Yamana Gold reports 2009 results and mineral reserves and resources

- Significant fourth quarter revenue, earnings and cash flow growth -

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):  877-289-8525, Passcode: 4173041
                                            (followed by the number sign)

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

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

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

NON-GAAP MEASURES

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

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

RECONCILIATION OF NON-GAAP MEASURES

    
    Cash costs
    ---------------------
    

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

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

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

    

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

Cash flow per share

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

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

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

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

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

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

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

    Gross margin
    ------------
    

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

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

The following table provides a reconciliation of gross margin:

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

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

Qualified Person

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

About Yamana

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

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

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

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

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


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

    Mineral Reserves (Proven and Probable)

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

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

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

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

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


    --------------------------------------------
    Gold              Total Proven & Probable
    --------------------------------------------
                    Tonnes    Grade  Contained
    --------------------------------------------
                                         oz.
                   (000's)    (g/t)    (000's)
    --------------------------------------------
                 -------------------------------
    Alhue/Minera
     Florida         3,652      5.27       619
    Alumbrera
     (12.5%)        40,000      0.40       510
    Chapada        319,414      0.21     2,158
    C1-Santa Luz    23,788      1.55     1,184
    El Penon         8,516      7.07     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.
    



For further information: For further information: Letitia Wong, Director, Investor Relations, (416) 815-0220, Email: investor@yamana.com, www.yamana.com; MEDIA INQUIRIES: Mansfield Communications Inc., Hugh Mansfield, (416) 599-0024

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