</p><p style="MARGIN: 0px 0px 0px 49.7pt; TEXT-INDENT: -31.7pt" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iii)</td><td valign="top" width="88%">Santiago Papasquiaro property</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Santiago Papasquiaro property is located near the village of Papasquiaro, and consists of four exploration concessions covering 2,552.6 hectares and one exploitation concession covering 602.9 hectares.</p><p style="MARGIN: 0px 0px 0px 49.7pt; TEXT-INDENT: -31.7pt" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iv)</td><td valign="top" width="88%">Unification La Platosa properties</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Unification La Platosa properties, consisting of three leased concessions in addition to the leased concession described in note (i) above, are situated within the Avino mine area property around the towns of Panuco de Coronado and San Jose de Avino and surrounding the formerly producing Avino mine. </p><p style="MARGIN: 0px 0px 0px 139px; TEXT-INDENT: -31.7pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">In February 2012, the Company&rsquo;s wholly-owned Mexican subsidiary entered into a new agreement with Minerales de Avino, S.A. de C.V. (&ldquo;Minerales&rdquo;) whereby Minerales has indirectly granted to the Company the exclusive right to explore and mine the La Platosa property known as the &ldquo;ET zone&rdquo;. The ET zone includes the Avino Mine, where production at levels intended by management was achieved on April 1, 2016. </p><p style="MARGIN: 0px 0px 0px 139px; TEXT-INDENT: -31.7pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Under the agreement, the Company has obtained the exclusive right to explore and mine the property for an initial period of 15 years, with the option to extend the agreement for another 5 years. In consideration of the granting of these rights, the Company issued 135,189 common shares with a fair value of $250,100 during the year ended December 31, 2012. </p><p style="MARGIN: 0px 0px 0px 139px; TEXT-INDENT: -31.7pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company has agreed to pay to Minerales a royalty equal to 3.5% of net smelter returns (&ldquo;NSR&rdquo;) at the commencement of production from the property. In addition, after the start of production, if the minimum monthly processing rate of the mine facilities is less than 15,000 tonnes, then the Company must pay to Minerales a minimum royalty equal to the applicable NSR royalty based on processing at a monthly rate of 15,000 tonnes.</p><p style="MARGIN: 0px"><br><table id="pagebreak674cefcb-e679-40a7-bda6-5a1758d4721b" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 13 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>5.</strong></td><td valign="top" width="96%"><strong>EXPLORATION AND EVALUATION ASSETS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"></b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top" width="92%">Durango, Mexico (continued)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iv)</td><td valign="top" width="88%">Unification La Platosa properties (continued)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Minerales has also granted to the Company the exclusive right to purchase a 100% interest in the property at any time during the term of the agreement (or any renewal thereof), upon payment of US$8 million within 15 days of the Company&rsquo;s notice of election to acquire the property. The purchase would be subject to a separate purchase agreement for the legal transfer of the property. </p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company commenced production at levels intended by management at the Avino Mine on April 1, 2016. In connection with the transition to production at levels intended by management the Company assessed the $9,222,913 estimated carrying value of Avino Mine exploration and evaluation assets for impairment, and subsequently transferred the carrying value to inventory in the amount of $3,408,766 and to mining properties in the amount of $5,814,147. </p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">In the periods before production at levels intended by management had been achieved, the Company recorded in its consolidated statement of financial position the costs of extracting and processing mineralized material from the Avino Mine as exploration and evaluation costs, and recorded a reduction to the carrying value of those costs for any proceeds from sales of Avino Mine concentrate. For the nine months ended September 30, 2016, the Company reduced its exploration and evaluation costs in the condensed consolidated interim statement of financial position by $6,020,183 (US$4,425,914) for sales of 2,603 tonnes of Avino Mine copper/silver/gold concentrate, prior to commencing production at levels intended by management on April 1, 2016.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(b)</td><td valign="top" width="92%">British Columbia, Canada</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top" width="88%">Bralorne Mine</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company owns a 100% undivided interest in certain mineral properties located in the Lillooet Mining Division. There is an underlying agreement on 12 crown grants in which the Company is required to pay 1.6385% of Net Smelter Proceeds of Production from the claims, and pay fifty cents ($0.50) per ton of ore produced from these claims if the ore grade exceeds 0.75 ounces per ton gold.</p><p style="MARGIN: 0px 0px 0px 90px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">During the nine months ended September 30, 2016, the Company acquired land and mineral claims for the Bralorne Mine project in connection with ongoing plans for exploration and potential expansion. The acquisitions included nine mineral claims covering approximately 2,114 hectares in the Lillooet Mining Division of British Columbia (the &ldquo;BRX Property&rdquo;), for which the Company paid $65,000 and issued 10,000 common shares at their TSX-V market value of $29,100. The BRX Property carries a 1% net smelter returns royalty to a maximum of $250,000, and a 2&#189;% net smelter returns royalty.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(ii)</td><td valign="top" width="88%">Minto and Olympic-Kelvin properties</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company&rsquo;s mineral claims in British Columbia encompass two additional properties, Minto and Olympic-Kelvin, each of which consists of 100% owned Crown-granted mineral claims located in the Lillooet Mining Division. </p><p style="MARGIN: 0px"><br><table id="pagebreakb87f8da8-a63e-40f6-90ed-f0593c928f67" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 14 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>5.</strong></td><td valign="top" width="96%"><strong>EXPLORATION AND EVALUATION ASSETS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"></b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(c)</td><td valign="top" width="92%">Yukon, Canada</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company has a 100% interest in 14 quartz leases located in the Mayo Mining Division of Yukon, Canada, which collectively comprise the Eagle property. In January 2012, the Company entered into an option agreement on the Eagle property, under which the optionee is required to make cash payments, incur exploration expenditures, and issue shares to the Company in order to earn a 75% interest in the property. During the year ended December 31, 2015, the optionee withdrew from the option agreement, and the entire interest in the property reverted back to the Company.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>6.</strong></td><td valign="top" width="96%"><strong>NON-CONTROLLING INTEREST</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="left"></b>At September 30, 2016, the Company had an effective 99.67% (December 31, 2015 - 99.67%) interest in its subsidiary Avino Mexico and the remaining 0.33% (December 31, 2015 - 0.33%) interest represents a non-controlling interest. The accumulated deficit and current period income (loss) attributable to the non-controlling interest are insignificant and accordingly have not been recognized in the condensed consolidated interim financial statements. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak9d8b446e-5c05-48cd-a4c4-41798f3102ac" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 15 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>7.</strong></td><td valign="top"><strong>PLANT, EQUIPMENT AND MINING PROPERTIES </strong></td></tr></table></p><p style="MARGIN: 0px" align="left">&nbsp;&nbsp;</b></p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Mining</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>properties </b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Office equipment, furniture, and fixtures</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Computer equipment</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Mine machinery and transportation equipment</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Mill machinery and processing equipment</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Buildings</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Total</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>$</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>COST</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at January 1, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">4,518,129</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">65,519</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">223,051</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">8,474,154</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">7,074,760</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,584,932</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">21,940,545</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Additions and transfers</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">799,208</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">14,972</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">47,701</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">4,088,146</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,817,862</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">154,394</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">6,922,283</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">810,601</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">11,755</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">40,018</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">1,520,355</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">1,269,289</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">284,354</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">3,936,372</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">6,127,938</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">92,246</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">310,770</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">14,082,655</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">10,161,911</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">2,023,680</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">32,799,200</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Additions and transfers</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">6,708,333</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">14,101</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">26,398</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">2,825,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,685,087</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,030,195</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">12,289,410</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(287,965</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(4,335</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(14,604</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(661,776</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(477,532</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(95,097</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(1,541,309</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance at September 30, 2016</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">12,548,306</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">102,012</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">322,564</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">16,246,175</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">11,369,466</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">2,958,778</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">43,547,301</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN: 0px" align="left"><b>ACCUMULATED DEPLETION AND DEPRECIATION</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at January 1, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">773,099</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">22,362</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">68,704</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,999,069</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">444,089</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">459,709</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">3,767,032</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Additions</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">708,020</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">11,299</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">41,839</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,464,662</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">331,726</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">65,741</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">2,623,287</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">138,703</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">4,012</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">12,326</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">358,656</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">79,674</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">82,477</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">675,848</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,619,822</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">37,673</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">122,869</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">3,822,387</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">855,489</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">607,927</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">7,066,167</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Additions</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">996,234</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">8,539</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">25,553</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">1,141,416</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">245,027</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">61,024</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right">2,477,793</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(76,119</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(1,771</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(5,774</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(40,201</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(179,623</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(28,568</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right">(332,056</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Balance at September 30, 2016</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">2,539,937</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">44,441</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">142,648</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">4,923,602</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">920,893</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">640,383</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">9,211,904</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>NET BOOK VALUE </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="7%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>At September 30, 2016</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>10,008,369</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>57,571</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>179,916</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>11,322,573</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>10,448,573</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>2,318,395</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="7%" align="right"><b>34,335,397</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">At December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">4,508,116</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">54,573</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">187,901</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">10,260,268</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">9,306,422</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">1,415,753</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="7%" align="right">25,733,033</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Mining properties includes $5,814,147 reclassified from exploration and evaluation assets in connection with the commencement of production at levels intended by management on April 1, 2016. Buildings includes $1,121,647 as at September 30, 2016 (December 31, 2015 - $526,033), on which no depreciation was charged in the periods then ended.</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreake458e588-1883-4049-9335-623259ae5acc" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 16 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>8.</strong></td><td valign="top" width="96%"><strong>INVESTMENTS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="left"></b>The Company classifies its investments as long-term investments designated at fair value through profit and loss.</p><p style="MARGIN: 0px 0px 0px 66px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Investments are summarized as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" valign="bottom" colspan="2" align="center"></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Accumulated Unrealized </strong><strong>Gains </strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Fair Value</strong></p><p style="MARGIN: 0px" align="center"><strong>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Fair Value</strong></p><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Cost</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>(Losses)</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">(a) Avaron Mining Corp.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">40,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(40,000</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">(b) Benz Mining Corp.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">14,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(13,000</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">(c) Levon Resources Ltd.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">803</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">33,791</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">34,594</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12,708</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">(c) VBI Vaccines Inc.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,433</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12,593</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">16,026</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">24,004</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">(d) Oniva International Services Corp.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">58,737</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(6,617</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">52,120</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">38,712</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.25pt">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">During the nine months ended September 30, 2016, the Company recorded an unrealized gain of $13,408 (September 30, 2015 &#8211; unrealized loss of $9,440) on its investments, representing the change in fair value during the period.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><em>(a)</em></td><td valign="top"><em>Avaron Mining Corp. (&ldquo;Avaron&rdquo;)</em></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify"></i>In January 2012, the Company acquired 150,000 common shares of Avaron at a cost of $15,000. In April 2013, Avino received an additional 250,000 common shares at a cost of $25,000. During the year ended December 31, 2015, the carrying value of the Avaron shares was written down to $Nil.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><em>(b)</em></td><td valign="top"><em>Benz Mining Corp. (&ldquo;Benz&rdquo;)</em></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">In April 2013, the Company acquired 50,000 common shares of Benz, and the value assigned at the time to the investment was based on the market price of Benz&rsquo;s common shares on the date the agreement was entered into.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><em>(c)</em></td><td valign="top"><em>Levon Resources Ltd. (&ldquo;Levon&rdquo;) and VBI Vaccines Inc. (&ldquo;VBI&rdquo;)</em></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company&rsquo;s investment in Levon consists of 70,600 common shares with a quoted market value of $34,594 as at September 30, 2016 (December 31, 2015 &#8211; 70,600 common shares with a quoted market value of $12,708.)</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company&rsquo;s investment in VBI was initially obtained in a transaction between Levon and SciVac Therapeutics Inc. (&ldquo;SciVac&rdquo;) during the year ended December 31, 2015 which resulted in the Company exchanging 140,200 common shares of Levon for 140,200 common shares of SciVac. As at September 30, 2016, the Company&rsquo;s investment in VBI (formerly SciVac) consists of 3,530 common shares with a quoted market value of $16,026 (December 31, 2015 &#8211; 141,200 common shares with a quoted market value of $24,004). During the nine months ended September 30, 2016, SciVac completed a reverse-takeover of VBI with VBI continuing as the surviving corporation. SciVac changed its name to VBI Vaccines Inc. and its trading symbol on the TSX to &ldquo;VBV&rdquo;, and listed its shares on the Nasdaq Capital Market. In connection with the VBI transaction a 1:40 share consolidation of SciVac shares was effected on April 29, 2016 and SciVac&rsquo;s shares began trading on a split-adjusted basis on May 2, 2016. Prior to the VBI transaction the Company held 141,200 common shares of SciVac, and upon completion held 3,530 common shares of VBI.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak7a854645-d8a4-47ae-af92-e0f80cb4bec7" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 17 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>8.</strong></td><td valign="top"><strong>INVESTMENTS</strong> (Continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px" align="justify"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><em>(d)</em></td><td valign="top"><em>Oniva International Services Corp. (&ldquo;Oniva&rdquo;)</em></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Prior to December 2015, the Company held a 1/5 indirect beneficial ownership interest in Oniva International Services Corp. (&ldquo;Oniva&rdquo;), with four other companies holding equal 1/5 indirect beneficial ownership interests. David Wolfin and Malcolm Davidson, the Company&rsquo;s CEO and CFO, serve as directors of Oniva, and certain of the Company&rsquo;s directors and officers also serve in those capacities in the four other companies. The companies&rsquo; interests in Oniva were held in trust by David Wolfin until November 2015, when the beneficial ownership interests were dissolved, and legal and beneficial ownership was then solely held by Mr. Wolfin. See Note 9(c) for a description of transactions with Oniva and Note 18 for disclosure of the Company&rsquo;s commitments with Oniva.</p><p style="MARGIN: 0px 0px 0px 21.3pt" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>9.</strong></td><td valign="top"><strong>RELATED PARTY TRANSACTIONS AND BALANCES </strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">All related party transactions are recorded at the exchange amount which is the amount agreed to by the Company and the related party. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(a)</em></strong></td><td valign="top"><b><i>Key management personnel</i></b></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px 0px 0px 90px; punctuation-wrap: simple" align="justify">The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs, including share-based payments, for key management personnel for the three and nine months ended September 30, 2016 and 2015 were as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Three months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Nine months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Salaries, benefits, and consulting fees</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,559,692</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">330,769</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,054,018</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">716,188</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; punctuation-wrap: simple">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(b)</em></strong></td><td valign="top"><b><i>Amounts due to/from related parties</i></b></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">In the normal course of operations the Company transacts with companies related to Avino&rsquo;s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. Advances to Oniva International Services Corp. of $187,920 (December 31, 2015 - $187,532) for expenditures to be incurred on behalf of the Company are included in prepaid expenses and other assets on the condensed consolidated interim statements of financial position. As at September 30, 2016, and December 31, 2015, the following amounts were due to related parties:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Oniva International Services Corp.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">177,276</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">164,285</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Directors</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">83,750</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">47,741</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Jasman Yee &amp; Associates, Inc.</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">16,737</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">5,796</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">277,763</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">217,822</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak6c9bc468-4da4-4e73-95a1-74c185e1b601" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 18 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>9.</strong></td><td valign="top"><strong>RELATED PARTY TRANSACTIONS AND BALANCES</strong> (Continued)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(c)</em></strong></td><td valign="top"><b><i>Other related party transactions</i></b></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company has entered into a cost sharing agreement with Oniva International Services Corp. (&ldquo;Oniva&rdquo;) for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company&rsquo;s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. The cost sharing agreement may be terminated with one-month notice by either party without penalty. The transactions with Oniva during the three and nine months ended September 30, 2016 and 2015 are summarized below:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Three months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Nine months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Office and miscellaneous</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">155,163</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">105,185</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">480,451</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">473,040</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Salaries and benefits</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">99,235</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">111,115</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">270,192</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">341,295</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Exploration and evaluation assets</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">71,810</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">27,770</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">222,687</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">27,770</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">326,208</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">244,070</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">973,330</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">842,105</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (&ldquo;ICC&rdquo;), a company controlled by David Wolfin, the Company&rsquo;s president and CEO and also a director, for consulting services. For the nine months ended September 30, 2016, the Company paid $592,200, including bonus (2015 - $300,000, including bonus) to ICC.</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company pays Jasman Yee &amp; Associates, Inc. (&ldquo;JYAI&rdquo;), a company whose managing director is Jasman Yee, a director of the Company, for operational, managerial, metallurgical, engineering and consulting services related to the Company&rsquo;s activities. For the nine months ended September 30, 2016 and 2015, the Company paid $156,858 and $55,680 respectively to JYAI.</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company pays Wear Wolfin Designs Ltd. (&ldquo;WWD&rdquo;), a company whose director is the brother-in-law of David Wolfin, the Company&rsquo;s president and CEO and also a director, for financial consulting services related to ongoing consultation with stakeholders and license holders. For the nine months ended September 30, 2016 and 2015, the Company paid $20,000 and $22,500 respectively to WWD.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>10.</strong></td><td valign="top"><strong>TERM FACILITY</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">In July 2015, the Company entered into a term facility with Samsung C&amp;T U.K. Limited (&ldquo;Samsung&rdquo;). Pursuant to the agreement, in August 2015 Avino commenced selling concentrates produced from the Avino Mine on an exclusive basis to Samsung, continuing for a period of 24 months, and Samsung made a payment of US$10,000,000 in respect of the facility. Samsung pays for the concentrates at the prevailing metal prices for their silver, copper, and gold content at or about the time of delivery, less treatment, refining, shipping and insurance charges. Interest is charged on the facility at a rate of U.S. dollar LIBOR (3 month) plus 4.75%, and the facility will be repaid in 15 consecutive equal monthly instalments starting in June 2016. </p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">During the nine months ended September 30, 2016, the Company and Samsung agreed to amend the term facility. Under the amendment, the Company made one repayment of US$666,666 in June 2016 and will repay the remaining balance in 14 equal monthly instalments commencing in June 2017 and ending July 2018, and the Company will sell Avino Mine concentrates on an exclusive basis to Samsung until December 2019. The facility is secured by the common shares of the Company&rsquo;s wholly-owned subsidiary Bralorne Gold Mines Ltd.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak923d751f-474a-4741-a96b-3e4af4424273" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 19 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>11.</strong></td><td valign="top"><strong>EQUIPMENT LOANS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company has entered into loans for mining equipment maturing between 2018 and 2020 with fixed interest rates of 4.35% and 5.26% per annum. The Company&rsquo;s obligations under the loans are secured by the mining equipment. As at September 30, 2016, plant, equipment and mining properties includes a net carrying amount of $3,456,781 (December 31, 2015 - $977,582) for this mining equipment.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Contractual maturity and interest charges in respect of the Company&rsquo;s obligations under equipment loans are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Not later than one year</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,414,548</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">261,386</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than one year and not later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,944,067</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">784,595</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less: Future interest charges</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(205,532</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(91,871</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Present value of loan payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,153,083</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">954,110</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less: Current portion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,290,610</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(222,192</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Non-current portion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,862,473</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">731,918</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 0.25in">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">The equipment loan credit facilities are a component of the master credit facilities described in Note 12.