Yamana Announces Agreement With Northern Orion and Proposal to Meridian Gold to Create Pre-Eminent Mid-Tier Gold Producer



    
    TSX: YRI
    NYSE:   AUY
    LSE: YAU
    

    TORONTO, June 27 /CNW/ - YAMANA GOLD INC. (TSX:YRI)(NYSE:  AUY)(LSE:YAU)
and Northern Orion Resources Inc. (TSX:NNO)(AMEX:  NTO) today announced that
they have entered into a business combination agreement and a concurrent
proposal has been made to Meridian Gold Inc. with respect to the combination
of the three companies.
    The contemplated terms for the three-way transaction are as follows:
    Meridian shareholders would receive 2.235 of a Yamana share plus C$3.15
in cash which, based on Yamana's closing share price of C$13.02 on June 27,
2007, equates to total consideration of C$32.25 per share. The cash and share
consideration represents a spot premium of approximately 23% over Meridian's
closing share price on June 27, 2007, and a premium of approximately 24.4%
based on the 20-day average closing price.
    Northern Orion shareholders would receive 0.543 of a Yamana share which,
based on Yamana's closing share price on June 27, 2007, equates to a value of
C$7.07 per share. Holders of Northern Orion warrants and other convertible
securities will be entitled to receive, or will receive a security in exchange
that will entitle them to receive, on exercise 0.543 of a Yamana share in lieu
of a Northern Orion share and otherwise on the same terms as the original
security. The share consideration represents a spot premium of approximately
21.3% over Northern Orion's closing share price on June 27, 2007, and a
premium of approximately 28.3% based on the 20-day average closing price.

    
    The strategic combination would result in the creation of a pre-eminent
    mid-tier gold producer with the following attributes:

    A Leader in Production Growth

    -   estimated annual gold production increasing to more than 1.4 million
        ounces by 2009 from a combined base in 2006 of approximately 660,000
        ounces

    Ultra-Low Cash Cost Producer

    -   sustainable negative cash operating costs with a projected 2007-2010
        average of less than negative US$100 per ounce, net of by-product
        copper credits

    Average Operating Cash Flow of More Than US$600 Million per Year

    -   projected cash balance growing to approximately US$2.4 billion by
        late 2010 (fully diluted basis)

    Strong Balance Sheet

    -   initial net cash balance of approximately US$575 million (fully
        diluted basis)

    Highly Liquid Gold Vehicle

    -   combined historical average daily trading volume of more than C$160
        million through three leading global stock exchanges

    Unparalleled Latin American Operating Base

    -   six principal mining and development projects in Brazil, Chile and
        Argentina estimated to account for over 73% of the combined company's
        pro-forma net asset value

    Reserves Plus Measured and Indicated Resources Totaling 27.7 Million
    Ounces of Gold

