YAMANA GOLD INC. (TSX: YRI; AMEX: AUY; LSE (AIM): YAU) is pleased to announce that is has completed today its previously announced (April 19, 2006) repayment of its senior secured note facility.

Commenting on the transaction, Chuck Main, the Company’s Chief Financial Officer, said "The closing of this transaction is a significant milestone for the Company and represents part of management’s continuous efforts to improve the financial foundation of the Company. Combined with the closing of our equity financing this week, we have increased our cash balances. With the elimination of our debt we are in a strong financial position and it provides us with increased flexibility to carry out our expansion plans. Annual interest costs are reduced by US$11-12 million per year, which have been capitalized until now as part of the capital construction costs of our Chapada copper gold project and would have been charged to earnings upon the reaching of commercial production. This transaction provides us significant financing flexibility in an interest rate environment that combined with the current cash flow generation of the Company, and our cash position, would allow us to reduce our costs of any future financing. The current attributes of the Company also would reduce the extent of encumbrances by security and covenant requirements associated with debt."

Yamana is a Canadian gold producer with significant gold production, gold and copper-gold development stage properties, exploration properties, and land positions in all major mineral areas in Brazil and Central America. Yamana expects to produce gold at intermediate company production levels in 2006 in addition to significant copper production by 2007. Management of Yamana plan to continue to build on this base through the advancement of its exploration properties and by targeting other gold consolidation opportunities in Brazil and elsewhere in Latin America.

For further information, contact

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.