Yamana Gold Inc. Press Releases

Yamana Gold Second Quarter Financial Results Release Notification and Conference Call

Wed, 30 Jun 2010 16:30:00 -0400

TORONTO, June 30 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced that its second quarter results will be released after market close on August 4, 2010 followed by a conference call on August 5, 2010 at 11:00 a.m. ET.

    <<
    Q2 Conference Call Information:

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

    Q2 Conference Call REPLAY:
    Toll Free Replay Call (North America):                     800-642-1687,
                                              Passcode 84950126 followed by
                                                            the number sign
    Replay Call:                                               416-849-0833,
                                              Passcode 84950126 followed by
                                                            the number sign
    >>

The conference call replay will be available from 2:45 p.m. ET on August 5, 2010 until 11:59 p.m. ET on August 19, 2010.

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. Yamana 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.

Yamana Receives Shares of Aura Minerals

Fri, 14 May 2010 18:27:00 -0400

TORONTO, May 14 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) announces that it has received and now owns and controls an additional 13,859,533 common shares of Aura Minerals Inc. ("Aura") at a value of Cdn.$3.90 based on the closing price of Aura's common shares on the Toronto Stock Exchange on April 29, 2010. Following the acquisition of these additional shares, Yamana now holds a total of 23,344,261 common shares of Aura, representing approximately 11% of Aura's issued and outstanding common shares.

Yamana has no current intention to acquire ownership or control over additional securities of Aura. It is the intention of Yamana to evaluate its investment in Aura on a continuing basis and such holdings may be decreased or increased in the future. Yamana acquired the shares as an accredited investor pursuant to the exemption set forth in section 2.3 of National Instrument 45-106 Prospectus and Registration Exemptions.

About Yamana

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains "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, 2009 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 Announces 50 Percent Increase in Dividend

Wed, 05 May 2010 07:15:00 -0400

TORONTO, May 5 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced it has increased its dividend. All dollar amounts are expressed in United States dollars unless otherwise specified.

The Board of Directors has approved an increase in Yamana's dividend to an annualized $0.06 per share, or $0.015 per share per quarter. This represents a 50 percent increase over the prior annualized dividend of $0.04 per share, or $0.01 per share per quarter. The dividend increase will be in effect for the second quarter dividend, payable July 14, 2010, to holders of record at the close of business on June 30, 2010. The dividend is an "eligible dividend" for Canadian tax purposes.

Yamana is committed to delivering value to shareholders including cash value by means of dividends and it will continue to periodically evaluate the dividend level as its cash flows increase.

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, 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, 2009 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 Reports First Quarter 2010 Results - Continued production, revenues, earnings and cash flow growth

Mon, 03 May 2010 16:30:00 -0400

First Quarter Management's Discussion and Analysis and Financial Statements

TORONTO, May 3 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) today announced its financial and operating results for the first quarter ended March 31, 2010. All dollar amounts are expressed in United States Dollars unless otherwise specified.

    <<
    FIRST QUARTER HIGHLIGHTS

    Financial and Operating Highlights

    Highlights for the three-month period ended March 31, 2010 include:
    -   Total production from continuing operations of 239,838 gold
        equivalent ounces (GEO)
    -   Cash costs(1) from continuing operations, excluding Alumbrera, of
        $161 per GEO
    -   Revenues of $346.3 million
    -   Mine operating earnings of $129.9 million
    -   Net earnings of $79.5 million
    -   Adjusted Earnings(1) of $73.2 million or $0.10 per share


    For the three months ended March 31,
    (In millions of United States Dollars
    except per share amounts)                                           2010
    -------------------------------------------------------------------------
    Net earnings                                                      $ 79.5
    Non-cash unrealized foreign exchange gains                          (5.7)
    Non-cash unrealized gains on derivatives                            (4.6)
    Non-recurring business acquisition costs                             0.8
    Stock-based and other compensation                                   5.6
    Future income tax recovery on translation of intercompany debt      (3.8)
    Other non-recurring loss                                             1.1
    -------------------------------------------------------------------------
    Adjusted Earnings before income tax effects                         73.0
    -------------------------------------------------------------------------
    Income tax effect of adjustments                                     0.2
    -------------------------------------------------------------------------
    Adjusted Earnings                                                 $ 73.2
    -------------------------------------------------------------------------
    Adjusted Earnings per share                                       $ 0.10
    -------------------------------------------------------------------------

    -   Cash flows from continuing operations after changes in non-cash
        working capital items of $125.7 million or $0.17 per share and from
        continuing operations before changes in non-cash working capital
        items(1) of $137.8 million or $0.19 per share.

