1. Does Yamana have any concerns regarding possible changing political situations in South America?

Yamana has excellent government relations in Brazil, Chile, and Argentina and considers these countries partners in the Company’s success. Yamana is a leading employer in Brazil and employs approximately 8,000 individuals across South America.

2. What is the company’s financial position?

Our financial position remains solid. In 2010, our revenues were up 43 percent over 2009 levels to $1.7 billion and our adjusted earnings soared 30 percent to $451 million or $0.61 per share. Operating cash flow increased 51 percent to $747 million or $1.01 per share. After capital expenditures of $531 million, spending $98 million on exploration, paying down $45 million in debt and paying out $48 million in dividend payments, we ended 2010 with $330 million in cash and cash equivalents and total cash and available credit of $858 million. Our current debt position as at September 30, 2011 is $431 million. 

3. You are forecasting production to be at an annual rate of approximately 1.7 million gold equivalent ounces by 2014, an increase of over 60 percent from 2010. Where will this growth come from?

At our existing operations, optimization and expansions are expected to increase annual production from these mines to almost 1.26 million gold equivalent ounces. In addition, we have four new mines in development that are expected to contribute an aggregate of 440,000 gold equivalent ounces annually. Mercedes in Mexico is ahead of schedule and is expected to start up production in late 2011.  Ernesto/Pau-a-Pique and C1 Santa Luz in Brazil are scheduled to begin production in 2012, while Pilar in Brazil will start up in 2013. These projects are advancing on schedule and are fully funded from our available cash and cash flow. In 2014, which will be our first full year in operation with these new mines, and with our optimizations and expansions completed, our production is expected to be approximately 1.7 million gold equivalent ounces.

4. How will you grow production beyond 1.7 million gold equivalent ounces?

Our exploration team has been very successful at replacing gold mineral reserves at our operations, adding gold mineral resources, making new discoveries and taking projects from grassroots to the development stage. In 2010, our proven and probable gold mineral reserves increased by 26 percent over 2009, to 22.1 million ounces. Measured and indicated gold mineral resources increased by 12 percent to 14.5 million ounces. We will continue to build on our successful 2010 exploration program and in 2011, we will focus exploration on several new areas of mineralization discovered in 2009 and 2010 as well as on increasing gold mineral reserves and gold mineral resources. This will allow us to continue to create value in our existing asset base through optimizations and expansions. Additionally, we have tremendous value locked up in existing projects including Jeronimo in Chile and Suyai and Agua Rica in Argentina. These projects have the potential to provide us with further significant growth.

5. I am receiving information from Yamana Gold from shares in a company that were converted into Yamana Gold Inc. How do I find out what my previous shares are worth now?

CIBC Mellon is Yamana Gold’s transfer agent and they can answer your questions on the share exchange. They can be reached by phone at 416-643-5500 or 1-800-387-0825, or by email at inquiries@canstockta.com

6. Does Yamana pay a dividend?

Yamana currently pays a quarterly dividend of US$0.05 per share.

7. Does Yamana have a Dividend Reinvestment Plan?

Currently, we do not have a Dividend Reinvestment plan in place.

8. Can I buy gold directly from the Company?

It is not possible to purchase gold directly from mining companies. Yamana sells its gold directly to large investment dealers at the spot market price.