Yamana Press Releases

Yamana Gold Declares Quarterly Dividend

Thu, 04 Mar 2010 08:30:00 -0500

TORONTO, March 4 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced its first quarter 2010 dividend of US$0.01 per share. Shareholders of record at the close of business on Wednesday, March 31, 2010 will be entitled to receive payment of this dividend on Wednesday, April 14, 2010. The dividend is an "eligible dividend" for Canadian tax purposes.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Colombia. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

Yamana Gold Reports 2009 Results and Mineral Reserves and Resources - Significant fourth quarter revenue, earnings and cash flow growth -

Wed, 03 Mar 2010 20:45:00 -0500

Fourth Quarter Management's Discussion and Analysis and Financial Statements

TORONTO, March 3 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced its financial and operating results for the fourth quarter and year ended December 31, 2009 and its mineral reserves and mineral resources for the year ended December 31, 2009. All dollar amounts are expressed in United States dollars unless otherwise specified.

2009 FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

Financial and Operating Highlights

Highlights for the three- and twelve-month periods ended December 31, 2009 include:

    <<
    -   Total production from continuing operations of 289,456 gold
        equivalent ounces (GEO) and 1,025,677 GEO, respectively;
    -   Cash costs(1) from continuing operations excluding Alumbrera of $111
        per GEO and $170 per GEO, respectively;
    -   Revenues of $399.8 million and $1.2 billion, respectively;
    -   Mine operating earnings of $184.3 million and $467.5 million,
        respectively;
    -   Net earnings of $36.2 million and $192.6 million, respectively;
    -   Adjusted Earnings(1) of $100.9 million or $0.14 per share and $346.1
        million or $0.47 per share, respectively;


                                                         Three        Twelve
    For the period ended December 31,                   months        months
    (In millions of United States Dollars)               ended         ended
    -------------------------------------------------------------------------
    Net earnings                                    $     36.2    $    192.6
    Mark-to-market on period sales and final
     price and quantity settlements                          -             -
    Non-cash unrealized foreign exchange
     losses/(gains)                                       20.3         (36.7)
    Non-cash unrealized losses on derivatives              9.7         112.5
    Non-recurring future income tax adjustments           15.2          35.8
    Proceeds on sale of commodity derivatives                -             -
    Write off of mineral interests and other assets        8.3           8.3
    Stock-based and other compensation                    15.4          23.3
    Future income tax expense on translation of
     intercompany debt                                     1.6          51.6
    -------------------------------------------------------------------------
    Adjusted Earnings before income tax effects          106.7         387.4
    Income tax effect on adjustments                      (5.8)        (41.3)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Adjusted Earnings                               $    100.9    $    346.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Note: Earnings adjustments reflect both continuing and discontinued
    operations.

    -   Cash flows from continuing operations after changes in non-cash
        working capital items of $211.2 million or $0.29 per share (cash
        flows from continuing operations before changes in non-cash working
        capital items(1) of $155.2 million or $0.21 per share), and $528.0
        million or $0.72 per share (Cash flows from continuing operations
        before changes in non-cash working capital items of $495.6 million or
        $0.68 per share), respectively.

    Development, Exploration and Corporate Highlights

    Highlights for the three-month period ended December 31, 2009 include:

    -   Completed plant upgrade at El Penon to 4,300 tpd
    -   Completed plant upgrade and processed ore at 6,000 tonnes per day at
        Jacobina
    -   Transitioned to owner mining at El Penon
    -   Commenced plant optimizations at Chapada scheduled to increase
        throughput to up to 22 million tonnes per year before 2012
    -   Continued to advance development work at C1 Santa Luz, Mercedes and
        the Minera Florida tailings project
    -   Increased credit facility to $680 million and closed private
        placement of $270 million in long term debt
    -   Proven and probable mineral reserves of 17.6 million ounces of gold,
        replacing mined ounces

    Highlights subsequent to the quarter include:
    -   Completed the first of several studies evaluating certain
        optimization initiatives at Agua Rica all of which are expected to
        have a positive impact on the project
    -   Announced the new discovery gold mineralized zones, Suruca at
        Chapada, Lagoa do Gato at Fazenda Brasileiro and Lagartixa at
        Jacobina
    -   Made construction decision for the development of Ernesto/Pau-a-Pique
        for start-up in late 2012
    -   Provided new strategic plan for the optimization of El Penon and
        announced the discovery of a new very high grade vein system, Pampa
        Augusta Victoria
    >>

"Our objective in 2009 was to create predictable and reliable operations while remaining committed to our core philosophy of sustainable production, operating in stable jurisdictions, growth and low cash costs," said Yamana's chairman and chief executive officer, Peter Marrone. "We have achieved our objective this year. This was a defining year for Yamana. We have sustainable production with our robust long life operational assets, we have growth with our well-defined development stage projects of which construction decisions have already been made for four, we have world class value enhancing projects in addition to significant exploration potential, and we have continued to deliver substantial cash flow growth which we expect to continue in 2010. As we begin this year, we remain committed to the core tenets of our Company as we prepare for our next new wave of growth."

FINANCIAL AND OPERATING SUMMARY

Revenues for the three-month period ended December 31, 2009 were $399.8 million, and for the year were $1.2 billion, representing a 25 percent increase from the previous year.

Mine operating earnings for the three-month period ended December 31, 2009 were $184.3 million, and for the year were $467.5 million, representing a 31 percent increase from the previous year.

Adjusted Earnings for the three-month period ended December 31, 2009 were $100.9 million or $0.14 per share. Adjusted Earnings for the year were $346.1 million, or $0.47 per share, representing a 23 percent increase from the previous year. Net earnings for the three-month period ended December 31, 2009 were $36.2 million and for the year were $192.6 million.

Cash flows from continuing operations after changes in non-cash working capital items for the three-month period ended December 31, 2009 were $211.2 million or $0.29 per share and for year were $528.0 million or $0.72 per share, representing a 122 percent increase from the previous year. Cash flows from continuing operations before changes in non-cash working capital items for the three-month period ended December 31, 2009 were $155.2 million or $0.21 per share and for the year were $495.6 million or $0.68 per share, representing a 21 percent increase from the previous year.

Cash and cash equivalents as at December 31, 2009 were $170.1 million.

Total production from continuing operations for the three-month period ended December 31, 2009 was 289,456 GEO (comprised of 238,438 ounces of gold and 2.8 million ounces of silver) representing an eight percent and 33 percent increase from the third quarter of 2009 and fourth quarter of 2008, respectively. Production from discontinued operations for the three month period ended December 31, 2009 was 35,796 GEO. Total production from continuing operations for the year was 1,025,677 GEO (comprised of 835,265 ounces of gold and 10.5 million ounces of silver) representing a 19 percent increase from the previous year. Total production from discontinued operations for the year was 175,338 GEO.

Cash costs for continuing operations excluding Alumbrera for the three-month period ended December 31, 2009 were $111 per GEO and for the year were $170 per GEO.

Gross margin(1) per GEO sold for the three-month period ended December 31, 2009 were $941 per GEO, representing a 19 percent increase from the third quarter. Gross margin per GEO sold for the year were $775 per GEO, representing a 12 percent increase from the previous year.

"We continued to build on our track record of growth with exceptional growth in fourth quarter revenue, adjusted earnings and cash flows," said Chuck Main, Yamana's executive vice president finance and chief financial officer. "We remained focused on maintaining industry low cash costs leading to our significant margin to the gold price. Further, we finished the year with a strong cash position and robust balance sheet."

Chapada, Brazil

Chapada produced 156,251 ounces of gold for the year, exceeding original production guidance of 140-155,000 ounces of gold. Plant optimizations began in the fourth quarter and are scheduled to increase throughput to up to 22 million tonnes per year before 2012.

El Penon, Chile

El Penon produced 394,400 GEO for the year mining at a progressively higher rate and grade. In the fourth quarter, El Penon transitioned to owner-mining, which modestly and temporarily caused a decrease in production and increase in cash costs(1) which will carry over into the first quarter of 2010 but is expected to improve production and going forward. Production in December at El Penon with the completion of the plant upgrade, although during this owner-mining transition period, was in excess of 44,000 GEO and was 109,979 GEO for the fourth quarter. Production in the first quarter of 2010 is expected to be less than the fourth quarter of 2009 but higher than the first quarter in 2009. Production in 2010 is expected to ramp up quarter over quarter similar to trends seen in 2009.

Yamana is evaluating a new strategic plan for the optimization of El Penon to increase production from current levels with the objective of achieving a sustainable production level of 450,000 to 500,000 GEO. Yamana's intention is to begin at these levels in 2012 and going forward, subject to further evaluation. Contribution from the newly discovered high grade vein system, Pampa Augusta Victoria, will further support this objective.

Jacobina, Brazil

Development efforts in 2008 led to an improved performance in 2009 with production of 110,515 ounces of gold for the year, an increase of over 51 percent from 2008. During the fourth quarter Jacobina began processing ore at 6,000 tonnes per day, the level expected in 2010.

The Company remains focused on improving dilution and recovery as well as exploring, discovering and developing higher grade areas including Canavieiras. Exploration efforts will also be focused on the new discovery, Lagartixa.

Gualcamayo, Argentina

Gualcamayo continued to meet and exceed expectations in its first year of production. Production continued to ramp up in the fourth quarter increasing 50 percent from the third quarter of 2009 with production for the full year of 143,471 ounces exceeding original guidance of approximately 120,000 ounces. Cash costs for the year of $301 per ounce of gold were well below recent guidance of $350 per ounce of gold.

Minera Florida, Chile

Production for the year at Minera Florida was 91,877 per GEO, representing a 42 percent increase from the previous year as a result of the completed expansion in the first quarter of 2009. Development work continues to progress at the tailings project with production on track for early 2012.

Fazenda Brasileiro, Brazil

Production at Fazenda Brasileiro for the year was 76,413 ounces of gold. As Fazenda Brasileiro reaches the end of its known mine life based on mineral reserves, exploration efforts continue to focus on the two newly discovered areas, CLX(2) and Lagoa do Gato, which Yamana believes represent significant potential to increase the mine life.

    <<
    Overview of Operational Results

    -------------------------------------------------------------------------
    Production (GEO)                                   Q4 2009          2009
    -------------------------------------------------------------------------
    Chapada                                             42,216       156,251
    El Penon                                           109,979       394,400
    Gualcamayo                                          59,118       143,471
    Jacobina                                            24,866       110,515
    Minera Florida                                      24,198        91,877
    Fazenda Brasileiro                                  17,535        76,413
    Alumbrera (12.5%)                                   11,544        52,750
    -------------------------------------------------------------------------
    Total Production (Continuing operations)           289,456     1,025,677
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash costs ($ per GEO)                             Q4 2009          2009
    -------------------------------------------------------------------------
    Chapada                                             (1.468)         (848)
    El Penon                                               382           353
    Gualcamayo                                             290           301
    Jacobina                                               597           476
    Minera Florida                                         365           373
    Fazenda Brasileiro                                     577           453
    -------------------------------------------------------------------------
    Cash costs (Continuing operations)*                  111           170
    -------------------------------------------------------------------------
    * Cash costs for continuing operations excluding Alumbrera

    Overview of Financial Results

    The following table presents a summary of financial and operating
information(i) for the three and twelve months ended December 31, 2009:


    For the period ended December 31, 2009        Three months Twelve months
    (in thousands of United States Dollars)              ended         ended
    -------------------------------------------------------------------------
    Revenues(ii)                                    $  399,825    $1,183,314
    Cost of sales excluding depletion,
     depreciation and amortization                    (141,695)     (479,847)
    Depletion, depreciation and amortization           (73,108)     (233,687)
    Accretion of asset retirement obligations             (681)       (2,282)
    -------------------------------------------------------------------------
    Mine operating earnings                            184,341       467,498
    -------------------------------------------------------------------------
    Expenses
    General and administrative                         (40,472)     (101,357)
    Exploration                                         (6,479)      (20,438)
    Other                                               (3,062)       (3,870)
    -------------------------------------------------------------------------
    Operating earnings                                 134,328       341,833
    -------------------------------------------------------------------------
    Other business expenses                            (19,690)      (12,322)
    Foreign exchange (losses)/gains                    (13,305)       74,515
    Realized (losses)/gains on derivatives              (9,190)       18,659
    Unrealized losses on derivatives                    (8,478)     (105,428)
    -------------------------------------------------------------------------
    Earnings from continuing operations before
     income taxes, equity earnings and
     non-controlling interest                           83,665       317,257
    -------------------------------------------------------------------------
    Income tax expense                                 (42,415)     (136,559)
    Equity earnings from Minera Alumbrera               12,208        31,073
    -------------------------------------------------------------------------
    Earnings from continuing operations                 53,458       211,771
    -------------------------------------------------------------------------
    Loss from discontinued operations (i)              (17,283)      (19,140)
    -------------------------------------------------------------------------
    Net earnings                                    $   36,175    $  192,631
    -------------------------------------------------------------------------
    Earnings Adjustments(iii):

    Mark-to-market on prior period sales and
     price and quantity settlements                          -             -
    Non-cash unrealized foreign exchange
     losses/(gains)                                     20,314       (36,672)
    Non-cash unrealized losses on derivatives            9,666       112,519
    Non-recurring future income tax adjustments(iv)     15,234        35,826
    Proceeds on sale of commodity derivatives                -             -
    Write off of mineral interests and other assets      8,301         8,301
    Stock-based and other compensation                  15,380        23,275
    Future income tax expense on translation of
     intercompany debt                                   1,613        51,578
    -------------------------------------------------------------------------
    Adjusted Earnings before income tax effects        106,683       387,458
    Income tax effect of adjustments                    (5,820)      (41,327)
    -------------------------------------------------------------------------
    Adjusted Earnings                                  100,863       346,131
    -------------------------------------------------------------------------
    Basic earnings per share                        $     0.05    $     0.29
    Diluted earnings per share                      $     0.05    $     0.26
    Adjusted Earnings per share                     $     0.14    $     0.47
    -------------------------------------------------------------------------
    Cash flows from operating activities from
     continuing operations (after changes in
     non-cash working capital items)                $  211,206    $  528,026
    Cash flows from operating activities from
     continuing operations (before changes in
     non-cash working capital items)                $  155,225    $  495,619
    Capital expenditures from continuing
     operations                                     $  138,816    $  498,757
    Cash and cash equivalents (end of period)       $  170,070    $  170,070
    Average realized gold price per ounce(ii)       $    1,095    $      980
    Average realized silver price per ounce(ii)     $    17.47    $    14.89
    Chapada average realized copper price per
     pound(ii)                                      $     3.18    $     2.44
    Total gold sales (ounces) including
     discontinued operations and Alumbrera
     (ounces)                                          268,864       975,585
    Total silver sales (millions of ounces)                2.9          10.5
    Chapada payable copper contained in
     concentrate sales (millions of lbs)                  34.6         137.4
    -------------------------------------------------------------------------

    (i)    Results of San Andrés, Sao Vicente and Sao Francisco mines have
           been reclassified as discontinued operations (in accordance with
           GAAP) with restatement of prior period comparatives.
    (ii)   Revenues consist of sales net of sales taxes. Revenue per ounce
           data is calculated based on gross sales. Realized prices reflect
           continuing operations.
    (iii)  Earnings adjustments reflect both continuing and discontinued
           operations.
    (iv)   Non-recurring and non-cash tax adjustments on the revaluation of
           future income tax liabilities related to the excess purchase price
           of the Meridian Gold Inc. acquisition in respect to the mineral
           interests in Chile and a write-off of future income tax assets
           relating to discontinued operations.
    >>

Further details of the 2009 fourth quarter and year end results can be found in the Company's unaudited Management's Discussion and Analysis and unaudited Consolidated Financial Statements at www.yamana.com, in the "Investors" section under "Financial and Corporate Reports".

YEAR END MINERAL RESERVES AND MINERAL RESOURCES

Yamana today also announced its proven and probable mineral reserves and measured, indicated and inferred resources for the year ended December 31, 2009. Yamana replaced mined ounces in 2009 with proven and probable mineral reserves for continuing operations of 17.6 million ounces of gold, which are consistent to levels in 2008.

    <<
    Proven and probable gold mineral reserves increased in the following
    areas:
    -   710,000 ounces of gold at Ernesto/Pau-a-pique
    -   264,000 ounces of gold at C1 Santa Luz
    -   272,000 ounces of gold at Jacobina
    -   281,000 ounces at El Penon. The recent discovery of a very high grade
        vein, Pampa Augusta Victoria, represents the significant exploration
        potential that remains at El Penon.

    Below is a summary of the changes in gold mineral reserves year-over-
    year:

    Proven and probable mineral reserves
     as of December 31, 2008*                          17,561,000 ounces
    Mined gold ounces during 2009                        (1,020,000 ounces)
    Discovered and upgraded gold ounces during 2009       1,036,000 ounces
    -------------------------------------------------   ---------------------
    Proven and probable mineral reserves
     as of December 31, 2009*                          17,577,000 ounces

    *For continuing operations
    >>

The complete mineral reserve and mineral resource estimates of Yamana as at December 31, 2009 for all metals, including tonnage, grade and accompanying metal price and cut-off grade assumptions can be found at the end of this press release.

Mineral reserve and mineral resource summary table

    <<
    -------------------------------------------------------------------------
                        Contained Gold   Contained Silver   Contained Copper
                           (000's oz)       (000's oz)      (Millions of lbs)
    -------------------------------------------------------------------------
    Proven Reserves              7,316             53,925              5,875
    -------------------------------------------------------------------------
    Probable Reserves           10,261            107,894              5,307
    -------------------------------------------------------------------------
    Proven and Probable
     Reserves                   17,577            161,822             11,181
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Measured Resources           2,719             11,354                881
    -------------------------------------------------------------------------
    Indicated Resources         10,229             48,340              2,794
    -------------------------------------------------------------------------
    Measured and
     Indicated Resources        12,950             59,694              3,675
    -------------------------------------------------------------------------
    Inferred Resources          10,207             92,164              5,703
    -------------------------------------------------------------------------
    >>

Yamana continues to focus on exploration with a budget of $75 to $80 million in 2010. The exploration program will continue to focus on numerous new areas of mineralization discovered in 2009 and on increasing mineral reserves and mineral resources while continuing with its near-mine exploration program and its efforts to look for new opportunities such as on the ground purchases elsewhere in the Americas. Yamana anticipates a substantial increase in mineral resources in 2010 as new mineral resource estimates are completed, including Salamanca, Caiamar and Suruca.

    <<
    Key exploration events for 2010:
    -   Mineral resource estimate at Salamanca, Gualcamayo: H1 2010
    -   Updated mineral resource estimate at Pilar: mid 2010
    -   Mineral resource estimate at Caiamar: H2 2010
    -   Mineral resource estimate at Suruca, Chapada: End of 2010
    >>

OUTLOOK AND STRATEGY

Yamana remains committed to sustainability, growth, low cash costs and stability of jurisdictions. Its objective has been to create predictability and reliability in its operations with a sustainable production platform of approximately 1.1 million gold equivalent ounces.

The Company's outlook continues to focus on its core assets, preserving capital, maximizing cash balances and maintaining maximum flexibility across its various interests including its development stage and near development stage projects. The Company continues to be committed to prudent and disciplined growth and will continue to focus on improving the value and returns of its various projects. It will also continue to focus on containing costs and ensuring effective management of capital expenditures.

The Company's well defined development stage and exploration projects, in addition to further value enhancing opportunities, provide Yamana with a superior organic growth profile and value proposition.

Production from continuing operations is expected to be in the range of 1,030,000 to 1,145,000 million GEO in 2010 and 1,045,000 to 1,150,000 GEO in 2011 representing an overall increase of up to 12 percent from 2009. Growth is expected to ramp up substantially in 2012 to approximately 1.3 million GEO as four development stage projects including C1 Santa Luz, Mercedes, Minera Florida tailing project and Ernesto/Pau-a-pique, where construction decisions have already been made, are expected to begin production. By 2013, production is expected to reach the level of 1.5 million GEO, which represents a 46% increase in production from 2009.

Additional production growth is expected from development projects currently under evaluation such as QDD Lower West, Pilar and Caiamar which would bring the Company to a target production level of 1.7 million GEO. Exploration discoveries and robust value enhancing projects such as Agua Rica would contribute to longer term production growth.