    Development, Exploration and Corporate Highlights

    Highlights for the three-month period ended March 31, 2010 include:

    -   Completed basic engineering and advanced mine development at
        Mercedes. Mine construction is expected to begin in May 2010 with
        production expected to start-up in 2012.
    -   Completed basic engineering and advanced detailed engineering at C1
        Santa Luz. Mine construction is expected to begin in 2010 with
        production start-up in 2012.
    -   Undertook optimization initiatives at Agua Rica and received an
        updated mine plan prepared by an independent engineering consulting
        firm, which includes a new mineral reserve estimate containing
        approximately 10 percent more copper and 12 percent more gold than
        previously reported.
    -   Made a construction decision for the development of Ernesto/Pau-a-
        Pique for start-up in 2012.
    -   Provided a new strategic plan for the optimization of El Penon and
        announced the discovery of a new high grade gold and silver vein
        system, Pampa Augusta Victoria.
    >>

"We remain committed to sustainable production which will initially be at a level of approximately 1.1 million GEO and increase from that point," said Yamana's chairman and chief executive officer, Peter Marrone. "Our focus has been on ensuring operational reliability from existing mines although also from future operations from mines now in development. The first quarter demonstrated our continued commitment and focus in these matters. We have three development stage projects now in progress, two optimization strategies being evaluated, an exploration program which is expected to deliver strong results this year and further cash flow growth anticipated in 2010. 2010 is expected to be a significant year of achievement for Yamana."

FINANCIAL AND OPERATING SUMMARY

Revenues for the three-month period ended March 31, 2010 were $346.3 million, representing a 62 percent increase from the previous year.

Mine operating earnings for the three-month period ended March 31, 2010 were $129.9 million, representing a 99 percent increase from the previous year.

Adjusted Earnings for the three-month period ended March 31, 2010 were $73.2 million, or $0.10 per share, representing a 13 percent increase from the previous year. Net earnings for the three-month period ended March 31, 2010 were $79.5 million.

Cash flows from continuing operations after changes in non-cash working capital items for the three-month period ended March 31, 2010 were $125.7 million, or $0.17 per share, representing a 121 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 March 31, 2010 were $137.8 million, or $0.19 per share, representing a 103 percent increase from the previous year.

Cash and cash equivalents as at March 31, 2010 were $222.0 million.

Total production from continuing operations for the three-month period ended March 31, 2010 was 239,838 GEO (comprised of 190,666 ounces of gold and 2.7 million ounces of silver) representing a six percent increase from the previous year. Production is expected to ramp up quarter-over-quarter throughout the year similar to trends in 2009. Consistent with this trend of increased production, April production exceeded average monthly production in the first quarter and provides further confidence in production guidance for 2010.

    <<
    -------------------------------------------------------------------------
    Mine                                             Q1 2010
    -------------------------------------------------------------------------
    Chapada                                                           27,794
    El Penon                                                         108,437
    Gualcamayo                                                        29,462
    Jacobina                                                          25,022
    Minera Florida                                                    20,630
    Fazenda Brasileiro                                                14,738
    Alumbrera (12.5%)                                                 13,755
    -------------------------------------------------------------------------
    Total                                                            239,838
    -------------------------------------------------------------------------
    >>

Production is on track to achieve annual guidance of 1,030,000 to 1,145,000 GEO.

Cash costs from continuing operations, excluding Alumbrera, for the three-month period ended March 31, 2010 were $161 per GEO. Cash costs are expected to decline quarter-over-quarter throughout the year as production ramps up, similar to trends in 2009.

Gross margin(1) per GEO sold for the three-month period ended March 31, 2010 was $842 per GEO, representing a 67 percent increase from the previous year.

"The first quarter exhibited significant growth from last year," said Chuck Main, Yamana's executive vice president, finance and chief financial officer. "This sets the stage for solid results for the remainder of the year. We have a healthy cash balance and robust cash flow which is expected to experience further growth this year as we receive the full benefit from a full year of commercial production at Gualcamayo and the benefit of higher levels of production from El Penon."