    -   additional inferred resources of over 13 million ounces of gold

    -   estimated average mine life currently in excess of 12 years
    

    To complete the transaction, Yamana would issue approximately 309.4
million new common shares (225.7 million and 83.7 million common shares to
Meridian and Northern Orion shareholders, respectively) plus cash
consideration of US$300 million to Meridian shareholders. On an issued basis,
the pro rata shareholdings are anticipated to be: 53.4% existing Yamana
shareholders, 34% existing Meridian shareholders and 12.6% existing Northern
Orion shareholders.
    Yamana and Northern Orion have entered into an agreement pursuant to
which Yamana will acquire all of the issued and outstanding securities of
Northern Orion, subject to the requirement that Yamana acquire at least 66
2/3% of the issued and outstanding common shares of Meridian, calculated on a
fully-diluted basis. It is anticipated that the Northern Orion transaction
will be structured as a statutory plan of arrangement. The acquisition of
Northern Orion by Yamana has the unanimous support of the Boards of Directors
of both Northern Orion and Yamana. GMP Securities L.P. has provided its
opinion to the Board of Directors of Northern Orion that the consideration to
be offered to Northern Orion shareholders pursuant to the agreement with
Yamana is fair, from a financial point of view to the shareholders of Northern
Orion other than Yamana. Under certain circumstances, a termination fee of
C$35 million, and under certain additional circumstances C$50 million, would
be payable by Northern Orion to Yamana. Northern Orion has agreed to carry on
business in the usual course and not to enter into any agreements outside of
the ordinary course in respect of its assets other than certain specified
transactions. The business combination with Northern Orion is subject to
customary conditions, including definitive documentation, receipt of all
requisite third party and regulatory approvals and consents, court approval
and approval by shareholders of Northern Orion. A copy of the agreement
between Yamana and Northern Orion will be filed under the profiles of the
companies on www.sedar.com and on the SEC's website at www.sec.gov.
    In the event a consensual transaction with Meridian cannot be reached,
Yamana has agreed with Northern Orion to commence an offer to acquire 100% of
the outstanding common shares of Meridian on the terms of the proposal made to
Meridian within 30 days, subject to certain conditions. As part of the
transaction, Northern Orion has committed to fund US$200 million of the US$300
million cash component of the Meridian offer, subject to definitive
documentation. The loan is not conditional upon the completion of the
transaction with Northern Orion, will be secured by shares of Meridian
acquired by Yamana, will bear interest at LIBOR plus 2% and will be repayable
on the earlier of 12 months following the initial drawdown and 30 days
following acquisition by Yamana of 100% of the fully diluted issued and
outstanding shares of Meridian. The first drawdown is conditional upon at
least 66 2/3% of the fully diluted issued and outstanding shares of Meridian
having been tendered, and not withdrawn to Yamana's offer. The US$100 million
balance of the cash portion of the consideration to be offered to Meridian
shareholders will be funded from Yamana's existing US$200 million revolving
credit facility which the lenders have agreed to increase to US$300 million,
subject to definitive documentation.
    Yamana's lead financial advisors are Genuity Capital Markets and
Canaccord Capital Corporation and its legal advisor is Cassels Brock &
Blackwell LLP. Ongoing advisory services are also being provided to Yamana by
Wellington West Capital Markets. Endeavour Financial International Corporation
and GMP Securities L.P. are financial advisors to the Board of Directors of
Northern Orion. Northern Orion's legal advisors are DuMoulin Black LLP and
Blake, Cassels & Graydon LLP.
    Commenting on the transaction, Peter Marrone, chairman and chief
executive officer of Yamana said, "The strong merits of the proposed
transaction compelled us to agree to terms with Northern Orion and approach
Meridian. The combination of Yamana, Northern Orion and Meridian makes sense
from a strategic and geographic perspective and we believe that the proposed
structure is a creative way to unlock value for all shareholders involved. The
three-way transaction would be accretive to Yamana's net asset value and
long-term earnings and cash flow, while delivering a meaningful premium to
Meridian and Northern Orion shareholders. Following the transaction, the
combined company could look forward to improved market multiples reflective of
the new company's scale of operations."
    "It is Yamana's desire that this proposal to Meridian be considered in
the friendly manner in which it is being presented - a win-win-win for three
successful companies and their respective shareholders," said Mr. Marrone. "We
would encourage constructive discussions in this regard."
    David Cohen, president and chief executive officer of Northern Orion
added, "The operating base of the combined entity would be unparalleled in
Latin America. We believe that bringing our collective expertise together in
the areas in which we operate should result in further opportunities to
deliver value for shareholders. We will have a solid platform for further
growth in our core areas of Brazil, Chile, Argentina and Central America. From
this platform, and with the significant cash flow that will be generated, the
combined company will be well positioned to create further shareholder value
through additional growth throughout the Americas."
    The combined company offers a solid foundation of nine operating mines,
and an unparalleled pipeline of six development projects and a leading
presence in Latin America. Yamana estimates that six core assets of the
combined company will account for more than 73% of the combined company's
pro-forma net asset value. A brief summary of these core assets is as follows:

    Chapada (Brazil): open-pit copper and gold mine with conventional milling
facilities that produce a copper/gold concentrate. Commercial production for
the mine was achieved in February 2007, and production is projected at
approximately 180,000 to 205,000 ounces of gold and 130 to 145 million pounds
of copper this year. Operating costs of production on a co-product basis in Q1
2007 were US$187 per ounce of gold and US$0.66 per pound of copper, and on a
by-product basis was negative ($1,077) per ounce of gold. Chapada's mine life
is projected at approximately 19 years.

