The Mercedes gold-silver mine in northern Sonora State commenced production in November 2011.  Commerical production is expected by mid - 2012. Gold will be extracted by agitated leaching with counter current decantation and Merrill-Crowe processing. Yamana anticipates continued exploration success will increase the mine life and annual production.

Production	2012 (E)
GEO	120,000
Cash cost	$300-360 per GEO
Gold mineral reserves	794,000 oz. proven & probable
Gold mineral resources	188,000 oz. measured & indicated
Silver mineral reserves	8.4 million oz. proven & probable
Silver mineral resources	2.4 million oz. measured & indicated