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>12.</strong></td><td valign="top"><strong>FINANCE LEASE OBLIGATIONS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company has entered into mining equipment leases expiring between 2016 and 2020 with interest rates ranging from 2% to 11.99% per annum. The Company has the option to purchase the mining equipment at the end of the lease term for a nominal amount. The Company&rsquo;s obligations under finance leases are secured by the lessor&rsquo;s title to the leased assets. As at September 30, 2016, plant, equipment and mining properties includes a net carrying amount of $5,463,412 (December 31, 2015 - $8,162,189) for this leased mining equipment. </p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The contractual maturities and interest charges in respect of the Company&rsquo;s finance lease obligations are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Not later than one year</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,864,047</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,960,844</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than one year and not later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,488,387</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,464,106</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less: Future interest charges</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(248,031</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(303,669</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Present value of minimum lease payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,104,403</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,121,281</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Less: Current portion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,764,566</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,815,747</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Non-current portion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,339,837</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,305,534</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company has two master credit facilities with equipment suppliers for a total of US$10,375,400. The facilities are used to acquire equipment necessary for advancing operations at the San Gonzalo Mine and the Avino Mine, and for continuing exploration activity at the Bralorne Mine. As of September 30, 2016, the Company had US$6,281,810 in available credit remaining under these facilities.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak071c6ef9-bb25-42bd-af91-b0fb49d9a5f0" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 20 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>13.</strong></td><td valign="top"><strong>WARRANT LIABILITIES </strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px"></b>&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">The Company&rsquo;s warrant liabilities arise as a result of the issuance of warrants exercisable in U.S. dollars. As the denomination is different from the Canadian dollar functional currency of the entity issuing the underlying shares, the Company recognizes a derivative liability for these warrants and re-measures the liability at the end of each reporting period using the Black-Scholes model. </p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">A reconciliation of the changes in the warrant liabilities during the nine months ended September 30, 2016 is as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at beginning of the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">239,690</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Fair value adjustment </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">336,072</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(239,690</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at end of the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">336,072</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.3pt">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Derivative warrants of $271,012 with an expiry date within the next twelve months are presented as current liabilities, and derivative warrants of $65,060 with more than one year until expiry are presented as non-current liabilities.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Continuity of derivative warrants during the nine months ended September 30, 2016 is as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Underlying </strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Shares</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" colspan="2"><p style="MARGIN: 0px 0px 0px 10.65pt" align="center"><strong>Weighted Average Exercise Price</strong></p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Derivative warrants outstanding and exercisable, December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,033,059</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td width="3%">US$</td><td width="8%"><p style="MARGIN: 0px 0px 0px 10.65pt" align="right">2.87</p></td><td width="1%">&nbsp;</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Issued</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">40,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid">US$</td><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px 0px 0px 10.65pt" align="right">1.00</p></td><td>&nbsp;</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Derivative warrants outstanding and exercisable, September 30, 2016</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" align="right">1,073,059</td><td style="PADDING-BOTTOM: 3px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double">US$</td><td style="BORDER-BOTTOM: black 3px double"><p style="MARGIN: 0px 0px 0px 10.65pt" align="right">&nbsp;2.80</p></td><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.3pt">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Derivative warrants outstanding and exercisable as at September 30, 2016 are as follows: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" colspan="2"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong></strong>&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Derivative Warrants Outstanding and Exercisable</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="left"><strong>Expiry Date</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" colspan="2"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Exercise Price<br></strong><strong>per Share</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30,<br>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">February 25, 2017</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" width="3%">US$</td><td style="BORDER-BOTTOM: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">2.87</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,033,059</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,033,059</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">March 14, 2019</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double">US$</td><td style="BORDER-BOTTOM: black 3px double"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">1.00</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" align="right">40,000</td><td style="PADDING-BOTTOM: 3px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 3px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.3pt">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">As at September 30, 2016, the weighted average remaining contractual life of warrants outstanding was 0.48 years.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Valuation of the warrant liability requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing warrants is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the warrant liability was calculated using the Black-Scholes model with the following weighted average assumptions and resulting fair values: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="top"><p style="MARGIN: 0px" align="justify">Weighted average assumptions:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Risk-free interest rate</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.51</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.48</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected dividend yield</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected option life (years)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.33</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.14</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected stock price volatility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">83.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">46.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Weighted average fair value</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">0.33</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">0.00</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakc548f230-7bc9-4b2c-b101-4bbd1fac7b7e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 21 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px"><b></b>&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>14.</strong></td><td valign="top"><strong>RECLAMATION PROVISION </strong></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px 0px 0px 45px">Management&rsquo;s estimate of the reclamation provision at September 30, 2016 is $5,644,856 (December 31, 2015 - $6,047,369), and the undiscounted value of the obligation is $6,410,488 (December 31, 2015 - $6,790,812).</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">The present value of the obligation in Mexico was calculated using a risk-free interest rate of 7% (December 31, 2015 &#8211; 7%) and an inflation rate of 4.25% (December 31, 2015 &#8211; 4.25%). Reclamation activities are estimated to begin in 2019 for San Gonzalo and in 2028 for the Avino Mine. </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">The present value of the obligation for Bralorne was calculated using a risk-free interest rate of 3% (December 31, 2015 &#8211; 3%) and an inflation rate of 2.45% (December 31, 2015 &#8211; 2.45%). Reclamation activities are estimated to begin in 2021.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">A reconciliation of the changes in the reclamation provision during the periods is as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px 0px 0px 1.25pt" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>December 31,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at beginning of the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">6,047,369</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">2,005,881</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Unwinding of discount</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">215,285</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">136,925</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Changes in estimates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(315,869</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Effect of movements in exchange rates</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(301,930</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">44,126</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">New provision recognized for the Bralorne Mine project</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">3,860,437</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Balance at end of the period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">5,644,856</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">6,047,369</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><b><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>15.</strong></td><td valign="top"><strong>SHARE CAPITAL AND SHARE-BASED PAYMENT</strong></td></tr></table></p><p style="MARGIN: 0px" align="left">&nbsp;</p></b><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">Authorized: Unlimited common shares without par value.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(b)</td><td valign="top">Issued:</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">During the nine months ended September 30, 2016, the Company continued to issue shares in an at-the-market offering under prospectus supplements, the latest of which was filed on June 14, 2016, for up to US$15,000,000. The Company sold an aggregate of 6,119,562 common shares at an average price of $2.40 (US$1.85) per common share for gross proceeds of $14,666,891 (US$11,302,481) during the nine months ended September 30, 2016. The Company paid a 3% cash commission on the gross proceeds in the amount of $440,000 (US$339,074) and incurred additional accounting, legal, and regulatory costs of $78,570.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top"></td><td valign="top">During the nine months ended September 30, 2016, the Company also issued shares in a brokered public offering issued under a separate US$800,000 prospectus supplement filed on March 10, 2016. In connection with this offering, the Company sold an aggregate of 800,000 common shares at an average price of $1.33 (US$1.00) per common share for gross proceeds of $1,060,000 (US$800,000). The Company paid a 7% cash commission on the gross proceeds in the amount of $74,200 (US$56,000), incurred additional accounting, legal and regulatory costs of $29,824, and issued 40,000 agent&rsquo;s warrants exercisable at US$1.00 until March 14, 2019.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">During the nine months ended September 30, 2016, the Company issued 1,011,900 common shares upon the exercise of stock options for gross proceeds of $1,163,470.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreakaa305c4e-6c6e-45b8-9c06-dbb9c9663174" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 22 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px"><b></b>&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>15.</strong></td><td valign="top"><strong>SHARE CAPITALAND SHARE-BASED PAYMENT </strong>(continued)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(b)</td><td valign="top">Issued (continued):</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(iii)</td><td valign="top">During the year ended December 31, 2015, the Company continued to issue shares in an at-the-market offering under prospectus supplements, the latest of which was filed on May 27, 2015 for up to US$6,000,000. The Company sold an aggregate of 1,001,196 common shares at an average price of $1.55 (US$1.26) per common share for gross proceeds of $1,551,095 (US$1,260,963) during the year ended December 31, 2015. The Company paid a 3% cash commission on the gross proceeds in the amount of $46,533 (US$37,828) and incurred additional accounting, legal and regulatory costs of $58,763.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(iv)</td><td valign="top">During the year ended December 31, 2015, the Company issued 922,000 common shares upon the exercise of stock options for gross proceeds of $937,740.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(c)</td><td valign="top">Stock options:</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">The Company has a stock option plan to purchase the Company&rsquo;s common shares, under which it may grant stock options of up to 10% of the Company&rsquo;s total number of shares issued and outstanding on a non-diluted basis. The stock option plan provides for the granting of stock options to directors, officers, and employees (up to a limit of 5% per individual), and to persons providing investor relations or consulting services (up to a limit of 2% per individual), the limits being based on the Company&rsquo;s total number of issued and outstanding shares per year. The stock options vest on the date of grant, except for those issued to persons providing investor relations services, which vest over a period of one year. The option price must be greater than or equal to the discounted market price on the grant date, and the option term cannot exceed five years from the grant date.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">Continuity of stock options for the nine months ended September 30, 2016 and the year ended December 31, 2015 is as follows:</p></td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Underlying </strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Shares</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 10.65pt" align="center"><strong>Weighted Average Exercise Price</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Stock options outstanding, December 31, 2014</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,361,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.39</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Granted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.32</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Forfeited</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(50,000</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Exercised</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(922,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Stock options outstanding, December 31, 2015</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,439,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.52</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Granted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">802,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">2.95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Exercised</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,011,900</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.15</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Forfeited</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(50,000</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 15px">Expired</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(19,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Stock options outstanding, September 30, 2016</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,160,600</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2.22</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak45c47958-5fd9-4372-a5c9-b0221c57fda6" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 23 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>15.</strong></td><td valign="top"><strong>SHARE CAPITALAND SHARE-BASED PAYMENT </strong>(continued)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></b><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(c)</td><td valign="top">Stock options (continued):</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">As at September 30, 2016, the weighted average remaining contractual life of stock options outstanding was 3.48 years.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">Details of stock options outstanding and exercisable are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="10" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Stock Options Outstanding and Exercisable</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="left"><strong>Expiry Date</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Exercise</strong></p><p style="MARGIN: 0px" align="center"><strong>Price</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30, 2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31, 2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">January 18, 2016</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.02</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">204,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 30, 2016</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.02</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">645,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">February 18, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">149,600</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">195,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 9, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.62</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">306,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">360,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 19, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">747,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">855,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">December 22, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">105,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">130,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 29, 2020</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.32</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 2, 2021</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">2.95</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">777,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,135,600</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,439,500</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Option pricing requires the use of highly subjective estimates and assumptions including the expected stock price volatility. The expected volatility used in valuing stock options is based on volatility observed in historical periods. Changes in the underlying assumptions can materially affect the fair value estimates. The fair value of the options granted during the nine months ended September 30, 2016, was calculated using the Black-Scholes model with the following weighted average assumptions and resulting grant date fair value:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>September 30,<br>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Weighted average assumptions:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Risk-free interest rate</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.69</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected dividend yield</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected option life (years)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5.00</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px 0px 0px 7.1pt" align="justify">Expected stock price volatility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">49.23</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">%</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Weighted average fair value at grant date</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1.26</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 0.3in" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">During the nine months ended September 30, 2016, the Company charged $912,027 (September 30, 2015 - $40,820) to operations as share-based payments and capitalized $99,855 (December 31, 2015 - $Nil) to exploration and evaluation assets for the fair value of stock options granted.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(d)</td><td valign="top">Restricted Share Units:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">On May 27, 2016, the Company&rsquo;s Restricted Share Unit (&ldquo;RSU&rdquo;) Plan was approved by its shareholders. The RSU Plan is administered by the compensation committee under the supervision of the board of directors as compensation to officers, directors, consultants, and employees. The compensation committee determines the terms and conditions upon which a grant is made, including any performance criteria or vesting period. </p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Upon vesting, each RSU entitles the participant to receive one common share, provided that the participant is continuously employed with or providing services to the Company. RSUs track the value of the underlying common shares, but do not entitle the recipient to the underlying common shares until such RSUs vest, nor do they entitle a holder to exercise voting rights or any other rights attaching to ownership or control of the common shares, until the RSU vests and the RSU participant receives common shares. </p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak2aeafb32-a19e-4277-8854-4b95a0bd1861" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 24 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>15.</strong></td><td valign="top"><strong>SHARE CAPITALAND SHARE-BASED PAYMENT </strong>(continued)</td></tr></table></p><p style="MARGIN: 0px" align="justify">&nbsp;</p></b><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(d)</td><td valign="top">Restricted Share Units (continued):</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">On September 2, 2016, 790,000 RSUs were granted, vesting one-third annually from the date of the grant until fully vested at the end of the three-year term. The weighted average fair value at the measurement date was $2.95, based on the TSX-V market price of the Company&rsquo;s shares on the date the RSUs were granted. At September 30, 2016, 80,560 RSUs are available for issuance under the plan.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">During the nine months ended September 30, 2016, the Company charged $114,108 (September 30, 2015 - $Nil) to operations as share-based payments and capitalized $4,575 (December 31, 2015 - $Nil) to exploration and evaluation assets for the fair value of RSUs. The fair value of RSUs is recognized over the vesting period with reference to vesting conditions and the estimated RSUs expected to vest.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(e)</td><td valign="top">Earnings (loss) per share:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px">The calculations for earnings (loss) per share and diluted earnings (loss) per share for the three and nine months ended September 30, 2016 and 2015 are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Three months ended<br>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Nine months ended</strong></p><p style="MARGIN: 0px" align="center"><strong>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net income (loss) for the period </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,166,699</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(625,193</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">774,658</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">126,749</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Basic weighted average number of shares outstanding </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">41,220,102</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,453,755</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">40,974,524</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,037,472</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Effect of dilutive share options </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">996,378</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">347,035</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">601,493</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">563,381</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Diluted weighted average number of shares outstanding </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">42,216,480</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">36,800,790</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">41,576,017</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">36,600,853</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Basic earnings (loss) per share</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.03</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(0.02</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.02</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.00</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Diluted earnings (loss) per share</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.03</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(0.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.00</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table><br></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><table id="pagebreak3079ab9e-0613-48ef-8f0f-e7313512884f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 25 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><b><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>16.</strong></td><td valign="top"><strong>REVENUE AND COST OF SALES</strong></td></tr></table></p><p style="MARGIN: 0px" align="left">&nbsp;</p></b><p style="MARGIN: 0px 0px 0px 45px">Revenue and the related cost of sales reflect the sale of silver, gold and copper concentrate from the Avino Mine upon commencement of commercial production effective April 1, 2016 (six months to September 30, 2016), the sale of silver and gold concentrate from the San Gonzalo mine during the nine months ended September 30, 2016, and the sale of silver and gold concentrate from the San Gonzalo mine and the historic Avino stockpiles for the nine months ended September 30, 2015.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Cost of sales consists of changes in inventories, direct costs including personnel costs, mine site costs, energy costs (principally diesel fuel and electricity), maintenance and repair costs, operating supplies, external services, third party transport fees, depreciation and depletion, and other expenses for the periods. Direct costs include the costs of extracting co-products. Cost of sales is based on the weighted average cost of contained or recoverable ounces sold for the periods and consists of the following:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Three months ended<br>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Nine months ended<br>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Direct costs</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">6,596,179</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">2,481,004</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">15,463,627</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">7,651,160</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Depreciation and depletion </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">659,093</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">358,742</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,468,526</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">922,251</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">7,255,272</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,839,746</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">16,932,153</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">8,573,411</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><b><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>17.</strong></td><td valign="top"><strong>GENERAL AND ADMINISTRATIVE EXPENSES </strong></td></tr></table></p><p style="MARGIN: 0px" align="left">&nbsp;</p></b><p style="MARGIN: 0px 0px 0px 45px" align="justify">General and administrative expenses on the condensed consolidated interim statements of operations consist of the following:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Three months ended</strong></p><p style="MARGIN: 0px" align="center"><strong>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Nine months ended<br>September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr bgcolor="#ffffff"><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Salaries and benefits </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">425,561</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">347,166</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,133,265</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,076,070</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Management and consulting fees</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">681,073</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">304,556</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,047,747</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">623,220</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Office and miscellaneous</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">252,856</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">181,317</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">551,478</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">492,313</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Professional fees</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">95,390</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">121,151</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">284,260</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">436,963</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Investor relations </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">121,581</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">60,471</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">250,733</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">175,239</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Regulatory and compliance fees</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">122,510</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">33,131</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">231,250</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">42,855</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Directors fees </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">71,500</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">26,250</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">161,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">66,250</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN: 0px">Travel and promotion</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">51,380</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">46,227</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">149,519</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">210,872</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN: 0px">Depreciation</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">3,846</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">9,740</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">11,726</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">28,264</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,825,697</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,130,009</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,820,978</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,152,046</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak95a3b2ce-b72f-4327-8bcd-d4b7238ecb45" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 26 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>18.