    El Penon (Chile): high grade underground mine with average grades of
approximately 8 grams per tonne of gold and 231 grams per tonne of silver. El
Penon has been a flagship operation since 1999 and 2006 production was 230,100
ounces at a cash operating cost of negative US$68 per ounce net of silver
by-product credits. El Penon currently has measured and indicated resources
totaling 2,902,000 ounces of gold and 106 million ounces of silver.

    Alumbrera/Agua Rica (Argentina): 12.5% equity interest in the Alumbrera
copper/gold /molybdenum mine, plus 100% interest in the feasibility-stage Agua
Rica project. Alumbrera is operated by Xstrata is projected to produce about
190,000 tonnes of copper, 500,000 ounces of gold and 2,200 tonnes of
molybdenum annually (100% basis). Reserves currently support a mine life
through to 2016. Agua Rica has the potential to be developed either as a
stand-alone project with annual production projected at approximately 136,000
tonnes of copper, 130,000 ounces of gold and 7 million tonnes of molybdenum,
or on an integrated basis with the Alumbrera complex which could potentially
extend Alumbrera's mine life through to 2032.

    Jacobina (Brazil): underground gold operation producing over 62,000
ounces in 2006, and projected to reach over 200,000 ounces by 2008 through
developing and bringing on stream several underground mines, and expanding the
processing plant. Jacobina's mine life is currently projected to be
approximately 10-12 years. The Jacobina property encompasses upwards of 155
kilometres of exploration concessions along historical gold occurrances in the
Bahia Gold Belt.

    Gualcamayo (Argentina): advanced stage development project with a first
phase open pit heap leach feasibility study expected by mid 2007. Production
is estimated at 200,000 sustainable ounces annually by Q3 2008. Drilling
results to date show potential to expand the global resource base at
Gualcamayo at higher grades and to expand the limits of the deposit.

    Sao Francisco (Brazil): open-pit, gravity heap-leach gold project.
Commercial production was achieved in August 2006, and over 80,000 ounces of
gold were produced to the end of 2006. As the operation ramps up, annual
production is estimated to be in the range of 125,000 to 135,000 ounces of
gold starting in 2007. Sao Francisco's mine life is projected to be in excess
of 10 years.

    Conference Call

    Yamana and Northern Orion will host a joint conference call and audio
webcast to discuss the proposed transaction on June 28, 2007 at 11:00 a.m.
(EST).

    
    Conference Call Information:

    Toll Free (North America):     800-732-9303
    International:                 416-644-3418
    Participant Audio Webcast:     www.yamana.com

    Conference Call REPLAY:
    Replay Call:                   416-640-1917 Passcode 21238484 followed by
                                   the pound key.
    Replay Toll Free Call:         877-289-8525 Passcode 21238484 followed by
                                   the pound key.

    The conference call replay will be available from 1:20 pm EST on June 28,
2007 until 11:59 pm EST on July 6, 2007.
    

    About Northern Orion

    Northern Orion Resources Inc. is a mid-tier copper and gold producer
focused on the development of its Agua Rica project and engaged in the
exploration for copper and associated by-product metals in Argentina. Northern
Orion principal mineral properties and assets are a 12.5% indirect ownership
interest in Minera Alumbrera Limited, which owns and operates the Bajo de la
Alumbrera mine, a copper/gold mine in Catamarca Province, Argentina, and a
100% interest in the Agua Rica project (a copper/gold/molybdenum development
property) also in Catamarca Province, Argentina. Northern Orion recently
completed an update to the feasibility study for the development of the Agua
Rica project.