Chapada, Brazil

Production at Chapada was 27,794 ounces in the first quarter. Mine operations in the first quarter would normally be expected to be lower than in subsequent quarters as a result of the rainy season. In the first quarter, the Company also began operating the new fleet of large trucks. Production in the second and third quarters of 2010 is expected to be at higher levels as the rainy season dissipates similar to trends seen in 2009. Production expectations for the year remain consistent with previous guidance. Optimizations continue in the first quarter and are scheduled to increase throughput to up to 22 million tonnes per year before 2012.

El Penon, Chile

El Penon produced 108,437 GEO in the first quarter, with throughput increases resulting from plant upgrades completed in the fourth quarter. During the quarter, Yamana also completed the transition to owner-mining. Production in 2010 is expected to remain in the range of the first quarter with modest variations quarter-over-quarter although costs are expected to improve as efficiencies derived from owner-mining are recognized. Production expectations for the year remain consistent with previous guidance. Yamana continues to evaluate further optimization strategies at El Penon to increase production from current levels. Recent plant expansions and resource contributions from the newly discovered high grade vein systems, Pampa Augusta Victoria, will further support this objective.

Gualcamayo, Argentina

Production at Gualcamayo was 29,462 ounces in the first quarter. Both tonnage and grade are expected to increase throughout the year. Production expectations for the year remain consistent with previous guidance.

Jacobina, Brazil

Production at Jacobina was 25,022 ounces in the first quarter. The Company remains focused on improving dilution and recovery as well as improving equipment availability and maintenance to better manage costs. Production expectations for the year remain consistent with previous guidance. The Company also remains focused on exploring, discovering and developing higher grade areas including Canavieiras. Exploration efforts will also be focused on the new discovery, Lagartixa, which exhibits substantially higher grade than the current mineral reserve grade at Jacobina.

Minera Florida, Chile

Production at Minera Florida was 20,630 GEO in the first quarter and was impacted by the earthquake which occurred on February 27. Processing resumed in the second half of March, and essentially reached full capacity in the end of March. Production expectations for the year remain consistent with previous guidance. Yamana continues to advance its tailings reprocessing project at Minera Florida, which is expected to add an additional 40,000 GEO beginning in 2012.

Fazenda Brasileiro, Brazil

Production at Fazenda Brasileiro was 14,738 ounces of gold. Production expectations for the year remain consistent with previous guidance although there will be variations quarter-over-quarter. 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, CLX2 and Lagoa do Gato, which Yamana believes represent significant potential to increase the mine life.

DEVELOPMENT UPDATE

C1 Santa Luz, Brazil

Yamana continues to conduct development work at C1 Santa Luz. Basic engineering has been completed and detailed engineering is advancing. Permitting and the start-up of construction are expected in 2010 with production expected to commence in 2012. During the permitting period, Yamana has undertaken a program to conduct pilot plant tests on metallurgy and recoveries to ensure operational reliability once operations begin.

Mercedes, Mexico

Yamana continues to conduct development work at Mercedes. Basic engineering and advanced mine development has been completed and exploration results continue to confirm Mercedes' high geological potential. The Company has purchased key lead time items and construction is expected to begin in May 2010 with production expected to commence in 2012.

Ernesto/Pau-a-Pique, Brazil

Yamana made a construction decision earlier this year for the development of Ernesto/Pau-a-Pique based on positive feasibility results. Yamana continues to conduct basic engineering and develop an exploration tunnel to facilitate drilling in deeper areas where there are further mineral resources. The Company also continues to conduct additional tests on metallurgy and recoveries. Permitting is underway and construction is expected to begin in 2010 with production start-up targeted for 2012.

Agua Rica, Argentina

The Company continues to advance its Agua Rica project and, as part of these initiatives, most recently the Company received an updated mine plan for Agua Rica prepared by an independent engineering consulting firm. Under the revised mine plan the project would deliver 870 million tonnes of ore over an estimated mine life of 26.5 years and the new estimate for mineral reserves, which contain approximately 10% more copper and 12% more gold than previously reported and which forms the basis for the new mine plan, is summarized as follows:

    <<
    -------------------------------------------------------------------------
                              Tonnes  Cu Grade  Au Grade  Mo Grade  Ag Grade
                              (000s)     (%)      (g/t)      (%)      (g/t)
    -------------------------------------------------------------------------
    Proven                   380,236     0.569     0.257     0.032      3.91
    Probable                 489,301     0.440     0.213     0.030      3.52
    -------------------------------------------------------------------------
    Total proven and
     probable mineral
     reserves                869,537     0.496     0.232     0.031      3.69
    -------------------------------------------------------------------------
    >>

This reserve estimate is based on $2.25 / lb Cu, $825 / oz gold, $12 / lb Mo and $14 / oz Ag and contains 9.5 billion pounds of copper, 6.5 million ounces of gold, 595 million pounds of molybdenum and 103 million ounces of silver.

