Yamana has excellent government relations in both Brazil, Central America and Argentina and considers these countries partners in the Company’s success. Yamana is a leading employer in Brazil and provides direct employment opportunities to approximately 8,600 individuals in South America.

3) How are your exploration and development projects proceeding?

• The first full quarter of commercial production was completed at Gualcamayo subsequent to declaring commercial production on July 1, 2009 with production increasing 62% from the prior quarter at cash costs well below guidance.
• In January 2009, Yamana provided an update to QDD Lower West at Gualcamayo showing positive economic results and an increase in gold resources. Yamana has decided to advance the project using the front caving method and has accelerated development activities with a conceptual study in progress.
• In the second half of 2009, Salamanca, a new area 10 kilometres north of Gualcamayo was acquired. Drilling results support Yamana’s view that the area represents an important source of further gold ounces for Gualcamayo.
• In February 2009, Yamana announced results of Ernesto/Pau-a-Pique scoping study indicating the region hosts various targets of considerable potential for increasing resources at the project. A feasibility study is expected by the end of 2009 followed by a formal construction decision in early 2010.
• The Pilar project in Brazil was virtually unexplored when acquired but has since advanced to be an important development project. In April 2009, an update to the inferred mineral resource estimate demonstrated a substantial increase in contained ounces and a significant improvement in grade.  An updated mineral resource estimate is expected in the first half of 2010, with a feasibility study expected mid 2010.
• In July 2009, Yamana acquired an extensive exploration concession, Caiamar, located 38 kilometres from Pilar in Brazil. The combination of Caiamar and Pilar will meaningfully increase potential for increased resources and rapid advancement of project development.  A resource estimate at Caiamar is expected in early 2010.
• In July 2009, Yamana made a construction decision for the development of C1 Santa Luz in Brazil, Mercedes in Mexico and the tailings reprocessing project at Minera Florida in Chile, for start-up in 2012.
• C1 Santa Luz, Mercedes, Ernesto/Pau-a-pique and production from the Minera Florida tailings project are expected to add collectively 365,000 GEO of new production at a weighted average cash costs of approximately US$350 per GEO which is consistent with the Company’
• In September 2009, Yamana provided an update on the Agua Rica project in Argentina, including optimization initiatives currently underway, continued focus on updating components of the original feasibility study, and evaluating potential strategic partners for development.
• Yamana remains committed to organic growth and continues to focus on robust portfolio of exploration and development projects for its next wave of growth.