</strong></td><td valign="top"><strong>COMMITMENTS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva&rsquo;s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in Note 9.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements and other contracts are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 8.75pt; TEXT-INDENT: -8.75pt" align="center"><strong>September 30, </strong></p><p style="MARGIN: 0px 0px 0px 8.75pt; TEXT-INDENT: -8.75pt" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31, </strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Not later than one year</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,145,624</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">209,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than one year and not later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">740,990</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">749,242</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">29,980</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">43,951</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,916,594</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,002,256</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.3pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Office lease payments recognized as an expense during the nine months ended September 30, 2016, totalled $76,505 (2015 - $206,370).</p><p style="MARGIN: 0px 0px 0px 17.85pt; TEXT-INDENT: -17.85pt" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>19.</strong></td><td valign="top"><strong>SUPPLEMENTARY CASH FLOW INFORMATION</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30, </strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30, </strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net change in non-cash working capital items:</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Amounts due to related parties</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">37,941</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(1,645</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Amounts receivable </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,176,197</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,391,837</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Taxes recoverable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,152,630</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(945,488</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Inventory</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(253,499</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(128,626</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(232,485</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">547,488</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Taxes payable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(187,928</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(878,069</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Prepaid expenses and other assets</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(33,544</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(107,793</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(2,998,442</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(3,905,970</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Nine months ended</strong></p><p style="MARGIN: 0px" align="center"><strong>September 30, </strong></p><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px" align="center"><strong>Nine months ended</strong></p><p style="MARGIN: 0px" align="center"><strong>September 30,</strong></p><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Interest paid</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">441,045</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">107,588</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Taxes paid</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,641,589</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">4,079,086</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px 0px 0px 21.3pt" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="left"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>20.</strong></td><td valign="top"><strong>FINANCIAL INSTRUMENTS </strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The fair values of the Company&rsquo;s cash, amounts receivable, amounts due to related parties, and accounts payable approximate their carrying values because of the short-term nature of these instruments. The fair values of investments are based on quoted market prices. The carrying amounts of the Company&rsquo;s term facility, equipment loans, and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak69b34cb3-0b85-4b7e-9444-a8d0fbfe2cf9" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 27 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>20.</strong></td><td valign="top"><strong>FINANCIAL INSTRUMENTS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(a)</em></strong></td><td valign="top"><b><i>Credit Risk</i></b></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash and amounts receivable. </p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Company manages credit risk, in respect of cash, by maintaining the majority of cash at highly rated financial institutions.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two counterparties. However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Company&rsquo;s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At September 30, 2016, no amounts were held as collateral.</p></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px"></i></b>&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(b)</em></strong></td><td valign="top"><b><i>Liquidity Risk</i></b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at September 30, 2016, in the amount of $14,908,063 (December 31, 2015 - $7,475,134) in order to meet short-term business requirements. At September 30, 2016, the Company had current liabilities of $11,989,200 (December 31, 2015 - $14,044,216). Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of the term facility, the equipment loans, and the finance lease obligations are due within 12 months of the condensed consolidated interim statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment. </p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">The maturity profiles of the Company&rsquo;s contractual obligations and commitments as at September 30, 2016, are summarized as follows:</p></td></tr></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Total</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Less Than</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>1 Year</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>1-5 years</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>More Than 5 Years</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,946,086</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,946,086</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Taxes payable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">963,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">963,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Due to related parties</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">277,763</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">277,763</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Minimum rental, lease and contract payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,916,594</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,145,624</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">740,990</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">29,980</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12,242,534</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,497,867</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">8,744,667</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,358,615</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,414,548</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,944,067</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance lease obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">3,352,434</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,864,047</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,488,387</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">28,057,322</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">15,109,231</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">12,918,111</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">29,980</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak2ef7dcc4-751d-4a55-9b29-885ea89a6bcd" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 28 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>20.</strong></td><td valign="top"><strong>FINANCIAL INSTRUMENTS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(c)</em></strong></td><td valign="top"><b><i>Market Risk </i></b></td></tr></table><p style="MARGIN: 0px"></i></b><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px">Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify"><em>Interest Rate Risk</em></p><p style="MARGIN: 0px 0px 0px 90px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Interest rate risk consists of two components:</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">To the extent that payments made or received on the Company&rsquo;s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">To the extent that changes in prevailing market rates differ from the interest rates on the Company&rsquo;s monetary assets and liabilities, the Company is exposed to interest rate price risk.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">In management&rsquo;s opinion, the Company is not exposed to significant interest rate cash flow risk as the Company&rsquo;s finance lease obligations bear interest at fixed rates.</p><p style="MARGIN: 0px 0px 0px 90px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify"><i>Foreign Currency Risk</i></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and US dollars: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30, 2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31, 2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>MXN</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>USD</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>MXN</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>USD</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">26,586,627</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">9,888,170</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,876,257</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">4,647,007</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Amounts receivable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,700,301</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,624,555</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(15,087,215</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,484,487</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(12,173,726</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,534,765</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,333,333</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(10,000,000</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,232,499</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(313,052</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance lease obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(592,182</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,901,158</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(155,669</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(2,567,593</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net exposure</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">10,907,230</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(363,006</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(8,453,138</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(7,143,848</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Canadian dollar equivalent</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">733,950</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(476,156</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(680,890</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(9,887,086</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="MARGIN: 0px 0px 0px 35.45pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Based on the net Canadian dollar denominated asset and liability exposures as at September 30, 2016, a 10% fluctuation in the Canadian/Mexican and Canadian/US exchange rates would impact the Company&rsquo;s earnings (loss) for the nine months ended September 30, 2016, by approximately $54,954 (December 31, 2015 - $981,899). The Company has not entered into any foreign currency contracts to mitigate this risk.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak5af0a9c7-43ef-4613-b1f0-1504970fe291" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 29 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>20.</strong></td><td valign="top"><strong>FINANCIAL INSTRUMENTS</strong> (continued)</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(c)</em></strong></td><td valign="top"><b><i>Market Risk </i></b><i>(continued)</i></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px 0px 0px 90px" align="justify"><i>Price Risk</i></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk. </p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company is exposed to price risk with respect to its accounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company&rsquo;s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At September 30, 2016, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $521,489 (December 31, 2015 - $481,448). </p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company is exposed to price risk with respect to its investments as certain of these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income (loss). At September 30, 2016, a 10% change in market prices would have an impact on net earnings (loss) of approximately $5,212 (December 31, 2015 - $3,871).</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The Company&rsquo;s profitability and ability to raise capital to fund mineral resource exploration and mining activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%"><strong><em>(d)</em></strong></td><td valign="top"><b><i>Classification of Financial Instruments</i></b></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</i></b></p><p style="MARGIN: 0px 0px 0px 90px" align="justify">IFRS 7 <i>Financial Instruments: Disclosures </i>establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Level 1 &#8211; quoted prices (unadjusted) in active markets for identical assets or liabilities;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Level 2 &#8211; inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">Level 3 &#8211; inputs for the asset or liability that are not based on observable market data (unobservable inputs).</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 90px" align="justify">The following table sets forth the Company&rsquo;s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2016:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 1</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Financial Assets</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">14,908,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Amounts receivable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,906,514</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">52,120</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Financial Liabilities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(336,072</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">14,960,183</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">4,906,514</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(336,072</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreake7d05bed-5cc2-480a-b5a2-7051273d1dba" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: center">- 30 -</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>AVINO SILVER &amp; GOLD MINES LTD.</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Notes to the condensed consolidated interim financial statements</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">For the nine months ended September 30, 2016 and 2015</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">(Expressed in Canadian dollars) (unaudited)</p><p style="FONT-SIZE: 1px; WIDTH: 100%; BORDER-BOTTOM: #000000 1px solid; MARGIN: 0px">&nbsp;</p><p style="BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; MARGIN: 0px; BORDER-LEFT: medium none; PADDING-RIGHT: 0in">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>21.</strong></td><td valign="top"><strong>SUBSEQUENT EVENTS</strong></td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Share issuances - </b>Subsequent to the nine months ended September 30, 2016, the Company issued 12,100 common shares upon exercise of stock options for proceeds of $19,560.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><b>Commitments -</b> Subsequent to the nine months ended September 30, 2016, the Company entered into a purchase commitment of $298,900 for exploration equipment to be used at the Bralorne Mine. The Company intends to finance the purchase under its existing credit facilities described in Note 12.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="0" width="100%" align="center" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="center">- 31 -</p></td></tr></table></p></BODY></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>avino_ex992.htm
<DESCRIPTION>MANAGEMENT'S DISCUSSION AND ANALYSIS
<TEXT>
<html><head><title>avino_ex992.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: 0px 7%" scroll="yes"><p style="MARGIN: 0px" align="right"><strong>EXHIBIT 99.2</strong></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The following discussion and analysis of the operations, results, and financial position of Avino Silver &amp; Gold Mines Ltd. (the &ldquo;Company&rdquo; or &ldquo;Avino&rdquo;) should be read in conjunction with the Company&rsquo;s condensed consolidated interim financial statements for the nine months ended September 30, 2016, and the audited consolidated financial statements as at and for the year ended December 31, 2015, and the notes thereto. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">This Management&rsquo;s Discussion and Analysis (&ldquo;MD&amp;A&rdquo;) is dated November 8, 2016, and discloses specified information up to that date. The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (&ldquo;IFRS&rdquo;) as issued by the International Accounting Standards Board (&ldquo;IASB&rdquo;). Unless otherwise cited, references to dollar amounts are in Canadian dollars. This MD&amp;A contains &ldquo;forward-looking statements&rdquo; that are subject to risk factors including those set out in the &ldquo;Cautionary Statement&rdquo; at the end of this MD&amp;A. All information contained in this MD&amp;A is current and has been approved by the Company&rsquo;s Board of Directors as of November 8, 2016 unless otherwise indicated. Throughout this report we refer to &ldquo;Avino&rdquo;, the &ldquo;Company&rdquo;, &ldquo;we&rdquo;, &ldquo;us&rdquo;, &ldquo;our&rdquo; or &ldquo;its&rdquo;. All these terms are used in respect of Avino Silver &amp; Gold Mines Ltd. <b><i>We recommend that readers consult the &ldquo;Cautionary Statement&rdquo; on the last page of this report.</i></b> Additional information relating to the Company is available on the Company&rsquo;s website at www.avino.com and on SEDAR at www.sedar.com. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Business Description</u></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Founded in 1968, the Company is engaged in the production and sale of silver, gold, and copper bulk concentrate and the acquisition, exploration and evaluation of mineral properties. The Company holds mineral claims and leases in Durango, Mexico, and in British Columbia and Yukon, Canada. Avino is a reporting issuer in British Columbia and Alberta and a foreign issuer with the Securities and Exchange Commission in the United States. The Company&rsquo;s shares trade on the TSX Venture Exchange, Tier 1, under the symbol &ldquo;ASM&rdquo;, on the NYSE MKT under the symbol &ldquo;ASM&rdquo;, and on the Berlin and Frankfurt Stock Exchanges under the symbol &ldquo;GV6&rdquo;.&nbsp;</p><p style="MARGIN: 0px" align="justify">&nbsp;&nbsp; </p><p style="MARGIN: 0px" align="justify"><table id="pagebreak2fae7db1-930b-41b1-a396-60ed4cb75c02" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">1 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Overall Performance and Highlights</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="BORDER-TOP: black 1px solid; BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; BORDER-LEFT: black 1px solid" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid" valign="middle"><p style="MARGIN: 0px 0px 0px 1pt"><b>HIGHLIGHTS</b></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 4.5pt" align="center"><b>Third Quarter 2016</b></p></td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 4pt" align="center"><b>Third Quarter 2015</b></p></td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Change</b></p></td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#808080"><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="12"><p style="MARGIN: 0px 0px 0px 1pt"><b>Operating </b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Tonnes Milled</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom" width="2%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">138,031</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="2%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="8%" align="right">130,490</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6</td><td valign="bottom" width="1%">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Silver Ounces Produced</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">410,908</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">399,836</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">3</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Gold Ounces Produced</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">1,813</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,644</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">10</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Copper Pounds Produced</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">1,045,091</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,344,174</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-22</td><td valign="bottom"><p style="MARGIN: 0px">%</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Silver Equivalent Ounces<sup>1</sup> Produced</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">649,831</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">770,004</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-16</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">%</p></td></tr><tr bgcolor="#808080"><td style="BORDER-TOP: #000000 0px solid; BORDER-RIGHT: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="top" colspan="13"><p style="MARGIN: 0px 0px 0px 1pt"><b>Concentrate Sales and Cash Costs</b></p></td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Silver Equivalent Ounces Sold<sup>2</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">608,795</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">300,420</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">103</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Cash Cost per Silver Equivalent Ounce<sup>2,3</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">10.83</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">8.26</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">31</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">US$ Cash Cost per Silver Equivalent Ounce<sup>2,3</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0"><p style="MARGIN: 0px" align="right">US$</p></td><td bgcolor="#c0c0c0" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;8.30</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="right">US$</p></td><td><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;6.31</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">32</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">All-in Sustaining Cost per Silver Equivalent Ounce<sup>2,3</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">13.83</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">11.99</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">15</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">US$ All-in Sustaining Cost per Silver Equivalent Ounce<sup>2,3</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0"><p style="MARGIN: 0px" align="right">US$</p></td><td bgcolor="#c0c0c0" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;10.60</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="right">US$</p></td><td><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;9.16</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">16</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Average Realized Silver Price per Ounce ($US) </p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0"><p style="MARGIN: 0px" align="right">US$</p></td><td bgcolor="#c0c0c0" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;19.49</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="right">US$</p></td><td><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;15.75</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">24</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Average Realized Gold Price per Ounce ($US) </p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0"><p style="MARGIN: 0px" align="right">US$</p></td><td bgcolor="#c0c0c0" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;1,328</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="right">US$</p></td><td><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">1,158</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">15</td><td valign="bottom">%</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Average Realized Copper Price per Tonne ($US)</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0"><p style="MARGIN: 0px" align="right">US$</p></td><td style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0" width="8%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;4,804</p></td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">%</p></td></tr><tr bgcolor="#808080"><td style="BORDER-TOP: #000000 0px solid; BORDER-RIGHT: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="top" colspan="13"><p style="MARGIN: 0px 0px 0px 1pt"><b>Financial</b></p></td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Revenues</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">13,218,226</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">5,028,314</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">163</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Mine Operating Income </p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right"><p style="MARGIN: 0px" align="right">5,962,954</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px" align="right">2,188,568</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">172</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Net Income (Loss)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right"><p style="MARGIN: 0px" align="right">1,166,699</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">(625,193</td><td valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">274</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Cash </p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right"><p style="MARGIN: 0px" align="right">14,908,063</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">9,145,588</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">63</td><td valign="bottom">%</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Working Capital </p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">21,701,958</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11,549,712</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">88</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom">%</td></tr><tr bgcolor="#808080"><td style="BORDER-TOP: #000000 0px solid; BORDER-RIGHT: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="top" colspan="13"><p style="MARGIN: 0px 0px 0px 1pt" align="left"><b>Shareholders</b></p></td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Earnings (Loss) per Share ("EPS") &#8211; Basic</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">0.03</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">(0.02</td><td valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">250</td><td valign="bottom">%</td></tr><tr><td valign="top"><p style="MARGIN: 0px 0px 0px 1pt">Cash Flow per Share (YTD)<sup>3</sup></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td bgcolor="#c0c0c0" valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" bgcolor="#c0c0c0" valign="bottom" width="8%" align="right">0.12</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="right">$</p></td><td id="ffcell" valign="bottom" align="right">0.10</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">20</td><td style="PADDING-BOTTOM: 1px" valign="bottom">%</td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>1. Metal production is expressed in terms of silver equivalent ounces, (oz Ag Eq), the formula for which depends on the copper, gold and silver metal prices used in each period and hence are only indicative.</i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>2. &ldquo;Silver equivalent ounces sold&rdquo; for the purposes of cash costs and all-in sustaining costs consists of the sum of silver ounces, gold ounces and copper tonnes sold multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.</i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>3. The Company reports non-IFRS measures which include cash cost per silver equivalent ounce, all-in sustaining cash cost per ounce, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures.</i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">During the nine months ended September 30, 2016, the Company produced 2,985 tonnes of bulk silver/gold concentrate from its San Gonzalo Mine and 7,296 tonnes of copper concentrate from its Avino Mine, and recognized revenues of $9,734,564 on the sale of 2,558 tonnes of bulk San Gonzalo silver/gold concentrate and $18,154,360 on the sale of 5,522 tonnes of Avino Mine silver/gold/copper concentrate for a gross profit of $10,956,771. Metal prices for revenues recognized during the nine months ended September 30, 2016 averaged US$17.94 per ounce of silver, US$1,294 per ounce of gold and US$4,722 per tonne of copper.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash cost per silver equivalent (&ldquo;AgEq&rdquo;) ounce for the quarter ended September 30, 2016 was $10.83, while all-in sustaining cash cost per AgEq ounce was $13.83. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">The Company&rsquo;s cash at September 30, 2016, totaled $14,908,063 compared to $7,475,134 at December 31, 2015. Working capital totaled $21,701,958 at September 30, 2016, compared to $6,003,557 at December 31, 2015.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreak844f5c57-fd64-465a-8000-6ec99ea00819" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">2 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b style="MARGIN: 0px"><u>Discussion of Operations</u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><strong>&nbsp;</strong></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company&rsquo;s production, exploration, and evaluation activities during the nine months ended September 30, 2016, have been conducted on its Avino Property and its Bralorne Mine property. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company holds a 99.67% effective interest in Compa&#241;&#237;a Minera Mexicana de Avino, S.A. de C.V. (&ldquo;Avino Mexico&rdquo;), a Mexican corporation which owns the Avino Property. The Avino Property covers approximately 1,104 contiguous hectares, and is located approximately 80 km north-east of the city of Durango. The Avino Property is equipped with milling facilities that presently process all output from the San Gonzalo and Avino Mines located on the property.