Yamana Gold has a diversified portfolio of assets providing sustainable gold production supported by a large resource base. We have industry-low cash costs and operations in some of the world’s most stable mining jurisdictions. Every Yamana Gold share offers significant exposure and increasing leverage to gold through continued production and mineral resource growth. With expansions at current operations and projects currently under development, production is expected to increase by over 60 percent to be at a sustainable level of  approximately 1.75 million GEO by 2014.

2010 Performance

• Record production of 1.05 million GEO in-line with expectations
• Cash costs of $50 per GEO on a by-product basis, down from $123 per GEO in 2009
• Increased revenue, adjusted earnings and cash flow year-over-year by a record 43 percent, 30 percent and 51 percent respectively
• Completed expansions at three existing operations: Chapada, El Peñón and Gualcamayo
• Construction decisions made on three projects: Ernesto/Pau-a-Pique, QDD Lower West at Gualcamayo and Pilar
• Advanced development of four projects: Mercedes, Ernesto/Pau-a-Pique, C1 Santa Luz and Pilar
• Increased proven and probable gold mineral reserves by 26 percent and measured and indicated gold mineral resources by 12 percent
• Dividend increased threefold
• With the certification of our newest mine, Gualcamayo, all of Yamana’s operations have now achieved ISO 14001 certification for their Environmental Management Systems

2011 Objectives

• Produce 1.04–1.14 million GEO
• Increase production quarter-over-quarter
• Continue to focus on cost containment with by-product costs expected to be below $250 per GEO
• Continue to deliver strong financial results and significant free cash flow
• Advance four development projects expected to begin production over the next two years and contribute an additional 440,000 GEO of production annually
• Unlock further value within existing portfolio:
  • Agua Rica – announce and complete strategic transaction
  • Suyai – continue engagement with stakeholders to advance the project
  • Jeronimo – feasibility study by end of 2011
• Focus exploration on several new areas of mineralization discovered in 2009 and 2010
• Increase gold mineral reserves and gold mineral resources
• Uphold best practices and international standards in safety, health, environmental protection and community relations