    About Yamana

    Yamana is a Canadian gold producer with significant gold production, gold
development stage properties, exploration properties, and land positions in
Brazil, Argentina and Central America. Yamana is producing gold at
intermediate company production levels in addition to significant copper
production. Yamana's management plans to continue to build on this base
through the advancement of its exploration properties and by targeting other
gold consolidation opportunities in Brazil, Argentina and elsewhere in the
Americas.
    This press release does not constitute an offer to buy or an invitation
to sell, or the solicitation of an offer to buy or invitation to sell, any of
the securities of Yamana, Northern Orion or Meridian. Such an offer may only
be made pursuant to an offer and take-over bid circular filed with the
securities regulatory authorities in Canada.
    If an offer is commenced, Yamana will file with the U.S. Securities and
Exchange Commission a Registration Statement, which will include the offer and
take-over bid circular relating to the Meridian offer. Investors and security
holders are urged to read the offer and take-over bid circular, regarding the
proposed business combination transaction referred to in the foregoing
information, when these documents become available, because they will contain
important information. Investors may obtain a free copy of the offer and
take-over bid circular when they become available and other documents filed by
Yamana with the SEC at the SEC's website at www.sec.gov. The offer and
take-over bid circular and other documents may also be obtained for free, once
they have been mailed, on Yamana's website or by directing a request to
Yamana's investor relations department.

    FORWARD-LOOKING STATEMENTS: This news release and information contained
in the attachments hereto contain certain "forward-looking statements" and
"forward-looking information" under applicable Canadian securities laws
concerning the proposed transaction and the business, operations and financial
performance and condition of the combined company, Yamana, Northern Orion and
Meridian and estimated production and mine life of the various mineral
projects of Yamana, Northern Orion or Meridian. Except for statements of
historical fact relating to the companies, certain information contained
herein constitutes forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect," "project,"
"intend," "believe," "anticipate", "estimate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are based on a number of
assumptions and subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Assumptions upon which such
forward-looking statements are based include that Yamana will be successful in
acquiring 100% of the issued and outstanding Meridian shares, that the
shareholders of Northern Orion will approve the transaction, that all required
third party regulatory and governmental approvals to the transactions will be
obtained and all other conditions to completion of the transactions will be
satisfied or waived. Many of these assumptions are based on factors and events
that are not within the control of Yamana or Northern Orion and there is no
assurance they will prove to be correct.
    Factors that could cause actual results to vary materially from results
anticipated by such forward-looking statements include changes in market
conditions, variations in ore grade or recovery rates, risks relating to
international operations, fluctuating metal prices and currency exchange
rates, changes in project parameters, the possibility of project cost overruns
or unanticipated costs and expenses, labour disputes and other risks of the
mining industry, failure of plant, equipment or processes to operate as
anticipated, the business of the companies not being integrated successfully
or such integration proving more difficult, time consuming or costly than
expected as well as those risk factors discussed or referred to in the annual
Management's Discussion and Analysis and Annual Information Form for each of
Yamana and Northern Orion filed with the securities regulatory authorities in
all provinces of Canada and available at www.sedar.com, and the Annual Report
on Form 40-F of each of Yamana and Northern Orion filed with the United States
Securities and Exchange Commission. Although Yamana and Northern Orion have
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. Yamana and Northern Orion undertake no obligation to update
forward-looking statements if circumstances or management's estimates or
opinions should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking statements.
Any forward-looking statements of facts related to Meridian are derived from
Meridian's publicly filed reports. Statements concerning mineral reserve and
resource estimates may also be deemed to constitute forward-looking statements
to the extent they involve estimates of the mineralization that will be
encountered if the property is developed.

    
    Yamana Gold Inc.

    Reserves and Resources - December 31, 2006

    Mineral Reserves (Proven and Probable)