The Company continues to evaluate the further expansion of its mines and development projects as follows:

    <<
                                                                    Expected
                                        Expected Initial Annual   Production
    Project               Status             Contribution         Start-date
    -------------------------------------------------------------------------
    C1 Santa Luz(i)    Construction       130,000 gold ounces       Mid-2012
                       decision made

    Mercedes           Construction           120,000 GEO          Late 2012
                       decision made

    Ernesto/           Construction       120,000 gold ounces      Late 2012
     Pau-a-Pique(i)    decision made

    Minera             Construction            40,000 GEO         Early 2012
     Florida tailings  decision made

    Pilar/Caiamar      Update resource            Over               Pending
                       estimate and       100,000 gold ounces
                       complete basic
                       engineering
                       mid-2010

    Gualcamayo         Updated feasibility 90,000 gold ounces        Pending
     - QDD Lower West  study expected
                       in second half
                       of 2010

    Agua Rica(ii)      Update to the           154,000 GEO           Pending
                       2006 feasibility      365 million lbs
                       underway                of copper
    -------------------------------------------------------------------------
    (i)    In the first two full years of production at C1 Santa Luz, average
           annual production is expected to exceed 130,000 ounces and at
           Ernesto/Pau-a-pique average annual production is expected to be
           approximately 120,000 ounces which would accelerate pay-back.
           Annual production over the life of mine for C1 Santa Luz is
           expected to be 104,000 ounces of gold and 100,000 ounces of gold
           at Ernesto/Pau-a-pique.
    (ii)   In the first ten full years of production at Agua Rica, average
           annual production is expected to be approximately 154,000 GEO and
           365 million pounds of copper. Production over the life of mine is
           expected to be 136,000 GEO and 282 million pounds of copper.
    >>

Yamana continues to increase the value of Agua Rica and has completed the first of several studies evaluating certain optimization initiatives over and above the evaluation of the project based on the 2006 feasibility study, all of which are expected to have a material positive impact on the project. A full update to the 2006 feasibility study, which would include the recently completed optimization initiatives, the additional initiatives under review and definitive mineral reserve and production estimates, will be provided as the Company continues to work toward a formal construction decision expected before the end of 2011.

The Company remains focused on exploration through identifying and acquiring the best exploration properties in the Americas, developing a pool of talented geoscientists and replacing ounces at current operations.

FOURTH QUARTER CONFERENCE CALL

A conference call and audio webcast is scheduled for March 4, 2010 at 11:00 a.m. E.T. to discuss 2009 fourth quarter and year end results.

    <<
    Fourth Quarter Conference Call Information:
    -------------------------------------------

    Toll Free (North America):                          1-888-231-8191
    International:                                      1-647-427-7450
    Participant Audio Webcast:                          www.yamana.com

    Fourth Quarter Conference Call REPLAY:
    --------------------------------------

    Toll Free Replay Call (North America):  800-642-1687, Passcode: 46908469
                                            (followed by the number sign)

    Replay Call:                            416-849-0833, Passcode: 46908469
                                            (followed by the number sign)
    >>

The conference call replay will be available from 2:00 p.m. Eastern Time on March 4, 2010 until 11:59 p.m. EST on March 18, 2010.

For further information on the conference call or audio webcast, please contact the Investor Relations Department or visit our website, www.yamana.com.

NON-GAAP MEASURES

The Company has included certain non-GAAP measures including "Cash costs per gold equivalent ounce", "Cash costs per pound of copper", "By-product cash costs per gold equivalent ounce", "Adjusted Earnings or Loss and Adjusted Earnings or Loss per share", "Cash flows from operations before changes in non-cash working capital" or "Cash flows from operating activities before changes in non-cash working capital" and "Gross margin" to supplement its financial statements, which are presented in accordance with Canadian GAAP.

The Company believes that these measures, together with measures determined in accordance with Canadian GAAP, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP measures do not have any standardized meaning prescribed under Canadian GAAP, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

RECONCILIATION OF NON-GAAP MEASURES

    <<
    Cash costs
    ---------------------
    >>

The Company has included cash costs per GEO information because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with Canadian GAAP do not fully illustrate the ability of its operating mines to generate cash flows. The measures are not necessarily indicative of operating profit or cash flows from operations as determined under Canadian GAAP. Cash costs per GEO are determined in accordance with the Gold Institute's Production Cost Standard and are calculated on a co-product and by-product basis. Cash costs on a by-product basis are computed by deducting copper by-product revenues from the calculation of cash costs of production per GEO.

By-product Cash Costs Per Gold Equivalent Ounce ("GEO")

The following table provides a reconciliation of cost of sales per the financial statements and by-product cash costs per GEO:

    <<

                                               In thousands of  United States
                                                 United States       Dollars
                                                       Dollars       per GEO
                                         ------------------------------------
    For the year ended December 31,                       2009          2009
    -------------------------------------------------------------------------

    Adjustments:                                    $  479,847    $      517
    Chapada treatment and refining costs
     related to gold and copper                         30,417            33
    Inventory movements and adjustments                (18,277)          (20)
    Commercial selling costs                           (18,816)          (20)
    Chapada copper revenue including copper
     pricing adjustment                               (315,324)         (340)
    -------------------------------------------------------------------------
    Total by-product cash costs (excluding
     Alumbrera)(i)                                  $  157,847    $      170
    Mineral Alumbrera (12.5% interest)
     by-product cash costs                             (37,070)         (703)
    -------------------------------------------------------------------------
    Total GEO by-product cash costs(i)              $  120,777    $      123
    -------------------------------------------------------------------------
    Commercial GEO produced excluding Alumbrera        928,097
    -------------------------------------------------------------------------
    Commercial GEO produced including Alumbrera        980,847


                                               In thousands of  United States
                                                 United States       Dollars
                                                       Dollars       per GEO
                                         ------------------------------------
    For the year ended December 31,                       2009          2009
    -------------------------------------------------------------------------

    Adjustments:                                    $  141,696    $      509
    Chapada treatment and refining costs related
     to gold and copper                                  7,123            26
    Inventory movements and adjustments                 (9,404)          (34)
    Commercial selling costs                             2,217             8
    Chapada copper revenue including copper
     pricing adjustment                               (110,617)         (398)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total by-product cash costs (excluding
     Alumbrera)(i)                                  $   31,015    $      111
    Mineral Alumbrera (12.5% interest)
     by-product cash costs                             (19,983)       (1,731)
    -------------------------------------------------------------------------
    Total GEO by-product cash costs(i)              $   11,032    $       38
    -------------------------------------------------------------------------
    GEO produced excluding Alumbrera                   277,912
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (i) Cash costs per GEO is calculated on a weighted average basis.

    Adjusted Earnings or loss and Adjusted Earnings or loss per share
    -----------------------------------------------------------------
    >>

The Company uses the financial measures "Adjusted Earnings or Loss" and "Adjusted Earnings or Loss per share" to supplement information in its consolidated financial statements. The Company believes that in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors and analysts use this information to evaluate the Company's performance. The presentation of adjusted measures are not meant to be a substitute for net earnings or loss or net earnings or loss per share presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measures. Adjusted Earnings or Loss and Adjusted Earnings or Loss per share are calculated as net earnings excluding (a) stock-based compensation, (b) foreign exchange (gains) losses, (c) unrealized (gains) losses on commodity derivatives, (d) impairment losses, (e) future income tax expense (recovery) on the translation of foreign currency inter-corporate debt, (f) write-down of investments and other assets and any other non-recurring adjustments. Non-recurring adjustments from unusual events or circumstances, such as the unprecedented volatility of copper prices in the fourth quarter of 2008, are reviewed from time to time based on materiality and the nature of the event or circumstance. Earnings adjustments reflect both continuing and discontinued operations.

The terms "Adjusted Earnings (Loss)" and "Adjusted Earnings (Loss) per share" do not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. Management believes that the presentation of Adjusted Earnings or Loss and Adjusted Earnings or Loss per share provide useful information to investors because they exclude non-cash and other charges and are a better indication of the Company's profitability from operations. The items excluded from the computation of Adjusted Earnings or Loss and Adjusted Earnings or Loss per share, which are otherwise included in the determination of net earnings or loss and net earnings or loss per share prepared in accordance with Canadian GAAP, are items that the Company does not consider to be meaningful in evaluating the Company's past financial performance or the future prospects and may hinder a comparison of its period-to-period profitability. A reconciliation of Adjusted Earnings to net earnings as well as a discussion of the adjusting items is provided in Section 4 "Overview of Financial Results" for both the yearly and quarterly reconciliations.

    <<
    Cash flows from continuing operations before changes in non-cash working
    ------------------------------------------------------------------------
    capital
    -------
    >>

The Company uses the financial measure "cash flows from operations before changes in non-cash working capital" or "cash flows from operating activities before changes in non-cash working capital" to supplement its consolidated financial statements. The presentation of cash flows from operations before changes in non-cash working capital is not meant to be a substitute for cash flows from operations or cash flows from operating activities presented in accordance with Canadian GAAP, but rather should be evaluated in conjunction with such Canadian GAAP measures. Cash flows from operations before changes in non-cash working capital excludes the non-cash movement from period-to-period in working capital items including accounts receivable, advances and deposits, inventory, accounts payable and accrued liabilities.

The terms "cash flows from operations before changes in non-cash working capital" or "cash flows from operating activities before changes in non-cash working capital" do not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. The Company's management believes that the presentation of cash flows from operations before changes in non-cash working capital provides useful information to investors because it excludes the non-cash movement in working capital items and is a better indication of the Company's cash flows from operations and considered to be meaningful in evaluating the Company's past financial performance or the future prospects. The Company believes that conventional measure of performance prepared in accordance with Canadian GAAP does not fully illustrate the ability of its operating mines to generate cash flows.

The following table provides a reconciliation of cash flows from operating activities of continuing operations before changes in non-cash working capital:

    <<
                                                   Three months         Year
                                                          ended        ended
                                                       December     December
                                                        31 2009      31 2009
    -------------------------------------------------------------------------
    Cash flows from operating activities
     of continuing operations                        $  211,206   $  528,026

    Adjustments:
    Net change in non-cash working capital              (55,981)     (32,407)
    -------------------------------------------------------------------------

    Cash flows from operating activities
     of continuing operations before changes in
     non-cash working capital                        $  155,225   $  495,619
    -------------------------------------------------------------------------
    >>

Cash flow per share

-------------------

The Company uses the financial measure "cash flow per share" The presentation of cash flow per share is not meant to be a substitute for cash flows from operations or cash flows from operating activities presented in accordance with Canadian GAAP, but rather should be evaluated in conjunction with such Canadian GAAP measures. "Cash flow per share" is calculated as "cash flows from operations after changes in non-cash working capital" divided by the weighted average number of shares outstanding and/or as "cash flows from operating activities before changes in non-cash working capital" (Non-GAAP measure) divided by the weighted average number of shares outstanding for the period.

The term "cash flow per share" does not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definition is unlikely to be comparable to similar measures presented by other companies. The Company's management believes that the presentation of cash flow per share provides useful information to investors because it presents cash flows from operations on a per share basis and is useful information to investors in evaluating the Company's past financial performance or future prospects in its ability to generate cash flows. The table below presents the calculation of cash flow per share:

    <<
                                                   Three months         Year
                                                          ended        ended
                                                       December     December
                                                        31 2009      31 2009
    -------------------------------------------------------------------------
    Cash flows from operations after changes
    in non-cash working capital                      $    211.2   $    528.0

    Cash flow from operations before changes in
    non-cash working capital                         $    155.2   $    495.6
    -------------------------------------------------------------------------

    Weighted average number of shares outstanding           733          733
    -------------------------------------------------------------------------
    Cash flows from operations after changes in
    non-cash working capital per share               $     0.29   $     0.72

    Cash flows from operations before changes in
    non-cash working capital per share               $     0.21   $     0.68
    -------------------------------------------------------------------------

    Gross margin
    ------------
    >>

The Company uses the financial measure "gross margin" to supplement its consolidated financial statements. The presentation of gross margin is not meant to be a substitute for net earnings presented in accordance with Canadian GAAP, but rather should be evaluated in conjunction with such Canadian GAAP measures. Gross margin represent the amount of revenues in excess of cost of sales. It may be expressed in terms of percentage of revenues, both in total amount or on a per GEO basis.

The terms "gross margin" does not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. The Company's management believes that the presentation of gross margin provides useful information to investors because it excludes the non-cash operating cost items such as depreciation, depletion and amortization, accretion for asset retirement obligations and other common operating expenses, and considers this non-GAAP measure meaningful in evaluating the Company's past financial performance or the future prospects. The Company believes that conventional measure of performance prepared in accordance with Canadian GAAP does not fully illustrate the ability of its operating mines to generate cash flows.

The following table provides a reconciliation of gross margin:

    <<
                                                   Three months         Year
                                                          ended        ended
                                                       December     December
                                                        31 2009      31 2009
    -------------------------------------------------------------------------
    Revenues                                         $  399,825   $1,183,314

    Cost of sales excluding depletion,
     depreciation and amortization                     (141,695)    (479,847)
    -------------------------------------------------------------------------
    Gross Margin                                     $  258,130   $  703,467
    -------------------------------------------------------------------------
    Gross Margin as % of Revenues                           65%          59%
    -------------------------------------------------------------------------
    GEO Sold (excluding Alumbrera)                      274,356      907,851
    Gross Margin per GEO Sold                        $      941   $      775
    -------------------------------------------------------------------------
    >>

Qualified Person

Evandro Cintra, P.Geo., Senior Vice President, Technical Services for Yamana Gold Inc. has reviewed and confirmed the data contained within this news release and serves as the Qualified Person as defined in National Instrument 43-101.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile, Mexico and Colombia. The Company plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This news release contains or incorporates by reference "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "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, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, risk related to non-core mine dispositions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2008 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

This news release uses the terms "Measured", "Indicated" and "Inferred" Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

    <<
    (1) Cash costs per GEO, adjusted earnings, adjusted earnings per share,
        cash flows from operations before changes in non-cash working
        capital, cash flows from operations before changes in non-cash
        working capital per share and gross margin are non-GAAP measures.
        Reconciliation of non-GAAP measures is located above. Cash costs are
        shown on a by-product basis.


    Yamana's Mineral Reserve and Mineral Resource Estimates as at December
    31, 2009

    Mineral Reserves (Proven and Probable)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gold                  Proven Reserves             Probable Reserves
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
    -------------------------------------------------------------------------
                                         oz.                           oz.
                   (000's)    (g/t)    (000's)   (000's)    (g/t)    (000's)
    -------------------------------------------------------------------------
                  -----------------------------------------------------------
    Alhue/Minera
     Florida         1,504      4.27       207     2,148      5.97       412
    Alumbrera
     (12.5%)        38,750      0.40       498     1,250      0.29        12
    Chapada        166,312      0.22     1,166   153,102      0.20       992
    C1-Santa Luz    13,452      1.63       706    10,336      1.44       479
    El Penon         1,142      5.60       206     7,374      7.27     1,724
    Ernesto/Pau
     a Pique         2,279      3.86       283     4,827      2.75       427
    Fazenda
     Brasileiro      1,864      2.64       158       291      2.87        27
    Gualcamayo      16,792      0.86       464    51,155      1.14     1,868
    Jacobina        12,695      1.99       811     9,733      2.33       731
    Mercedes             -         -         -     3,445      5.63       624
    Sub Total
     Gold Mineral
     Reserves      254,790      0.55     4,498   243,661      0.93     7,296
    Agua Rica      347,831      0.25     2,818   449,892      0.21     2,965
    -------------------------------------------------------------------------
    Total Gold
     Mineral
     Reserves      602,621      0.38     7,316   693,553      0.46    10,261
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Silver
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
    -------------------------------------------------------------------------
                                         oz.                           oz.
                   (000's)    (g/t)    (000's)   (000's)    (g/t)    (000's)
    -------------------------------------------------------------------------
                  -----------------------------------------------------------
    Alhue/Minera
     Florida         1,504     22.69     1,097     2,148     50.22     3,467
    El Penon         1,142    273.79    10,053     7,374    200.50    47,530
    Mercedes             -         -         -     3,445     62.36     6,908
    Sub Total
     Silver
     Mineral
     Reserves        2,646    131.07    11,150    12,967    138.90    57,905
    Agua Rica      347,831      3.83    42,775   449,892      3.46    49,989
    -------------------------------------------------------------------------
    Total Silver
     Mineral
     Reserves      350,477      4.79    53,925   462,859      7.25   107,894
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Copper
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
    -------------------------------------------------------------------------
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
                  -----------------------------------------------------------
    Alumbrera
     (12.5%)        38,750      0.39       333     1,250     0.32%         9
    Chapada        166,312      0.33     1,192   153,102     0.30%     1,014
    Sub Total
     Copper
     Mineral
     Reserves      205,062      0.33     1,525   154,352     0.30%     1,023
    Agua Rica      347,831      0.57     4,386   449,892     0.43%     4,285
    -------------------------------------------------------------------------
    Total Copper
     Mineral
     Reserves      552,893      0.48     5,911   604,244     0.40%     5,308
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Zinc
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    Alhue/Minera
     Florida         1,504      1.39        46     2,148     1.62%        77
    -------------------------------------------------------------------------
    Total Zinc
     Mineral
     Reserves        1,504      1.39        46     2,148     1.62%        77
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Molybdenum
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
    -------------------------------------------------------------------------
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
                  -----------------------------------------------------------
    Alumbrera
     (12.5%)        38,750     0.013        11     1,250     0.015       0.4
    Sub Total Moly
     Mineral
     Reserves       38,750     0.013        11     1,250     0.015         0
    Agua Rica      347,831     0.035       268   449,892     0.033       327
    -------------------------------------------------------------------------
    Total Moly
     Mineral
     Reserves      386,581     0.033       279   451,142     0.033       328
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    --------------------------------------------
    Gold              Total Proven & Probable
    --------------------------------------------
                    Tonnes    Grade  Contained
    --------------------------------------------
                                         oz.
                   (000's)    (g/t)    (000's)
    --------------------------------------------
                 -------------------------------
    Alhue/Minera
     Florida         3,652      5.27       619
    Alumbrera
     (12.5%)        40,000      0.40       510
    Chapada        319,414      0.21     2,158
    C1-Santa Luz    23,788      1.55     1,184
    El Penon         8,516      7.05     1,930
    Ernesto/Pau
     a Pique         7,106      3.11       710
    Fazenda
     Brasileiro      2,155      2.67       185
    Gualcamayo      67,947      1.07     2,332
    Jacobina        22,428      2.14     1,542
    Mercedes         3,445      5.63       624
    Sub Total
     Gold Mineral
     Reserves      498,451      0.74    11,794
    Agua Rica      797,723      0.23     5,783
    --------------------------------------------
    Total Gold
     Mineral
     Reserves    1,296,174      0.42    17,577
    --------------------------------------------
    --------------------------------------------

    --------------------------------------------
    --------------------------------------------
    Silver
    --------------------------------------------
    --------------------------------------------
                    Tonnes    Grade  Contained
    --------------------------------------------
                                         oz.
                   (000's)    (g/t)    (000's)
    --------------------------------------------
                 -------------------------------
    Alhue/Minera
     Florida         3,652     38.88     4,564
    El Penon         8,516    210.33    57,583
    Mercedes         3,445     62.36     6,908
    Sub Total
     Silver
     Mineral
     Reserves       15,613    137.57    69,055
    Agua Rica      797,723      3.62    92,767
    --------------------------------------------
    Total Silver
     Mineral
     Reserves      813,336      6.19   161,822
    --------------------------------------------

    --------------------------------------------
    --------------------------------------------
    Copper
    --------------------------------------------
    --------------------------------------------
                   Tonnes     Grade  Contained
    --------------------------------------------
                   (000's)     (%)     lbs (mm)
    --------------------------------------------
                 -------------------------------
    Alumbrera
     (12.5%)        40,000      0.39       341
    Chapada        319,414      0.31     2,206
    Sub Total
     Copper
     Mineral
     Reserves      359,414      0.32     2,547
    Agua Rica      797,723      0.49     8,670
    --------------------------------------------
    Total Copper
     Mineral
     Reserves    1,157,137      0.44    11,217
    --------------------------------------------

    --------------------------------------------
    --------------------------------------------
    Zinc
    --------------------------------------------
    --------------------------------------------
                   Tonnes     Grade  Contained
                   (000's)     (%)     lbs (mm)
    Alhue/Minera
     Florida         3,652      1.52       123
    --------------------------------------------
    Total Zinc
     Mineral
     Reserves        3,652      1.52       123
    --------------------------------------------

    --------------------------------------------
    --------------------------------------------
    Molybdenum
    --------------------------------------------
    --------------------------------------------
                   Tonnes     Grade  Contained
    --------------------------------------------
                   (000's)     (%)     lbs (mm)
    --------------------------------------------
                 -------------------------------
    Alumbrera
     (12.5%)        40,000     0.013        11
    Sub Total Moly
     Mineral
     Reserves       40,000     0.013        11
    Agua Rica      797,723     0.034       596
    --------------------------------------------
    Total Moly
     Mineral
     Reserves      837,723     0.033       607
    --------------------------------------------
    --------------------------------------------



    Mineral Resources (Measured, Indicated and Inferred)