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company also holds a 100% interest in the Bralorne Mine property through its ownership of Bralorne Gold Mines Ltd. The Bralorne Mine property consists of a comprehensive package of mineral claims, land parcels, and equipment and infrastructure assembled during historic mining operations in the Bridge River mining camp of southwest British Columbia. </p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Consolidated Third Quarter 2016 Production Highlights</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">Comparative production results from the third quarter of 2016 and the third quarter of 2015 are presented below:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>% Change</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">410,908</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">399,836</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Gold Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,813</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,644</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10</td><td valign="bottom" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Copper Produced (Lbs) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,045,091</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,344,174</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-22</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Eq. Produced (oz) <i>calculated*</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">649,831</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">770,004</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-16</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="BACKGROUND: white; COLOR: black; MARGIN: 0px" align="justify"><i>* Metal production is expressed in terms of silver equivalent ounces, (oz Ag Eq), the formula for which depends on the copper, gold and silver metal prices used in each period and hence are only indicative. </i></p><p style="MARGIN: 0px"><em>&nbsp;</em></p><p style="MARGIN: 0px"><em><table id="pagebreakfc36543a-cd1f-4ab5-9750-afc62ec8b57f" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">3 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"></em><b>Avino Mine Third Quarter 2016 Production Highlights</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify">On June 6, 2016, the Company declared commercial production at the Avino (&ldquo;ET&rdquo;) Mine effective April 1, 2016. Commercial production was declared following an advancement and test period of 19 months. On April 1, 2016, underground mining commenced on upper level 11.5 using the long-hole retreat sub-level caving method. The advancement and test period established that mineral recoveries were at, or above, levels necessary for expected positive cash flows and profitability, which among other critical factors, were significant in making the production decision. As of April 1, 2016, the Company&rsquo;s consolidated statement of operations will reflect the revenues and related production costs from the Avino Mine; this activity was reflected within exploration and evaluation assets on the Company&rsquo;s consolidated statement of financial position prior to the commencement of commercial production. The costs associated with development mining at the Avino Mine are considerably higher and as a result there is an impact on the Company&rsquo;s consolidated gross margin. The Company intends to utilize the long hole retreat sublevel caving method for production mining in the future and expects production costs at the Avino Mine to decrease significantly.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Comparative figures for the third quarter 2016 and the third quarter 2015 for the Avino Mine are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Quarterly</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Change %</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="COLOR: black; MARGIN: 0px" align="center"><b>2016</b></p><p style="COLOR: black; MARGIN: 0px" align="center"><b>YTD Totals</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Notes</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Tonnes Mined</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">116,154</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">105,674</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">347,015</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">1</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Underground Advancement (m)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">866</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,477</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-41</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,249</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">1</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Mill Availability (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">96</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">97</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-1</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">94</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Mill Feed (dry tonnes)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">111,042</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">106,589</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">328,223</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Feed Grade Silver (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">71</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">65</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">9</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">68</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">3</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Feed Grade Gold (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.47</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.23</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">105</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.334</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">3</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Feed Grade Copper (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.48</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.65</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-27</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.534</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">3</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery Silver (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">85</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">88</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-3</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">85</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">6</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery Gold (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">58</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">81</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-29</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">61</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">6</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery Copper (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">89</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">87</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">89</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">6</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Copper Concentrate (dry tonnes)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,362</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,408</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-2</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">7,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Copper Concentrate Grade Silver (kg/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2.83</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2.53</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2.60</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Copper Concentrate Grade Gold (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12.81</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">8.19</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">56</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">9.17</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Copper Concentrate Grade Copper (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">20.07</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">25.3</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-21</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">21.45</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Produced (kg)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,681</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,092</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">18,968</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Gold Produced (g)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">30,250</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">19,718</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">53</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">66,921</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Copper Produced (Kg)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">474,046</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">609,708</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-22</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,565,322</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">214,785</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">195,862</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">609,836</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Gold Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">973</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">634</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">53</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,152</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Copper Produced (Lbs) c<i>alculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,045,091</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,344,174</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-22</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,450,940</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Equivalent Produced (oz) <i>calculated*</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">396,397</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">493,455</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-20</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,226,105</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; BACKGROUND: white; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>* Metal production is expressed in terms of silver equivalent ounces, (oz Ag Eq), the formula for which depends on the copper, gold and silver metal prices used in each period and hence are only indicative. </i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreake3f0a255-d729-43e7-b94b-fb09dedc1629" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">4 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Avino Mine Third Quarter 2016 Highlights</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%">1.</td><td valign="top">There was a 10% increase in tonnes mined during the quarter. However, underground development metres decreased by 41% due to excess water in the ramp leading down to levels 15.5 and 16. An extra 6&rdquo; pipeline has been installed to surface, meaning the additional water can now be pumped out so the lower workings will be accessible again.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">2.</td><td valign="top">Gold and silver production increased by 53% and 10%, respectively. Copper production was down 22%, resulting in overall silver equivalent ounces being down 20% for the quarter.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">3.</td><td valign="top">The lower production is a reflection of the grade and recoveries of the material being processed. The copper grade is down 27%, whereas the gold and silver grades are up 105% and 9% respectively. This lower production is due to mining in a new mineralized zone located on the hanging wall side of the Avino vein beyond the fault.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">4.</td><td valign="top">Tonnage processed during the quarter increased by 4% despite plant availability being down by 1%.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">5.</td><td valign="top">The increased tonnage processed, combined with the lower copper feed grade, resulted in 2% fewer tonnes of concentrate produced. The copper grade of the concentrate decreased by 21%, whereas the silver and gold grades increased by 12% and 56%, respectively.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">6.</td><td valign="top">Since mining took place in a new mineralized zone, which is partially oxidized near the fault, the gold and silver recoveries have decreased by 29% and 3%, respectively, compared with the corresponding period last year when ET vein material was processed. More metallurgical testing will be carried out on this new hanging wall mineralized zone, with the aim of improving the recoveries.</td></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp; &nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify"><i>Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company's discovery of the San Gonzalo and Avino Mine resources, and in the Company's record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012. This approach is being applied for the Avino Mine project, for which similar risks and uncertainties have been identified.</i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreakcbb6f265-1e96-42f2-8f01-eebcc7b56575" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">5 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>San Gonzalo Mine Third Quarter 2016 Production Highlights</b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">Comparative figures for the third quarter 2016 and the third quarter 2015 for the San Gonzalo mine are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Quarterly</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Change %</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>YTD</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Totals</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Notes</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Tonnes Mined</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">30,050</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">23,882</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">26</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">79,265</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">1</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Underground Advancement (m)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,089</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,164</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-6</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,371</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">1</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Mill Availability (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">94</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">84</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">3</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Mill Feed (dry tonnes)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">26,989</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">23,901</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">81,537</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">3</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Feed Grade Silver (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">272</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">323</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-16</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">268</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2,4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Feed Grade Gold (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.30</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.81</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-28</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1.29</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2,4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery Silver (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">83</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">82</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">83</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Recovery Gold (%)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">75</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">73</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">71</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">5</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Bulk Concentrate (dry tonnes)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">923</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">899</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3</td><td valign="bottom" width="1%">%</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,985</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Bulk Concentrate Grade Silver (kg/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6.61</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">7.06</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-6</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6.074</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Bulk Concentrate Grade Gold (g/t)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">28.34</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">34.95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-19</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">24.87</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">4</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Produced (kg)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,100</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,344</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-4</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">18,129</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Gold Produced (g)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">26,152</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">31,407</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-17</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">74,219</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">196,123</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">203,974</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-4</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">582,868</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Gold Produced (oz) <i>calculated</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">841</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,010</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-17</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,386</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total Silver Equivalent Produced (oz) <i>calculated*</i></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">253,434</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">276,549</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-8</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">%</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">760,860</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">2</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px" align="center">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; BACKGROUND: white; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>* Metal production is expressed in terms of silver equivalent ounces, (oz Ag Eq), the formula for which depends on the copper, gold and silver metal prices used in each period and hence are only indicative. </i></p><p style="MARGIN: 0px"><b>&nbsp;</b></p><p style="MARGIN: 0px"><b>San Gonzalo Third Quarter 2016 Highlights</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td width="4%"></td><td valign="top" width="4%">1.</td><td valign="top">Tonnage mined increased by 26%, whereas the underground development in metres decreased by 6% due to the reallocation of manpower as there were fewer accessible areas available for underground development during the quarter.</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top">2.</td><td valign="top">Silver and gold production decreased by 4% and 17%, respectively, resulting in 8% fewer silver equivalent ounces for the quarter compared with the comparable quarter of the previous year. The lower production was mainly due to lower feed grades being processed, which included marginal material from stockpile; feed grades for silver and gold decreased by 16% and 28%, respectively.</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top">3.</td><td valign="top">Tonnage processed increased by 13% on account of a 12% increase in plant availability compared with the comparable quarter of the previous year.</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top">4.</td><td valign="top">The lower feed grades resulted in lower gold and silver grades in the bulk concentrate, which decreased by 19% and 6%, respectively.</td></tr><tr><td></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td></td><td valign="top">5.</td><td valign="top">Silver and gold recoveries improved by 1% and 3%, respectively. These results do not include the production of a low quality zinc concentrate with gold values.</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Under National Instrument 43-101, the Company is required to disclose that it has not based its production decisions on NI 43-101-compliant reserve estimates, preliminary economic assessments, or feasibility studies, and historically projects without such reports have increased uncertainty and risk of economic viability. The Company's decision to place a mine into operation at levels intended by management, expand a mine, make other production-related decisions, or otherwise carry out mining and processing operations is largely based on internal non-public Company data, and on reports based on exploration and mining work by the Company and by geologists and engineers engaged by the Company. The results of this work are evident in the Company's discovery of the San Gonzalo and Avino Mine resources, and in the Company's record of mineral production and financial returns since operations at levels intended by management commenced at the San Gonzalo Mine in 2012. This approach is being applied for the Avino Mine project, for which similar risks and uncertainties have been identified.</i></p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak6012f4a9-425a-42a5-9726-6f5f4abfe93e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">6 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px"><b style="MARGIN: 0px"><u></u></b>&nbsp;</p><p style="MARGIN: 0px"><b style="MARGIN: 0px"><u>Tailings Storage Facility</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Following the receipt of all necessary permits and the completion of an independent engineering study, construction of a new tailings storage facility to service the Avino and San Gonzalo Mines began in August 2016. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The new tailings storage facility (&ldquo;TSF&rdquo;) is being constructed by Desarrollos ROD, S.A. de C.V., and will cover 21 hectares with the ability to store 7.5 million tons of wet tailings. The TSF will be built in 4 stages; the first 2 stages, which are expected to take approximately 6 months to complete, have an estimated cost of US$2.2 million and will provide enough capacity for 6 operating years. Stages 3 and 4, which can be built at any time in the future, have a total estimated cost of approximately US$625,000 and would provide enough storage for an additional 8 years of operations. Environmental permits are valid for 14 years of operations and an additional 11 years post production. The new TSF is being constructed on land owned by Avino.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">A new tailings storage facility is necessary to allow the existing TSF to be decommissioned, which will enable Avino to begin assessing the upper sulphide bench as well as the lower oxide bench in areas that are currently being used to store tailings from our operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Once the new TSF is completed, Avino will decommission the current TSF, then begin installing wells which will be used to pump out the retained water in the current TSF. This is expected to speed up the sonic drilling program planned for the upper benches, provide samples for the metallurgical program, and increase confidence in the oxide resource located below the sulphide tailings which is necessary to move the project forward towards a production decision for an agglomerated heap leach Merrill-Crowe precipitation operation.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Resource Estimate &#8211; Avino Property</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">On September 26, 2016, Avino announced the results of an updated NI 43-101 resource estimate for the Avino Property. The new estimate encompasses the property&rsquo;s San Gonzalo Mine, the main Avino Mine system, and the property&rsquo;s oxide tailings. The estimates have been included in an updated NI 43-101 technical report, prepared by QG Australia Pty Ltd., which was filed on SEDAR on October 12, 2016.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following is a summary of current resources at the San Gonzalo and Avino Mines, as well as the updated oxide tailings resource, grouped into the measured, indicated and inferred categories. The effective date of the resource estimates is August 31, 2016. </p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak25351ec2-d8d7-4e6c-9810-c07a163fd90a" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">7 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px" align="left">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px">The resource estimates were prepared by Michael O&rsquo;Brien P.Geo., Pr.Sci.Nat., who is a &ldquo;Qualified Person&rdquo; within the meaning of National Instrument 43-101 and who is an employee of QG Australia Pty Ltd (an ARANZ Geo Company) and independent of Avino, as defined by Section 1.5 of NI 43-101.</p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="1" width="100%" border="0" >    <tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" colspan="4"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="right">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Measured &amp; Indicated Mineral Resources</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" colspan="4"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Grade</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Metal Contents</b></p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Resource Category</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="14%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Deposit</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cut-off (AgEQ g/t)</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="9%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Metric Tonnes</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">AgEQ g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Ag g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cu%</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Ag Million Tr Oz</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Thousand Tr Oz</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cu T</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Measured</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Avino System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">55</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">950,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">143</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">74</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.33</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.69</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2.3</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">10.0</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">6,550</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Measured</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">San Gonzalo System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">125</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">170,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">357</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">272</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1.50</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.00</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1.5</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">8.2</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total Measured</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>All Deposits</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>1,120,000</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>176</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>105</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.51</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.58</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>3.8</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>18.2</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>6,550</b></p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Indicated</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Avino System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">55</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">500,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">129</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">68</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.36</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.56</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1.1</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5.7</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,800</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Indicated</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">San Gonzalo System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">125</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">320,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">310</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">237</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1.30</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.00</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2.4</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">13.3</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Indicated</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Oxide Tailings</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">50</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1,330,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">124</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">98</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.46</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.00</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">4.2</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">19.8</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total Indicated</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>All Deposits</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2,150,000</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>152</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>111</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.56</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.13</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>7.7</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>38.8</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2,800</b></p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total Measured &amp; Indicated</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>All Deposits</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>3,270,000</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>160</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>109</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.54</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.29</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>11.5</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>57.0</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>9,350</b></p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="1" width="100%" align="center" border="0" >    <tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="bottom" colspan="4"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Inferred Mineral Resources</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" colspan="4"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Grade</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Metal Contents</b></p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Resource Category</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="14%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Deposit</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cut-off (AgEQ g/t)</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="9%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Metric Tonnes</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">AgEQ g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Ag g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au g/t</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cu%</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Ag Million Tr Oz</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Thousand Tr Oz</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="8%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Cu T</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Inferred</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Avino System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">55</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5,790,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">155</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">81</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.57</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.58</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">15.1</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">105.8</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">33,550</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Inferred</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">San Gonzalo System</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">125</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">540,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">403</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">314</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1.58</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.00</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5.5</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">27.5</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Inferred</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Oxide Tailings</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">50</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1,810,000</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">113</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">88</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.44</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.00</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5.1</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">25.6</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0</p></td></tr><tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total Inferred</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>All Deposits</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>8,140,000</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>162</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>98</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.61</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>0.41</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>25.6</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>158.9</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>33,550</b></p></td></tr></table>&nbsp;   <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.