Average annual production over the project mine life is summarized as follows:

    <<
                                                Time Frame
                                  --------------------------------------
                                   5 Years       10 Years         LOM
                                  ----------    ----------    ----------
    Copper (mm lbs/yr)                419            370           306
    Gold - (000s oz/yr)               140            148           129
    Molybdenum - (mm lbs/yr)         15.2           13.9          15.3
    Silver - (000s oz/yr)           1,987          2,605         2,513

    Other optimization initiatives remain under review. These include but are
    not limited to the following:
    1.  Alternative concentrate transport logistics (eg. trucking and rail
        versus pipeline);
    2.  Paste versus filtered tailings disposal;
    3.  Alternative waste disposal logistics and scheduling;
    4.  Two tunnels - one for ore and one for waste versus to one large
        tunnel for both;
    5.  Alternative access routes to the mine;
    6.  Rhenium as a source of by-product credits; and
    7.  Optimization of grinding requirements
    >>

In addition, Yamana will determine further improvements in assumed gold and molybdenum recoveries in particular. Actual gold recoveries at comparable porphyry operations are significantly in excess of the assumed gold recoveries for Agua Rica. Metallurgical testwork for copper had been significantly more advanced than testwork for recoveries of other metals in the prior feasibility study and the Company intends to conduct further metallurgical testwork to increase gold and molybdenum recoveries. Any additional gold production from these tests is not yet included in the mine plan.

Agua Rica is an exceptional development stage project offering significant value and the Company is working towards a formal construction decision for the project. Work continues on the preparation of a full update to the prior feasibility study which will incorporate the recently completed mine plan update and all other optimization initiatives as appropriate.

Overview of Financial Results

The following table presents a summary of financial and operating information for the three months ended March 31, 2010:

    <<
    -------------------------------------------------------------------------
    (in thousands of United States Dollars
    except for shares and per share amounts; unaudited)       March 31, 2010
    -------------------------------------------------------------------------
    Revenues                                                       $ 346,341
    Cost of sales excluding depletion, depreciation and
     amortization                                                   (145,143)
    Depletion, depreciation and amortization                         (69,707)
    Accretion of asset retirement obligations                         (1,580)
    -------------------------------------------------------------------------
    Mine operating earnings                                          129,911
    -------------------------------------------------------------------------
    Expenses
    General and administrative                                       (24,042)
    Exploration                                                       (6,758)
    Other                                                             (3,725)
    -------------------------------------------------------------------------
    Operating earnings                                                95,386
    -------------------------------------------------------------------------
    Other business and interest expenses                             (15,946)
    Foreign exchange gain                                              3,689
    Realized loss on derivatives                                      (5,230)
    Unrealized gain on derivatives                                     4,586
    -------------------------------------------------------------------------
    Earnings from continuing operations before income taxes, equity
     earnings and extraordinary items                                 82,485
    -------------------------------------------------------------------------
    Income tax expense                                               (21,950)
    Equity earnings from Minera Alumbrera                             11,652
    -------------------------------------------------------------------------
    Earnings from continuing operations                               72,187
    -------------------------------------------------------------------------
    Earnings from discontinued operations                              7,352
    -------------------------------------------------------------------------
    Net earnings                                                   $  79,539
    -------------------------------------------------------------------------
    Earnings Adjustments:
    Non-cash unrealized foreign exchange gains                        (5,755)
    Non-cash unrealized gains on derivatives                          (4,586)
    Non-recurring business acquisition costs                             822
    Stock-based and other compensation                                 5,583
    Future income tax recovery on translation of intercompany debt    (3,772)
    Other non-recurring loss                                           1,144
    -------------------------------------------------------------------------
    Adjusted earnings before income tax effects                       72,975
    Income tax effect of adjustments                                     231
    Adjusted Earnings                                              $  73,206
    -------------------------------------------------------------------------
    Basic earnings per share                                       $    0.11
    Diluted earnings per share                                     $    0.11
    Adjusted Earnings per share                                    $    0.10
    -------------------------------------------------------------------------
    Cash flow from operations (after changes in non-cash working
     capital items)                                                $ 125,671
    Cash flow from operations (before changes in non-cash working
     capital items)                                                $ 137,830
    Capital expenditures                                           $ 126,445
    Cash and cash equivalents (end of period)                      $ 221,983
    Average realized gold price per ounce                          $   1,114
    Average realized silver price per ounce                        $   17.07
    Chapada average realized copper price per pound                $    3.25
    Gold sales (ounces)                                              197,598
    Silver sales (millions of ounces)                                    2.7
    Chapada payable copper contained in concentrate sales
     (millions of lbs)                                                  29.1
    -------------------------------------------------------------------------
    >>