               ------------------ --------------------- ---------------------
                                                            Total - Proven
                Proven Reserves      Probable Reserves       and Probable
    -------------------------------------------------------------------------
                              Con-                  Con-                 Con-
                           tained                tained               tained
              Tonnes Grade     oz. Tonnes Grade      oz. Tonnes Grade     oz.
              (000's)(g/t) (000's) (000's) (g/t) (000's) (000's) (g/t)(000's)
    -------------------------------------------------------------------------
    Gold
    Fazenda
     Brasileiro 2,193 3.34  235.4     254  2.39    19.5   2,447  3.24   254.9
    C1-Santa
     Luz            -    -      -   9,200  1.88   556.0   9,200  1.88   556.0
    Fazenda
     Nova         786 0.75   18.9     257  0.62     5.1   1,043  0.72    24.1
    Jacobina    1,869 2.50  150.0  15,313  2.10 1,035.0  17,181  2.14 1,185.0
    Sao
     Francisco
     Main Ore  15,674 1.25  630.4  14,909  1.17   562.3  30,583  1.21 1,192.7
    Sao
     Francisco
     ROM Ore   13,940 0.25  110.7  14,771  0.24   112.6  28,711  0.24   223.3
    -------------------------------------------------------------------------
    Total Sao
     Francisco 29,614 0.78  741.1  29,680  0.71   674.8  59,294  0.74 1,416.0
    Sao Vicente
     Main Ore   6,580 1.06  224.8   2,854  0.90    82.2   9,434  1.01   307.0
    Sao Vicente
     ROM Ore    1,694 0.27   14.5   1,932  0.33    20.4   3,626  0.30    34.9
    -------------------------------------------------------------------------
    Total Sao
     Vicente    8,274 0.90  239.3   4,786  0.67   102.6  13,060  0.81   341.9
    Chapada    20,002 0.34  218.6 282,992  0.25 2,290.6 302,994  0.26 2,509.2
    San
     Andres (1) 5,939 0.77  147.8  15,806  0.69   351.6  21,745  0.71   499.4
    -------------------------------------------------------------------------
    Total Gold
     Reserves  68,677 0.79  1,751 358,288  0.44   5,035 426,964  0.49   6,786
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                             Con-                  Con-                  Con-
                           tained                tained                tained
              Tonnes  Grade   lbs  Tonnes  Grade    lbs  Tonnes  Grade    lbs
             (000's)    (%)  (mm) (000's)   (%)    (mm) (000's)   (%)    (mm)
    -------------------------------------------------------------------------
    Copper
     Chapada  20,002  0.42% 184.6 282,992 0.34% 2,126.3 302,994 0.35% 2,310.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Mineral Resources (Measured, Indicated and Inferred) (Measured and
    Indicated include Reserves as outlined above)
                              ----------------------- -----------------------
                                 Measured Resources     Indicated Resources
    -------------------------------------------------------------------------
                                                 Con-                    Con-
                                              tained                  tained
                               Tonnes  Grade      oz.  Tonnes  Grade      oz.
                               (000's) (g/t)  (000's)  (000's) (g/t)  (000's)
    -------------------------------------------------------------------------
    Gold
    Fazenda Brasileiro          3,352  3.26    351.7      900  2.87     83.2
    C1-Santa Luz                    -     -        -   19,608  1.65  1,040.8
    Fazenda Nova                1,046  0.99     33.4      214  1.17      8.1
    Jacobina                    9,038  2.15    624.0   31,198  2.29  2,300.3
    Sao Francisco - Main Ore   18,861  1.19    720.5   23,422  1.06    798.3
    Sao Francisco - ROM Ore    17,762  0.24    139.0   28,083  0.23    208.9
    -------------------------------------------------------------------------
    Total Sao Francisco        36,623  0.73    859.5   51,505  0.61  1,007.2
    Sao Vicente                14,490  0.77    357.3   10,992  0.70    247.7
    Ernesto                         -     -        -    1,520  3.66    178.9
    Chapada                    25,058  0.30    241.7  395,463  0.22  2,790.4
    San Andres (1)             14,748  0.70    326.0   47,550  0.64    964.0
    Gualcamayo                  6,923  1.15    255.9   69,161  0.91  2,028.5
    -------------------------------------------------------------------------
    Total Gold Resources      111,279  0.85    3,050  628,111  0.53   10,649
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                 Con-                    Con-
                               Tonnes  Grade  tained   Tonnes  Grade  tained
                               (000's)   (%) lbs (mm)  (000's)   (%) lbs (mm)
    -------------------------------------------------------------------------
    Copper
     Chapada                   25,058  0.34%   187.7  395,463  0.30% 2,613.3
    -------------------------------------------------------------------------