</i><i>&nbsp;</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Figures in the table may not add to the totals shown due to rounding.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards - For Mineral Resources and Mineral Reserves" incorporated by reference into National Instrument 43-101 "Standards of Disclosure for Mineral Projects".</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Mineral Resources are reported at cut-off grades 55, 125 and 50 g/t silver equivalent grade for the Avino, San Gonzalo and oxide tailings, respectively, as indicated in the table.</i></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreakebd8fb38-1db1-41a8-9bb7-5d0f110a11ea" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">8 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Exploration</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In late September 2016, Avino began an exploration diamond drilling program between the San Luis Mine, which was last mined in the 1990&rsquo;s, and the ET mine, which is the area of current production; both areas are part of the Avino Mine. </p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The area between&nbsp;the two mines is approximately 300 metres long and 220 metres deep and was recently the subject of a geological review where it was determined that the main Avino vein showed economically viable values, was open at depth and was largely underexplored. The program is designed to include 18 diamond holes totalling approximately 3,000 metres and is intended to test the economics of the mineralization between surface and the 9<sup>th</sup> level of the ET Mine.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify">The work is being carried out by PRASE, S.A. DE C.V. using a LY-44 drill rig owned by Avino. Plans are to complete this program by the end of 2016.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Bralorne Mine</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Bralorne Mine, located approximately 240 km north of Vancouver, British Columbia, is in the exploration and evaluation stage. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">During the third quarter of 2016, the Company continued to develop a strategic operating plan for profitable production at Bralorne. The mine plan includes changing the mining method to long hole mining, which is considered safer and less labour intensive than previous trial methods employed, and is expected to support production levels of up to 300 tpd. New mining equipment is being acquired to replace older equipment and to further mechanize for long hole mining. The first work to be carried out underground will be to test the long hole mining method. Engineering is in progress to expand the mill from 100 tpd to 300 tpd. Engineering is also being carried out to upgrade the surface infrastructure for a 300 tpd operation. Expansion work for the mill and infrastructure is expected to start before the end of 2016. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The tailings impoundment for the Tailings Storage Facility (&ldquo;TSF&rdquo;) was raised in October 2015, and additional buttress work was completed on the impoundment during the third quarter of 2016. The Interim Mine Closure Plan (&ldquo;IMCP&rdquo;) and review process is underway and is expected to be completed by the end of 2016. The work on the TSF, the IMCP and the strategic operating plan is contributing to the Company&rsquo;s goal of obtaining the permits to resume processing and mining activities from British Columbia's Ministry of Energy &amp; Mines and Ministry of Environment. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Resource Estimate &#8211; Bralorne Property</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Subsequent to the end of the quarter, on October 21, 2016, Avino announced the results of an updated NI 43-101 resource estimate for the Bralorne property. The resource estimate has been included in an updated NI 43-101 technical report, prepared by Kirkham Geosystems Ltd., which was filed on SEDAR on October 27, 2016.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakfaa619b8-29e3-486f-b26b-21642b3a4066" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">9 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp; </p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following is a summary of current resources at the Bralorne Property, grouped into the measured, indicated, and inferred categories. The effective date of the resource estimates is October 20, 2016. The resource estimates were prepared by Garth Kirkham, P. Geo., who is a &ldquo;qualified person&rdquo; within the meaning of National Instrument 43-101, and who is an employee of Kirkham Geosystems Ltd. and independent of Avino, as defined by Section 1.5 of NI 43-101.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="2" width="100%" align="center" border="0" >    <tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Class</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Measured</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Indicated</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Measured and Indicated</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" colspan="3"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Inferred</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Tons</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au opt</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Ounces</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Tons</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au opt</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Ounces</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Tons</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au opt</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Ounces</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Tons</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au opt</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" width="7%"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Au Ounces</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">51b FW</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">8,294</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.26</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,176</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">33,466</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.2</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">6,596</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">41,760</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.21</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">8,772</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">147,691</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.19</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">28,785</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">51bFW/HW</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">15,713</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.27</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">4,313</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">26,717</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.62</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">16,639</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">42,430</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.49</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">20,953</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">39,072</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.38</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">14,828</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Alhambra</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">21,915</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.46</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">10,153</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">16,462</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.26</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">4,259</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">38,377</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.38</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">14,412</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">10,454</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.19</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,001</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">BK</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">50,501</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.33</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">16,822</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">50,501</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.33</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">16,822</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">50,430</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.16</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">8,064</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">BK-9870</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5,754</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.53</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">3,058</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5,754</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.53</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">3,058</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">7,327</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.27</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">1,986</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">BKN</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">37,546</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.36</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">13,569</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">37,546</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.36</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">13,569</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">46,972</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.30</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">14,007</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Prince</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">12,790</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.17</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,138</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Shaft</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">41,300</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.28</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">11,432</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">41,300</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.28</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">11,432</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">25,781</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.27</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">6,994</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Taylor</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">15,455</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.16</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,510</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">15,455</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.16</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">2,510</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">23,010</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.22</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">5,097</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">Total</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">45,922</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.36</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">16,643</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">227,201</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.32</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">74,855</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">273,123</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.33</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">91,528</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">363,527</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">0.22</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center">83,900</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.</i><i>&nbsp;</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Figures in the table may not add to the totals shown due to rounding.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum's "CIM Definition Standards - For Mineral Resources and Mineral Reserves" incorporated by reference into National Instrument 43-101 "Standards of Disclosure for Mineral Projects".</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><i>Mineral Resources are reported at cut-off grades 0.1 ounces per ton gold.</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>BRX Claims</u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company entered into an agreement with Great Thunder Gold Corp. (&ldquo;GTG&rdquo;) dated July 8, 2016, for the acquisition of a 100% interest in the BRX Property. The BRX Property consists of nine mineral claims covering approximately 2,114 hectares in the Lillooet Mining Division of British Columbia. Under the terms of the agreement, the Company paid $65,000 and issued 10,000 common shares to GTG, and will pay GTG a 1% net smelter returns royalty to a maximum of $250,000 on the sale of ore or other products from the BRX Property. The BRX Property also has a pre-existing 2&#189;% net smelter returns royalty payable to Levon Resources Ltd.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Quality Assurance/Quality Control</u></b></p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">At the Avino property, mill assays are performed at the on-site lab. Check samples are sent to Inspectorate Labs in Reno, Nevada for verification. All concentrate shipments are assayed by independent third party labs including AHK, LSI, Alex Stewart and SGS.</p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak5dde3bdb-1e60-4cf8-a093-1b1d739c0bf0" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">10 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Qualified Person(s)</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Avino's Mexican projects are under the supervision of Mr. Chris Sampson, P.Eng, BSc, Avino consultant, and Mr. Jasman Yee, P.Eng, Avino director; Avino&rsquo;s Bralorne Mine project is under the supervision of Fred Sveinson, B.A., BSc, P.Eng, Avino Senior Mining Advisor. These individuals are qualified persons (&ldquo;QP&rdquo;) within the context of National Instrument 43-101. The respective QP&rsquo;s have reviewed and approved all the applicable technical data in this MD&amp;A.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Objectives</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Avino's mission is to create shareholder value through profitable organic growth at the Avino Property and the strategic acquisition and advancement of mineral exploration and mining properties. We are committed to expanding our operations and managing all business activities in an environmentally responsible and cost-effective manner while contributing to the well-being of the communities in which we operate. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">The Company remains focused on the following key objectives:</p><p style="MARGIN-BOTTOM: 0px; COLOR: ; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="COLOR: ; MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="3%">1.</td><td valign="top">Maintain and improve profitable mining operations while managing operating costs and achieving efficiencies;</td></tr><tr><td valign="top" width="3%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="3%">2.</td><td valign="top">Advance the Bralorne project towards profitable production;</td></tr><tr><td valign="top" width="3%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="3%">3.</td><td valign="top">Explore regional targets on the Avino Property followed by other properties in our portfolio;</td></tr><tr><td valign="top" width="3%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="3%">4.</td><td valign="top">Assess the potential for processing the oxide tailings resource from previous milling operations and</td></tr><tr><td valign="top" width="3%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="3%">5.</td><td valign="top">Identify and evaluate potential projects for acquisition.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Avino Mine Concentrate Sales </u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Since re-opening the Avino Mine in the second half of 2014, the Company has extracted and processed mineralized material from the Mine on a continuous basis as it advanced the project from the exploration and evaluation stage to the production stage. During 2015 and the first three quarters of 2016, the Company also arranged for sales of the mineralized material to further advance the project, and this material is processed into concentrate at Mill Circuits 2 and 3. The Company&rsquo;s financial statements cite a number of factors which generally outline the advancement of a project from the exploration and evaluation stage to the production stage, including an assessment of a project&rsquo;s technical feasibility and commercial viability. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company commenced commercial production at the Avino Mine on April 1, 2016. In the periods before the commencement of commercial production, the Company recorded in its consolidated statement of financial position the costs of extracting and processing mineralized material from the Avino Mine as exploration and evaluation costs, and recorded a reduction to the carrying value of those costs for any proceeds from sales of Avino Mine concentrate. In the condensed consolidated interim statement of financial position for the nine months ended September 30, 2016, the Company recorded mine and camp costs of $4,522,132 and reduced its exploration and evaluation costs by $6,020,183 for sales of Avino Mine concentrate prior to the commencement of commercial production on April 1, 2016.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Non &#8211; IFRS Measures </u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><u>Cash cost per ounce, all-in sustaining cash cost per ounce, and cash flow per share</u></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash cost per ounce, all-in sustaining cash cost per ounce, and cash flow per share are measures developed by mining companies in an effort to provide a comparable standard. However, there can be no assurance that our reporting of these non-IFRS measures is similar to that reported by other mining companies. Total cash cost per ounce, all-in sustaining cash cost per ounce, and cash flow per share are measures used by the Company to manage and evaluate operating performance of the Company&rsquo;s mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS, and are disclosed in addition to IFRS measures. </p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak8d70cda2-812e-4e2f-a65a-12ddf6eea9eb" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">11 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Management of the Company believes that the Company&rsquo;s ability to control the cash cost per silver equivalent ounce is one of its key performance drivers impacting both the Company&rsquo;s financial condition and results of operations. Achieving a low silver equivalent production cost base allows the Company to remain profitable from mining operations even during times of low commodity prices, and provides more flexibility in responding to changing market conditions. In addition, a profitable operation results in the generation of positive cash flows, which then improves the Company&rsquo;s financial condition. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company has adopted the reporting of &ldquo;all-in sustaining cash cost per silver equivalent ounce&rdquo;. This measure has no standardized meaning throughout the industry. However, it is intended to provide additional information. Avino presents all-in sustaining cash cost because it believes that it more fully defines the total current cost associated with producing a silver equivalent ounce. Further, the Company believes that this measure allows investors of the Company to better understand its cost of producing silver equivalent ounces, and better assess the Company&rsquo;s ability to generate cash flow from operations. Although the measure seeks to reflect the full cost per silver equivalent ounce of production from current operations, it does not include capital expenditures attributable to mine expansions, exploration and evaluation costs attributable to growth projects, income tax payments, and financing costs. In addition, the calculation of all-in sustaining cash costs does not include depreciation and depletion expense as it does not reflect the impact of expenditures incurred in prior periods. The Company&rsquo;s calculation of all-in sustaining cash costs includes sustaining capital expenditures of $nil for the nine months ended September 30, 2016, as substantially all of the mining equipment used at the San Gonzalo and Avino Mines has been newly purchased or refurbished. The Company has planned for sustaining capital expenditures in future years in accordance with mine operating plans and expected equipment utilization levels. Although this measure is not representative of all of the Company&rsquo;s cash expenditures, management believes that it is a useful measure in allowing it to analyze the efficiency of its mining operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company also presents cash flow per share as it believes it assists investors and other stakeholders in evaluating the Company's overall performance and its ability to generate cash flow from current operations. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">To facilitate a better understanding of these measures as calculated by the Company, detailed reconciliations between the non-IFRS measures and the Company&rsquo;s consolidated financial statements are provided below. The measures presented are intended to provide additional information, and should not be considered in isolation nor should they be considered substitutes for IFRS measures. Calculated figures may not add up due to rounding.</p><p style="MARGIN: 0px">&nbsp;<br><table id="pagebreake2cf6b0d-7ed0-4666-b770-a617dde74996" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">12 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Cash Cost and All-in Sustaining Cash Cost per Silver Equivalent Ounce</u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following tables provide a reconciliation of cost of sales from the consolidated financial statements to cash cost and all-in sustaining cash cost per silver equivalent ounce sold. In each table, &ldquo;silver equivalent ounces sold&rdquo; consists of the sum of silver ounces, gold ounces and copper tonnes sold multiplied by the ratio of the average spot gold and copper prices for the corresponding period.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>San Gonzalo </b><b>(expressed in Canadian dollars)</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="10" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2016</strong></p></td><td style="BORDER-RIGHT: black 1px solid"></td><td></td><td style="BORDER-BOTTOM: black 1px solid" colspan="18"><p style="MARGIN: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Year</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q4</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cost of sales</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">1,681,677</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,975,861</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">976,764</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">10,819,386</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,388,284</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,697,437</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">3,535,980</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,197,685</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Depreciation and depletion</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(192,825</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(358,957</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(99,008</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(1,317,073</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(401,168</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(352,396</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(542,504</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(21,005</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash production cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,488,852</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,616,904</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">877,756</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">9,502,313</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,987,116</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,345,041</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,993,476</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,176,680</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Silver equivalent ounces sold</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">179,823</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">209,955</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">155,507</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">1,122,232</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">241,114</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">282,624</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">345,300</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">253,194</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.28</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">12.46</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">5.64</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.47</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.24</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.30</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.67</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.60</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">General and administrative expenses</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">841,226</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">371,392</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">878,577</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">4,175,862</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,073,913</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,090,088</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,051,942</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">959,919</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share-based payments</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(303,095</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(40,012</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(31,664</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">38</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(8,386</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash operating cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">2,026,981</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">2,988,296</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">1,756,333</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">13,638,163</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,061,029</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,403,465</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">4,045,456</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,128,213</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">All-in sustaining cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.27</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">14.23</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.29</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.15</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.70</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.04</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.72</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.36</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce ($US)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8.64</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.05</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8.22</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.50</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.51</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.20</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.53</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">10.09</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">During the third quarter of 2016, the cash cost and all-in sustaining cost per silver equivalent ounce at San Gonzalo was relatively consistent with previous quarters in the preceding year, and the decrease compared to the second quarter of 2016 reflects lower tonnage processed offset by higher grades and recoveries.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Avino Mine </b><b>(expressed in Canadian dollars)</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="10" align="center"><strong>2016</strong></td><td style="BORDER-RIGHT: black 1px solid"></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="18" align="center"><strong>2015</strong></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Year</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q4</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cost of sales</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">5,573,595</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">5,724,256</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Depreciation and depletion</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(466,268</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(351,466</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash production cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">5,107,327</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">5,372,790</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Silver equivalent ounces sold</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">428,972</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">416,882</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">11.91</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">12.89</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">General and administrative expenses</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,006,760</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">737,432</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share-based payments</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(723,040</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash operating cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">6,391,047</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">6,110,222</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">14.90</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">14.66</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce ($US)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.42</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.38</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table>&nbsp;   <p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">During the second quarter of 2016, the Company commenced commercial production at the Avino Mine. Cash cost and all-in sustaining cost per silver equivalent ounce at Avino remained relatively consistent with the preceding quarter.