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gold               Measured Resources            Indicated Resources
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)    (g/t)      oz.     (000's)    (g/t)      oz.
                                       (000's)                       (000's)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida           882      5.48       155     1,247      5.28       212
    Amancaya             -         -         -         -         -         -
    C1-Santa Luz    10,498      1.65       557    11,534      1.50       555
    Chapada         45,710      0.14       206   139,672      0.12       539
    El Penon           613     12.23       241     3,046      7.73       757
    Ernesto/Pau
     a Pique           204      6.28        41     1.793      1.44        83
    Esquel               -         -         -     4,700     15.00     2,286
    Fazenda
     Brasileiro        481      2.31        36     1,303      2.94       123
    Gualcamayo       5,967      1.30       249    14,630      1.18       553
    Jacobina         7,995      2.20       565     8,259      3.27       867
    Jeronimo
     (57.3%)             -         -         -       636      7.97       163
    La Pepa         15,750      0.61       308   133,682      0.57     2,452
    Mercedes             -         -         -     1,056      3.77       128
    Pilar de Goias
     (Jordino) (75%)     -         -         -     1,337      4.95       213
    Pilar de Goias
     (Ogo, Tres
      Buracas) (75%)
    Sub Total Gold
     Mineral
     Resources      88,100      0.83     2,358   322,895      0.86     8,931
    Agua Rica       64,169      0.17       361   248,108      0.16     1,299
    -------------------------------------------------------------------------
    Total Gold
     Mineral
     Resources     152,269      0.56     2,719   571,002      0.56    10,229
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Silver
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)    (g/t)      oz.     (000's)    (g/t)      oz.
                                       (000's)                       (000's)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida           882     18.17       515     1,247     28.24     1,132
    Amancaya             -         -         -         -         -         -
    El Penon           613    300.96     5,928     3,046    205.99    20,172
    Esquel               -         -         -     4,700     23.00     3,523
    Mercedes             -         -         -     1,056     49.80     1,690
    Sub Total
     Silver
     Mineral
     Resources       1,495    134.05     6,443    10,049     82.07    26,517
    Agua Rica       64,169      2.38     4,911   248,108      2.74    21,823
    -------------------------------------------------------------------------
    Total Silver
     Mineral
     Resources      65,664      5.38    11,354   258,157      5.82    48,340
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Copper
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Chapada         45,710      0.18       181   139,672      0.20       616
    Sub Total
     Copper
     Mineral
     Resources      45,710      0.18       181   139,672      0.20       616
    Agua Rica       64,169      0.49       700   248,108      0.40     2,178
    -------------------------------------------------------------------------
    Total Copper
     Mineral
     Resources     109,879      0.36       881   387,780      0.33     2,794
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Zinc
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida           882       1.3        27     1,247      1.50        41
    -------------------------------------------------------------------------
    Total Zinc
     Mineral
     Resources         882       1.3        27     1,247      1.50        41
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Molybdenum
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Agua Rica       64,169      0.01        40   248,108      0.01       165
    -------------------------------------------------------------------------
    Total Moly
     Mineral
     Resources      64,169      0.01        40   248,108      0.01       165
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Gold            Total Measured & Indicated        Inferred Resources
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)    (g/t)      oz.     (000's)    (g/t)      oz.
                                       (000's)                       (000's)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida         2,129      5.37       367     2,746      6.12       541
    Amancaya             -         -         -     1,390      7.90       351
    C1-Santa Luz    22,032      1.57     1,112     4,830      1.40       217
    Chapada        185,382      0.13       745   186,801      0.11       661
    El Penon         3,659      8.48       998     3,846      8.42     1,040
    Ernesto/Pau
     a Pique         1,997      1.93       124     4,459      1.79       257
    Esquel           4,700     15.00     2,286       900      9.90       274
    Fazenda
     Brasileiro      1,784      2.77       159     1,862      3.48       208
    Gualcamayo      20,597      1.21       802    20,826      0.92       615
    Jacobina        16,254      2.74     1,433    16,480      2.36     1,252
    Jeronimo
     (57.3%)           636      7.97       163     1,776      7.10       401
    La Pepa        149,432      0.57     2,760    37,900      0.50       620
    Mercedes         1,056      3.77       128     1,827      6.11       359
    Pilar de Goias
     (Jordino) (75%) 1,337      4.95       213     4,106      5.56       734
    Pilar de Goias
     (Ogo, Tres
      Buracas) (75%)                               3,675      1.38       164
    Sub Total Gold
     Mineral
     Resources     410,955      0.85    11,290   293,425      0.82     7,695
    Agua Rica      312,277      0.17     1,660   651,000      0.12     2,512
    -------------------------------------------------------------------------
    Total Gold
     Mineral
     Resources     723,272      0.56    12,950   944,425      0.34    10,207
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Silver
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)    (g/t)      oz.     (000's)    (g/t)      oz.
                                       (000's)                       (000's)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida         2,129     24.07     1,647     2,746     55.11     4,865
    Amancaya             -         -         -     1,390     73.00     3,270
    El Penon         3,659    221.89    26,100     3,846    257.84    31,880
    Esquel           4,700     23.00     3,523       900     21.00       575
    Mercedes         1,056     49.80     1,690     1,827     58.46     3,435
    Sub Total
     Silver
     Mineral
     Resources      11,554     88.81    32,960    10,709    127,87    44,025
    Agua Rica      312,277      2.66    26,734   651,000      2.30    48,139
    -------------------------------------------------------------------------
    Total Silver
     Mineral
     Resources     323,821      5.73    59,694   661,709      4.33    92,164
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Copper
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Chapada        185,383      0.20       797   186,801      0.20       823
    Sub Total
     Copper
     Mineral
     Resources     185,383      0.20       797   186,801      0.20       823
    Agua Rica      312,277      0.42     2,878   651,000      0.34     4,880
    -------------------------------------------------------------------------
    Total Copper
     Mineral
     Resources     497,660      0.34     3,675   837,801      0.31     5,703
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Zinc
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Alhue/Minera
     Florida         2,129      1.45        68     2,745      1.51        92
    -------------------------------------------------------------------------
    Total Zinc
     Mineral
     Resources       2,129      1.45        68     2,745      1.51        92
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Molybdenum
    -------------------------------------------------------------------------
                    Tonnes    Grade  Contained    Tonnes    Grade  Contained
                   (000's)     (%)     lbs (mm)   (000's)    (%)     lbs (mm)
    -------------------------------------------------------------------------
    Agua Rica      312,277      0.01       206   651,000      0.03       488
    -------------------------------------------------------------------------
    Total Moly
     Mineral
     Resources     312,277      0.01       206   651,000      0.03       488
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Yamana Gold Inc. Mineral Reserve and Mineral Resource Reporting Notes:

    1.  Metal Prices and Cut-off Grades:

    Mine               Mineral Reserves                 Mineral Resources
    ----               ----------------                 -----------------

    Alhue/Minera       $825 Au, $14.00 Ag, $0.75        2.5 g/t Au cut-off
    Florida            lb Zn

    Alumbrera (12.5%)  $919 Au, $1.80 Cu, $12.00 Mo,    N/A
                       0.22% Cu EQ cut-off

    Amancaya           N/A                              1.0 g/t Au EQ OP, 3.4
                                                        g/t Au EQ UG

    Chapada            $825 Au, $2.25 Cu, $3.62 NSR     0.17% Cu EQ cut-off
                       cut-off


    C1-Santa Luz       $750 Au, 0.50 g/t Au cut-off     0.5 g/t Au cut-off

    El Penon           $825 Au, $14.00 Ag, variable     3.9 or 5.0 g/t Au EQ
                    	   cut-off

    Ernesto/           $825 Au, 1.0 g/t UG, 0.3 g/t     0.3 g/t OP, 1.0 g/t
     Pau-a-Pique       Au OP cut-off                    IG

    Fazenda Brasileiro $776 Au, 1.5 g/t Au cut-off      1.5 g/t cut-off

    Gualcamayo         $825 Au, QDD 0.15 g/t Au,        QDD 0.15 g/t Au,
                       AIM 0.5 g/t Au                   AIM 0.5 g/t Au,
                    	   QDDLW 1.0 g/t Au cut-off         1.0 g/t Au QDD LW

    Jacobina           $825 Au; 1.1 g/t Au cut-off      0.5 g/t Au cut-off

    Jeronimo (57.3%)   N/A                              5.0 g/t Au cut-off

    La Pepa            N/A                              0.3 g/t Au cut-off

    Mercedes           $825 Au, $14.00 Ag; 3.0 g/t      2.0 g/t Au EQ cut-off
                       Au EQ cut-off

    Pilar (75%)        N/A                              2.0 g/t Au cut-off

    Agua Rica          $425 Au, $1.10 Cu; 0.2% Cu      0.2% Cu cut-off
                       and $3.74 cut-off


    2.  All mineral reserves and mineral resources have been calculated in
        accordance with the standards of the Canadian Institute of Mining,
        Metallurgy and Petroleum and NI 43-101, other than the estimates for
        the Alumbrera mine which have been calculated in accordance with the
        JORC Code which is accepted under NI 43-101.

    3.  All mineral resources are reported exclusive of mineral reserves.

    4.  Mineral resources which are not mineral reserves do not have
        demonstrated economic viability.

    5.  Mineral reserves and mineral resources are reported as of December
        31, 2009.

    6.  For the qualified persons responsible for the mineral reserve and
        mineral resource estimates, see the qualified persons chart below:



                   Qualified Persons             Qualified Persons
    Property       for Mineral Reserves          for Mineral Resources

    Alhué/Minera   Stuart Collins, P.E., Scott   Chester M. Moore, P.Eng.,
     Florida       Wilson Roscoe Postle          Scott Wilson Roscoe Postle
                   Associates Inc.               Associates Inc.

    Alumbrera      Julio Bruna Novillo, AusIMM,  Julio Bruna Novillo, AusIMM,
                   Xstrata Plc                   Xstrata Plc

    Amancaya       Not applicable                Chester M. Moore, P.Eng.,
                                                 Scott Wilson Roscoe Postle
                                                 Associates Inc.

    Chapada        Marco Antonio Alfaro          Marco Antonio Alfaro
                   Sironvalle, MAusIMM,          Sironvalle, MAusIMM,
                   Corporate Manager, Reserves,  Corporate Manager, Reserves,
                   Yamana Gold Inc.              Yamana Gold Inc.

    C-1 Santa Luz  Enrique Munoz Gonzalez,       Marco Antonio Alfaro
                   MAusIMM, Metalica Consultores Sironvalle, MAusIMM,
                   S.A.                          Corporate Manager, Reserves,
                                                 Yamana Gold Inc.

    El Penon       Stuart Collins, P.E., Scott   Chester M. Moore, P.Eng.,
                   Wilson Roscoe Postle          Scott Wilson Roscoe Postle
                   Associates Inc.               Associates Inc.

    Ernesto/       Renato Petter, P. Eng.,       Rogerio Moreno, MAusIMM,
     Pau-a-Pique   Technical Services Director,  Principal Geologist, MCB
                   Yamana Gold Inc.              Servicos e Mineracao Ltda.

    Esquel         Not applicable                Robin J. Young, P. Geo.,
                                                 Western Services
                                                 Engineering, Inc.

    Fazenda        Renato Petter, P. Eng.,       Rogerio Moreno, MAusIMM,
     Brasileiro    Technical Services Director,  Principal Geologist, MCB
                   Yamana Gold Inc.              Servicos e Mineracao Ltda.

    Gualcamayo     Renato Petter, P. Eng.,       Ronald G. Simpson, P. Geo.,
                   Director of Technical         GeoSim Services Inc. and
                   Services, Yamana Gold Inc.    Marco Antonio Alfaro
                                                 Sironvalle, MAusIMM,
                                                 Corporate Manager, Reserves,
                                                 Yamana Gold Inc.

    Jacobina       Renato Petter, P. Eng.,       Rogerio Moreno, MAusIMM,
                   Technical Services Director,  Principal Geologist, MCB
                   Yamana Gold Inc.              Servicos e Mineracao Ltda.

    Jeronimo       Not applicable                Chester M. Moore, P. Eng.,
                                                 Scott Wilson Roscoe Postle
                                                 Associates Inc.

    La Pepa        Not applicable                Chester M. Moore, P. Eng.,
                                                 Scott Wilson Roscoe Postle
                                                 Associates Inc.

    Mercedes       David Sprott, B.Sc, M.Sc.,    Greg Walker, P.Geo., Senior
                   P.Eng., Associate and Senior  Manager, Resources
                   Mine Engineer, Golder         Estimation, Yamana Gold Inc.
                   Associates Ltd.

    Pilar          Not applicable                Greg Walker, P.Geo., Senior
                                                 Manager, Resources
                                                 Estimation, Yamana Gold Inc.
                                                 and Pamela L. De Mark,
                                                 P.Geo., Senior Consultant,
                                                 Snowden Mining Industry
                                                 Consultants Inc.

    Agua Rica      Renato Petter, P. Eng.,       Evandro Cintra, Ph.D., P.
                   Director of Technical         Geo., Senior Vice President,
                   Services, Yamana Gold Inc.    Technical Services, Yamana
                                                 Gold Inc.
    >>

Yamana Gold Provides New Optimization Strategy at El Penon

Mon, 01 Mar 2010 08:28:00 -0500

Discovery of a new very high grade vein system

TORONTO, March 1 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today provided a new optimization strategy and announced the discovery of a new very high grade vein system at its El Penon mine in Chile. All amounts are expressed in United States Dollars unless otherwise indicated.

El Penon, located in northern Chile, is one of Yamana's six core producing mines and has a proven track record of consistent low cost production and the replacement mineral reserves each year.

Current status of El Penon

    <<
    -  Production is expected to sustainably exceed 400,000 gold equivalent
       ounces (GEO): approximately 400,000 to 420,000 GEO is planned in 2010
       with first quarter production expected to be less than the fourth
       quarter production in 2009 but higher than first quarter production in
       2009.
    -  A plant upgrade was completed in late 2009 with plant capacity and
       throughput currently at 4,300 tonnes per day.
    -  Significant exploration efforts with approximately $18.4 million
       budgeted for exploration in 2010, an increase of 12% from the total
       amount spent in 2009 of $16.4 million.
    >>

Optimization Strategy

Yamana has been investigating various strategies to further optimize operations and production at El Penon, increasing production from current levels with the objective of achieving sustainable annual production of at least 450,000 to 500,000 GEO. Yamana has begun the evaluation of plant capacity increases and additional sources of ore for plant feed as part of this process which it expects to complete in 2012. The optimization strategy consists of the following:

    <<
    -  Further increasing plant capacity to 5,000 tonnes per day by 2012,
       with additional ore coming from one or more of the following sources:
       -  Approximately 350 to 400 tonnes per day to come solely from ore in
          the measured and indicated mineral resource category as a result of
          the effective mining of narrower veins. The decision to transition
          to owner mining better enables Yamana to mine this additional ore
          by better matching equipment to the size of the veins.
       -  Other supplemental sources including ore from Amancaya, which is
          located 120 kilometres southwest of El Penon and is host to a low
          sulphidation epithermal vein deposit with an inferred mineral
          resource of approximately 1.4 million tonnes grading 7.9 g/t gold
          containing 351,000 ounces of gold. Results from the recently
          completed 5,000 metres of drilling are currently being evaluated to
          determine the amount of ore to supplement this further expansion at
          El Penon.
       -  Ore from new discoveries, which would provide further potential
          upside (subject to development and metallurgical testwork).
    -  Plant improvements to increase recovery which are expected to be
       complete by the end of 2010. Plant improvements would include finer
       milling and longer residency time and require modest capital.
    >>

Yamana will continue to focus on increasing proven and probable mineral reserves by upgrading ounces from the mineral resource category although a major focus at El Penon has been and will continue to be new discoveries from exploration. In line with this objective, recent exploration efforts have led to the discovery of a new very high grade vein system, Pampa Augusta Victoria. The discovery of Pampa Augusta Victoria is not only significant because of its grade and potential for meaningful contribution to mineral resources, it is also significant because it supports Yamana's view of the very strong exploration and resource growth potential at El Penon, which is the reason for the large commitment to exploration. It will ultimately also be significant because of its expected contribution to production and will further support Yamana's objective of achieving a sustainable production level of 450,000 to 500,000 GEO with the potential for additional increases.

"Yamana's focus has been to create sustainable production, increase plant capacity and to continue to focus on exploration for new discoveries," said Peter Marrone, Yamana's chairman and chief executive officer. "With these objectives completed, we will focus on further evaluation of optimizations for El Penon to further increase plant capacity, recoveries and sustainable production. However, the long term prospects at El Penon have always depended on new discoveries and the recent discovery of Pampa Augusta Victoria supports the significant exploration, resource growth and production increase potential at El Penon."

New Discovery - Pampa Augusta Victoria

Yamana is pleased to announce the discovery of a new very high grade gold/silver vein system at Pampa Augusta Victoria located 30 kilometres north of El Penon (See Map A).

Pampa Augusta Victoria is a grassroots discovery and is similar to high grade veins previously discovered at El Penon. It is a vein system of structurally controlled low sulphidation quartz, stockworks and hydrothermal breccias that are emplaced within acidic volcanic rocks. These rocks are exposed in a structurally controlled window that is approximately 400 square kilometres in surface area. Comparable to El Penon, the gold mineralization is surrounded by a halo of silver mineralization with grades greater than 30 g/t silver.

Yamana has completed 21 reverse circulation drill holes totaling 6,368 metres to date (see Map B). The main structure has been traced along strike for approximately 270 metres and down dip to approximately 200 metres and is open in all directions. The most significant drill intersections are summarized below. For complete drill results please see Appendix A.

    <<
    -------------------------------------------------------------------------
    Hole       Depth    Length     Gold grade   Silver grade  Gold equivalent
               (m)*     (m)        (g/t)         (g/t)       grade (g/t)(1)
    -------------------------------------------------------------------------
    DAV0002      6-12      6          2.05          1405           27.59
             ----------------------------------------------------------------
                36-44      8          0.55           588           11.23
    -------------------------------------------------------------------------
    DAV0016     84-86      2          1.43           294            6.78
    -------------------------------------------------------------------------
    DAV0017     32-34      2          0.17           542           10.02
             ----------------------------------------------------------------
                56-58      2         54.40          5575          155.76
    -------------------------------------------------------------------------
    DAV0021   162-164      2          9.50           976           27.25
    -------------------------------------------------------------------------
    DAV0022   128-130      2          7.20           157           10.05
    -------------------------------------------------------------------------
    DAV0027     70-72      2          1.82           485           10.64
             ----------------------------------------------------------------
              128-130      2          1.29           685           13.74
    -------------------------------------------------------------------------
    DAV0028     92-94      2          4.95          1342           29.35
    -------------------------------------------------------------------------
    * Depth is distance down drill hole in metres and does not represent
        the true width
    >>

A secondary sub parallel structure was also intersected approximately 100 metres east of the main vein in holes DAV0025 and DAV0027. The structure has been identified in one section and has 150 metres of vertical extension. Mineralization is associated with veinlets hosted in both rhyolite domes and andesites. The results are as follows:

    <<
    -------------------------------------------------------------------------
    Hole       Depth    Length     Gold grade   Silver grade  Gold equivalent
               (m)*     (m)        (g/t)         (g/t)       grade (g/t)(1)
    -------------------------------------------------------------------------
    DAV0025   454-458      4         10.50           120           12.68
    -------------------------------------------------------------------------
    DAV0027   292-294      2          2.13          1030           20.86
    -------------------------------------------------------------------------
    >>

The discovery of Pampa Augusta Victoria supports Yamana's view that there is significant unrealized value at El Penon and potential remains to further increase production and extend the mine life. With only approximately 35 percent of the surrounding area explored to date, El Penon has exceptional exploration upside and Yamana expects new discoveries of this nature consistent with previous high grade vein discoveries which now include Pampa Augusta Victoria. Exploration in 2010 will focus on extending the known deposits, infill drilling to upgrade mineral resources to reserves, a broader regional exploration plan and continuing efforts at Pampa Augusta Victoria.

"We are very excited about the discovery of Pampa Augusta Victoria," commented Darcy Marud, senior vice president of exploration, "This was a result of persistent exploration efforts which we will continue into 2010. This new vein system is very similar to previous high grade veins discovered at El Penon and is a testament to the exploration potential which remains in the region. With only a portion of the surrounding area explored, we will continue to focus our efforts at El Penon as we expect additional new discoveries similar in nature."