                              ----------------------- -----------------------
                                  Total - Measured
                                   and Indicated        Inferred Resources
    -------------------------------------------------------------------------
                                                 Con-                    Con-
                                              tained                  tained
                               Tonnes  Grade      oz.  Tonnes  Grade      oz.
                               (000's) (g/t)  (000's)  (000's) (g/t)  (000's)
    -------------------------------------------------------------------------
    Gold
    Fazenda Brasileiro          4,252  3.18    434.9      686  4.30     94.9
    C1-Santa Luz               19,608  1.65  1,040.8    8,586  1.46    402.1
    Fazenda Nova                1,261  1.02     41.5      118  1.05      4.0
    Jacobina                   40,236  2.26  2,924.3   45,657  2.84  4,164.4
    Sao Francisco - Main Ore   42,284  1.12  1,518.9   33,686  0.81    875.2
    Sao Francisco - ROM Ore    45,845  0.24    347.9   76,995  0.23    561.1
    -------------------------------------------------------------------------
    Total Sao Francisco        88,128  0.66  1,866.8  110,682  0.40  1,436.3
    Sao Vicente                25,482  0.74    605.1    3,623  0.87    101.2
    Ernesto                     1,520  3.66    178.9    2,144  2.61    179.6
    Chapada                   420,521  0.22  3,032.1  250,693  0.15  1,223.5
    San Andres (1)             62,298  0.66  1,290.0    1,339  0.53     22.0
    Gualcamayo                 76,084  0.93  2,284.4   16,765  1.29    698.0
    -------------------------------------------------------------------------
    Total Gold Resources      739,389  0.58   13,699  440,291  0.59    8,326
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                                 Con-                    Con-
                               Tonnes  Grade  tained   Tonnes  Grade  tained
                               (000's)   (%) lbs (mm)  (000's)   (%) lbs (mm)
    -------------------------------------------------------------------------
    Copper Chapada            420,521  0.30% 2,801.0  250,693  0.25% 1,392.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) As of October 31, 2006

    The foregoing information has been reviewed by Evandro Cintra,
Vice-President Exploration of Yamana as "qualified person", under National
Instrument 43-101.

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

SOURCES This news release uses the terms "Measured", "Indicated" and "Inferred" 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. CAUTIONARY LANGUAGE REGARDING RESERVES AND RE