Further details of the 2010 first 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", or at www.sedar.com under the Company's profile.

OUTLOOK AND STRATEGY

The Company continues to adhere to its key commitments to sustainable production, stability of jurisdictions, disciplined growth and industry low cash costs, which underlie Yamana's success in the past year.

The Company is committed to a sustainable production platform of approximately 1.1 million gold GEO mainly from its six producing mines: Chapada, Jacobina and Fazenda Brasileiro located in Brazil, El Penon and Minera Florida in Chile, and Gualcamayo in Argentina. Production is expected to be in the range of 1.030 million GEO to 1.145 million GEO in 2010 consistent with previous guidance. Copper production is expected to be in excess of 150 million pounds in 2010 consistent with previous guidance. Cumulatively, the above operating mines provide the Company with robust, long-life production at the projected levels. The Company's approach to sustainability, which is broader than consistent production levels, includes the adherence to best practices and international policies for health and safety, environment and community relations. The Company's focus on and initiatives in creating strong community relations and support systems, energy management, improvement of water quality and availability, in addition to quality of life, are all important elements of its commitment to sustainability.

The Company remains committed to operating in comparatively stable jurisdictions, preferably where there is an established mining culture and tradition. Yamana remains focused on the Americas, with production coming from operating mines in Brazil, Chile and Argentina, and with a reach soon into Mexico where the Mercedes project is expected to begin construction in May 2010. The Company is also active on the exploration front in Colombia.

The Company's well defined development stage and exploration projects, in addition to further value-enhancing opportunities, provide the Company with a superior organic growth profile and value proposition. Production growth will come from the Company's development stage projects: C1 Santa Luz, Mercedes, Ernesto/Pau-a-Pique, and from a tailings reprocessing project at the Minera Florida mine. Production would initially increase by an additional 400,000 GEO annually at cash costs consistent with the current cost and operating structure. Production is expected to ramp up substantially in 2012 to approximately 1.3 million GEO as these projects commence operations, with production by the end of 2012 expected to be at an annual run rate of approximately 1.5 million GEO, which represents a 46 percent increase in production from 2009.

Further growth is expected from other pending projects, which include QDD Lower West which will add to production at the Gualcamayo mine in Argentina, along with Pilar and Caiamar, both of which are in Brazil close to the Chapada mine. These projects are expected to increase the Company's production level. Exploration successes and the development of Agua Rica are also expected to further supplement long-term growth of the Company. Agua Rica is an exceptional stand-alone project offering significant value and the Company is working towards a formal construction decision for the project. Work continues on the preparation of a full update to the prior feasibility study which will incorporate the recently completed mine plan update, revised capital cost estimates and all other optimization initiatives as appropriate.

NON-GAAP MEASURES

The Company has included certain non-GAAP measures including "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 per share" 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

By-product 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 co-product cash costs of production per GEO. Cash costs on a co-product basis are computed by allocating operating cash costs separately to metals (gold and copper) based on an estimated or assumed ratio. Cash costs per GEO are calculated on a weighted average basis.