Recent Events Relating to the Earthquake in Chile

Yamana is aware of the devastation that occurred in several areas of Chile from the massive earthquake on February 27th and it extends its heartfelt support to the people and local communities of Chile. The Company is focused on assisting its personnel in Chile for personal property losses and offering aid to local communities where possible. Operations at the El Penón mine, which is in northern Chile, were not meaningfully impacted and have resumed. Yamana has begun to effect repairs at its Minera Florida mine, which is in southern Chile, and is also evaluating sources of power for Minera Florida as there have been transmission interruptions in the local area.

Quality Assurance and Quality Control

Yamana incorporates a rigorous Quality Assurance and Quality Control program for all of its mines and exploration projects which conforms to industry Best Practices as outlined by the CSE and National Instrument 43-101. This includes the use of independent third party laboratories and the use of professionally prepared standards and blanks and analysis of sample duplicates with a second independent laboratory.

Qualified Person

Greg Walker, P.Geo., Senior Manager, Resource Estimation, of Yamana Gold Inc. has reviewed and confirmed the technical and scientific data contained within this news release concerning the drilling results and discussion of the Pampa Augusta Victoria discovery and serves as the qualified person as defined in National Instrument 43-101.

About Yamana

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This news release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities legislation. Except for statements of historical fact relating to the company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect,", "budget", "target", "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, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, possible variations in ore grade or recovery rates, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real and the Chilean Peso versus the United States Dollar), changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, changes in project parametres as plans continue to be refined, changes in project development and production time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the exploration and development of new areas and deposits, success of exploration activities, successful transition to owner-mining, permitting timelines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presently for the purpose of assisting investors in understanding the Company's expected financial and operational performance and the Company's plans and objectives and may not be appropriate for other purposes.

    <<
    CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED,
    INDICATED AND INFERRED MINERAL RESOURCES
    >>

To see maps and appendix attached to this press release, please go to:

http://files.newswire.ca/797/yamanapenon.pdf

    <<
    (1) Yamana treats silver as a gold equivalent based on an assumed gold to
        silver ratio of 55:1 which is a long term historical average
    >>

Yamana Gold Provides Update on Agua Rica and Announces Construction Decision for its Ernesto/Pau-a-Pique Project

Tue, 26 Jan 2010 07:00:00 -0500

TORONTO, Jan. 26 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced an update on its Agua Rica project in Argentina and a construction decision on its Ernesto/Pau-a-pique project in Brazil based on positive feasibility study results. All amounts are expressed in United States Dollars unless otherwise indicated.

"We have maintained our focus on consistency and reliability in operations and we have applied that focus and approach on our development stage projects," said Peter Marrone, Yamana's chairman and chief executive officer. "In 2009, we undertook a review of Agua Rica and Yamana is now able to further embrace this project as a potential significant future contributor to production. Our review of Agua Rica also demonstrates that the project should provide considerable value. We are now undertaking additional optimization initiatives, providing the potential for substantial additional upside to the project. We expect significant growth from our other development stage projects for which construction decisions have been made which now include Ernesto/Pau-a-pique. With our core operations, development stage projects and exploration focus, we believe that Yamana has a unique offering of growth, sustainability and value."

Agua Rica, Argentina

Yamana has continued to advance its Agua Rica project in Argentina. Agua Rica is a large scale copper, gold, silver and molybdenum porphyry deposit located in the mining-friendly province of Catamarca near the producing Alumbrera mine. A feasibility study was completed in 2006 and the environmental license was issued in 2009.

The Company has completed the first of several studies evaluating certain optimization initiatives over and above the evaluation of the project based on the 2006 feasibility study, all of which are expected to have a positive impact on the project. The optimization initiatives included the following:

    <<
    1. New mine plan that reduces the initial overburden results in
       improvements in both capital and operating costs.

    2. Thickening paste disposal of tailings results in significant savings
       in capital with further potential for improvements.

    3. Replacement of the concentrate pipeline with trucking to an existing
       rail road system results in capital cost improvements.

    4. A review of the impact of higher metal prices on mineral reserves
       which the Company estimates will result in higher mineral reserves
       and mineable tonnes of ore.
    >>

Total mineral resources as reported in Yamana's 2008 annual report is summarized as follows:

    <<
    -  Measured mineral resources of 64.1 million tonnes of ore with an
       average copper grade of 0.49% for a total of 700 million pounds of
       copper, and an average gold grade of 0.17 g/t for a total of
       361,000 ounces of gold
    -  Indicated mineral resources of 248.1 million tonnes of ore with an
       average copper grade of 0.40% for a total of 2.2 billion pounds of
       copper, and an average gold grade of 0.16 g/t for a total of
       1.3 million ounces of gold
    -  Inferred mineral resources of 651.0 million tonnes of ore with an
       average copper grade of 0.34% for a total of 4.9 billion pounds of
       copper, and an average gold grade of 0.12 g/t for a total of
       2.5 million ounces of gold
    >>

Total mineral reserves as reported in Yamana's 2008 annual report is summarized as follows:

    <<
    -  Proven mineral reserves of 347.8 million tonnes of ore with an
       average copper grade of 0.57% for a total of 4.4 billion pounds of
       copper, and an average gold grade of 0.25 g/t for a total of
       2.8 million ounces of gold
    -  Probable mineral reserves of 449.9 million tonnes of ore with an
       average copper grade of 0.43% for a total of 4.3 billion pounds of
       copper, and an average gold grade of 0.21 g/t for a total of
       3.0 million ounces of gold
    >>

The foregoing mineral reserve estimate was based on a copper price of $1.10 per pound and a gold price of $425 per ounce.

Based on the higher metal prices used in the optimization review, contained metal is expected to increase by at least five percent. An updated full mineral reserve estimate will be completed as part of the continued review of the project.

Based on the recently completed optimization study, Agua Rica is expected to produce approximately 12.5 million tonnes of copper/gold concentrate and 357,750 tonnes of molybdenum concentrate over a 26.5 year mine life. Estimated production and cash costs are summarized below:

    <<
    -------------------------------------------------------------------------
                                                 Initial 10 Years     LOM
                                                 ----------------  ---------
    -------------------------------------------------------------------------
    Average annual copper production                  365M lbs      282M lbs
    By-product cash costs(1) per pound (net
     of Molybdenum credits)*                           $0.50         $0.53
    -------------------------------------------------------------------------
    Average annual gold equivalent production(2)   154,000 GEO   136,000 GEO
    Co-product cash costs(1) per gold
     equivalent ounce (GEO)*                            $370          $400
    -------------------------------------------------------------------------
    * excluding royalties

    -------------------------------------------------
    (1) Co-product and by-product cash costs are non-GAAP measures. A
        definition is provided at the end of this press release.
    (2) Yamana treats silver as a gold equivalent.
    >>

By-product cash costs per pound of copper net of all by-product credits, including gold and silver, are estimated to be approximately $0.30 which makes Agua Rica one of the lowest cost copper/gold projects in the world.

As part of the new analysis, Yamana has also evaluated the capital expenditures assumed in the 2006 feasibility study and have concluded a reasonable estimate would be comparable at approximately $2.1 billion. Higher consumable costs and capital costs assumed in the update were mitigated by improvements in the assumed foreign exchange rates.

The new financial and economic model used by Yamana for its new base case analysis has assumed a copper price of $2.25 per pound and a gold price of $950 per ounce. On this basis, the assumed net present value would exceed $1.2 billion (based on a 7.5% discount rate), and the after-tax internal rate of return would be approximately 15%. Higher price assumptions of $3.25 per pound of copper and $1,050 per ounce of gold would increase the net present value by approximately $500 million and the after-tax internal rate of return would be approximately 24%. Yamana continues to evaluate the merits of a strategic partnership to derive value from Agua Rica. The value derived will be dependent on metal markets and general economic conditions.

This study now creates the new base case for the project. Yamana has concluded that this is an exceptional stand alone project offering significant value and currently has further optimization upside options being evaluated. They include:

    <<
    1. Improving the pit slopes to further optimize mine development and
       reduce waste removal.

    2. Optimizing the location of separate tunnels for ore and waste which
       could result in savings in both capital and operating costs in
       addition to providing additional flexibility to the operations.

    3. Reduction in power and equipment requirements particularly with the
       replacement of tailings filtration.

    4. Optimizing the grinding requirements which results in increasing
       plant treatment capacity without additional investment in equipment.

    5. Recovery of the rare metal rhenium, which was not originally assumed
       in the 2006 feasibility study update. Initial metallurgical testing
       of Agua Rica's molybdenum concentrate suggests that the deposit may
       contain a significant amount of rhenium, which could provide
       significant by-product credits. Demand for rhenium has grown
       significantly and the price has increased substantially in the last
       few years and appears to have sustainable industrial applications.
       Yamana is advancing further drilling and metallurgical testing
       relating to the economic recovery of the metal. The possibility of
       achieving rhenium by-product credits may significantly add to the
       economics and potential of the project.
    >>

A full update to the 2006 feasibility study, which would include the recently completed optimization initiatives, the additional initiatives under review and definitive mineral reserve and production estimates, will be provided as Yamana continues to work toward a formal construction decision expected before the end of 2011.

"The approach we have taken on evaluating Agua Rica is similar to Chapada in 2003," said Ludovico Costa, Yamana's president and chief operating officer. "In this project, a previous feasibility study done in 1998 was re-evaluated for improvements and new metal prices assumed which resulted in a positive feasibility study that has been upheld by subsequent results. We are pleased to have completed this first round of optimization initiatives at Agua Rica which confirm the exceptional value of the project and identified several initiatives that may add further value to the project. We believe that Agua Rica is a remarkable project offering robust returns and further value enhancement."

Ernesto/Pau-a-pique, Brazil

Yamana has made a formal decision for the construction of the Ernesto/Pau-a-pique project. The construction decision is based on positive feasibility study results and an expected upgrade in mineral resources as a result of deeper drilling of the ore body. The project has an initial mine life of approximately seven years with current mineral reserves of 710,000 ounces of gold included in measured and indicated mineral resources of 854,000 ounces of gold. The Company believes there is potential to extend the mine life as it continues efforts to upgrade mineral resource ounces to the proven and probable category and expand mineral resources at Ernesto as results demonstrate the deposit is open at depth and down dip.

The Company continues to progress more detailed engineering and an exploration tunnel to facilitate drilling in deeper areas where there are further resources. Yamana also continues to conduct pilot tests on metallurgy and recoveries. Permitting is underway and construction is expected to begin in mid-2010 with production commencing in late 2012.

Key parameters of the feasibility study include:

Mineral reserves and mineral resources:

    <<
    -------------------------------------------------------------------------
                                  Mineral Reserves*
    -------------------------------------------------------------------------
              Proven                  Probable            Proven & Probable
    -------------------------------------------------------------------------
                 Au     Oz                Au     Oz               Au     Oz
      Tonnes   (g/t)   (Au)     Tonnes  (g/t)   (Au)     Tonnes (g/t)   (Au)
    -------------------------------------------------------------------------
    2,279,000  3.86  283,000  4,827,000  2.75 427,000  7,106,000 3.11 710,000
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                  Mineral Resources*
    -------------------------------------------------------------------------
             Measured                 Indicated         Measured & Indicated
    -------------------------------------------------------------------------
                 Au     Oz                Au     Oz               Au     Oz
      Tonnes   (g/t)   (Au)     Tonnes  (g/t)   (Au)     Tonnes (g/t)   (Au)
    -------------------------------------------------------------------------
    2,239,000  4.69  338,000  5,964,000  2.69 516,000  8,203,000 3.24 854,000
    -------------------------------------------------------------------------


    --------------------------
    Inferred Mineral Resources
    --------------------------
                 Au     Oz
      Tonnes   (g/t)   (Au)
    --------------------------
    4,400,000  1.79  256,000
    --------------------------

    * Mineral resources are inclusive of mineral reserves

    Capital cost: approximately $116 million
    Cash cost per ounce(1): $427
    Average throughput: 1.0 million tonnes per year
    Average production (per year): approximately 100,000 ounces
    Initial mine life: 7 years
    After-tax IRR: approximately 31%

    -----------------------------------------------
    (1) Co-product and by-product cash costs are non-GAAP measures. A
        definition is provided at the end of this press release.
    (2) Yamana treats silver as a gold equivalent.
    >>

The internal rate of return of approximately 31% is based on a gold price of $900 per ounce and a Brazilian Real of 1.8 in 2010 and 2.0 thereafter. The initial after-tax net present value is approximately $106 million and is based on a 5% discount rate. Total annual production is expected to average approximately 100,000 ounces of gold over the mine life, with the first two years of production averaging approximately 120,000 ounces further improving project economics. The payback period for the Ernesto/Pau-a-pique project is estimated at two years. Assuming a gold price of $1,100 per ounce the internal rate of return would increase substantially to 47% and the after-tax net present value with a 5% discount rate improves to $192 million. A sensitivity analysis on a 10% change of each variable on Ernesto/Pau-a-pique's after-tax IRR and NPV is provided below:

    <<
    ---------------------------------------------------------------------
    Assumptions sensitivities              IRR             After-tax NPV
    ---------------------------------------------------------------------
    +0% change in assumptions              31%              $106 million
    ---------------------------------------------------------------------
    +10% change in gold price              38%              $145 million
    ---------------------------------------------------------------------
    +10% change in Brazilian Real          40%              $137 million
    ---------------------------------------------------------------------
    >>

Expected capital costs of approximately $116 million account for the appreciation of the local currency as compared to the previous scoping study and the cost of acquiring the mine fleet which was not included in the original estimate as contractor mining had been assumed.

    <<
    -------------------------------------------------
    Initial capex estimate               $86 million
    -------------------------------------------------
      Impact of Brazilian Real         + $12 million
    -------------------------------------------------
      Acquisition of mine fleet        + $18 million
    -------------------------------------------------
    Updated capex estimate              $116 million
    -------------------------------------------------
    >>

Cash costs are estimated at $427 per ounce and are considered highly reliable compared to estimates in the original scoping study as they reflect Yamana's substantial operational experience in Brazil. The level of certainty of capital and operating costs has also increased with the further work completed.

    <<
    -------------------------------------------------
    ($ per ounce)
    -------------------------------------------------
    Initial cash cost estimate          Approx. $356
    -------------------------------------------------
      Impact of Brazilian Real                  +$50
    -------------------------------------------------
      Change in mine costs                      +$28
    -------------------------------------------------
      Change in plant costs                     -$20
    -------------------------------------------------
      Change in other opex                      +$13
    -------------------------------------------------
    Updated cash cost estimate          Approx. $427
    -------------------------------------------------
    >>

The Ernesto/Pau-a-pique project is located in southwest Mato Grosso state, near Pontes e Lacerda in Brazil. The Pau-a-Pique deposit is approximately 62 kilometres by road south of the Ernesto deposit. The significant existing infrastructure including paved roadways supports the development of Ernesto/Pau-a-Pique as two operating mines with a common processing plant.

Ernesto/Pau-a-pique represents a modest cost, low capital and high return project contributing 8 to 10% to overall production. Significant potential for mineral resource upgrade serves as a platform for further exploration at the Guapore belt where Yamana has extensive exploration concessions.

OTHER DEVELOPMENT STAGE PROJECT UPDATE

C1 Santa Luz, Brazil

Yamana is continuing to progress development work at C1 Santa Luz:

    <<
    -  Permitting and the start-up of mine construction are on track for
       mid-2010
    -  Advancing metallurgical testwork
    -  Basic engineering to be completed mid-February.
    >>

During the permitting period, Yamana has undertaken a program to conduct pilot tests on metallurgy and recoveries which are advancing.

Mercedes, Mexico

Yamana is continuing to progress development work at Mercedes:

    <<
    -  Permitting is underway and targeted to be complete mid-2010
       facilitating the start-up of construction
    -  Basic engineering and advanced mine development completed
    -  Exploration results continue to confirm Mercedes' high geological
       potential
    -  Work on a development ramp is progressing to confirm grade continuity
       and the potential to convert mineral resources to mineral reserves.
    >>

Minera Florida Tailings Project, Chile

Yamana is continuing to progress development work at its Minera Florida tailings project:

    <<
    -  Additional work completed to confirm the grade of the historical
       tailings
    -  Basic engineering continues with production on track to commence in
       early 2012.
    >>

Pilar, Brazil

    <<
    -  Efforts continue toward an updated mineral resource estimate and
       basic engineering, followed by a feasibility study
    >>

Chapada, Brazil

    <<
    -  Modifications to the plant to increase throughput to up to 22 million
       tonnes per year now in progress at a moderate capital cost of
       $20 million
    -  Modifications include amendments to the water pumping system,
       increasing hydrocycloning capacity, improving the tailings pumping
       system and additional screening.
    >>

QDD Lower West, Argentina

    <<
    -  Continued drilling on the deposit is expected to increase mineral
       reserves, particularly in the western extension
    -  A feasibility study is expected in the second half of 2010 to
       evaluate the possibility of accelerating production
    -  Construction of an incline ramp to commence
    -  Advanced metallurgical testwork demonstrates the strong presence of
       free gold which would allow heap-leaching through existing facilities
    -  A pre-feasibility study supports additional production of
       80-90,000 ounces per year at Gualcamayo.
    >>

Production at Yamana is expected to ramp up substantially in 2012 as the four development stage projects where construction decisions have been made, C1 Santa Luz, Mercedes, Minera Florida tailings and Ernesto/Pau-a-pique, are planned to begin production. These four projects are expected to contribute 410,000 GEO annually, with production expected to be approximately 1.3 million GEO in 2012 as operations commence sequentially throughout the year at each of the projects. With these new mines an annualized production rate of approximately 1.5 million GEO is expected by the beginning of 2013. Pilar/Caiamar and QDD Lower West will provide further growth for Yamana. Agua Rica is expected to be a substantial contributor to potential future production and value as the Company continues to advance this project.

Quality Assurance and Quality Control

Qualified Person

About Yamana

NON-GAAP MEASURES

The Company believes that in addition to conventional measures prepared in accordance with Canadian GAAP, the Company and certain investors and analysts use certain other non-GAAP financial measures to evaluate the Company's performance including its ability to generate cash flow and profits from its operations. The Company has included certain non-GAAP measures throughout this document. When reference is made to "cash costs" in this document, the Company is referring to co-product cash costs. Cash costs on a co-product basis are computed by allocating operating cash costs separately to metals (copper and gold) based on an estimated or assumed ratio. Cash costs on a by-product basis are computed by deducting copper by product revenues from the calculation of cash costs of production per GEO. Non-GAAP measures do not have any standardized meaning prescribed under Canadian GAAP, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under applicable Canadian securities legislation. Except for statements of historical fact relating to the company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect,", "budget", "target", "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, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, but are not limited to, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, possible variations in ore grade or recovery rates, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real and the Chilean Peso versus the United States Dollar), changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, changes in project parameters as plans continue to be refined, changes in project development and production time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the exploration and development of new areas and deposits, success of exploration activities, successful transition to owner-mining, permitting timelines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presently for the purpose of assisting investors in understanding the Company's expected financial and operational performance and the Company's plans and objectives and may not be appropriate for other purposes.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

Yamana Gold Provides 2010 and 2011 Operating Outlook

Tue, 12 Jan 2010 16:15:00 -0500

TORONTO, Jan. 12 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced its operating outlook including production, cash costs and capital expenditure guidance for 2010 and 2011. All amounts are expressed in United States Dollars unless otherwise indicated.

"Our objective has been to create consistency and reliability in our operations with a sustainable production platform of approximately 1.1 million gold equivalent ounces at consistent cash costs," said Peter Marrone, Yamana's chairman and chief executive officer. "Our outlook for the next few years maintains that objective. Going forward, our development stage and exploration projects, in addition to further value enhancing opportunities, will provide Yamana with a superior organic growth profile and value proposition."

2010 AND 2011 OPERATING OUTLOOK

Production from continuing operations is expected to be in the range of 1,030,000 to 1,145,000 gold equivalent ounces (GEO) in 2010 and 1,045,000 to 1,150,000 GEO in 2011, representing an overall increase of up to 12 percent in production from continuing operations in 2009. Production from discontinued operations is expected to be approximately 40,000 GEO in the first quarter of 2010, which is not included in the estimated production ranges set forth above. No further production from discontinued operations is expected after the first quarter of 2010.

Estimated gold and copper production on a mine by mine basis for 2010 and 2011 is detailed below.