</p><p style="MARGIN: 0px"><br><table id="pagebreak10db744d-5e3e-47ae-804a-2d2764894d5b" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">13 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Historical Stockpiles </b><b>(expressed in Canadian dollars)</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="10" align="center"><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="18" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Year</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q4</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cost of sales</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">142,308</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">142,308</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Depreciation and depletion</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(6,345</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(6,345</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash production cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">135,963</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">135,963</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Silver equivalent ounces sold</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">17,797</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">17,797</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">7.64</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">7.64</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">General and administrative expenses</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">62,653</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">62,653</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">-</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share-based payments</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(808</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(808</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash operating cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">197,808</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">197,808</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.11</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.11</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce ($US)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-LEFT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8.69</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8.69</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">During the third quarter of 2016, the Company did not sell material from the historic stockpiles, as Mill Circuit 2 was used to process San Gonzalo and Avino Mine material. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Consolidated </b><b>(expressed in Canadian dollars)</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="10" align="center"><p style="MARGIN: 0px" align="center"><strong>2016</strong></p></td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="18" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Year</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q4</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Q1</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cost of sales</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">7,255,272</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">8,700,117</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">976,764</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">10,961,694</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,388,284</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,839,746</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">3,535,980</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="6%" align="right">2,197,685</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Depreciation and depletion</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(659,093</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(710,423</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(99,008</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(1,323,418</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(401,168</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(358,742</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(542,504</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(21,005</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash production cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">6,596,179</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">7,989,694</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">877,756</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">9,638,276</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,987,116</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,481,004</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,993,476</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,176,680</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Silver equivalent ounces sold</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">608,795</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">626,837</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">155,507</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">1,140,029</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">241,114</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">300,421</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">345,300</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">253,194</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">10.83</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">12.75</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">5.64</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.45</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.24</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.26</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.67</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom">$</td><td id="ffcell" valign="bottom" align="right">8.60</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">General and administrative expenses</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">2,847,986</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,108,824</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">878,577</td><td style="BORDER-RIGHT: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">4,238,515</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,073,913</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,152,741</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">1,051,942</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" align="right">959,919</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Share-based payments</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(1,026,135</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(40,820</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(32,472</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">38</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">(8,386</td><td style="PADDING-BOTTOM: 1px" valign="bottom">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash operating cost</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8,418,028</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9,098,518</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">1,756,333</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">13,835,971</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,061,029</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,601,273</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">4,045,456</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">3,128,213</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">All-in sustaining cash cost per silver equivalent ounce</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">13.83</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">14.51</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.29</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.14</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.70</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.99</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.72</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">12.36</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px" align="left">All-in sustaining cash cost per silver equivalent ounce ($US)</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">10.60</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">11.27</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">8.22</td><td style="BORDER-RIGHT: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.49</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.51</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.16</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">9.53</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">10.09</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company continues to review its expenditures, and is maintaining cost reduction programs in key areas to achieve lower costs. Ongoing cost reduction activities include negotiating more favourable terms with vendors, while maintenance costs are expected to decrease as a result of utilizing newer mining equipment. </p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreakaa7ae077-cfd1-42dd-bf28-59a9f8ab3cce" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">14 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Cash Flow per Share </u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash flow per share is determined based on operating cash flows before movements in working capital, as illustrated in the consolidated statements of cash flows, divided by the basic and diluted weighted average shares outstanding during the period. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Nine months Ended September 30,</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Operating cash flows before movements in working capital </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">4,832,548</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,490,881</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Weighted average number of shares outstanding</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Basic</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">40,974,524</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,037,472</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 10pt">Diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">41,576,017</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">36,600,853</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Cash Flow per Share &#8211; basic and diluted</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>0.12</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>0.04</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Working Capital </u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><b>September 30, </b></p><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>December 31, </b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Current assets </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">33,691,158</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">20,047,773</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Current liabilities </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(11,989,200</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(14,044,216</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Working capital</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">21,701,958</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">6,003,557</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Results of Operations</u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Summary of Quarterly Results</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr bgcolor="#c0c0c0"><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2014</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-RIGHT: #000000 0px solid; BORDER-BOTTOM: #000000 0px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#c0c0c0"><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Quarter ended</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Sep 30</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Q3</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Jun 30<br>Q2</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Mar 31<br>Q1</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Dec 31<br>Q4</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Sep 30<br>Q3</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Jun 30<br>Q2</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Mar 31<br>Q1</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-TOP: #000000 0px solid; BORDER-BOTTOM: black 1px solid; BORDER-LEFT: #000000 0px solid" valign="bottom" width="7%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Dec 31<br>Q4</b></p></td><td style="BORDER-TOP: #000000 0px solid; BORDER-RIGHT: #000000 0px solid; BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px; BORDER-LEFT: #000000 0px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Revenue</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">13,218,226</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">11,918,749</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">2,751,949</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">3,860,109</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">5,028,314</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">5,908,883</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">4,285,541</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="7%" align="right">3,714,692</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Earnings (Loss) for the quarter</b></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">1,116,699</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(450,087</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">58,046</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">370,675</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(625,193</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">361,655</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">376,287</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">469,145</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Earnings (Loss) per </b><b>share - basic</b></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.03</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.00</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(0.02</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="COLOR: black; MARGIN: 0px" align="left"><b>Earnings (Loss) per </b><b>share - diluted</b></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.03</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.00</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">(0.02</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">0.01</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td style="BORDER-BOTTOM: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total&nbsp;</b><b>Assets</b></p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">104,662,910</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">93,911,346</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">85,683,111</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">87,341,992</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">81,567,998</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">74,007,743</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">70,197,816</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="7%" align="right">61,416,147</td><td style="BORDER-BOTTOM: black 1px solid; PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><font style="FONT-FAMILY: Symbol"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Revenue in the second and third quarter of 2016 was higher than that of previous quarters as the Company commenced commercial production at the Avino Mine as of April 1, 2016. The Company&rsquo;s consolidated statement of operations will reflect the revenues and related production costs from the Avino Mine going forward; this activity was reflected within exploration and evaluation assets on the Company&rsquo;s consolidated statement of financial position prior to April 1, 2016.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%"><font style="FONT-FAMILY: Symbol">&#183;</font></td><td valign="top">Earnings for the third quarter of 2016 were higher compared to earnings of the preceding quarters primarily driven by continued profitable operations in Mexico.</td></tr></tr></table><p style="MARGIN: 0px"><p style="MARGIN: 0px">&nbsp;</font>&nbsp;   <table id="pagebreakdd94d5b7-d1d1-498a-84e1-90a425350bf3" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">15 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Quarterly results will fluctuate with changes in revenues, cost of sales, general and administrative expenses, including non-cash items such as share-based payments, and other items including foreign exchange and deferred income taxes. </p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Three months ended September 30, 2016, compared to the three months ended September 30, 2015: </b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Note</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Revenue from Mining Operations</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">13,218,226</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">5,028,314</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>1</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Cost of Sales</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">7,255,272</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">2,839,746</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>2</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Mine Operating Income</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,962,954</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,188,568</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>2</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Operating Expenses</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">General and administrative expenses</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,825,697</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,130,009</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>3</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Share-based payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,026,135</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">32,472</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>4</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Income before other items</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,111,122</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,026,087</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Other Items </b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Fair value adjustment on warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">334,180</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">36,942</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>5</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Accretion of reclamation provision</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">60,590</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(34,374</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Foreign exchange gain (loss)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(50,127</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(898,991</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>6</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Interest expense</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(49,497</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(59,477</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Interest and other income (expense)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(28,004</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">27,317</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 17.75pt">Unrealized gain (loss) on investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">14,020</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(53,194</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Net Income Before Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,392,284</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">44,310</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Current income tax recovery (expense)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,369,058</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">655,746</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>7</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Deferred income tax recovery (expense)</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">143,473</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,325,249</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>7</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,225,585</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(669,503</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Net Income (Loss)</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,166,699</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(625,193</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Earnings (Loss) per Share</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 17.85pt">Basic</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.03</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(0.02</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 17.85pt">Diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.03</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(0.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%">1.</td><td valign="top">Revenues for the three months ended September 30, 2016 were $13,218,226 compared to $5,028,314 for the three months ended September 30, 2015. The increase of $8,189,912 reflects commencement of commercial production at the Avino Mine effective April 1, 2016.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">2.</td><td valign="top">Mine operating income increased as a result of the commencement of commercial production at the Avino Mine effective April 1, 2016. The Company&rsquo;s gross margin on the sale of San Gonzalo concentrates was consistent with previous periods; however, the current quarter now reflects the mine operating income from the Avino Mine. The Company expects to continue to improve the gross margin of the Avino Mine as it transitions from development mining, at a higher cost, to production mining in the coming months.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">3.</td><td valign="top">General and administrative expenses include management, consulting, and director fees, salaries, office expenses, investor relations, regulatory and compliance fees, travel and promotion. For the three months ended September 30, 2016, general and administrative expenses were $1,825,697 compared to $1,130,009 for the three months ended September 30, 2015. The increase from the comparative quarter reflects expanding operations and corporate activity affecting fees and salaries, office expenses, investor relations costs and regulatory and compliance fees incurred by the Company. Although the Company&rsquo;s operations are expanding, management continues to monitor general and administrative expenses carefully to maintain efficient operations.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak327b67bb-c25a-40e8-ab25-c20eb8313e85" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">16 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%">4.</td><td valign="top">Share-based payments include the issuance of stock options and the vesting of restricted share units (&ldquo;RSUs&rdquo;) issued to directors, officers, employees and consultants of the Company. For the three months ended September 30, 2016, share-based payments were $1,026,135 compared to $32,472 for the three months ended September 30, 2015. This is due to the issuance of stock options and RSUs during the third quarter of 2016.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">5.</td><td valign="top">The fair value adjustment on the Company&rsquo;s warrant liability relates to the issuance of U.S. dollar denominated warrants which are re-valued each reporting period, and the value fluctuates with changes in the US-Canadian dollar exchange rate and in the variables used in the valuation model, such as share price and expected share price volatility.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">6.</td><td valign="top">Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar. During the three months ended September 30, 2016, the US dollar was relatively consistent in relation to the Canadian dollar and the Mexican peso. During the three months ended September 30, 2015, the US dollar strengthened compared to the Canadian dollar and Mexican peso, and the Company&rsquo;s net US dollar liabilities resulted in higher foreign exchange losses.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">7.</td><td valign="top">Current income tax expense was $2,369,058 for the three months ended September 30, 2016, compared to current income tax recovery of $655,746 in the three months ended September 30, 2015. Deferred income tax recovery was $143,473 for the three months ended September 30, 2016, compared to deferred tax expense of $1,325,249 in the comparative quarter. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to the special mining duty in Mexico and to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors. The changes in current income taxes and deferred income taxes for the three months ended September 30, 2016 primarily relate to movements in the tax bases and increased mining profits at the Avino Mine property.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">8.</td><td valign="top">As a result of the foregoing, net income for the three months ended September 30, 2016 was $1,166,699, an increase of $1,791,892 compared to net loss of $625,193 for the three months ended September 30, 2015. The increase resulted in basic and diluted earnings per share of $0.03 for the three months ended September 30, 2016, compared to basic and diluted loss per share of $0.02 in the comparative quarter.</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak6bf820ab-4e17-4b99-9fca-50679df5a68d" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">17 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><b>Nine months ended September 30, 2016, compared to the nine months ended September 30, 2015: </b></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 7.1pt"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 7.1pt"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 7.1pt"><b>Note</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Revenue from Mining Operations</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">27,888,924</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">15,222,738</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>1</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Cost of Sales</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">16,932,153</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">8,573,411</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>2</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Mine Operating Income</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">10,956,771</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,649,327</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>2</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr height="15" bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Operating Expenses</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">General and administrative expenses</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,820,978</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,152,046</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>3</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Share-based payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,026,135</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">40,820</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>4</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Income before other items </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,109,658</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,456,461</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15" bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Other Items</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Fair value adjustment on warrant liability</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(336,073</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">212,118</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>5</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Foreign exchange gain (loss) </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">279,445</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,035,368</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>6</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Interest expense</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(130,386</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(136,178</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Accretion of reclamation provision</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(89,027</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(101,929</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Unrealized gain (loss) on investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13,408</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,440</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Interest and other income</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">13,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">50,169</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Net Income Before Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">5,860,025</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,435,833</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Income Taxes</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Current income tax expense</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(3,281,489</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,522,232</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>7</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Deferred income tax expense</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,803,878</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(786,852</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>7</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(5,085,367</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(2,309,084</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Net Income</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">774,658</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">126,749</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Earnings per share</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Basic</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.02</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">0.00</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px 0px 0px 15px">Diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.02</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">0.00</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px" align="center"><b>8</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%">1.</td><td valign="top">Revenues for the nine months ended September 30, 2016, were $27,888,924 compared to $15,222,738 for the nine months ended September 30, 2015. The increase of $12,666,186 reflects commencement of commercial production at the Avino Mine effective April 1, 2016. Prior to April 1, 2016, the revenues, and related costs of production, were capitalized as commercial production had not been declared.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">2.</td><td valign="top">Costs of sales reflect the costs of the production for the Avino and San Gonzalo mines. The gross margin on the sale of San Gonzalo concentrates is consistent with prior periods The Company utilizes both production and development methods of mining. The costs associated with development mining are considerably higher and as a result there is an impact on the Company&rsquo;s consolidated gross margin. The Company expects to continue to improve the gross margin of the Avino Mine as it transitions from development mining to production mining in the coming months.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">3.</td><td valign="top">General and administrative expenses include management, consulting, and director fees, salaries, office expenses, investor relations, travel, and promotion. For the nine months ended September 30, 2016, general and administrative expenses were $3,820,978 compared to $3,152,046 for the nine months ended September 30, 2015. The increase from the comparative period reflects expanding operations and corporate activity affecting fees and salaries, office expenses, investor relations costs and regulatory and compliance fees incurred by the Company. Although the Company&rsquo;s operations are expanding, management continues to monitor general and administrative expenses carefully to maintain efficient operations.</td></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak244ec9d4-8049-455a-af87-dcdcfae3a510" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">18 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="3%">4.</td><td valign="top">Share-based payments include the issuance of stock options and the vesting of restricted share units (&ldquo;RSUs&rdquo;) issued to directors, officers, employees and consultants of the Company. For the nine months ended September 30, 2016, share-based payments were $1,026,135 compared to $40,820 for the nine months ended September 30, 2015. This is due to the issuance of stock options and RSUs during the third quarter of 2016.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">5.