Reconciliation of cost of sales per the financial statements to by-product cash costs per GEO produced from continuing operations:

    <<
                                   ------------------------------------------
    GEO                               In thousands of   United States Dollars
                                   United States Dollars        per GEO
    For the three months           --------------------- --------------------
    ended March 31,                    2010       2009       2010       2009
    -------------------------------------------------------------------------
    Cost of sales (i)             $ 145,143  $ 102,032  $     642  $     540

    Adjustments:
    Chapada treatment and refining
     costs related to gold and
     copper                           5,863      8,847         26         47
    Inventory movements and
     adjustments                    (10,757)    (6,363)       (48)       (34)
    Commercial selling costs         (5,182)    (5,593)       (23)       (30)
    Chapada copper revenue
     including copper pricing
     adjustment                     (98,650)   (21,567)      (436)      (114)
    --------------------------------------------------- ---------------------
    Total GEO by-product cash
     costs (excluding Alumbrera)  $  36,417  $  77,356  $     161  $     409
    Mineral Alumbrera (12.5%
     interest) by-product cash
     costs                          (15,708)    (4,456)    (1,142)      (283)
    --------------------------------------------------- ---------------------
    Total GEO by-product cash
     costs (i)                    $  20,709  $  72,900  $      86  $     356
    --------------------------------------------------- ---------------------
    Commercial GEO produced
     excluding Alumbrera            226,083    189,293
    ---------------------------------------------------
    Commercial GEO produced
     including Alumbrera            239,838    205,038
    ---------------------------------------------------
    (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.

    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, and (f) write-down of investments and other assets and any other non-recurring adjustments. Non-recurring adjustments from unusual and extraordinary 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 is provided on page one of this press release.

    <<
    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 a 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 operation before changes in non-cash working capital:

    <<
                                                          Three months ended
                                                        ---------------------
                                                         March 31,  March 31,
    In thousands of United States Dollars                    2010       2009
    -------------------------------------------------------------------------
    Cash flows from operating activities of continuing
     operations                                         $ 125,671  $  56,746
    Adjustments:
    Net change in non-cash working capital                 12,159     11,272
    -------------------------------------------------------------------------
    Cash flows from operating activities of continuing
     operations before changes in non-cash working
     capital                                            $ 137,830  $  68,018
    -------------------------------------------------------------------------

    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 ended
                                                        ---------------------
                                                         March 31,  March 31,
    In millions of United States Dollars                    2010       2009
    -------------------------------------------------------------------------
    Cash flows from continuing operations after
     changes in non-cash working capital                $   125.7  $    56.8
    Cash flows from continuing operations before
     changes in non-cash working capital                $   137.8  $    68.0
    -------------------------------------------------------------------------
    Weighted average number of shares outstanding             737        733
    -------------------------------------------------------------------------
    Cash flows from continuing operations after changes
     in non-cash working capital per share              $    0.17  $    0.08
    -------------------------------------------------------------------------
    Cash flows from continuing operations before
     changes in non-cash working capital per share      $    0.19  $    0.09
    -------------------------------------------------------------------------

    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 is 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 and accretion for asset retirement obligations 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 ended
                                                        ---------------------
                                                         March 31,  March 31,
                                                             2010       2009
    -------------------------------------------------------------------------
    Revenues                                            $ 346,341  $ 213,600

    Cost of sales excluding depletion, depreciation
     and amortization                                    (145,143)  (102,032)
    -------------------------------------------------------------------------
    Gross Margin                                        $ 201,198  $ 111,568
    -------------------------------------------------------------------------
    Gross Margin as % of Revenues from continuing
     operations                                               58%        52%
    -------------------------------------------------------------------------
    GEO Sold (excluding Alumbrera)                        239,069    222,008
    Gross Margin per GEO Sold                           $     842  $     503
    -------------------------------------------------------------------------

    FIRST QUARTER CONFERENCE CALL

    A conference call and audio webcast is scheduled for May 4, 2010 at
    11:00 a.m. E.T. to discuss 2010 first quarter results.

    Q1 Conference Call Information:
    Toll Free (North America):                                  888-231-8191
    International:                                              647-427-7450
    Participant Audio Webcast:                                www.yamana.com

    Q1 Conference Call REPLAY:
    --------------------------
    Toll Free Replay Call (North America): 800-642-1687, Passcode 63821038
                                               followed by the number sign
    Replay Call:                           416-849-0833, Passcode 63821038
                                               followed by the number sign
    >>

The conference call replay will be available from 12:15 p.m. ET on May 5, 2010 until 11:59 p.m. ET on May 19, 2010.

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

ANALYST AND INVESTOR DAY NOTIFICATION

Yamana will be hosting its annual analyst and investor day on May 4th at 1:00 p.m. ET. To access the audio webcast and download presentation slides for Yamana's Analyst and Investor Day, please visit www.yamana.com.