    <<
    -------------------------------------------------------------------------
    Gold Production Estimates (GEO)                   2010E            2011E
    -------------------------------------------------------------------------
    Chapada                                     140-155,000      135-145,000
    El Penon (GEO)                              400-420,000      410-430,000
    Gualcamayo                                  165-180,000      165-180,000
    Jacobina                                    105-125,000      110-130,000
    Minera Florida (GEO)                        100-125,000      110-130,000
    Fazenda Brasileiro                            70-85,000        70-85,000
    Alumbrera (12.5%)                             50-55,000        45-50,000
    -------------------------------------------------------------------------
    Total GEO*                            1,030-1,145,000  1,045-1,150,000
    -------------------------------------------------------------------------
    Copper (lbs) (Chapada)                  150-160 million  135-145 million
    -------------------------------------------------------------------------
    * GEO calculations are based on an assumed gold to silver ratio of 55:1
        which is a long term historical average. Silver production of
        approximately 10 million ounces for 2010 and 2011 is treated as a
        gold equivalent on this basis.
    >>

Growth is expected to ramp up substantially in 2012 as four development stage projects including C1 Santa Luz, Mercedes and Minera Florida tailings project, where construction decisions have already been made, in addition to Ernesto/Pau-a-pique, where a feasibility study is pending, are expected to begin production. These four projects are expected to contribute an additional approximately 390,000 GEO annually. Production in 2012 is expected to be approximately 1.3 million GEO as these projects commence operations and begin to ramp up, with production by the end of 2012 expected to be at a planned annual run rate of approximately 1.5 million GEO, which represents a 46 percent increase in production from 2009.

A summary of expected gold production on a year by year basis is as follows:

    <<
                       --------------------------------
                        Year         Production (GEO)
                       --------------------------------
                        2010       Approx. 1.1 million
                       --------------------------------
                        2011       Approx. 1.1 million
                       --------------------------------
                        2012       Approx. 1.3 million
                       --------------------------------
                        2013       Approx. 1.5 million
                       --------------------------------
    >>

These estimates do not include any additional production from Agua Rica or new discoveries at El Penon, where updates are expected in the first quarter of 2010, or QDD Lower West, where an update is expected in the second half of 2010.

By-product cash costs(1) from continuing operations (excluding Alumbrera) are expected to be below $200 per GEO in each of 2010 and 2011 based on assumed metal prices set forth below. Co-product cash costs(1) from continuing operations (excluding Alumbrera) are expected to be in the range of $360 to $400 per GEO in 2010 and $370 to $400 per GEO in 2011. Co-product cash costs per pound of copper at Chapada are expected to be $1.00 to $1.10 in 2010 and $1.10 to $1.20 in 2011.

Estimated cash costs for gold on a mine by mine basis for 2010 and 2011 are detailed below.

    <<
    -------------------------------------------------------------------------
    Co-Product Cash Cost Estimates per GEO               2010E         2011E
    -------------------------------------------------------------------------
    Chapada                                          $280-$300     $320-$350
    El Penon (per GEO)                               $350-$390     $340-$360
    Gualcamayo                                       $340-$380     $350-$390
    Jacobina                                         $500-$525     $500-$550
    Minera Florida (per GEO)                         $350-$390     $340-$370
    Fazenda Brasileiro                               $500-$550     $500-$550
    -------------------------------------------------------------------------
    By-product cash costs(2)                        Below $200    Below $200
    -------------------------------------------------------------------------
    >>

Chapada, Brazil

Production at Chapada is expected to be in the range of 140,000 to 155,000 ounces of gold per year in 2010 and 135,000 to 145,000 ounces of gold in 2011. Co-product cash costs are expected to be $280 to $300 per ounce in 2010 and $320 to $350 per ounce in 2011. Yamana has begun with plant optimizations scheduled to increase throughput to up to 22 million tonnes per year before 2012.

El Penon, Chile

Production at El Penon is expected to be in the range of 400,000 to 420,000 GEO in 2010 with production in the first quarter of 2010 expected to be lower than production in the fourth quarter of 2009, but higher than levels in the first quarter of 2009. Production is anticipated to ramp up quarter over quarter in 2010 similar to the trend in 2009. Grade is also expected to improve throughout 2010 with a significant increase expected in the fourth quarter of 2010 and into 2011 as the development of Bonanza is completed and begins to contribute to production. Production at El Penon in 2011 is expected to be 410,000 to 430,000 GEO.

Exploration results to date at Bonanza have been better than expected and continuing exploration efforts in 2010 will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources, continuing with efforts at new discoveries and a broader regional exploration program.

Cash costs are expected to average between $350 and $390 per GEO in 2010. Cash costs are expected to be higher in the first quarter of 2010 and to decline throughout the year as production ramps up.

In the fourth quarter of 2009, the Company began a transition to owner-mining at El Penon. This is expected to modestly impact production and cash costs in the fourth quarter of 2009 and the first quarter of 2010 as the transition to owner-mining is completed. Cash costs and production are then expected to improve going forward.

Yamana had contemplated transitioning to owner-mining for some time as all other mines operated by Yamana are owner-mined. Cash costs are expected to decline substantially in the fourth quarter of 2010 and cash costs in 2011 are expected to average between $340 and $360 per GEO as Bonanza begins to contribute to production and the longer term benefits of owner-mining are realized.

Gualcamayo, Argentina

Production at Gualcamayo is expected to be in the range of 165,000 to 180,000 ounces of gold in each of 2010 and 2011. Going forward, the Company believes sustainable production at Gualcamayo will be approximately 180,000 ounces. Production in 2010 and 2011 is expected to come solely from the main QDD open pit deposit. Further production increases are expected to come from Yamana's continued plans to increase throughput to 1,500 tonnes per hour and processing ore from AIM and QDD Lower West. The expansion to 1,500 tonnes per hour is planned to be completed by the end of 2010.

Metallurgical testwork continues at the AIM deposit to create more reliability and certainty in the ore metallurgy. In addition, QDD Lower West feasibility study results are expected in the second half of 2010.

The Company is currently also conducting metallurgical testwork at Salamanca, which is the newest discovery at Gualcamayo. Positive drill results in 2009 support Yamana's view that Salamanca may represent an important source of further gold ounces for Gualcamayo. Drilling continues in 2010 with the objective of providing a mineral resource estimate for Salamanca in the first half of 2010.

Cash costs at Gualcamayo are expected to be in the range of $340 to $380 per ounce in 2010 and $350 and $390 per ounce in 2011.

Jacobina, Brazil

Production at Jacobina is expected to be in the range of 105,000 to 125,000 ounces of gold in 2010 increasing to 110,000 to 130,000 ounces in 2011. Yamana expects to process ore at 6,000 tonnes per day in 2010 consistent with the fourth quarter of 2009 and at the increased rate of 6,200 tonnes per day by early 2011. Yamana continues with drilling to increase certainty of grade and better layout of the drilling stopes.

The Company remains focused on improving dilution and recovery as well as exploring, discovering and developing higher grade areas including Canavieiras. Jacobina will have a period of lower grades in 2010 and 2011 as compared to 2009. Production in these years is expected to come mostly from Joao Belo with modest contributions from Basal.

Positive drill results continue to confirm the high grade at Canavieiras and the significant sample results at Moro do Vento show the potential for new inferred mineral resource ounces.

Exploration upside is in areas with grade higher than the current mine grade. With the new discovery of Serra da Lagartixa in 2009, exploration efforts in 2010 will be focused on near mine drilling in this target and more aggressively pursuing higher grade areas of mineralization for future mining.

Cash costs in 2010 are expected to be $500 to $525 per ounce of gold and $500 to $550 per ounce of gold in 2011.

Minera Florida, Chile

Production at Minera Florida is expected to be in the range of 100,000 to 125,000 GEO in 2010, an increase of up to 35% from 2009 production levels reflecting the first full year of production following the expansion. Production in 2011 is expected to be 110,000 to 130,000 GEO. Cash costs are expected to be $350 to $390 per GEO in 2010 and $340 to $370 per GEO in 2011.

Fazenda Brasileiro, Brazil

Production at Fazenda Brasileiro is expected to be 70,000 to 85,000 ounces of gold for each of 2010 and 2011. Cash costs are expected to be $500 to $550 per ounce for each of 2010 and 2011. As Fazenda Brasileiro reaches the end of its known mine life based on mineral reserves, exploration efforts continue to focus on two newly discovered areas, CLX2 and Lagoa do Gato, which Yamana believes represent significant potential to increase the mine life. Yamana's exploration focus at Fazenda Brasileiro has been the replacement of mineral reserves and mineral resources and the Company intends to continue these efforts to meaningfully increase mineral reserves and mineral resources in these new areas.

FULLY FUNDED GROWTH

Capital expenditures for 2010 and 2011 are expected to be approximately $515 million and $455 million, respectively. This includes sustaining capital expenditures of $230 million in 2010 which includes the purchase of machinery and equipment as Yamana transitions to owner-mining at El Penon (representing approximately $60 million). Sustaining capital expenditures in 2011 are expected to be $155 million. The majority of the expansionary capital costs for the two years are allocated to the development of Yamana's growth projects, C1 Santa Luz, Mercedes, the Minera Florida tailings project and Ernesto/Pau-a-pique (feasibility study to follow in January 2010), all of which are expected to begin production in 2012.

With approximately $600 million of available cash and immediate and undrawn credit available in addition to expected robust cash flow, Yamana is fully funded for its growth.

Yamana continues to focus on exploration with an exploration budget in 2010 of between $75 to $80 million (approximately half of which is capitalized). Yamana's 2010 exploration program will focus on increasing mineral reserves and mineral resources while continuing with its near-mine exploration program and its efforts to look for new opportunities and on the ground purchases elsewhere in the Americas. The Company is focused on developing its future based on its exploration successes and organic growth.

ASSUMPTIONS

Assumptions for metal prices and exchange rates are as follows:

    <<
                   ----------------------------------------
                                            2010      2011
                   ----------------------------------------
                    Gold (US$/oz)          1,050     1,050
                    Silver (US$/oz)        18.80     18.80
                    Copper (US$/lb)         2.75      2.75
                    Zinc (US$/lb)           1.00      1.00
                   ----------------------------------------
                    BRL Real/US$            1.80      1.80
                    ARG Peso/US$            4.00      4.25
                    CLP Peso/US$             500       500
                   ----------------------------------------
    >>

FOURTH QUARTER AND 2009 OPERATIONAL UPDATE

Yamana provided the following operational update for the fourth quarter and full year of 2009. Total production during the fourth quarter of 2009 continued to increase to a record level of approximately 325,300 GEO of which approximately 289,600 GEO was from continuing operations, representing an increase of eight percent from the third quarter of 2009. Production at Gualcamayo continued to ramp up to 59,000 ounces in the fourth quarter of 2009 and continues to meet and exceed expectations. At El Penon, Yamana has undergone a transition to owner-mining in the quarter, which will modestly and temporarily cause a decrease in production and increase in costs affecting the fourth quarter of 2009 and the first quarter of 2010. Production in December at El Penon with the completion of the plant upgrade, although during this owner-mining transition period, was in excess of 44,000 GEO and over 109,000 GEO for the quarter. For the full year-ended December 31, 2009, total production for Yamana was approximately 1,201,200 GEO, of which approximately 1,026,000 GEO was from continuing operations.

Production on a mine by mine basis for the fourth quarter of 2009 and for the full year is summarized in detail below:

    <<
           -------------------------------------------------------
            Production (GEO)                   Q4 2009       2009
           -------------------------------------------------------
            Chapada                             42,200    156,200
            El Penon (GEO)                     109,900    394,400
            Gualcamayo                          59,000    143,400
            Jacobina                            24,800    110,500
            Minera Florida (GEO)                24,700     92,400
            Fazenda Brasileiro                  17,500     76,400
            Alumbrera (12.5%)                   11,500     52,700
           -------------------------------------------------------
            Total Production from
             Continuing Operations             289,600  1,026,000
           -------------------------------------------------------
            Discontinued Operations             35,700    175,200
           -------------------------------------------------------
            Total Production                   325,300  1,201,200
           -------------------------------------------------------
    >>

In the fourth quarter of 2009 and for the full year of 2009, every ounce of gold from continuing operations (excluding Alumbrera) was produced at below $100 per GEO and below $190 per GEO, respectively, after by-product credits, realizing a significant margin to the gold price. Cash costs on a co-product basis from continuing operations (excluding Alumbrera) for the fourth quarter of 2009 and for the full year of 2009 were $360 per GEO, in line with original guidance of $345 to $375 per GEO.

FINANCIAL RESULTS

Yamana will release its full fourth quarter financial results including mineral reserve and mineral resource data after the close of business on March 3, 2010. A conference call will follow on March 4, 2010 at 11:00 a.m. Eastern Time.

    <<
    Conference Call Information:
    ----------------------------

    Toll Free (North America):                                1-888-231-8191
    International:                                              647-427-7450
    Participant Audio Webcast:                                www.yamana.com

    Conference Call REPLAY:
    -----------------------
    Toll Free Replay Call (North America):  800-642-1687, Passcode: 46908469
    Replay Call:                            416-849-0833, Passcode: 46908469
    >>

The conference call replay will be available from 2:00 p.m. Eastern Time on March 4, 2009 until 11:59 p.m. Eastern Time on March 18, 2009.

For further information on the conference call or audio webcast, please contact the Investor Relations Department or visit our website, www.yamana.com.

Upcoming Events

This press release is a part of a series of announcements and will be followed by results from the Ernesto/Pau-a-pique feasibility study and an update on Agua Rica. The following summarizes the upcoming events:

    <<
    -   Ernesto/Pau-a-pique feasibility study: January 2010
    -   Update on Agua Rica: Q1 2010
    -   Update on El Penon exploration: Q1 2010
    -   Update to Yamana's mineral reserves and mineral resources: Q1 2010
    -   Pilar feasibility study: mid-2010
    -   Caiamar mineral resource estimate: mid-2010
    -   Salamanca mineral resource estimate: H1-2010
    >>

About Yamana

NON-GAAP MEASURES

The Company believes that in addition to conventional measures prepared in accordance with Canadian GAAP, the Company and certain investors and analysts use certain other non-GAAP financial measures to evaluate the Company's performance including its ability to generate cash flow and profits from its operations. The Company has included certain non-GAAP measures including "By-product cash costs per gold equivalent ounce" and "Co-product cash costs per gold equivalent ounce" throughout this document. Cash costs on a co-product basis are computed by allocating operating cash costs separately to metals (copper and gold) based on an estimated or assumed ratio. Cash costs on a by-product basis are computed by deducting copper by product revenues from the calculation of cash costs of production per GEO. When reference is made to "cash costs" in this document, the Company is referring to co-product cash costs. Non-GAAP measures do not have any standardized meaning prescribed under Canadian GAAP, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

    <<
    ----------------
    (1) Co-product and by-product cash costs are non-GAAP measures. A
        definition is provided at the end of this press release.
    (2) Excluding cash cost estimates from Alumbrera
    >>

Yamana Provides Exploration Update

Thu, 07 Jan 2010 17:44:00 -0500

TORONTO, Jan. 7 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced an exploration update and provided its exploration objectives for 2010.

Highlights from the 2009 exploration program included:

    <<
    -   New gold mineralized zone, Suruca, discovered at Chapada, traced
        along strike by at least 500 metres and average thickness of 70
        metres. The discovery hole SU-11 returned 81.0 metres of 1.2 g/t Au.
    -   New mineralized zone discovered at Fazenda Brasileiro, Lagoa do Gato,
        traced along strike for 1,200 metres and open in all directions with
        three separate gold mineralized zones. Lagoa do Gato exhibits
        substantially higher grade than the current mineral reserve grade at
        Fazenda Brasileiro. Drilling indicated economic grades and widths:

        -  FLG-010: 12.4 metres of 3.33 g/t Au
        -  FLG-016: 22.0 metres of 3.62 g/t Au
        -  FLG-017: 37.0 metres of 2.34 g/t Au
        -  FLG-022: 22.0 metres of 5.50 g/t Au
        -  FLG-026: 14.8 metres of 7.04 g/t Au

    -   New mineralized zone discovered at Jacobina, Lagartixa, which is the
        displaced northern continuation of the Canavieiras deposit. Lagartixa
        exhibits substantially higher grade than the current mineral reserve
        grade at Jacobina. Drilling has tested the gold mineralized reefs for
        600 metres of strike length. The discovery hole LGX-02 returned 3
        metres of 6.03 g/t Au.
    -   Positive drill results confirmed and extended the Jordino deposit at
        Pilar. Drill holes have extended the Pilar deposit down dip. Selected
        deep holes include:

        -  JD123: 4.0 metres of 6.67 g/t Au
        -  JD125: 0.7 metres of 6.56 g/t Au
        -  JD129: 1.0 metres of 16.35 g/t Au

    -   New gold mineralized zone, Salamanca, discovered within 10 kilometres
        of Gualcamayo. Drilling has delineated mineralization along a strike
        length of at least 250 metres which is still open along strike. The
        best results received from latest drilling include:

        -  09S-01: 30.0 metres of 1.72 g/t Au
        -  09S-03: 52.75 metres of 2.9 g/t Au
        -  09S-14: 63.7 metres of 1.1 g/t Au

    -   Two new vein deposits, Centenario and Polvorin, discovered at Minera
        Florida. Both deposits are located near current mine infrastructure.
        Selected results include:

        -  ALH0075: Centenario: 5.15 metres of 11.39 g/t Au, 17 g/t Ag and
           2.21% Zn
        -  ALH0686: Centenario: 13.65 metres of 9.02 g/t Au, 18 g/t Ag and
           0.76% Zn
        -  ALH0739: Centenario: 6.72 metres of 11.14 g/t Au, 179 g/t Ag and
           1.05% Zn
        -  ALH0006: Polvorin: 7.39 metres of 5.50 g/t Au, 9 g/t Ag and
           1.66% Zn
        -  ALH0674: Polvorin: 2.25 metres of 11.60 g/t Au, 49 g/t Ag and
           1.94% Zn
        -  ALH0810: Polvorin: 2.05 metres of 12.79 g/t Au, 9 g/t Ag and
           1.55% Zn

    Yamana's 2010 exploration budget is expected to be approximately US$75 -
$80 million with the goal of increasing mineral reserves and mineral
resources.

    Main areas of focus in 2010 include:

    -   Define size potential of new mineralized zone, Suruca, at Chapada
    -   Focus Jacobina exploration towards discovery and extension of higher
        grades at Canavieiras and new mineralized zones
    -   Extend Pilar's mineral resource
    -   Complete resource estimate at Caiamar in Brazil by mid-2010 with
        further update by end of year
    -   Expand the resource at QDD Lower West in Argentina and continue
        exploration efforts at Salamanca
    -   Extend known deposits at El Penon and upgrade inferred resource
    -   Expand footprint of Minera Florida with successful exploration at
        Chancon-Membrillo
    >>

Yamana continues with its near-mine exploration program and its efforts to look for new opportunities and on the ground purchases elsewhere in the Americas. The Company is focused on developing its future based on its exploration successes and organic growth.

BRAZIL

Suruca - Chapada, Brazil

Yamana has intersected a new mineralized zone at Suruca, located approximately 6 kilometres northeast of Yamana's Chapada Mine in central Brazil.

Drilling intersections show two mineralized levels, the upper level has an average thickness of 70 metres and the lower level has an average thickness of approximately 20 metres. Exploration drilling to date has defined significant mineral intercepts with continuity along a 500 metre strike length. This mineral trend is wholly within a much larger soil geochemical gold anomaly that extends for over five kilometres on the surface.

Yamana has completed 15 holes totaling 2,866 metres to date. The significant drill intersections are summarized below. (See Map A)

    <<
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)    Interval (m)           (g/t)
    -------------------------------------------------------------------------
                         7.0            24.7            17.7            0.22
    SU-04           ---------------------------------------------------------
                        17.1            23.0             5.9            0.35
    -------------------------------------------------------------------------
    SU-08              255.5           256.3             0.8            0.42
    -------------------------------------------------------------------------
                       112.0           193.0            81.0            1.20
                    ---------------------------------------------------------
                       147.0           148.0             1.0           48.90
                    ---------------------------------------------------------
                       158.0           159.0             1.0            9.21
                    ---------------------------------------------------------
                       186.0           187.4             1.3            3.98
    SU-11           ---------------------------------------------------------
                       190.0           191.0             1.0            3.17
                    ---------------------------------------------------------
                       203.0           231.0            28.0            1.26
                    ---------------------------------------------------------
                       210.0           211.0             1.0           21.30
                    ---------------------------------------------------------
                       225.0           225.6             0.6            5.00
    -------------------------------------------------------------------------
                         7.0            13.0             6.0            1.35
                    ---------------------------------------------------------
                         7.0             8.0             1.0            7.32
    SU-13           ---------------------------------------------------------
                        83.6           139.0            55.4            0.44
                    ---------------------------------------------------------
                        84.3            86.0             1.7            6.46
    -------------------------------------------------------------------------
                        52.5           127.2            74.7            0.89
                    ---------------------------------------------------------
                        59.0            60.0             1.0            9.36
                    ---------------------------------------------------------
                        72.0            73.0             1.0            3.05
                    ---------------------------------------------------------
                        76.0            77.0             1.0            3.67
                    ---------------------------------------------------------
                        87.3            88.7             1.3            4.50
    SU-15           ---------------------------------------------------------
                       116.3           117.1             0.8           16.40
                    ---------------------------------------------------------
                       140.3           188.0            39.7            0.37
                    ---------------------------------------------------------
                       176.0           177.0             1.0            8.18
                    ---------------------------------------------------------
                       203.0           233.0            30.0            0.54
                    ---------------------------------------------------------
                       218.0           219.0             1.0            9.56
                    ---------------------------------------------------------
                       248.0           268.0            20.0            0.35
    -------------------------------------------------------------------------
    >>

These drilling results demonstrate the potential to add ounces from the areas surrounding the mine further extending Chapada's already long mine life of 17 years. Chapada has historically shown the ability to increase its mineral reserve base as demonstrated in 2008 when mineral reserves increased a full 50% from the previous year. The Company's efforts have not only been to increase mineral reserves and resources at Chapada, but to use it as a launching point for a regional exploration program. Suruca represents real potential and is a result of these efforts. Objectives for Chapada in 2010 include defining a mineral resource in the Suruca target by 2011.