SOURCES Readers are advised that National Instrument 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources are not mineral reserves and have not demonstrated economic viability. Other than as disclosed, the effective date, details of key assumptions, parameters and methods used in the foregoing estimates and other information is disclosed in the Annual Information Form of Yamana for the year ended December 31, 2006 available under Yamana's profile at www.sedar.com, for this detailed information, which is subject to the qualifications and notes set forth therein. Northern Orion Resources Inc. Reserves and Resources ------------------------------------------------------------------------- Total - Proven and Probable Reserves (2) ------------------------------------------------------------------------- Tonnes Grade Contained Metal ------------------------------------------------------- Cu Mo Au Cu Mo Au (%) (%) (g/t) (lbs) (lbs) (oz) ------------------------------------------------------------------------- Alumb- rera (1) 48,000,000 0.45% 0.014% 0.48 473,000,000 14,654,000 735,000 ------------------------------------------------------------------------- Agua Rica 730,700,000 0.50% 0.033% 0.23 8,054,506,000 531,597,000 5,403,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total - Measured and Indicated Resources (2) ------------------------------------------------------------------------- Tonnes Grade Contained Metal ------------------------------------------------------- Cu Mo Au Cu Mo Au (%) (%) (g/t) (lbs) (lbs) (oz) ------------------------------------------------------------------------- Alumb- rera (1) 50,500,000 0.45% 0.014% 0.47 493,000,000 15,582,000 763,000 ------------------------------------------------------------------------- Agua Rica 1,110,000,000 0.47% 0.033% 0.21 11,501,398,000 807,545,000 7,494,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total - Inferred Resources ------------------------------------------------------------------------- Tonnes Grade Contained Metal ------------------------------------------------------- Cu Mo Au Cu Mo Au (%) (%) (g/t) (lbs) (lbs) (oz) ------------------------------------------------------------------------- Alumb- rera (1) ------------------------------------------------------------------------- Agua Rica 651,000,000 0.34% 0.034% 0.12 4,879,662,000 487,966,000 2,512,000 ------------------------------------------------------------------------- (1) The reserves and resources at Alumbrera are based on the JORC Code. The reserves and resources shown for Alumbrera are Northern Orion's 12.5% ownership of the mine. (2) Measured and Indicated Resources include the Proven and Probable Reserves The foregoing information was prepared under the supervision of Brian Montpellier, P.Eng V.P. Project Development of Northern Orion and a qualified person under National Instrument 43-101. Mineral resources that are not mineral reserves have not demonstrated economic viability. The effective date, details of key assumptions, parameters and methods used in the foregoing estimates and other information is disclosed in the Northern Orion Annual Information Form and the report titled "Agua Rica Independent Technical Report NI 43-101" dated December 10, 2006 available under Northern Orion's profile at www.sedar.com. Cautionary Note to United States Readers Concerning Estimates of Measured, Indicated and Inferred Resources This news release and the disclosure relating to Northern Orion referred herein and in other disclosure documents of Northern Orion referenced in this news release uses the terms "Measured," "Indicated" and "Inferred" 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 Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred 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 Resources will ever be converted into 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. Meridian Gold Inc. Reserves and Resources ------------------------------------------------------------------------- Total - Proven and Probable Reserves ------------------------------------------------------------------------- --------------------------------------------------------------- Tonnes Grade Contained Metal --------------------------------------------------------------- Zn Ag Au Zn (tonnes) Ag (oz) Au (oz) (%) (g/t) (g/t) -------------------------------------------------- El Penon 9,300,000 275 6.6 81,791,000 1,967,000 Minera Florida 2,200,000 1.5% 27 5.3 31,252,000 1,878,000 369,000 Rossi Esquel ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total 11,500,000 1.5% 226 6.3 31,252,000 83,669,000 2,336,000 ------------------------------------------------------------------------- Total - Measured and Indicated Resources ------------------------------------------------------------------------- --------------------------------------------------------------- Tonnes Grade Contained Metal --------------------------------------------------------------- Zn Ag Au Zn (lbs) Ag (oz) Au (oz) (%) (g/t) (g/t) -------------------------------------------------- El Penon 3,600,000 208 8.1 24,021,000 935,000 Minera Florida 2,000,000 1.2% 17 4.6 23,721,000 1,080,000 289,000 Rossi 200,000 15.4 109,000 Esquel 4,700,000 23 15.0 3,523,000 2,286,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total 10,500,000 1.2% 85 10.7 23,721,000 28,624,000 3,619,000 ------------------------------------------------------------------------- Total - Inferred Resources ------------------------------------------------------------------------- --------------------------------------------------------------- Tonnes Grade Contained Metal --------------------------------------------------------------- Zn Ag Au Zn (lbs) Ag (oz) Au (oz) (%) (g/t) (g/t) -------------------------------------------------- El Penon 2,500,000 263 7.9 20,759,000 626,000 Minera Florida 2,900,000 1.4% 30 5.5 39,348,000 2,752,000 504,000 Rossi 300,000 12.9 133,000 Esquel 900,000 21 9.9 575,000 274,000 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total 6,600,000 1.4% 114 7.2 3 9,348,000 24,086,000 1,537,000 -------------------------------------------------------------------------

For further information:

For further information: YAMANA GOLD INC., Peter Marrone, Chairman &
Chief Executive Officer, (416) 815-0220; or YAMANA GOLD INC., Jodi Peake,
Director, Investor Relations, (416) 815-0220, Email: investor@yamana.com,
Website: www.yamana.com; or NORTHERN ORION RESOURCES INC., David Cohen, Chief
Executive Officer, (604) 689-9663 or 1-866-608-9970, Email:
info@northernorion.com, Website: www.northernorion.com

Organization Profile

YAMANA GOLD INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890