</td><td valign="top">The fair value adjustment on the Company&rsquo;s warrant liability relates to the issuance of U.S. dollar denominated warrants which are re-valued each reporting period, and the value fluctuates with changes in the US-Canadian dollar exchange rate and in the variables used in the valuation model, such as share price and expected share price volatility.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">6.</td><td valign="top">Foreign exchange gains or losses result from transactions in currencies other than the Canadian dollar. During the nine months ended September 30, 2016, the US dollar was relatively consistent in relation to the Canadian dollar and the Mexican peso. During the nine months ended September 30, 2015, the US dollar strengthened compared to the Canadian dollar and Mexican peso, and the Company&rsquo;s net US dollar liabilities resulted in foreign exchange losses.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">7.</td><td valign="top">Current income tax of $3,281,489 in the nine months ended September 30, 2016 compared to $1,522,232 in the nine months ended September 30, 2015. The change in current income taxes primarily relates to mining activities at the Avino Mine property.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%"></td><td valign="top">Deferred income tax expense was $1,803,878 for the nine months ended September 30, 2016, compared to a deferred tax expense of $786,852 in the comparative period. Deferred income tax fluctuates due to movements in taxable and deductible temporary differences related to the special mining duty in Mexico and to changes in inventory, plant, equipment and mining properties, and exploration and evaluation assets, amongst other factors.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top" width="3%">8.</td><td valign="top">As a result of the foregoing, net income for the nine months ended September 30, 2016, was $774,658, an increase of $647,909 compared to net income of $126,749 for the nine months ended September 30, 2015. The increase in net income has increased basic and diluted earnings per share from earnings of $0.00 for the nine months ended September 30, 2015, to earnings of $0.02 for the nine months ended September 30, 2016.</td></tr></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Liquidity and Capital Resources</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company&rsquo;s ability to generate sufficient amounts of cash, in both the short term and the long term, to maintain existing capacity and to fund ongoing exploration is dependent upon the discovery of economically recoverable reserves or resources and the ability of the Company to obtain the financing necessary to generate and sustain profitable operations.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify">Management expects that the Company&rsquo;s ongoing liquidity requirements will be funded from cash generated from current operations and from further financing as required in order to fund ongoing exploration activities and meet its objectives, including ongoing advancement at the Avino Mine. The Company continues to evaluate financing opportunities to advance its projects. The Company&rsquo;s ability to secure adequate financing is in part dependent on overall market conditions, the prices of silver, gold, and copper, and other factors outside the Company&rsquo;s control, and there is no guarantee the Company will be able to secure any or all necessary financing in the future. The Company&rsquo;s recent financing activities are summarized in the table below.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakb1108198-b642-475d-a37d-8d7592b2311b" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">19 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="3" width="100%" align="center" border="0" >    <tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="50%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Intended Use of Proceeds</b></p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top" width="50%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Actual Use of Proceeds</b></p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Since July 2014, the Company has received gross proceeds of US$13,346,561 in connection with a brokered at-the-market offering issued under prospectus supplements. The Company intends to use the proceeds to advance the exploration of the Bralorne Mine property and the Avino property, and for working capital.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In March 2016, the Company received gross proceeds of US$800,000 in connection with a brokered public offering issued under a prospectus supplement. The funds will be used to advance the development of the Avino mine and its operations and production, for continued development at the Bralorne mine, and for general working capital.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In July 2015, the Company entered into a term facility agreement with Samsung C&amp;T U.K. Limited for US$10,000,000. The facility will be used for mining equipment, to optimize the advancement of the Company&rsquo;s projects for increased productivity, for improvements to its tailings impoundment facilities, and for general working capital requirements.</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">As of the date of this MD&amp;A, the Company had used, and was continuing to use, the funds as intended. There has been no impact on the ability of the Company to achieve its business objectives and milestones. In advancing the Avino Mine, and in supporting mining operations in Mexico, the Company incurred exploration expenditures of $5,143,788 (excluding depreciation of $272,209 and foreign exchange movements of $504,577, and before proceeds from sale of concentrate), acquired property and equipment of $3,003,605, and made lease and loan repayments of $1,893,506 during the nine months ended September 30, 2016. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In advancing the Bralorne Mine, the Company incurred exploration expenditures of $4,917,767 (excluding depreciation of $220,463 and other non-cash expenses of $259,788), acquired property and equipment of $375,186, and made lease and loan repayments of $119,981. </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company intends to continue to explore its properties, subject to market conditions and the ability to continue to obtain suitable financing.</p><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In May 2015, the Company entered into a master credit facility with Sandvik Customer Finance LLC for US$5,000,000. The facility is being used to acquire equipment necessary for continuing exploration activities at the Avino and Bralorne Mines.</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">As of the date of this MD&amp;A, the Company had used, and was continuing to use, the facility as intended, and there was US$3,030,132 in available credit remaining under the facility. There has been no impact on the ability of the Company to achieve its business objectives and milestones.</p><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In December 2014, the Company&rsquo;s master credit facility with Caterpillar Finance was renewed for US$5,375,400. The facility is being used to acquire equipment necessary for advancing operations at the San Gonzalo Mine and for operations and continuing exploration activities at the Avino Mine.</p><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid" valign="top"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">As of the date of this MD&amp;A, the Company had used, and was continuing to use, the facility as intended, and there was US$3,185,528 in available credit remaining under the facility. There has been no impact on the ability of the Company to achieve its business objectives and milestones.</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify">Subsequent to September 30, 2016, the Company filed a short form base prospectus in Canada and a corresponding registration statement in the United States. Upon necessary receipt of regulatory approvals and the filing and preparation of additional prospectus supplements, the base prospectus would allow the Company to offer common shares, warrants, subscription receipts, units, debt and/or convertible securities, or any combination thereof up to an aggregate of US$50 million for a period of 25 months. The aggregate offering available under the base prospectus does not represent an estimate of possible future financing requirements of the Company, and no offering under the base prospectus has been made as of the date of this MD&amp;A. The Company filed the base prospectus as part of its long-term capital management and will consider any future offerings under the base prospectus in light of potential future expansion, acquisition or other corporate purposes.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;   <table id="pagebreak01d5f685-43f5-4c93-b51f-b7fee08ecdbc" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">20 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Discussion and analysis relating to the Company&rsquo;s liquidity as at September 30, 2016, December 31, 2015, and September 30, 2015 is as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr style="MARGIN: 0px"><td valign="bottom"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Statement of Financial Position</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><strong>September 30,</strong></p><p style="MARGIN: 0px"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px"><strong>December 31,</strong></p><p style="MARGIN: 0px"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">14,908,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">7,475,134</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Working capital</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">21,701,958</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">6,003,557</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accumulated Deficit </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(24,543,824</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(25,406,432</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b><u>Cash Flow </u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><b>September 30, </b></p><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>September 30, </b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015 </b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Cash generated by (used in) operating activities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1,834,106</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">(2,415,089</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Cash generated by financing activities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13,393,146</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">13,932,487</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Cash used in investing activities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(7,420,163</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(6,947,324</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Change in cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">7,807,089</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,570,074</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Effect of exchange rate changes on cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(374,160</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">325,720</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Cash and cash equivalents, beginning of period</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">7,475,134</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">4,249,794</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px"><b>Cash and cash equivalents, end of period</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">14,908,063</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">9,145,588</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Operating Activities</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash generated by operating activities for the nine months ended September 30, 2016, was $1,834,106 compared to cash used in operating activities of $2,415,089 for the nine months ended September 30, 2015. Cash generated or used by operating activities can fluctuate with changes in net income, non-cash items, such as foreign exchange and deferred income tax expenses, and working capital.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Financing Activities</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash generated by financing activities was $13,393,146 for the nine months ended September 30, 2016, compared to cash generated by financing activities of $13,932,487 for the nine months ended September 30, 2015, a decrease of $539,341. Cash generated by financing activities for the nine months ended September 30, 2016, relates to the issuance of common shares brokered offerings issued under prospectus supplements and the issuance of common shares upon the exercise of stock options. During the nine months ended September 30, 2016, the Company issued common shares in brokered offerings generating net cash flows of $15,167,297 (September 30, 2015 &#8211; $1,377,940), and employees, consultants, and directors exercised stock options generating cash flows of $1,100,470 (September 30, 2015 &#8211; $385,920). During the nine months ended September 30, 2016, the Company also made finance lease and equipment loan payments totalling $2,013,487 (September 30, 2015 - $1,176,373) and a term facility repayment of $861,134 (September 30, 2015 &#8211; $Nil). During the nine months ended September 30, 2015, the Company also received a concentrate prepayment loan for Avino Mine concentrate to be shipped over future periods.</p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak8cc59074-c7be-4d26-af26-5330d3aa0342" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">21 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Investing Activities</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Cash used in investing activities for the nine months ended September 30, 2016 was $7,420,163 compared to $6,947,324 for the nine months ended September 30, 2015. Cash used in investing activities during the nine months ended September 30, 2016, includes cash expenditures of $3,378,791 (September 30, 2015 - $2,806,526) on the acquisition of property and equipment. Equipment purchases included new mining, milling/processing, and transportation equipment for the Company&rsquo;s San Gonzalo Mine and exploration and mining equipment for the Avino Mine and Bralorne Mine properties. During the nine months ended September 30, 2016, the Company also incurred cash expenditures of $10,061,555 (September 30, 2015 - $19,745,457) on exploration and evaluation activities, of which $5,143,788 related to the exploration and advancement of the Avino Mine and $4,917,767 related to the exploration of the Bralorne Mine. The cash expenditures on exploration and evaluation activities for the nine months ended September 30, 2016, were reduced by concentrate sales of $6,020,183 (September 30, 2015 - $14,860,807) for the Avino Mine and $Nil (September 30, 2015 - $743,852) for the Bralorne Mine.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Off-Balance Sheet Arrangements</b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company has no off-balance sheet arrangements.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Transactions with Related Parties</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>(a)</strong></td><td valign="top">The Company has identified its directors and certain senior officers as its key management personnel. The compensation costs, including share-based payments, for key management personnel for the three and nine months ended September 30, 2016 and 2015 are as follows:</td></tr></table></p><p style="MARGIN: 0px">&nbsp;<b>&nbsp;</b>&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Three months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN: 0px" align="center"><strong>Nine months ended September 30,</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px; TEXT-INDENT: 15.2pt" align="center"><strong>2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Salaries, benefits, and consulting fees</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,559,692</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">330,769</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">2,054,018</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">716,188</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>(b)</strong></td><td valign="top">In the normal course of operations, the Company transacts with companies related to Avino&rsquo;s directors or officers. All amounts payable and receivable are non-interest bearing, unsecured and due on demand. Advances to Oniva International Services Corp. of $187,920 (December 31, 2015 - $187,532) for expenditures to be incurred on behalf of the Company are included in prepaid expenses and other assets on the condensed consolidated interim statements of financial position. As at September 30, 2016 and December 31, 2015, the following amounts were due to related parties:</td></tr></table><p><p style="MARGIN: 0px">&nbsp;</b></p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="COLOR: black; MARGIN: 0px 0px 0px 27pt; TEXT-INDENT: -27pt" align="center"><b>September 30, </b></p><p style="COLOR: black; MARGIN: 0px 0px 0px 27pt; TEXT-INDENT: -27pt" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="COLOR: black; MARGIN: 0px 0px 0px 27pt; TEXT-INDENT: -27pt" align="center"><b>December 31, </b></p><p style="COLOR: black; MARGIN: 0px 0px 0px 27pt; TEXT-INDENT: -27pt" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Oniva International Services Corp.</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>177,276</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>164,285</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Directors</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>83,750</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>47,741</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Jasman Yee &amp; Associates, Inc.</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>16,737</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>5,796</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>277,763</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>217,822</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong>(c)</strong></td><td valign="top"><b>Other related party transaction</b></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">Prior to December 2015, the Company held a 1/5 indirect beneficial ownership interest in Oniva International Services Corp. (&ldquo;Oniva&rdquo;), with four other companies holding equal 1/5 indirect beneficial ownership interests. David Wolfin and Malcolm Davidson, the Company&rsquo;s CEO and CFO, respectively, serve as directors of Oniva, and certain of the Company&rsquo;s directors and officers also serve in those capacities in the four other companies. The companies&rsquo; interests in Oniva were held in trust by David Wolfin until November 2015, when the beneficial ownership interests were dissolved, and legal and beneficial ownership was then solely held by Mr. Wolfin.</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr height="15"><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">The Company has a cost sharing agreement with Oniva for office and administration services. Pursuant to the cost sharing agreement, the Company will reimburse Oniva for the Company&rsquo;s percentage of overhead and corporate expenses and for out-of-pocket expenses incurred on behalf of the Company. The cost sharing agreement may be terminated with one-month notice by either party without penalty.</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak57c9502a-5429-4289-99c4-fbdda74107f5" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">22 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The transactions with Oniva during the three and nine months ended September 30, 2016 and 2015 are summarized below:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Three months ended September 30,</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Nine months ended September 30,</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2016</b></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>2015</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Office and miscellaneous</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>155,163</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>105,185</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>480,451</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b>$</b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>473,040</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Salaries and benefits</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>99,235</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>111,115</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>270,192</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" valign="bottom" width="9%" align="right"><b>341,295</b></td><td valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Exploration and evaluation assets</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>71,810</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>27,770</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>222,687</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right"><b>27,770</b></td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>326,208</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>244,070</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>973,330</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b>$</b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>842,105</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN: 0px 0px 0px 0.25in" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">For services provided to the Company as President and Chief Executive Officer, the Company pays Intermark Capital Corporation (&ldquo;ICC&rdquo;), a company controlled by David Wolfin, the Company&rsquo;s president and CEO and also a director, for consulting services. For the nine months ended September 30, 2016, the Company paid $592,200, including bonus (2015 - $300,000, including bonus) to ICC.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The Company pays Jasman Yee &amp; Associates, Inc. (&ldquo;JYAI&rdquo;), a company whose managing director is Jasman Yee, a director of the Company, for operational, managerial, metallurgical, engineering and consulting services related to the Company&rsquo;s activities. For the nine months ended September 30, 2016 and 2015, the Company paid $156,858 and $55,680 respectively to JYAI.</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The Company pays Wear Wolfin Designs Ltd. (&ldquo;WWD&rdquo;), a company whose director is the brother-in-law of David Wolfin, the Company&rsquo;s president and CEO and also a director, for financial consulting services related to ongoing consultation with stakeholders and license holders. For the nine months ended September 30, 2016 and 2015, the Company paid $20,000 and $22,500 respectively to WWD.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><u>Financial Instruments and Risks</u></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The fair values of the Company&rsquo;s cash, amounts receivable, amounts due to related parties, and accounts payable approximate their carrying values because of the short-term nature of these instruments. The fair values of investments are based on quoted market prices. The carrying amounts of the Company&rsquo;s term facility, equipment loans and finance lease obligations are a reasonable approximation of their fair values based on current market rates for similar financial instruments.</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">The Company&rsquo;s financial instruments are exposed to certain financial risks, including credit risk, liquidity risk, and market risk.</p><p style="COLOR: black; MARGIN: 0px">&nbsp;</p><b><i><p style="COLOR: black; MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong><em>(a)</em></strong></td><td valign="top"><b><i>Credit Risk</i></b></td></tr></table></p><p style="COLOR: black; MARGIN: 0px">&nbsp;</p></i></b><p style="MARGIN: 0px 0px 0px 45px" align="justify">Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company has exposure to credit risk through its cash and amounts receivable. </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company manages credit risk, in respect of cash, by maintaining the majority of cash at highly rated financial institutions.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company is exposed to a significant concentration of credit risk with respect to its trade accounts receivable balance because all of its concentrate sales are with two counterparties. However, the Company has not recorded any allowance against its trade receivables because to-date all balances owed have been settled in full when due (typically within 60 days of submission) and because of the nature of the counterparties.</p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s maximum exposure to credit risk at the end of any period is equal to the carrying amount of these financial assets as recorded in the consolidated statement of financial position. At September 30, 2016, no amounts were held as collateral.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px"><table id="pagebreakb78d45aa-410a-47c9-89a6-5d10909c773e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">23 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b style="MARGIN: 0px"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong><em>(b)</em></strong></td><td valign="top"><b><i>Liquidity Risk</i></b></td></tr></table></i></b><p style="MARGIN: 0px" align="justify">&nbsp;   <p style="MARGIN: 0px 0px 0px 45px" align="justify">Liquidity risk is the risk that the Company will encounter difficulty in satisfying financial obligations as they become due. The Company manages its liquidity risk by forecasting cash flows required by its operating, investing and financing activities. The Company had cash at September 30, 2016, in the amount of $14,908,063 (December 31, 2015 - $7,475,134) in order to meet short-term business requirements. At September 30, 2016, the Company had current liabilities of $11,989,200 (December 31, 2015 - $14,044,216). Accounts payable have contractual maturities of approximately 30 to 90 days, or are due on demand and are subject to normal trade terms. The current portions of the term facility, the equipment loans, and the finance lease obligations are due within 12 months of the condensed consolidated interim statement of financial position date. Amounts due to related parties are without stated terms of interest or repayment.   <p style="COLOR: black; MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The maturity profiles of the Company&rsquo;s contractual obligations and commitments as at September 30, 2016 are summarized as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Total</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Less Than</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>1 Year</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>1-5 years</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px" align="center">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>More Than 5 Years</b></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,946,086</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,946,086</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Taxes payable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">963,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">963,296</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Due to related parties</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">277,763</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">277,763</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Minimum rental, lease and contract payments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,916,594</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,145,624</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">740,990</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">29,980</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">12,242,534</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,497,867</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">8,744,667</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,358,615</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,414,548</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,944,067</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance lease obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">3,352,434</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,864,047</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">1,488,387</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Total</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">28,057,322</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">15,109,231</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">12,918,111</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">29,980</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><b style="MARGIN: 0px"><i><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong><em>(c)</em></strong></td><td valign="top"><b><i>Market Risk</i></b></td></tr></table></i></b><p style="MARGIN: 0px" align="justify"><b style="MARGIN: 0px"><i>&nbsp;   <p style="MARGIN: 0px 0px 0px 45px"></i></b>Market risk consists of interest rate risk, foreign currency risk and price risk. These are discussed further below.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><i>Interest Rate Risk</i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Interest rate risk consists of two components:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">To the extent that payments made or received on the Company&rsquo;s monetary assets and liabilities are affected by changes in the prevailing market interest rates, the Company is exposed to interest rate cash flow risk.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">To the extent that changes in prevailing market rates differ from the interest rates on the Company&rsquo;s monetary assets and liabilities, the Company is exposed to interest rate price risk.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">In management&rsquo;s opinion, the Company is not exposed to significant interest rate cash flow risk as the Company&rsquo;s term facility, equipment loans, and finance lease obligations bear interest at fixed rates. </p><p style="MARGIN: 0px">&nbsp;   <table id="pagebreak9f2ab89b-f9c3-4eef-8563-14248ccabb73" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">24 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><i>Foreign </i><i>Currency</i><i> Risk</i></p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that the following monetary assets and liabilities are denominated in Mexican pesos and U.S. dollars: </p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="85%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30, 2016</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="6" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31, 2015</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td></tr><tr><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>MXN</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>USD</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>MXN</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>USD</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">26,586,627</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">9,888,170</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,876,257</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">4,647,007</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Amounts receivable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">3,700,301</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2,624,555</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Accounts payable and accrued liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(15,087,215</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,484,487</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(12,173,726</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,534,765</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Term facility</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(9,333,333</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(10,000,000</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Equipment loans</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(1,232,499</td><td valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">(313,052</td><td valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Finance lease obligations</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(592,182</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(1,901,158</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(155,669</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(2,567,593</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Net exposure</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">10,907,230</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(363,006</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(8,453,138</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(7,143,848</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Canadian dollar equivalent</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">733,950</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(476,156</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(680,890</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(9,887,086</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="COLOR: black; MARGIN: 0px 0px 0px 17.85pt" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">Based on the net Canadian dollar denominated asset and liability exposures as at September 30, 2016, a 10% fluctuation in the Canadian/Mexican and Canadian/US exchange rates would impact the Company&rsquo;s earnings for the nine months ended September 30, 2016 by approximately $54,954 (December 31, 2015 - $981,899). The Company has not entered into any foreign currency contracts to mitigate this risk. </p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify"><i>Price Risk</i></p><p style="MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk or foreign currency risk.