Fazenda Brasileiro, Brazil

At Yamana's Fazenda Brasileiro mine, the Company continues to outline significant exploration potential. The mine was originally acquired in 2003 with 2.5 years of mine life remaining based on known mineral reserves. Yamana has since been mining at Fazenda Brasileiro for 6 years. Recently two new areas have been discovered, CLX(2) and Lagoa do Gato, which give Yamana high confidence that significant potential remains at Fazenda Brasileiro. Historical efforts have been to consistently increase the mine life. Current efforts and recent discoveries are intended to redefine Fazenda Brasileiro with the possibility, relating to CLX(2) and Lagoa do Gato, of discovering a new mine. Yamana's exploration focus has been the replacement of mineral reserves and resources at Fazenda Brasileiro. The objective in 2010 will continue these efforts, focusing on meaningfully increasing mineral reserves and resources in these new areas.

    <<
    Lagoa do Gato
    -------------
    >>

Geophysical interpretation suggests that the Weber structure, which hosts Yamana's Fazenda Brasileiro mine, may continue to the northeast through the Rio Itapicuru Greenstone Belt in a zone called Lagoa do Gato, which is located 4 kilometres northeast from Fazenda Brasileiro. This zone consisted of a series of small open pits mined earlier in the 1980s during Fazenda Brasileiro's heap leach operation. Deeper exploration drilling beneath those pits has intersected mafic lenses with significant high grade mineralization.

Drilling to date has identified three mineralized levels and has been traced for 1,200 metres, all still open along strike (See Map B). The Lagoa do Gato trend is at least eight kilometres long, defined by a high magnetic signature. A total of 4,000 metres of diamond drilling have been completed to date. The most significant intersections are summarized as follows:

    <<
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
    FLG-003           123.00          125.05            2.05            0.98
    -------------------------------------------------------------------------
                      155.60          168.00           12.40            3.33
                    ---------------------------------------------------------
    FLG-010           157.30          159.00            1.70            8.95
                    ---------------------------------------------------------
                      215.00          227.00           12.00            1.00
    -------------------------------------------------------------------------
                      118.45          120.00            1.55            1.04
                    ---------------------------------------------------------
                      125.00          129.00            4.00            0.68
    FLG-011         ---------------------------------------------------------
                      132.00          136.00            4.00            0.88
                    ---------------------------------------------------------
                      138.00          140.00            2.00            0.58
    -------------------------------------------------------------------------
    FLG-014           105.00          117.00           12.00            1.22
    -------------------------------------------------------------------------
    FLG-015            84.00           87.00            3.00            1.57
    -------------------------------------------------------------------------
                       77.75           80.35            2.60            2.74
                    ---------------------------------------------------------
                       87.00          109.00           22.00            3.62
    FLG-016         ---------------------------------------------------------
                       87.00           98.00           11.00            6.48
                    ---------------------------------------------------------
                      104.00          109.00            5.00            1.32
    -------------------------------------------------------------------------
                      283.00          310.00           27.00            2.34
                    ---------------------------------------------------------
    FLG-017           283.00          288.00            5.00            3.63
                    ---------------------------------------------------------
                      290.00          307.00           17.00            2.28
    -------------------------------------------------------------------------
                       76.00           79.00            3.00            1.75
    FLG-018         ---------------------------------------------------------
                      106.00          108.00            2.00            1.78
    -------------------------------------------------------------------------
                       53.70           55.55            1.85            0.76
                    ---------------------------------------------------------
                       64.00           67.00            3.00            1.00
    FLG-019         ---------------------------------------------------------
                       76.00           78.00            2.00            0.93
                    ---------------------------------------------------------
                       97.50          108.00           10.50            1.34
    -------------------------------------------------------------------------
                       47.00           48.00            1.00            2.00
                    ---------------------------------------------------------
                       93.00           96.00            3.00            0.66
    FLG-021         ---------------------------------------------------------
                      145.00          153.00            8.00            3.99
                    ---------------------------------------------------------
                      164.00          168.80            4.80            0.64
    -------------------------------------------------------------------------
                      127.00          149.00           22.00            5.50
                    ---------------------------------------------------------
                      137.35          139.00            1.65           63.82
                    ---------------------------------------------------------
                      169.00          174.00            5.00            0.54
    FLG-022         ---------------------------------------------------------
                      176.00          181.00            5.00            0.67
                    ---------------------------------------------------------
                      189.00          191.00            2.00            1.44
                    ---------------------------------------------------------
                      203.00          206.00            3.00            6.83
    -------------------------------------------------------------------------
                       10.00           26.00           10.00            1.47
                    ---------------------------------------------------------
    FLG-024            30.00           32.00            2.00            1.22
                    ---------------------------------------------------------
                       41.00           42.00            1.00            2.54
    -------------------------------------------------------------------------
                      119.00          122.00            3.00            1.23
    FLG-025         ---------------------------------------------------------
                      137.70          138.85            1.00            1.64
    -------------------------------------------------------------------------
                      105.00          108.00            3.00            3.68
                    ---------------------------------------------------------
    FLG-026           156.65          171.45           14.80            7.04
                    ---------------------------------------------------------
                      166.00          168.00            2.00           20.52
    -------------------------------------------------------------------------
                      116.00          124.00            8.00            1.48
                    ---------------------------------------------------------
                      142.00          143.00            1.00           10.25
                    ---------------------------------------------------------
    FLG-027           150.00          151.00            1.00            5.75
                    ---------------------------------------------------------
                      179.00          182.20            3.20            1.24
                    ---------------------------------------------------------
                      199.00          203.00            4.00            1.03
    -------------------------------------------------------------------------
                      104.85          114.10            9.25            1.12
                    ---------------------------------------------------------
                      161.00          163.00            2.00            1.20
    FLG-028         ---------------------------------------------------------
                      170.00          176.00            6.00            1.28
                    ---------------------------------------------------------
                      181.00          185.00            4.00            1.48
    -------------------------------------------------------------------------
    FLG-029           107.00          110.45            3.45            0.96
    -------------------------------------------------------------------------
    FLG-030           103.60          106.00            2.40            2.05
    -------------------------------------------------------------------------
    FLG-031           126.00          128.40            2.40            2.68
    -------------------------------------------------------------------------
    FLG-032           208.00          209.00            1.00            1.19
    -------------------------------------------------------------------------

    Yamana has 20,000 metres of drilling planned for 2010 to continue efforts
at these two new areas. At CLX(2), 10,000 metres of infill drilling is planned
to focus on upgrading the mineral resource and 10,000 metres of exploration
drilling is planned for extending Lagoa do Gato.

    Objectives at Fazenda Brasileiro for 2010:

    -   Continue to extend the Lagoa do Gato mineral resource
    -   Further extend the mine life at Fazenda Brasileiro
    -   Continue defining new near mine targets
    -   Upgrade mineral resources to support future production
    >>

Jacobina, Brazil

Exploration at Jacobina in 2009 focused on near mine efforts and has provided a promising new discovery. Although most of the proven and probable mineral reserves at Jacobina are in areas that are comparatively lower grade, exploration upside is in areas with grade higher than the current mine grade. With the discoveries in 2009, exploration efforts in 2010 will be to more aggressively pursue higher grade areas of mineralization for future mining.

A structural and stratigraphic analysis undertaken in 2008 concludes that the Serra da Lagartixa area (Lagartixa Hill), located 2.5 kilometres from the mine site, possibly consists of the north continuity of the Canavieiras Block displaced by a main listric fault (See Map C). Canavieiras is the most significant resource of the Jacobina Mine and the possibility that it continues to the north opens important exploration upside for this mine.

The Lagartixa Block is 1,500 metres long with 300 metres of outcropping mineralized conglomerate reef confirmed by old artisanal mining workings and chip samples. This reef is thought to be the reef called Maneira, which represents the topmost reef of Canavieiras.

Three holes have been completed to date and the positive results to date are confirming the continuity of the Maneira Reef 700 metres down dip and 600 metres along strike (See Map D). More drilling is necessary to confirm if there is a gap along such continuity. Yamana considers these results significant and will concentrate most of 2010 on near mine drilling in this target.

Following are the significant Serra da Lagartixa intersections to date:

    <<
    -------------------------------------------------------------------------
                                                                  Gold Grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
    LGX-02               801             804               3            6.03
    -------------------------------------------------------------------------
                       216.5             217             0.5            3.14
    LGX-03       ------------------------------------------------------------
                      234.72           235.2               1            5.17
    -------------------------------------------------------------------------

    Objectives at Jacobina for 2010:

    -   Upgrade most of the inferred mineral resource to the measured and
        indicated category
    -   Rapidly accelerate the definition of higher grade areas by 2012
    -   Continue to focus on Canavieiras to develop Canavieiras North
    -   Regional development and identification of new ore bodies in a
        regional exploration plan between Jacobina and Pindobasu
    >>

Pilar, Brazil

In April 2009, Yamana delivered an update to Pilar's inferred mineral resource estimate of 12.6 million tonnes grading 3.61 g/t gold containing 1.4 million gold ounces, which was a substantial increase in inferred mineral resource of 51% and a grade increase of 48% year over year.

In 2009, Yamana completed 26,000 metres of infill drilling spacing 50x50 metres and 7,000 metres of exploration drilling. The Company also commenced construction of an exploration ramp to determine the continuity of grade.

Drilling in 2009 was focused on extending the main Jordino mineralization down dip and the Company continues to report positive results. The following extension drilling results, plus the results presented in the previous June 2009 news release, continue to show positive drill intercepts between 100 and 300 metres down dip from the mineral resource update provided in April 2009 (See Map E). A total of 12,000 metres of extension drilling has been completed since the last mineral resource and best intersections since the June 2009 news release are summarized below:

    <<
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
                         353             357               4            6.67
                 ------------------------------------------------------------
                         353             354               1           19.95
    JD123        ------------------------------------------------------------
                         379             380               1            5.65
                 ------------------------------------------------------------
                         390             391               1            3.23
    -------------------------------------------------------------------------
                         307             309               2            3.02
                 ------------------------------------------------------------
    JD125             272.32             275            2.68            2.28
                 ------------------------------------------------------------
                      272.32             273            0.68            6.56
    -------------------------------------------------------------------------
                      270.66             276            5.34            3.48
    JD126        ------------------------------------------------------------
                         273             274               1           14.25
    -------------------------------------------------------------------------
                         300          300.87            0.87               8
                 ------------------------------------------------------------
    JD129                319             320               1             3.1
                 ------------------------------------------------------------
                         345             346               1           16.35
    -------------------------------------------------------------------------
                         167             168               1            2.09
                 ------------------------------------------------------------
                         171             172               1            2.81
    JD213        ------------------------------------------------------------
                         203             204               1            4.52
                 ------------------------------------------------------------
                         215             216               1            4.21
    -------------------------------------------------------------------------
                      251.22          251.93            0.71             3.4
    JD216        ------------------------------------------------------------
                         280          281.23            1.23            24.6
    -------------------------------------------------------------------------
                       57.98           58.75            0.77             263
                 ------------------------------------------------------------
                          62              63               1            2.97
                 ------------------------------------------------------------
    JD222             202.89          205.49             2.6            2.74
                 ------------------------------------------------------------
                      204.96          205.49            0.53            3.43
                 ------------------------------------------------------------
                      215.72             217            1.28            4.29
    -------------------------------------------------------------------------
    >>

The drilling program for 2010 includes 18,000 metres of extension drilling, of which 50% is expected to be completed by the end of the first quarter of 2010. Drilling continues to be at the main high grade Jordino deposit and the area between Jordino and Tres Buracos as it continues to appear open down plunge and along strike.

Objectives for Pilar in 2010:

    <<
    -  Upgrade inferred mineral resource to the indicated category
    -  Determine continuity of grade
    -  Increase total overall mineral resource
    >>

Caiamar, Brazil

Since its purchase in July 2009, Yamana has completed 28 holes totaling 14,000 metres of exploration drilling at the Caiamar target.

Caiamar is located approximately 38 kilometres from Yamana's Pilar project and just east of the Crixas Greenstone Belt, in the northern portion of a regional Shear Zone within the Guarinos Greenstone Belt. Mineralization consists of arserno-pyrite rich quartz breccias hosted in metagraywacke layers.

A total of US$3.4 million has been budgeted for regional exploration and 25,000 metres of drilling at Caiamar. The objective of the drill program for the first year will be to assess the potential of the deposit and evaluate the regional potential inside the Caiamar concessions, in addition to defining the ore bodies.

Drilling to date has confirmed the occurrence of mineralized shoots along an area of 2.5 kilometres length and 700 metres wide. The holes CA-007, CA-004 and CA-014 have already confirmed the continuity of central mineralized shoot 500 metres down dip (Map F). Positive drilling intersections to date are summarized as follows:

    <<
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)      Length (m)           (g/t)
    -------------------------------------------------------------------------
                      391.50          392.00            0.50            1.94
                 ------------------------------------------------------------
    CA-001            394.00          394.50            0.50            1.43
                 ------------------------------------------------------------
                      414.00          414.50            0.50            1.37
    -------------------------------------------------------------------------
                      375.00          376.00            1.00            1.13
                 ------------------------------------------------------------
    CA-002            397.00          399.00            2.00            1.64
                 ------------------------------------------------------------
                      418.84          419.60            0.76            2.09
    -------------------------------------------------------------------------
    CA-003            679.35          680.36            1.01            1.68
    -------------------------------------------------------------------------
    CA-004            614.00          614.50            0.50            4.74
    -------------------------------------------------------------------------
                      242.00          243.00            1.00             1.9
    CA-006       ------------------------------------------------------------
                      260.58          262.24            1.66            1.43
    -------------------------------------------------------------------------
                      554.71          555.21            0.50            5.94
    CA-007       ------------------------------------------------------------
                      556.23          556.72            0.49            7.52
    -------------------------------------------------------------------------
                      369.00          370.00            1.00            5.83
    CA-011       ------------------------------------------------------------
                      397.00          399.00            2.00            1.23
    -------------------------------------------------------------------------
                      410.52          411.00            0.48            1.12
                 ------------------------------------------------------------
                      465.46          466.00            0.54            3.14
    CA-013       ------------------------------------------------------------
                      469.00          469.50            0.50            2.11
                 ------------------------------------------------------------
                      471.47          471.92            0.45            1.32
    -------------------------------------------------------------------------
                      564.30          565.00            0.70            2.00
    CA-014       ------------------------------------------------------------
                      569.00          570.00            1.00            3.04
    -------------------------------------------------------------------------
                      146.00          147.00            1.00            2.69
    CA-022       ------------------------------------------------------------
                      256.00          257.00            1.00            6.28
    -------------------------------------------------------------------------
    CA-023            393.00          394.00            1.00            1.50
    -------------------------------------------------------------------------
    CA-025            487.00          488.00            1.00            0.96
    -------------------------------------------------------------------------
                      573.09          573.59            0.50            3.36
                 ------------------------------------------------------------
                      573.59          574.09            0.50            2.04
    CA-040       ------------------------------------------------------------
                      575.07          575.55            0.48            2.36
                 ------------------------------------------------------------
                      575.55          576.00            0.45            2.68
    -------------------------------------------------------------------------
                      161.00          162.00            1.00            1.19
                 ------------------------------------------------------------
    CA-082-A          217.09          218.00            0.91            2.54
                 ------------------------------------------------------------
                      230.00          231.00            1.00            0.98
    -------------------------------------------------------------------------
    CA-093            220.00          220.50            0.50            7.99
    -------------------------------------------------------------------------
                       93.00           94.00            1.00            1.25
    CA-105       ------------------------------------------------------------
                      151.00          151.50            0.50            9.26
    -------------------------------------------------------------------------
                      156.50          157.00            0.50            7.99
                 ------------------------------------------------------------
                      215.35          215.84            0.49            1.61
    CA-107       ------------------------------------------------------------
                      223.06          223.85            0.79            1.14
                 ------------------------------------------------------------
                      242.00          242.50            0.50            13.6
    -------------------------------------------------------------------------
                      244.00          244.50            0.50            2.02
                 ------------------------------------------------------------
                      277.20          278.00            0.80            3.12
                 ------------------------------------------------------------
    CA-120            283.00          283.50            0.50            1.29
                 ------------------------------------------------------------
                      291.48          292.00            0.52            5.28
                 ------------------------------------------------------------
                      293.50          294.00            0.50            7.23
    -------------------------------------------------------------------------
    >>

A total of approximately 15,000 metres of drilling has been completed in 2009 with a total of 15,000 metres planned for 2010.

Objectives for Caiamar in 2010:

    <<
    -  Confirm mineral resource based on historical drilling through infill
       drilling
    -  Provide a mineral resource estimate by mid-2010
    -  Provide a subsequent update to the mid-year mineral resource estimate
       by extension drilling by the end of 2010

    ARGENTINA

    Salamanca - Gualcamayo, Argentina
    >>

Exploration efforts continued at the Salamanca area located approximately 10 kilometres north of Yamana's Gualcamayo gold mine within the Gualcamayo mine area in Argentina.

Yamana recently completed a core drilling campaign comprised of 17 drill holes for a total of 3,000 metres concentrating on the Salamanca mineralized tensional gash. The high-grade gold values encountered support the interpretation that the main intercepted structure might continue deeper and maintain the robust gold tenor.

Results to date continue to compare favourably to results from the three known mineral deposits at Gualcamayo, which have mineral resource grades of 1.08 g/t gold at QDD, and 2.6 g/t gold at both QDD Lower West and AIM. The sediment hosted mineralization at Salamanca is consistent with the other known mineral deposits at Gualcamayo. New results, in addition to those released on September 30, 2009 include (See Map G and H):

    <<
    -------------------------------------------------------------------------
                                                                  Gold grade
    HOLE             From (m)          To (m)    Interval (m)           (g/t)
    -------------------------------------------------------------------------
                          42              72              30            1.72
                 ------------------------------------------------------------
    09S-01                80             108              28            1.03
                 ------------------------------------------------------------
                          80              96              16             1.4
    -------------------------------------------------------------------------
                          41              92              51             1.1
                 ------------------------------------------------------------
    09S-02                41              54              13            2.22
                 ------------------------------------------------------------
                          85              92               7            1.61
    -------------------------------------------------------------------------
                          80          132.75           52.75             2.9
    09S-03       ------------------------------------------------------------
                          98             130              32            4.07
    -------------------------------------------------------------------------
                        43.3              62            18.7            1.01
    09S-10       ------------------------------------------------------------
                         137             148              11            1.08
    -------------------------------------------------------------------------
                        24.3              88            63.7             1.1
                 ------------------------------------------------------------
    09S-14                34              42               8            2.14
                 ------------------------------------------------------------
                          50              62              12            1.24
    -------------------------------------------------------------------------
    >>

A subsequent 2,000 metre drill program is scheduled to commence in early 2010 and will continue to explore the deeper levels as well as to test the strike continuation of the mineralized dilational bend at Salamanca.

These drilling results continue to confirm Yamana's view that Salamanca represents an important source of further gold ounces for Gualcamayo with the potential to extend the mine life. These results will be used to support a mineral resource estimate in the first half of 2010.

    <<
    Objectives for Gualcamayo in 2010:
    -   Drill program of 2,000 metres of drilling at Salamanca
    -   Provide a mineral resource estimate for Salamanca in the first half
        of 2010
    -   Extend the QDD Lower West high grade deposit along strike and down
        plunge
    -   Expand the resource at QDD Lower West through upgrading inferred
        mineral resource ounces to the measured and indicated category and
        adding new ounces
    >>

CHILE

El Penon, Chile

Exploration efforts in 2009 were principally focused on replacing ounces at El Penon and focusing on new areas of mineralization for exploration. With that objective completed, 2010 exploration will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources to the indicated resource category and a broader regional exploration program. The 2010 exploration program is to include 69,500 metres of exploration drilling and 24,550 metres of infill drilling with a budget of US$18.4 million, US$5.8 million higher than the original budgeted amount for 2009.