ANNUAL MEETING OF SHAREHOLDERS

The Annual Meeting of Shareholders will take place on Wednesday, May 5, 2010 at 11:00 a.m. ET, and will be held at the Four Seasons Centre for the Performing Arts, located at 145 Queen Street West, Toronto, Ontario, Canada. The main entrance is located at the southeast corner of Queen Street West and University Avenue.

For those unable to attend the meeting in person, there are several listen-only alternatives listed below.

    <<
    Via Telephone:
    --------------
    Toll Free (North America):                                  888-231-8191
    International:                                              647-427-7450

    Via Webcast:
    ------------
    Live Audio Webcast:                                       www.yamana.com

    Conference Call REPLAY:
    -----------------------
    Toll Free Replay Call (North America): 800-642-1687, Passcode 63829307
                                               followed by the number sign
    Replay Call:                           416-849-0833, Passcode 63829307
                                               followed by the number sign
    >>

The conference call replay will be available from 3:15 p.m. ET on May 5, 2010 until 11:59 p.m. ET on May 19, 2010.

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

Evandro Cintra, P.Geo., Senior Vice President, Technical Services of Yamana Gold Inc. has reviewed and confirmed the scientific and technical information contained within this news release other than Agua Rica and serves as the Qualified Person as defined in National Instrument 43-101.

Qualified Person

Enrique Munoz Gonzalez, MAusIMM of Metalica Consultores S.A. has reviewed and confirmed the data on Agua Rica contained within this news release and serves as the Qualified Person as defined in National Instrument 43-101.

About Yamana

    <<
    ------------
    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 on pages 8 to 11 of
        this press release. Cash costs are shown on a by-product basis.
    >>

Yamana Gold First Quarter Results and Conference Call Date Change

Fri, 09 Apr 2010 16:15:00 -0400

TORONTO, April 9 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced that its first quarter 2010 results will now be released after market close on May 3, 2010 followed by a conference call on May 4, 2010 at 11:00 a.m. ET. The results were previously scheduled to be released on May 4, 2010 with a conference call on May 5, 2010.

    <<
    Q1 Conference Call Information:

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

    Q1 Conference Call REPLAY:
    --------------------------

    Toll Free Replay Call (North America):                    800-642-1687,
                                                         Passcode 63821038
                                               followed by the number sign
    Replay Call:                                              416-849-0833,
                                                         Passcode 63821038
                                               followed by the number sign
    >>

The conference call replay will be available from 12:15 p.m. ET on May 5, 2010 until 11:59 p.m. ET on May 19, 2010.

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, development of new mines, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

Yamana Gold Provides Notice of First Quarter Financial Results and Annual Meeting of Shareholders

Mon, 05 Apr 2010 16:30:00 -0400

TORONTO, April 5 /CNW/ - YAMANA GOLD INC. (TSX: YRI; NYSE: AUY; LSE: YAU) today announced that its first quarter results will be released after market close on May 4, 2010 followed by a conference call on May 5, 2010 at 8:30 a.m. ET. Additionally, the Company will host its annual meeting of shareholders on May 5, 2010 at 11:00 am ET.

    <<
    Q1 Conference Call Information:

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

    Q1 Conference Call REPLAY:
    --------------------------

    Toll Free Replay Call (North America):                      800-642-1687,
                                                           Passcode 63821038
                                                 followed by the number sign
    Replay Call:                                                416-849-0833,
                                                           Passcode 63821038
                                                 followed by the number sign
    >>

The conference call replay will be available from 12:15 p.m. ET on May 5, 2010 until 11:59 p.m. ET on May 19, 2010.

Annual Meeting of Shareholders

For those unable to attend the meeting in person, there are several listen-only alternatives listed below.

    <<
    Via Telephone:
    --------------

    Toll Free (North America):                                  888-231-8191
    International:                                              647-427-7450

    Via Webcast:
    ------------

    Live Audio Webcast:                                       www.yamana.com

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

    Toll Free Replay Call (North America):                      800-642-1687,
                                                           Passcode 63829307
                                                 followed by the number sign

    Replay Call:                                                416-849-0833,
                                                          Passcode, 63829307
                                                 followed by the number sign
    >>

The conference call replay will be available from 3:15 p.m. EST on May 5, 2010 until 11:59 p.m. EST on May 19, 2010. 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, Mexico and Colombia. The Company plans to continue to build on this base through existing operating mine expansions and throughput increases, development of new mines, the advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

Yamana Gold Reaffirms Annual 2010 Guidance

Thu, 01 Apr 2010 09:50:00 -0400

TORONTO, April 1 /CNW/ - YAMANA GOLD INC. (TSX:YRI; NYSE:AUY; LSE:YAU) reaffirmed annual 2010 guidance today.

