Minera Florida is an underground gold mine located in central Chile, approximately 75 kilometres southwest of Santiago. Yamana acquired the operation as part of the Meridian Gold acquisition in 2007. In 2017, Yamana purchased all outstanding concessions in the neighbouring Las Cenizas property to hold a 100% interest in the project area. The mine has been in operation for over 30 years, and the longer-term objective is to increase production to +120,000 ounces of gold per year through the exploration and development of new targets located in the mineral claims adjacent to the Alhue Block where most of the mining activity has taken place in the past. Exploratory drilling in these new areas has successfully identified the continuity of the mineralized structures demonstrating a much wider mineralization footprint on the large land package open to exploration.

At Minera Florida, new mineral reserves replaced mining depletion, extending mine life. Drilling in key production sectors of the mine, most notably Don Leopoldo and Fantasma, continued to expand mineralization along strike and down dip. Targets remain open in both directions, underscoring the potential for expansion of the mineral envelope in both sectors. Exploratory drilling at Minera Florida has generated new discoveries in the core mine area, including VNC, providing increased optionality for the mining operation and demonstrating the geological potential in the central Alhué block. The recent discovery of veins such as Cucaracha in new areas beyond the eastern and western limits of the central Alhué block, the historic focus of exploration and mining at Minera Florida, underscores the potential for further near-mine discoveries. The robust exploration results and replacement of mineral reserves and mineral resources at Minera Florida support the plan for production increases at the operation.

Please see the press release published February 8, 2022, for the most recent exploration update for Minera Florida.

Consistent with the 10-year outlook, the plant de-bottlenecking study is advancing on schedule, with the objective to increase throughput from 74,500 to 100,000 tonnes per month, thereby increasing annual gold production to approximately 120,000 ounces. The Company submitted the ESIA for the expansion during the fourth quarter, with the timeline expected to be approximately 18 months for approval, with another 12 months to receive sectoral permits. With the expected permitting timelines, the mine could begin operating at a planned 100,000 tonnes per month level in 2025. Preliminary studies indicate that the capacity of the processing plant can be increased to approximately 90,000 tonnes per month with incremental adjustments. An upgrade of the crushing circuit would be required to achieve 100,000 tonnes per month.

Please refer to Mineral Reserves & Resources for complete information relating to mineral reserves and mineral resources indicating tonnage and grade for the various mines and projects.