</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The Company is exposed to price risk with respect to its accounts receivable, as certain trade accounts receivable are recorded based on provisional terms that are subsequently adjusted according to quoted metal prices at the date of final settlement. Quoted metal prices are affected by numerous factors beyond the Company&rsquo;s control and are subject to volatility, and the Company does not employ hedging strategies to limit its exposure to price risk. At September 30, 2016, based on outstanding accounts receivable that were subject to pricing adjustments, a 10% change in metals prices would have an impact on net earnings (loss) of approximately $521,489 (December 31, 2015 - $481,448).</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The Company is exposed to price risk with respect to its investments, as certain of these investments are carried at fair value based on quoted market prices. Changes in market prices result in gains or losses being recognized in net income. At September 30, 2016, a 10% change in market prices would have an impact on net earnings of approximately $5,212 (December 31, 2015 - $3,871.)</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">The Company&rsquo;s profitability and ability to raise capital to fund mineral resource exploration and mining activities is subject to risks associated with fluctuations in mineral prices. Management closely monitors commodity prices, individual equity movements, and the stock market to determine the appropriate course of action to be taken by the Company.</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreak551b445a-95dd-4ade-bd7e-d91dc59a0d43" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">25 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px"><b style="MARGIN: 0px"><i></i></b>&nbsp;</p><strong><em><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</em></strong></p><b style="MARGIN: 0px"><i><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><strong><em>(d)</em></strong></td><td valign="top"><b><i>Classification of Financial instrument</i></b></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p></i></b><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">IFRS 7 <i>Financial Instruments: Disclosures </i>establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value as follows:</p><p style="MARGIN: 0px 0px 0px 45px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">Level 1 &#8211; quoted prices (unadjusted) in active markets for identical assets or liabilities;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">Level 2 &#8211; inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">Level 3 &#8211; inputs for the asset or liability that are not based on observable market data (unobservable inputs).</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px">&nbsp;</p><p style="COLOR: black; MARGIN: 0px 0px 0px 45px" align="justify">The following table sets forth the Company&rsquo;s financial assets and financial liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as at September 30, 2016:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 1</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 2</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>Level 3</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Financial Assets</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" colspan="2" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Cash </p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">14,908,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Amounts receivable</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">4,906,514</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Investments</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">52,120</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Financial Liabilities</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Warrant liabilities</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">(336,072</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%">)</td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">14,960,183</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">4,906,514</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">(336,072</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%">)</td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Commitments</u></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company has a cost sharing agreement to reimburse Oniva for a percentage of its overhead expenses, to reimburse 100% of its out-of-pocket expenses incurred on behalf of the Company, and to pay a percentage fee based on Oniva&rsquo;s total overhead and corporate expenses. The agreement may be terminated with one-month notice by either party. Transactions and balances with Oniva are disclosed in &ldquo;Transactions with Related Parties&rdquo;.</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company and its subsidiaries have various operating lease agreements for their office premises, use of land, and equipment. Commitments in respect of these lease agreements and other contracts are as follows:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="90%" align="center" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>September 30,<br>2016</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><strong>December 31,<br>2015</strong></p></td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Not later than one year</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">3,145,624</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">209,063</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than one year and not later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">740,990</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">749,242</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">Later than five years</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">29,980</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">43,951</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">3,916,594</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%">$</td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">1,002,256</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify">Office lease payments recognized as an expense during the nine months ended September 30, 2016 totalled $76,505 (September 30, 2015 - $206,370.)</p><p style="MARGIN: 0px" align="justify">&nbsp;</p><p style="MARGIN: 0px" align="justify"><table id="pagebreake5b03810-a90b-4e4a-83c4-465b6402bbba" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">26 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Changes in Accounting Standards</u></b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following accounting standards were issued but not yet effective as of September 30, 2016:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><i>IFRS 15 &#8211; Revenue from Contracts with Customers</i></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">In May 2014, the IASB issued IFRS 15 &#8211; Revenue from Contracts with Customers ("IFRS 15") which supersedes IAS 11 &#8211; Construction Contracts, IAS 18 &#8211; Revenue, IFRIC 13 &#8211; Customer Loyalty Programmes, IFRIC 15 &#8211; Agreements for the Construction of Real Estate, IFRIC 18 &#8211; Transfers of Assets from Customers, and SIC 31 &#8211; Revenue &#8211; Barter Transactions Involving Advertising Services. IFRS 15 establishes a comprehensive five-step framework for the timing and measurement of revenue recognition. The standard is effective for annual periods beginning on or after January 1, 2018. The Company is currently evaluating the impact the final standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><i>IFRS 9 &#8211; Financial Instruments </i></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The IASB intends to replace IAS 39 &#8211; Financial Instruments: Recognition and Measurement in its entirety with IFRS 9 &#8211; Financial Instruments (&ldquo;IFRS 9&rdquo;) which is intended to reduce the complexity in the classification and measurement of financial instruments. The standard is effective for annual periods beginning on or after January 1, 2018. The Company is currently evaluating the impact the final standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><i>IFRS 7 Financial instruments: Disclosure</i></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">IFRS 7 was amended to require additional disclosures on transition from IAS 39 to IFRS 9. The standard is effective on adoption of IFRS 9, which is effective for annual periods commencing on or after January 1, 2018. The Company is currently evaluating the impact this standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><i>IFRS 16 Leases</i></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">IFRS 16 was issued on January 13, 2016, and will be effective for accounting periods beginning on or after January 1, 2019. Early adoption is permitted, provided the Company has adopted IFRS 15. This standard sets out a new model for lease accounting. The Company is currently evaluating the impact this standard is expected to have on its condensed consolidated interim financial statements.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b>Annual improvements</b></p><p style="COLOR: black; MARGIN: 0px" align="justify">In September 2014, the IASB issued the Annual Improvements 2012-2014 cycle, effective for annual periods beginning on or after July 1, 2016. These annual improvements made necessary but non-urgent amendments to existing IFRSs. These amendments are not expected to have a significant impact on the Company's condensed consolidated interim financial statements.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify"><table id="pagebreaka191311a-85d2-4e41-a4eb-e24b59cafac1" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">27 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Outstanding Share Data</u></b></p><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The Company&rsquo;s authorized share capital consists of an unlimited number of common shares without par value.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">As at November 8, 2016, the following common shares, warrants, and stock options were outstanding:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="COLOR: black; MARGIN: 0px 0px 0px 7.1pt" align="center"><strong>Number<br>of shares</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><strong>Exercise<br>price</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td valign="bottom"><p style="MARGIN: 0px" align="center"><strong>&nbsp;</strong></p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN: 0px 0px 0px 7.1pt" align="center"><strong>Remaining life (years)</strong></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Share capital</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">45,251,571</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">-</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Warrants</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,033,059</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px 0px 0px 7.1pt" align="right">US$2.87</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">0.30</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Warrants</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">40,000</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td colspan="2"><p style="MARGIN: 0px 0px 0px 7.1pt" align="right">US$1.00</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">2.35</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Stock options</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">2,148,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" colspan="2"><p style="MARGIN: 0px 0px 0px 7.1pt" align="right">$1.32 - $2.95</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" colspan="2"><p style="MARGIN: 0px 0px 0px 7.1pt" align="right">1.28 &#8211; 4.82</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="COLOR: black; MARGIN: 0px">Fully diluted</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right">48,473,130</td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following are details of outstanding stock options as at September 30, 2016, and November 8, 2016:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="COLOR: black; MARGIN: 0px" align="left"><b>Expiry Date</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Exercise Price Per Share </b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Number of Shares Remaining Subject to Options</b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>(September 30, 2016)</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Number of Shares Remaining Subject to Options<br>(November 8, 2016)</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">February 18, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.60</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">149,600</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">147,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 9, 2018</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.62</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">306,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">296,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 19, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">747,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">747,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">December 22, 2019</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.90</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">105,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">105,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 29, 2020</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">1.32</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">50,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">September 2, 2021</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%">$</td><td id="ffcell" valign="bottom" width="9%" align="right">2.95</td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">802,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" width="9%" align="right">802,500</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total:</b></p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>2,160,600</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" width="9%" align="right"><b>2,148,500</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom" width="1%"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="COLOR: black; MARGIN: 0px 0px 0px 0.25in; TEXT-INDENT: -0.25in" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The following are details of outstanding warrants as at September 30, 2016, and November 8, 2016:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="WIDTH: 100%; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="COLOR: black; MARGIN: 0px" align="left"><b>Expiry Date</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Exercise Price<br>Per Share </b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Number of Underlying Shares </b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>(September 30, 2016)</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="hdcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" colspan="2" align="center"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="center"><b>Number of Underlying Shares <br>(November 8,<br>2016)</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">February 25, 2017</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td width="4%">US$</td><td width="9%"><p style="COLOR: black; MARGIN: 0px" align="right">2.87</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,033,059</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" valign="bottom" width="9%" align="right">1,033,059</td><td style="PADDING-BOTTOM: 1px" valign="bottom" width="1%"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#ffffff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">March 14, 2019</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td>US$</td><td><p style="COLOR: black; MARGIN: 0px" align="right">1.00</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">40,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 1px solid" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td id="ffcell" style="BORDER-BOTTOM: black 1px solid" valign="bottom" align="right">40,000</td><td style="PADDING-BOTTOM: 1px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td></tr><tr bgcolor="#cceeff"><td valign="top"><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><b>Total:</b></p></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td></td><td id="ffcell" valign="bottom" align="right"><p style="MARGIN: 0px">&nbsp;</p></td><td style="PADDING-BOTTOM: 3px" valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" align="right"><b>1,073,059</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td valign="bottom"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: black 3px double" valign="bottom"><b><p style="MARGIN: 0px">&nbsp;</p></b></td><td id="ffcell" style="BORDER-BOTTOM: black 3px double" valign="bottom" align="right"><b>1,073,059</b></td><td style="PADDING-BOTTOM: 3px" valign="bottom"><b><p style="MARGIN: 0px">&nbsp;</p></b></td></tr></table></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px">&nbsp;   <table id="pagebreaka42e584e-cb21-44d8-8d56-a3d3a49da52e" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">28 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify"><b><u>Disclosure Controls and Procedures and Internal Controls over Financial Reporting</u></b></p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Management is responsible for establishing, maintaining and testing adequate disclosure controls and internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the presentation of financial statements.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Under Canadian securities legislation, non-venture issuers are required to certify the design and evaluation of their disclosure controls and procedures (&ldquo;DC&amp;P&rdquo;) and internal controls over financial reporting (&ldquo;ICFR&rdquo;). Accordingly, the Company has developed a plan to complete such an evaluation and the evaluation is currently underway. Inherent limitations on the ability of the CEO and CFO to design and implement on a cost-effective basis DC&amp;P and ICFR for the Company may result in additional risks to the quality, reliability, transparency, and timeliness of interim and annual filings and other reports provided under securities legislation.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">The CEO and CFO are responsible for ensuring that processes are in place to provide them with sufficient knowledge to support the representations they are making in the Company&rsquo;s quarterly and annual certificates.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Based on their knowledge of the Company&rsquo;s ICFR, the CEO and the CFO noted the following material weaknesses in the design of control:</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="COLOR: ; MARGIN: 0px" align="justify"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">1.</td><td valign="top"><b>Lack of segregation of duties:</b> Due to limited staff resources, the Company believes there are instances where a lack of segregation of duties exists, which may limit controls that are otherwise effective; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">2.</td><td valign="top"><b>Limited in-house technical accounting and tax expertise:</b> Due to limited staff resources, the Company may not have the necessary in-house knowledge to address complex accounting and tax issues that may arise.</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">As such, there is a reasonable possibility that the Company&rsquo;s ICFR will fail to prevent or detect a material misstatement in the financial statements on a timely basis. These material weaknesses and related risks are not uncommon for a company the size of Avino because of limitations in resources, including the number of staff. Management considers the remediation of the weaknesses described above to be a priority. To mitigate these risks, the Company has hired additional financial reporting personnel, engaged external technical accounting and tax advisors and experts, increased the frequency of on-site visits to Mexico and Bralorne and inspections of the accounting records of its subsidiaries, and enhanced the involvement of the Audit Committee and Board of Directors in reviews and consultations where necessary. In addition, the Company has engaged a firm of internal controls advisors to assist in the evaluation and remediation of disclosure controls and internal controls over financial reporting. </p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Our management and the Board of Directors do not expect that our disclosure controls and procedures or internal controls over financial reporting will prevent all errors or all instances of fraud. A control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that the control system&rsquo;s objectives will be met. Further, the design, maintenance and testing of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify">Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control gaps and instances of fraud have been detected. These inherent limitations include the reality that judgment in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design, maintenance and testing of any system of controls is based in part upon certain assumptions about the likelihood of future events, and any control system may not succeed in achieving its stated goals under all potential future conditions.</p><p style="COLOR: black; MARGIN: 0px" align="justify">&nbsp;</p><p style="COLOR: black; MARGIN: 0px" align="justify"><table id="pagebreaka2d0ef6f-21c3-4611-a754-e90da6a3840c" class="pagebreak" style="FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0">    <tr><td class="hpbhr">&nbsp;</td></tr><tr><td style="BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: right">29 | Page</td></tr><tr></tr><tr><td><div style="WIDTH: 100%; PAGE-BREAK-AFTER: always; LINE-HEIGHT: 0px"></div></td></tr><tr><td>&nbsp;</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="left"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="3" cellpadding="0" width="100%" align="center" border="0" >    <tr bgcolor="#ffffff"><td style="BORDER-BOTTOM: #000000 2px solid" width="45%"><p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><img src="avino_ex992img1.jpg">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" width="10%"><p style="MARGIN: 0px">&nbsp;</p></td><td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" width="45%"><p style="MARGIN: 0px" align="right"><b>MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS</b></p><p style="MARGIN: 0px" align="right"><b>FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2016</b></p><p style="MARGIN: 0px" align="right"><strong></strong>&nbsp;</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">Other than the mitigating steps taken to reduce the risks posed by the material weaknesses as indicated above, there have been no other changes in the Company&rsquo;s DC&amp;P and ICFR that occurred during the quarter ended September 30, 2016, that have materially affected, or are reasonably likely to materially affect, the Company&rsquo;s DC&amp;P and/or ICFR.</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px" align="justify">&nbsp;</p><p style="MARGIN-BOTTOM: 0px; COLOR: black; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"><table style="BORDER-RIGHT: black 1px solid; BORDER-BOTTOM: black 1px solid; TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="2" width="100%" align="center" border="0" >    <tr><td style="BORDER-TOP: black 1px solid; BORDER-LEFT: black 1px solid"><p style="MARGIN-BOTTOM: 0px; BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: medium none; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; MARGIN-TOP: 0px; PADDING-RIGHT: 0in; MARGIN-RIGHT: 0px" align="justify"><b>Cautionary Statement</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">This MD&amp;A is based on a review of the Company&rsquo;s operations, financial position and plans for the future based on facts and circumstances as of November 8, 2016. Except for historical information or statements of fact relating to the Company, this document contains &ldquo;forward-looking statements&rdquo; within the meaning of applicable Canadian securities regulations. Forward-looking statements in this document include, but are not limited to, those regarding the economic outlook for the mining industry, expectations regarding metals prices, expectations regarding production output, production costs, cash costs and other operating results, expectations regarding growth prospects and the outlook for the Company&rsquo;s operations, and statements regarding the Company&rsquo;s liquidity, capital resources, and capital expenditures. There can be no assurance that such statements will prove to be accurate, and future events and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company&rsquo;s documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and we do not undertake any obligation to update forward-looking statements should conditions or our estimates or opinions change, except as required by applicable securities regulations. These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company&rsquo;s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.</p></td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cols="1" cellpadding="0" width="100%" align="center" border="0" >    <tr><td style="BORDER-BOTTOM: black 1px solid"><p style="MARGIN: 0px" align="right">30 | Page</p></td></tr></table></p></BODY></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>avino_ex993.htm
<DESCRIPTION>CEO CERTIFICATION
<TEXT>
<html><head><title>avino_ex993.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: 0px 7%" scroll="yes"><p style="MARGIN: 0px" align="right"><strong>EXHIBIT 99.3</strong></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><strong>Form 52-109F2</strong></p><p style="MARGIN: 0px" align="center"><i><strong>Certification of Interim Filings</strong></i></p><p style="MARGIN: 0px" align="center"><i><strong>Full Certificate</strong></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">I, <b>David Wolfin<i>, Chief Executive Officer, of Avino Silver &amp; Gold Mines Ltd.,</i></b> certify the following:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%">1.</td><td valign="top"><b><i>Review: </i></b>I have reviewed the interim financial report and interim MD&amp;A (together, the &ldquo;interim filings&rdquo;) of <b>Avino Silver &amp; Gold Mines Ltd. </b>(the &ldquo;issuer&rdquo;) for the interim period ended <b>September 30, 2016</b>.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">2.</td><td valign="top"><b><i>No misrepresentations: </i></b>Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">3.</td><td valign="top"><b><i>Fair presentation: </i></b>Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">4.</td><td valign="top"><b><i>Responsibility: </i></b>The issuer&rsquo;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&amp;P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 <i>Certification of Disclosure in Issuers&rsquo; Annual and Interim Filings,</i> for the issuer.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.</td><td valign="top"><b><i>Design:</i></b> Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer&rsquo;s other certifying officer(s) and I have, as at the end of the period covered by the interim filings</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">designed DC&amp;P, or caused it to be designed under our supervision, to provide reasonable assurance that</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(b)</td><td valign="top">designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer&rsquo;s GAAP.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%">5.1</td><td valign="top"><b><i>Control framework:</i></b> The control framework the issuer&rsquo;s other certifying officer(s) and I used to design the issuer&rsquo;s ICFR is <b>Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (&ldquo;COSO&rdquo;)</b>.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.2</td><td valign="top"><b><i>ICFR &#8211; material weakness relating to design </i></b>- <b>N/A</b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.3</td><td valign="top"><b><i>Limitation on scope of design</i></b><i> -</i><b>N/A</b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">6.</td><td valign="top"><b><i>Reporting changes in ICFR: </i></b>The issuer has disclosed in its interim MD&amp;A any change in the issuer&rsquo;s ICFR that occurred during the period beginning on <b>July 1, 2016 </b>and ended on <b>September 30, 2016 </b>that has materially affected, or is reasonably likely to materially affect, the issuer&rsquo;s ICFR.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Date: <b>November 8, 2016</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><i>&ldquo;David Wolfin&rdquo;</i></p><p style="MARGIN: 0px">_______________________________</p><p style="MARGIN: 0px">David Wolfin</p><p style="MARGIN: 0px">Chief Executive Officer</p><p style="MARGIN: 0px">&nbsp;</p></BODY></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>avino_ex994.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
<html><head><title>avino_ex994.htm</title><!--Document Created by EDGARMaster--></head><BODY spellcheck="true" style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN; MARGIN: 0px 7%" scroll="yes"><p style="MARGIN: 0px" align="right"><strong>EXHIBIT 99.4</strong></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px" align="center"><strong>Form 52-109F2</strong></p><p style="MARGIN: 0px" align="center"><i><strong>Certification of Interim Filings</strong></i></p><p style="MARGIN: 0px" align="center"><i><strong>Full Certificate</strong></i></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">I, <b>Malcolm Davidson<i>, Chief Financial Officer, of Avino Silver &amp; Gold Mines Ltd.,</i></b> certify the following:</p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%">1.</td><td valign="top"><b><i>Review: </i></b>I have reviewed the interim financial report and interim MD&amp;A (together, the &ldquo;interim filings&rdquo;) of <b>Avino Silver &amp; Gold Mines Ltd. </b>(the &ldquo;issuer&rdquo;) for the interim period ended <b>September 30, 2016</b>.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">2.</td><td valign="top"><b><i>No misrepresentations: </i></b>Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">3.</td><td valign="top"><b><i>Fair presentation: </i></b>Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">4.</td><td valign="top"><b><i>Responsibility: </i></b>The issuer&rsquo;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&amp;P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 <i>Certification of Disclosure in Issuers&rsquo; Annual and Interim Filings,</i> for the issuer.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.</td><td valign="top"><b><i>Design:</i></b> Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer&rsquo;s other certifying officer(s) and I have, as at the end of the period covered by the interim filings</td></tr></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(a)</td><td valign="top">designed DC&amp;P, or caused it to be designed under our supervision, to provide reasonable assurance that</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="8%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(i)</td><td valign="top">material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top">(ii)</td><td valign="top">information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and</td></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%"><p style="MARGIN: 0px">&nbsp;</p></td><td valign="top" width="4%">(b)</td><td valign="top">designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer&rsquo;s GAAP.</td></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><table style="TEXT-ALIGN: justify; FONT: 10pt TIMES NEW ROMAN" cellspacing="0" cellpadding="0" width="100%" border="0" >    <tr><td valign="top" width="4%">5.1</td><td valign="top"><b><i>Control framework:</i></b> The control framework the issuer&rsquo;s other certifying officer(s) and I used to design the issuer&rsquo;s ICFR is <b>Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (&ldquo;COSO&rdquo;)</b>.</td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.2</td><td valign="top"><b><i>ICFR &#8211; material weakness relating to design </i></b>- <b>N/A</b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">5.3</td><td valign="top"><b><i>Limitation on scope of design</i></b><i> -</i><b>N/A</b></td></tr><tr><td><p style="MARGIN: 0px">&nbsp;</p></td><td><p style="MARGIN: 0px">&nbsp;</p></td><tr><td valign="top">6.</td><td valign="top"><b><i>Reporting changes in ICFR: </i></b>The issuer has disclosed in its interim MD&amp;A any change in the issuer&rsquo;s ICFR that occurred during the period beginning on <b>July 1, 2016 </b>and ended on <b>September 30, 2016 </b>that has materially affected, or is reasonably likely to materially affect, the issuer&rsquo;s ICFR.</td></tr></tr></tr></tr></table></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px">Date: <b>November 8, 2016</b></p><p style="MARGIN: 0px">&nbsp;</p><p style="MARGIN: 0px"><i>&ldquo;Malcolm Davidson&rdquo;</i></p><p style="MARGIN: 0px">_____________________________</p><p style="MARGIN: 0px">Malcolm Davidson</p><p style="MARGIN: 0px">Chief Financial Officer</p></BODY></html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>6
<FILENAME>avino_ex992img1.jpg
<TEXT>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