    <<
    Objectives for El Penon in 2010:
    -   Upgrade 500,000 gold equivalent ounces to the indicated mineral
        resource category
    -   Identify 500,000 ounces of new mineral resource
    -   Identify new vein zones that can sustain a longer mine life
    >>

Minera Florida, Chile

In 2009, two new zones of mineralization were discovered, Centenario and Polvorin.

At Centenario, 49 diamond drill holes totaling 7,594 metres were completed and outlined mineralization along a strike length of 250 metres and a dip length of 100 metres. The mineralization consists of quartz veins, veinlets and stockworks in andesite flows with widths varying from 0.25 to 8 metres but averaging between 1 and 3 metres.

At Polvorin, 43 diamond drill holes totaling 8,090 metres have outlined mineralization along 400 metres of strike length and up to 200 metres of dip length with an average width of approximately 2.0 metres. The mineralization is typified by zones of hydrothermal breccia with zones of massive quartz veins. Sulphide mineralization consists of disseminations of pyrite, sphalerite and magnetite with traces of galena.

The results from the drill program include (See Map I, J and K):

    <<
    -------------------------------------------------------------------------
                               CENTENARIO VEIN
    -------------------------------------------------------------------------
    HOLE     From(m)   To(m)  Length(m)  Au(g/t)  Ag(g/t)  Zn(%)   AuEq(g/t)
    -------------------------------------------------------------------------
    ALH0075   293.2   298.35    5.15      11.39     17      2.21     12.13
    -------------------------------------------------------------------------
    ALH0664  123.95   128.00    4.05       2.54     17      1.50      3.11
    -------------------------------------------------------------------------
    ALH0666   44.23    45.89    1.66       1.51      2      0.09      1.56
    -------------------------------------------------------------------------
    ALH0667   48.44    53.11    4.67       2.26      9      0.17      2.42
    -------------------------------------------------------------------------
    ALH0669   126.9   136.20    9.30       9.53     13      0.67      9.86
    -------------------------------------------------------------------------
    ALH0670   40.83    43.16    2.33      15.91     12      0.35     16.14
    -------------------------------------------------------------------------
    ALH0675   79.45    88.84    9.39       6.94     12      1.21      7.38
    -------------------------------------------------------------------------
    ALH0677   71.36    77.09    5.73       5.07     13      1.06      5.49
    -------------------------------------------------------------------------
    ALH0686  150.74   164.39   13.65       9.02     18      0.76      9.45
    -------------------------------------------------------------------------
    ALH0691  109.68   113.78    4.10       9.66     10      0.59      9.93
    -------------------------------------------------------------------------
    ALH0695   99.64   101.78    2.14       4.91     11      0.92      5.27
    -------------------------------------------------------------------------
    ALH0698   99.98   102.50    2.52       6.65      4      0.88      6.91
    -------------------------------------------------------------------------
    ALH0700  133.08   133.33    0.25       1.08      1      0.39      1.18
    -------------------------------------------------------------------------
    ALH0704  170.36   181.01   10.65       5.18     14      0.83      5.56
    -------------------------------------------------------------------------
    ALH0708   153.4   154.36    0.96       2.12      4      0.30      2.24
    -------------------------------------------------------------------------
    ALH0711   50.41    52.60    2.19       2.41      2      0.06      2.45
    -------------------------------------------------------------------------
    ALH0714   40.18    41.24    1.06       4.96     30      0.25      5.43
    -------------------------------------------------------------------------
    ALH0716   83.23    92.55    9.32       5.14     13      0.68      5.47
    -------------------------------------------------------------------------
    ALH0717   90.44   107.66   17.22       1.29     10      0.95      1.64
    -------------------------------------------------------------------------
    ALH0719  165.86   167.84    1.98      15.99     21      2.03     16.75
    -------------------------------------------------------------------------
    ALH0722   94.84    95.22    0.38       2.59      5      0.19      2.71
    -------------------------------------------------------------------------
    ALH0726  173.72   174.15    0.43       1.96      1      0.03      1.98
    -------------------------------------------------------------------------
    ALH0729  119.56   123.80    4.24       5.54      9      0.49      5.77
    -------------------------------------------------------------------------
    ALH0732  139.87   144.50    4.63       1.00      5      0.21      1.13
    -------------------------------------------------------------------------
    ALH0736   96.76    98.62    1.86       2.16      5      0.73      2.40
    -------------------------------------------------------------------------
    ALH0739  159.78   166.50    6.72      11.14    179      1.05     13.84
    -------------------------------------------------------------------------
    ALH0751  104.87   105.85    0.98      11.84     14      0.72     12.20
    -------------------------------------------------------------------------
    ALH0754  108.78   114.64    5.86       2.96      7      1.39      3.37
    -------------------------------------------------------------------------
    ALH0758   94.15    95.51    1.36       1.26      6      0.40      1.42
    -------------------------------------------------------------------------
    ALH0760   80.02    82.36    2.34       9.52     18      1.09     10.01
    -------------------------------------------------------------------------
    ALH0763   76.34    79.82    3.48       1.04      2      0.94      1.28
    -------------------------------------------------------------------------
    ALH0766   58.69    61.48    2.79       1.15      6      2.42      1.77
    -------------------------------------------------------------------------
    ALH0796   103.8   105.71    1.91       3.19     10      0.66      3.47
    -------------------------------------------------------------------------
    ALH0802   110.3   113.41    3.11       2.12      5      0.55      2.32
    -------------------------------------------------------------------------
    ALH0809  166.54   166.92    0.38       3.03    361      0.46      8.11
    -------------------------------------------------------------------------
    Au Eq = Au + (Ag/72.6) + (Zn/4.4)

    -------------------------------------------------------------------------
                                POLVORIN VEIN
    -------------------------------------------------------------------------
    HOLE     From(m)   To(m)  Length(m)  Au(g/t)  Ag(g/t)  Zn(%)   AuEq(g/t)
    -------------------------------------------------------------------------
    ALH0006  217.56   224.95    7.39       5.50      9      1.66      6.00
    -------------------------------------------------------------------------
    ALH0008  386.95   390.78    3.83       3.43      7      1.61      3.90
    -------------------------------------------------------------------------
    ALH0210   26.71    31.50    4.79       5.71     17      1.69      6.33
    -------------------------------------------------------------------------
    ALH0672  198.18   199.58    1.31       7.95      8      2.76      8.68
    -------------------------------------------------------------------------
    ALH0674  201.51   203.76    2.25      11.60     49      1.94     12.71
    -------------------------------------------------------------------------
    ALH0676  189.27   190.90    1.63       9.08     12      1.59      9.60
    -------------------------------------------------------------------------
    ALH0678  199.88   202.57    2.69       5.91     12      2.50      6.64
    -------------------------------------------------------------------------
    ALH0681  199.17   202.81    3.64       7.53     17      0.73      7.93
    -------------------------------------------------------------------------
    ALH0689  132.74   133.92    1.18       7.33   1293      1.15     25.40
    -------------------------------------------------------------------------
    ALH0707  187.93   188.63    0.70       1.73     14      0.12      1.95
    -------------------------------------------------------------------------
    ALH0712  100.32   101.61    1.29       2.13     11      1.25      2.57
    -------------------------------------------------------------------------
    ALH0715  207.89   210.09    2.20       4.55     24      3.21      5.61
    -------------------------------------------------------------------------
    ALH0720  195.93   198.00    2.07       5.94      6      0.33      6.10
    -------------------------------------------------------------------------
    ALH0723  232.17   232.92    0.75       2.13      5      0.40      2.29
    -------------------------------------------------------------------------
    ALH0788  229.47   230.40    0.93       2.86      7      4.08      3.87
    -------------------------------------------------------------------------
    ALH0794  205.77   206.25    0.48       5.80      7      1.03      6.13
    -------------------------------------------------------------------------
    ALH0800  197.55   198.51    0.96       6.85     34      5.20      8.50
    -------------------------------------------------------------------------
    ALH0807   96.41    98.20    1.79       4.27      6      0.15      4.40
    -------------------------------------------------------------------------
    ALH0810   91.01    93.06    2.05      12.79      9      1.55     13.27
    -------------------------------------------------------------------------
    ALH0811  133.01   135.05    2.04       4.33      6      0.43      4.50
    -------------------------------------------------------------------------
    Au Eq = Au + (Ag/72.6) + (Zn/4.4)
    >>

The exploration program for Minera Florida in 2010 includes 12,900 metres of exploration drilling for near mine targets and 18,000 metres of infill drilling to re-categorize inferred mineral resources to the indicated category. Multiple veins are to be explored with two new regional targets. Exploration also continues in the areas surrounding Minera Florida with the objective to identify new ounces.

    <<
    Objectives for Minera Florida in 2010:
    -   Upgrade 150,000 gold equivalent ounces from the inferred mineral
        resource category to the indicated resource category
    -   Identify a minimum of 100,000 ounces of new mineral resource
    -   Identify new vein zones that can sustain a longer mine life
    >>

OTHER AREAS

Solferino, Colombia

Yamana has recently acquired an exploration concession and project called Solferino located in the district of Anori, in the province of Antioquia in the central part of Colombia.

Solferino is a mesothermal vein system of quartz veins and veinlets, which form a stockwork with a width of more than 20 metres. Previous and more recent underground workings have defined a system with a length of 200 metres and a minimum vertical expression of 70 metres. Yamana has identified and sampled two main high-grade quartz veins.

Yamana has budgeted approximately US$1.0 million for exploration in 2010 for 5,000 metres of drilling. The exploration program at Solferino will be focused on defining mineral resource potential.

Colombia remains within Yamana's geographical focus on stable jurisdictions in the Americas. Yamana believes Colombia has significant exploration potential.

Upcoming Events:

This press release which is one of a series of announcements to come, will be followed initially by Yamana's 2010 and 2011 operational outlook and update, results from the Ernesto/Pau-a-pique feasibility study and an update on Agua Rica. The following summarizes the upcoming events:

    <<
    -   Operational outlook and update: January 2010
    -   Ernesto/Pau-a-pique feasibility study: January 2010
    -   Update on Agua Rica: January 2010
    -   Update to Yamana's mineral reserves and resources: February 2010
    -   Pilar feasibility study: mid-2010
    -   Caiamar mineral resource estimate: mid-2010
    -   Salamanca mineral resource estimate: H1-2010
    >>

Quality Assurance and Quality Control

Qualified Persons

Walter Soechting, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Gualcamayo and Salamanca and serves as the Qualified Person as defined in National Instrument 43-101.

Greg Walker, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Minera Florida and serves as the Qualified Person as defined in National Instrument 43-101.

Sergio Brandao, P. Geo., Senior Geologist for Yamana Gold Inc. has reviewed and confirmed the data contained within this press release relating to Suruca (Chapada), Jacobina, Fazenda Brasileiro, Pilar and Caiamar and serves as the Qualified Person as defined in National Instrument 43-101.

About Yamana

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "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, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real and the Chilean Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, risk related to non-core mine dispositions, changes in project parametres as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2008 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods referenced and may not be appropriate for other purposes.

CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES

To see maps attached to this press release, please go to:

http://files.newswire.ca/797/Yamana_Jan._Maps.pdf

Yamana Gold Announces New Unsecured Credit Facility of US$680 Million and Closing of US$270 Million Senior Debt Securities Offering

Tue, 22 Dec 2009 08:30:00 -0500

TORONTO, Dec. 22 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) announced today improvement in its credit facility and a significant increase in its credit availability. The Company has increased its revolving credit facility capacity to US$680 million from US$500 million. The credit facility was jointly arranged by Scotia Capital and RBS Securities Inc. and is being provided by a syndicate of international banks.

The Company also announced the closing of a US$270 million senior debt securities offering. The private term debt offering was jointly arranged by Bank of America Merrill Lynch and RBS Securities Inc. The proceeds will be used to repay the Company's existing term loan and reduce outstanding amounts under its revolving line of credit. The offering consists of unsecured fixed coupon notes with a weighted average maturity of approximately 9 years and coupon of 6.75%.

The Company has in excess of US$500 million of available cash and immediate and undrawn credit available for general corporate purposes. The Company's balance of drawn credit remains unchanged by these transactions.

"The new credit facility provides Yamana with additional funding and flexibility to execute on its next growth phase and reduces overall debt exposure," commented Charles Main, executive vice president and chief financial officer of Yamana. "The fixing of the interest rate on the notes and extending out of our maturities, while maintaining our conservative leverage, are additional benefits of these transactions."

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile and Mexico. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

Yamana Gold Declares Quarterly Dividend

Thu, 05 Nov 2009 16:15:00 -0500

TORONTO, Nov. 5 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced its fourth quarter dividend of US$0.01 per share. Shareholders of record at the close of business on Thursday, December 31, 2009 will be entitled to receive payment of this dividend on Thursday, January 14, 2010. The dividend is an "eligible dividend" for Canadian tax purposes.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile and Mexico. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

Yamana Gold Reports Third Quarter 2009 Results - Record quarterly production with double digit revenue, cash flow and margin growth

Tue, 03 Nov 2009 16:26:00 -0500

Download Q3 2009 Management's Discussion and Analysis and Financial Statements (PDF 520 KB)

TORONTO, Nov. 3 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced its financial and operating results for the third quarter ended September 30, 2009. All dollar amounts are expressed in United States dollars unless otherwise specified.

THIRD QUARTER HIGHLIGHTS

Financial and Operating Highlights

    <<
    Highlights for the three- and nine-month periods ended September 30, 2009
    include:

    -   Total production from all mines of 314,707 gold equivalent ounces
        (GEO) and 875,763 GEO, respectively;
    -   Average co-product cash costs(1) from continuing operations excluding
        Alumbrera of $349 per GEO and $350 per GEO, respectively. By-product
        cash costs from continuing operations excluding Alumbrera of $79 per
        GEO and $195 per GEO, respectively;
    -   Revenues of $332.2 million and $783.5 million, respectively;
    -   Mine operating earnings of $136.4 million and $283.2 million,
        respectively;
    -   Net earnings of $60.8 million or $0.08 per share (Net earnings and
        adjusted earnings(1) were impacted by a deferred tax provision
        impacting only the third quarter $0.03 per share that does not impact
        operating profit or future periods) and $156.5 million or $0.21 per
        share, respectively;
    -   Adjusted earnings of $88.3 million or $0.12 per share and $248.4
        million or $0.34 per share, respectively;



                                                    Three months Nine months
                                                           ended       ended
                                                         Sept 30,    Sept 30,
    (In millions of United States Dollars)                  2009        2009
    -------------------------------------------------------------------------
    Net earnings                                       $    60.8   $   156.5
      Stock-based compensation                               1.8         7.0
      Foreign exchange gain including discontinued
       operations                                           (6.7)      (57.0)
      Unrealized loss on derivatives including
       discontinued operations                              21.0       102.9
      Future income tax expense on foreign currency
       translation of inter-company debt                    18.9        54.0
      Non-recurring future income tax adjustment               -        20.6
    -------------------------------------------------------------------------
    Adjusted Earnings before income tax effects             95.8       284.0
    Income tax effect of adjustments                        (7.5)      (35.6)
    -------------------------------------------------------------------------
    Adjusted Earnings                                  $    88.3   $   248.4
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -   Cash flow from continuing operations before changes in non-cash
        working capital items(1) of $167.9 million or $0.23 per share (cash
        flow from continuing operations after changes in non-cash working
        capital items of $144.4 million), and $340.6 million or $0.46 per
        share (Cash flow from continuing operations after changes in non-cash
        working capital items of $317.0 million), respectively.

    Development, Exploration and Corporate Highlights

    Highlights for the three-month period ended September 30, 2009 include:

    -   Completed the 20 million tonnes per year expansion at Chapada with
        the new mine fleet expected to commence operation in the fourth
        quarter
    -   Completed first full quarter of commercial production at Gualcamayo
        subsequent to declaring commercial production on July 1, 2009 with
        production increasing 62 percent from the second quarter at cash
        costs well below guidance
    -   Continued to accelerate development work on new veins and exploration
        efforts in the North Block at El Penon with grade and throughput
        improvements anticipated
    -   Accelerated development activities at QDD Lower West with a
        conceptual study in progress
    -   Acquired extensive exploration concession, Caiamar, located in Brazil
    -   Made construction decisions for the development of C1 Santa Luz,
        Mercedes and the tailings reprocessing project at Minera Florida, for
        start-up in 2012.

    Highlights subsequent to the quarter include:

    -   Announced positive exploration results at Mercedes in Mexico
    -   Provided update on Agua Rica in Argentina including optimization
        initiatives currently underway, continued focus on updating
        components of the original feasibility study, and evaluating
        potential strategic partners for development
    -   Provided exploration update on new area 10 kilometres north of
        Gualcamayo, Salamanca, where drilling results support Yamana's view
        that the area represents an important source of further gold ounces
        for Gualcamayo.
    >>

"Yamana again achieved record quarterly production at industry low cash costs," said Yamana's chairman and chief executive officer, Peter Marrone. "We focused on our newest mine, Gualcamayo, this quarter, as we continue to put steps in place to optimize the mine. We declared commercial production on time and in its first full quarter of commercial production the mine is meeting our expectations and exceeding guidance. We also focused on our robust development stage and value enhancing projects this quarter such as Agua Rica as we continue with optimization studies and evaluating potential strategic partners."

FINANCIAL AND OPERATING SUMMARY

Revenues for the three-month period ended September 30, 2009 were $333.2 million, representing a 50 percent increase from the comparative quarter last year, and for the nine-month period ended were $783.5 million. Approximately 10,000 GEO were produced but not sold during the third quarter due to timing and will be sold during the fourth quarter.

Mine operating earnings for the three-month period ended September 30, 2009 were $136.4 million, representing a 138 percent increase from the comparative quarter last year, and for the nine-month period ended were $283.2 million.

Net earnings for the three-month period ended September 30, 2009 were $60.8 million, or $0.08 per share, and for the nine-month period ended were $156.5 million, or $0.21 per share. Net earnings and adjusted earnings were impacted by a deferred tax provision impacting only the third quarter of $0.03 per share that does not impact operating profit or future periods. Adjusted earnings for the three-month period ended September 30, 2009 were $88.3 million, representing a 180 percent increase from the comparative quarter last year, or $0.12 per share. Adjusted earnings for the nine-month period ended were $248.4 million, or $0.34 per share.

Cash flow from operations after changes in non-cash working capital items for the three-month period ended September 30, 2009 was $144.4 million, representing a 155 percent increase from the comparative period last year, and for the nine-month period ended was $317.0 million. Cash flow from operations before changes in non-cash working capital items for the three-month period ended September 30, 2009 was $167.9 million or $0.23 per share, representing a 67 percent increase from the comparative period last year. Cash flow from operations before changes in non-cash working capital items for the nine-month period ended June 30, 2009 was $340.6 million or $0.46 per share.

Cash and cash equivalents for the three-month period ended September 30, 2009 were $97.5 million, representing a five percent increase from the second quarter of 2009. Consistent with the business plan of the Company and as the Company had previously indicated, the majority of the build-out would be capital by mid 2009 with a corresponding use of available cash. Increases in cash flow would then increase available cash. Current cash and cash equivalents as at the end of October 31, 2009 is approximately $130 million.

Total production for all mines for the three-month period ended September 30, 2009 was 314,707 GEO (comprised of 261,789 ounces of gold and 2.9 million ounces of silver) representing a nine percent and 16 percent increase from the second quarter and first quarter of 2009, respectively. Total production for the nine-month period ended was 875,763 GEO (comprised of 736,369 ounces of gold and 7.7 million ounces of silver).

Average co-product cash costs for the three-month period ended September 30, 2009 for continuing operations excluding Alumbrera were $349 per GEO and for the nine-month period ended were $350 per GEO. By-product cash costs for continuing operations excluding Alumbrera for the three-month period ended September 30, 2009 were $79 per GEO and for the nine-month period were $195 per GEO. Co-product cash costs per pound of copper at Chapada for the three-month period ended September 30, 2009 were $1.07 per pound and for the nine-month period ended were $0.97 per pound.

Gross margins(1) per GEO sold for the three-month period ended September 30, 2009 were $792 per GEO, representing a 55 percent increase from the comparative period last year, and for the nine-month period ended were $703 per GEO.

"We continued to focus on cost containment and margin expansion this quarter, which has been reflected in our double digit revenue, cash flow and margin growth," said Chuck Main, Yamana's executive vice president finance and chief financial officer. "We remain focused on building on our strong track record of growth, sustainability and industry low cash costs."