Yamana anticipates that its production and cash costs for 2010 will be as previously stated and is as follows:

    <<
    -------------------------------------------------------------------------
    2010E Production(1)                     2010E Cash Costs(1,2)
    -------------------------------------------------------------------------
    1,030 - 1,145,000 GEO*          Co-product: $360 - $400 per GEO
    -------------------------------------------------------------------------
                                      By-product: below $200 per GEO
    -------------------------------------------------------------------------
    * Yamana treats silver as a gold equivalent. Gold equivalent ounce
        (GEO) calculations are based on an assumed gold to silver ratio of
        55:1 which is a long term historical average
    >>

Yamana has previously noted that production would sequentially increase, and cash costs would sequentially decrease, quarter-over-quarter throughout the year. In the first quarter of 2010, gold equivalent production is expected to be approximately 240,000 GEO and cash costs are expected to be below $200 per GEO on a by-product basis. This is consistent with internal forecasts. Minera Florida produced less than anticipated due to the earthquake which occurred on February 27 and is now fully operational.

Yamana has also guided that copper production is expected to be 150-160 million pounds in 2010 and, similar to the case for gold production, Yamana expects production to increase quarter-over-quarter throughout the year. Copper production in the first quarter of 2010 is expected to be 29 to 30 million pounds.

Yamana provides guidance on certain of its projected operating parameters including production levels and cash costs. The Company is not in the position to endorse consensus estimates with the respect to earnings and cash flow per share as it has no way to accurately monitor the underlying assumptions and projections going into these calculations.

With 1,025,677 GEO produced in 2009, adjusted earnings(1) were US$0.47 per share in 2009. Yamana notes that the lower end of its production guidance for 2010 is consistent with actual production achieved in 2009 and cash costs would be comparable. Cash costs in the first quarter of 2010 are expected to exceed cash costs in the first quarter of 2009, which were at all time lows as a result, in part, of significant depreciation in local currencies after the financial crisis of late 2008.

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, advancement of its exploration properties and by targeting other gold consolidation opportunities in the Americas.

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", "Co-product cash costs per gold equivalent ounce", and "adjusted earnings per share" throughout this document.

Cash costs

Adjusted Earnings per share

The Company uses the financial measure "Adjusted Earnings 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 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. Earnings adjustments reflect both continuing and discontinued operations.

The term "Adjusted Earnings per share" 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. Management believes that the presentation of Adjusted Earnings 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 per share, which are otherwise included in the determination of net earnings 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 is provided below:

    <<
    For the period ended December 31,                         Twelve months
    (In millions of United States Dollars)                            ended

    -------------------------------------------------------------------------
    Net earnings                                                    $ 192.6
    Mark-to-market on period sales and final price
    and quantity settlements                                              -
    Non-cash unrealized foreign exchange losses/(gains)               (36.7)
    Non-cash unrealized losses on derivatives                         112.5
    Non-recurring future income tax adjustments                        35.8
    Proceeds on sale of commodity derivatives                             -
    Write off of mineral interests and other assets                     8.3
    Stock-based and other compensation                                 23.3
    Future income tax expense on translation of intercompany debt      51.6
    -------------------------------------------------------------------------
      Adjusted Earnings before income tax effects                     387.4
      Income tax effect on adjustments                                (41.3)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Adjusted Earnings                                               $ 346.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

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.

    <<
    -------------------------------------------------------------------------
    1. Production and cash cost figures are from continuing operations. Cash
       costs are excluding Alumbrera.
    2. Co-product and by-product cash costs per GEO and adjusted earnings per
       share are non-GAAP measures. Reconciliation and definitions of non-
       GAAP measures are located at the end of this press release.
    >>

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.

RECONCILIATION OF NON-GAAP MEASURES

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

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.

    <<
    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.

    <<
                                                   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 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

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

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.

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
    >>