Chapada, Brazil

The Company anticipated changes in the mill liners and motor replacement at Chapada during the third quarter of 2009. Production was in line with expectations given maintenance activities. With the expansion to 20 million tonnes per year completed in the third quarter, fourth quarter production is expected to increase.

El Penon, Chile

El Penon production in the third quarter of 2009 increased to 108,054 GEO, representing a 17 percent and 28 percent increase compared to the second quarter and first quarter of 2009, respectively. Grade at El Penon also increased in the third quarter by 13 percent and 22 percent compared to the second and first quarter of 2009, respectively. Co-product cash costs declined at El Penon by $15 and $42 per GEO, or 4% and 11%, compared to the second quarter and first quarter of 2009, respectively.

Jacobina, Brazil

Jacobina continued to perform and produce at record levels. Jacobina production of 30,978 ounces in the third quarter of 2009 increased by 12 percent and 14 percent compared to the second and first quarter of 2009, respectively.

Gualcamayo, Argentina

Yamana continued to focus on its newest mine, Gualcamayo, to ensure optimization of the mine. The Company declared commercial production on time and Gualcamayo is currently meeting expectations and exceeding guidance. Third quarter production at Gualcamayo increased to 39,523 ounces of gold, representing a 62 percent and 93 percent increase compared to the second quarter and first quarter of 2009, respectively. Gualcamayo continues to ramp up with production in the month of October of approximately 18,900 ounces. Gualcamayo cash costs for the third quarter were $316 per ounce, which is below previous guidance of below $350 per ounce.

Minera Florida, Chile

Minera Florida production continued to increase quarter over quarter subsequent to the completion of the expansion in the first quarter of 2009. Production of 25,411 GEO in the third quarter of 2009 increased by 11 percent and 32 percent compared to the second and first quarter of 2009, respectively. A construction decision for re-treating tailings work at Minera Florida has been made, which is to add an additional 40,000 GEO per year expected to begin in early 2012.

Fazenda Brasileiro, Brazil

Third quarter production at Fazenda Brasileiro increased to 20,464 ounces of gold, representing an 11 percent and two percent increase compared to the second quarter and first quarter of 2009, respectively.

Overview of Financial Results

The following table presents a summary of financial and operating information for the three and nine months ended September 30, 2009:

    <<
    -------------------------------------------------------------------------
    Overview of Financial                           Three months Nine months
     and Operating Results(i)                              ended       ended
    (in thousands of United                            September   September
     States Dollars; unaudited)                         30, 2009    30, 2009
    -------------------------------------------------------------------------
    Revenues                                           $ 333,179   $ 783,489
    Cost of sales excluding depletion, depreciation
     and amortization                                   (131,357)   (338,152)
    Depletion, depreciation and amortization             (64,792)   (160,579)
    Accretion of asset retirement obligations               (611)     (1,601)
    -------------------------------------------------------------------------
    Mine operating earnings                              136,419     283,157

    Expenses
    General and administrative                           (22,983)    (60,885)
    Exploration                                           (6,961)    (13,959)
    Other                                                 (2,017)       (808)
    -------------------------------------------------------------------------
    Operating earnings                                   104,458     207,505

    Other business (expenses) income                       3,015       7,368
    Foreign exchange gain (loss)                          15,126      87,820
    Realized gain (loss) on derivatives                   (3,562)     27,849
    Unrealized (loss) gain on derivatives                (16,853)    (96,950)
    -------------------------------------------------------------------------
    Earnings from continuing operation before income
     taxes and equity earnings                           102,184     233,592

    Income tax (expense) recovery                        (55,799)    (94,144)
    Equity earnings from Minera Alumbrera                  8,061      18,865
    -------------------------------------------------------------------------
    Earnings from continuing operations(i)                54,446     158,313
    -------------------------------------------------------------------------
    Earnings (loss) from discontinued operations           6,377      (1,857)
    -------------------------------------------------------------------------
    Net earnings                                       $  60,823   $ 156,456

    Earnings Adjustments:
    Stock-based compensation                               1,838       7,019
    Foreign exchange gain including discontinued
     operations                                           (6,726)    (56,986)
    Unrealized loss on derivatives including
     discontinued operations                              21,013     102,853
    Future income tax expense (recovery) on foreign
     currency translation of inter-corporate debt         18,933      54,020
    Non-recurring future income tax adjustment(ii)             -      20,592
    -------------------------------------------------------------------------
    Adjusted Earnings before income tax effects        $  95,881   $ 283,954
    Income tax effect of adjustments                      (7,541)    (35,545)
    -------------------------------------------------------------------------
    Adjusted Earnings                                  $  88,340   $ 248,409
    -------------------------------------------------------------------------
    Basic earnings per share                           $    0.08   $    0.21
    Diluted earnings per share                         $    0.08   $    0.21
    Adjusted Earnings per share                        $    0.12   $    0.34
    -------------------------------------------------------------------------
    Cash flow from operations (after changes in
     non-cash working capital items)                   $ 144,939   $ 317,009

    Cash flow from operations (before changes in
     non-cash working capital items)                   $ 167,930   $ 340,583

    Capital expenditures                               $ 144,654   $ 359,941

    Cash and cash equivalents (end of period)          $  97,498   $  97,498

    Average realized gold price per ounce              $     962   $     933

    Average realized silver price per ounce            $   14.97   $   13.92

    Chapada average realized copper price per pound    $    2.74   $    2.17

    Gold sales (ounces)                                  248,794     640,733

    Silver sales (millions of ounces)                        2.8         7.6

    Chapada payable copper contained in concentrate
     sales (millions of lbs)                                36.1       102.7
    -------------------------------------------------------------------------
    (i)  Due to the sale agreements of San Andrés, Sao Vicente and Sao
         Francisco mines, the results of those mines have been reclassified
         as discontinued operations (in accordance with GAAP) with
         restatement of prior period comparatives.
    (ii) Non-recurring and non-cash tax adjustment on the revaluation of
         future income tax liabilities related to the excess purchase price
         of the Meridian Gold Inc. acquisition in respect to the mineral
         interests in Chile.
    >>

Further details of the 2009 third quarter results can be found in the Company's unaudited Management's Discussion and Analysis and Interim Consolidated Financial Statements at www.yamana.com, in the "Investors" section under "Financial and Corporate Reports".

OUTLOOK AND STRATEGY

The Company remains committed to sustainability, growth, focusing on organic growth, low cash costs and stability of jurisdictions with the objective of predictable and reliable operations and outlook in respect to current operations and as it prepares for the next wave of growth. The Company focused on its core assets, generating cash flow, preserving capital, maximizing cash balances and maintaining maximum flexibility across its various interests including its development stage and near development stage projects. The Company continues to be committed to prudent and disciplined growth and will continue to improve the value and returns of its various projects. It will also continue to focus on containing costs and ensuring effective management of capital expenditures.

The Company's production plan is targeting in the range of 1.05 to 1.1 million GEO in 2009, not including non-core mines under sale, an increase of close to 40% over 2008. Yamana is committed to the sustainable production of at least 1.1 million GEO annually and increasing from 2010 onward.

The Company continues to evaluate the further expansion of its mines and development projects as follows:

    <<
                                      Expected
                                   Initial Annual      Expected
               Status               Contribution       Start-date
    -------------------------------------------------------------------------
    C1 Santa   Construction      130,000 gold ounces   Production targeted
     Luz(*)   decision made                           to begin in mid-2012

    Mercedes   Construction          120,000 GEO       Production targeted
                decision made                           to begin in late-2012

    Pilar/     Feasibility       Over 100,000 gold     Pending
     Caiamar    study underway       ounces

    Ernesto/   Scoping study     100,000 gold ounces   Pending
     Pau-a-     completed
     Pique

    Minera     Advanced plan          40,000 GEO       Production targeted
     Florida    to process                              to begin in early
                historical                              2012
                tailings;
                construction
                decision made

    QDD Lower  Updated            90,000 gold ounces   Pending
     West       feasibility study
                expected in 2010
    -------------------------------------------------------------------------
    (*) In the first two full years of production at C1 Santa Luz, average
          annual production is expected to exceed 130,000 ounces which would
          accelerate pay-back. Expected annual production would then average
          104,000 ounces of gold per year life of mine.
    >>

Agua Rica and other potential development stage projects would provide further growth for Yamana. The Company continues to focus on increasing the value of Agua Rica and is working on a number of optimization initiatives that could have a material positive impact on the project. Agua Rica has received the environmental license early in 2009 and Yamana is now advancing efforts relating to sectoral permits which are expected within 18 months. The Company has also begun a process for evaluating potential strategic partners for the development of Agua Rica.

The Company continues to focus on exploration to grow the Company to over 1.7 million GEO of sustained production in the long-run by identifying and acquiring the best exploration properties in the Americas, developing a pool of talented geoscientists and replacing ounces at current operations.

NON-GAAP MEASURES

The Company believes that in addition to conventional measures prepared in accordance with Canadian GAAP, the Company and certain investors and analysts use certain other non-GAAP financial measures to evaluate the Company's performance including its ability to generate cash flow and profits from its operations. The Company has included certain non-GAAP measures including "cash costs per gold equivalent ounce", "cash costs per pound of copper", "Adjusted Earnings or Loss and Adjusted Earnings or Loss per share" and "cash flow from operations before changes in non-cash working capital" or "cash flow from operating activities before changes in non-cash working capital" to supplement its financial statements, which are presented in accordance with Canadian GAAP. Non-GAAP measures do not have any standardized meaning prescribed under Canadian GAAP, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

    <<
    RECONCILIATION OF NON-GAAP MEASURES

    Co-product and By-product Cash Costs
    ------------------------------------
    >>

The Company has included cash costs per GEO and cash costs per pound of copper information because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flow for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with Canadian GAAP do not fully illustrate the ability of its operating mines to generate cash flow. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under Canadian GAAP. Cash costs per GEO are determined in accordance with the Gold Institute's Production Cost Standard and are calculated on a co-product and by-product basis. Cash costs on a co-product basis are computed by allocating operating cash costs separately to metals (copper and gold) based on an estimated or assumed ratio. Cash costs on a by-product basis are computed by deducting copper by product revenues from the calculation of cash costs of production per GEO.

The following table provides a reconciliation of cost of sales per the financial statements and co-product cash costs per GEO:

    <<
                                 Three months ended       Nine months ended
                                 September 30, 2009      September 30, 2009
                              -----------------------------------------------

                                      In                      In
                               thousands      United   thousands      United
                               of United      States   of United      States
                                  States     Dollars      States     Dollars
                                 Dollars     per GEO     Dollars     per GEO
    -------------------------------------------------------------------------
    Cost of sales(i)          $  131,357  $      488  $  338,152  $      489
    Adjustments:

    Copper contained in
     concentrate related
     cash costs (excluding
     related TCRC's)             (32,278)       (120)    (85,029)       (123)
    Impact of equity interest
     in Alumbrera (12.5%)          3,745          14      16,504          24
    Chapada gold contained
     in concentrate treatment
     and refining costs            1,452           5       4,601           7
    Inventory movements and
     adjustments                    (528)         (1)     (9,064)        (14)
    Commercial selling costs      (9,599)        (36)    (21,033)        (30)
    -------------------------------------------------------------------------
    Total GEO co-product
     cash costs(ii)           $   94,149  $      350  $  244,131  $      353
    -------------------------------------------------------------------------
    (i)  Cost of sales includes non-cash items including the impact of the
         movement in inventory.
    (ii) Amortization and inventory purchase accounting adjustments are
         excluded from both total cash costs and cost of sales.

    The following table provides a reconciliation of cost of sales per the
financial statements and co-product cash costs per pound of copper:

                                 Three months ended       Nine months ended
                                 September 30, 2009      September 30, 2009
                              -----------------------------------------------

                                      In                      In
                               thousands      United   thousands      United
                               of United      States   of United      States
                                  States     Dollars      States     Dollars
                                 Dollars   per pound     Dollars   per pound
    -------------------------------------------------------------------------
    Cost of sales(i)          $  131,357  $     2.99  $  338,152  $     2.49
    -------------------------------------------------------------------------
    Adjustments:

    GEO related cash costs
     (excluding related TCRC's)  (88,952)      (2.03)   (223,026)      (1.65)
    Impact of equity interest
     in Alumbrera (12.5%)         11,474        0.27      46,062        0.35
    Chapada copper contained
     in concentrate treatment
     and refining costs            6,772        0.15      18,693        0.14
    Inventory movements and
     adjustments                    (528)      (0.01)     (9,064)      (0.07)
    Commercial selling costs      (9,599)      (0.22)    (21,033)      (0.16)
    -------------------------------------------------------------------------
    Total copper co-product
     cash costs(ii)           $   50,524  $     1.15  $  149,784  $     1.10
    -------------------------------------------------------------------------

    (i)  Cost of sales includes non-cash items including the impact of the
         movement in inventory.
    (ii) Amortization and inventory purchase accounting adjustments are
         excluded from both total cash costs and cost of sales.

    The following table provides a reconciliation of cost of sales per the
financial statement and by-product cash costs per GEO excluding Alumbrera:

                                  Three months ended      Nine months ended
                                  September 30, 2009     September 30, 2009
                              -----------------------------------------------

                                      In                      In
                               thousands      United   thousands      United
                               of United      States   of United      States
                                  States     Dollars      States     Dollars
                                 Dollars   per pound     Dollars   per pound
    -------------------------------------------------------------------------

    Cost of sales             $  131,357         506  $  338,152         520
    Adjustments:
    Chapada TCRCs for Gold
     and Copper                    8,224          32      23,294          35
    Inventory movement and
     other adjustments              (528)         (2)     (9,064)        (14)
    Commercial Selling Costs      (9,599)        (37)    (21,033)        (32)
    Chapada Copper Revenue
     Including Copper Pricing
     Adjustments                (109,057)       (420)   (204,707)       (314)
    -------------------------------------------------------------------------
    Total gold by-product
     cash costs (Excluding
     Alumbrera)               $   20,397          79  $  126,642         195
    -------------------------------------------------------------------------

    Adjusted Earnings or Loss and Adjusted Earnings or Loss per share
    -----------------------------------------------------------------
    >>

The Company uses the financial measures "Adjusted Earnings or Loss" and "Adjusted Earnings or Loss per share" to supplement information in its consolidated financial statements. The Company believes that in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors and analysts use this information to evaluate the Company's performance. The presentation of adjusted measures are not meant to be a substitute for net earnings or loss or net earnings or loss per share presented in accordance with GAAP, but rather should be evaluated in conjunction with such GAAP measures. Adjusted Earnings or Loss and Adjusted Earnings or Loss per share are calculated as net earnings excluding (a) stock-based compensation, (b) foreign exchange (gains) losses, (c) unrealized (gains) losses on commodity derivatives, (d) impairment losses, (e) future income tax expense (recovery) on the translation of foreign currency inter-corporate debt, (f) writedown of investments and other assets and any other non-recurring adjustments. Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance.

    <<
    Cash Flow From Operations Before Changes in Non-Cash Working Capital
    --------------------------------------------------------------------
    >>

The Company uses the financial measure "cash flow from operations before changes in non-cash working capital" or "cash flow from operating activities before changes in non-cash working capital" to supplement its consolidated financial statements. The presentation of cash flow from operations before changes in non-cash working capital is not meant to be a substitute for cash flow from operations or cash flow from operating activities presented in accordance with Canadian GAAP, but rather should be evaluated in conjunction with such Canadian GAAP measures. Cash flow from operations before changes in non-cash working capital excludes the non-cash movement from period-to-period in working capital items including accounts receivable, advances and deposits, inventory, accounts payable and accrued liabilities.

The terms "cash flow from operations before changes in non-cash working capital" or "cash flow from operating activities before changes in non-cash working capital" do not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. The Company's management believes that the presentation of cash flow from operations before changes in non-cash working capital provides useful information to investors because it excludes the non-cash movement in working capital items and is a better indication of the Company's cash flow from operations and considered to be meaningful in evaluating the Company's past financial performance or the future prospects. The Company believes that conventional measure of performance prepared in accordance with Canadian GAAP does not fully illustrate the ability of its operating mines to generate cash flow.

The following table provides a reconciliation of cash flow from operation before changes in non-cash working capital:

    <<
                                                           Three        Nine
                                                          months      months
                                                           ended       ended
                                                       September   September
                                                        30, 2009    30, 2009
    -------------------------------------------------------------------------
    Cash flow from operating activities of
     continuing operations                             $ 144,439   $ 317,009
    Adjustments:
    Net change in non-cash working capital(i)             23,491      23,574
    -------------------------------------------------------------------------
    Cash flow from operating activities of
     continuing operations before changes in
     non-cash working capital                          $ 167,930   $ 340,583
    -------------------------------------------------------------------------
    (i) See 2009 third quarter Financial Statements note 14(c)

    Gross margin
    ------------
    >>

The Company uses the financial measure "gross margins" to supplement its consolidated financial statements. The presentation of gross margins is not meant to be a substitute for net earnings presented in accordance with Canadian GAAP, but rather should be evaluated in conjunction with such Canadian GAAP measures. Gross margins represent the amount of revenues in excess of cost of sales. It may be expressed in terms of percentage of revenues, both in total amount or on a per GEO basis.

The terms "gross margins" does not have a standardized meaning prescribed by Canadian GAAP, and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies. The Company's management believes that the presentation of gross margins provides useful information to investors because it excludes the non-cash operating cost items such as depreciation, depletion and amortization, accretion for asset retirement obligations and other common operating expenses, and considers this non-GAAP measure meaningful in evaluating the Company's past financial performance or the future prospects. The Company believes that conventional measure of performance prepared in accordance with Canadian GAAP does not fully illustrate the ability of its operating mines to generate cash flow.

The following table provides a reconciliation of gross margins:

    <<
                                                           Three        Nine
                                                          months      months
                                                           ended       ended
                                                       September   September
                                                        30, 2009    30, 2009
    -------------------------------------------------------------------------
    Revenues                                           $ 333,179   $ 783,489
    Cost of sales excluding depreciation,
     depletion and amortization                         (131,357)   (338,152)
    -------------------------------------------------------------------------
    Gross Margins                                      $ 201,822   $ 445,337
    -------------------------------------------------------------------------
    Gross Margins as % of Revenues                           61%         57%
    -------------------------------------------------------------------------
    GEO Sold (excluding Alumbrera)                       254,853     633,508
    -------------------------------------------------------------------------
    Gross Margins per GEO Sold                         $     792  $      703
    -------------------------------------------------------------------------

    THIRD QUARTER CONFERENCE CALL

    A conference call and audio webcast is scheduled for November 4, 2009 at
11:00 a.m. E.T. to discuss 2009 third quarter results.

    Q3 Conference Call Information:
    -------------------------------

    Toll Free (North America):                                1-800-590-1508
    International:                                            1-416-915-5762
    Participant Audio Webcast:                                www.yamana.com

    Q3 Conference Call REPLAY:
    --------------------------

    Toll Free Replay Call (North America):   877-289-8525, Passcode: 4173041
                                                 followed by the number sign
    Replay Call:                             416-640-1917, Passcode: 4173041
                                                 followed by the number sign
    >>

The conference call replay will be available from 1:00 p.m. ET on November 4, 2009 until 11:59 p.m. EST on November 18, 2009.

For further information on the conference call or audio webcast, please contact the Investor Relations Department or visit our website, www.yamana.com.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile and Mexico. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

    <<
    --------------
    (1) Cash costs, adjusted earnings, adjusted earnings per share, cash flow
        from operations before changes in non-working capital items and gross
        margin are non-GAAP measures. Reconciliation of non-GAAP measures is
        located on pages 6 to 10 of this press release.
    >>

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any information as to the Company's strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "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, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the United States Dollar), possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in the Company's corporate resources, risk related to non-core mine dispositions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2008 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.

Yamana Gold Third Quarter Financial Results Release Notification and Conference Call

Thu, 15 Oct 2009 16:30:00 -0400

TORONTO, Oct. 15 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced that its third quarter results will be released after market close on November 3, 2009. A conference call and audio webcast have been scheduled for November 4, 2009 at 11:00 a.m. E.T. to discuss the results.

    <<
    Conference Call Information:
    ----------------------------

    Toll Free (North America):                                1-800-590-1508
    International:                                            1-416-915-5762
    Participant Audio Webcast:                                www.yamana.com

    Conference Call REPLAY:
    -----------------------

    Toll Free Replay Call (North America):   877-289-8525, Passcode: 4173041
                                                 followed by the number sign

    Replay Call:                             416-640-1917, Passcode: 4173041
                                                 followed by the number sign
    >>

The conference call replay will be available from 1:00 p.m. ET on November 4, 2009 until 11:59 p.m. EST on November 18, 2009.

For further information on the conference call or audio webcast, please contact the Investor Relations Department or visit our website, www.yamana.com.

About Yamana

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions in Brazil, Argentina, Chile and Mexico. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.