Majority of Meridian Gold shareholders reject Yamana offer

    RENO, NV, Sept. 12 /CNW/ - Meridian Gold Inc. ("Meridian Gold" or the
"Company") (TSX:MNG) (NYSE:  MDG) today responded to the announcement by Yamana
Gold Inc. ("Yamana") that it had obtained tenders for only 34% of Meridian
Gold's shares, well below the minimum 66 2/3% it had been seeking, and that
Yamana has again extended its offer.
    "The tender results announced today represent a resounding rejection of
Yamana's inadequate offer", stated Brian Kennedy, Chairman of Meridian Gold's
Board of Directors. "Clearly, the majority of our shareholders agree with the
Board's consistent conclusion that Yamana's unsolicited offer does not reflect
an adequate premium for control of Meridian Gold. Our shareholders have shown
that they recognize the superior value proposition represented by holding
Meridian Gold shares, and have delivered a strong endorsement of the Company's
current strategy and future prospects. Yamana's decision to further extend
what it had previously described as its "final offer" until September 24, 2007
is little more than a desperate attempt to postpone the inevitable. It is
disappointing that Yamana has chosen to continue to pursue this exercise in
futility and distraction to Meridian Gold's shareholders and employees."
    Ed Dowling, Meridian Gold's Chief Executive Officer and President, added,
"Our company has a history of building real value for its shareholders and has
a successful track record of discovering, developing and operating gold mines.
By executing on this strategy of organic growth, Meridian Gold strives to
become the premier value gold mining company. In contrast, the Yamana offer
exposes tendering shareholders to significant risks based on increased base
metal exposure, Yamana's consistent history of shareholder dilution, and an
uncertain future. Our shareholders have had since June to consider Yamana's
inadequate proposal and have clearly rejected it by an overwhelming margin. We
want to thank our shareholders for their ongoing support."
    The Board of Meridian Gold has consistently said that the market-adjusted
premium of between 1% and 6% represented by Yamana's offer is not an adequate
premium for control of the Company. Yamana's press release this morning is
misleading in attempting to characterize their offer as representing a
substantial premium of between 26.3% and 27.6%. Yamana's calculation is based
on market conditions in June, before the broad based rally in the gold sector
and prior to the decline in Yamana's stock price which significantly reduced
the value of their unsolicited offer. As the gold sector has rallied strongly
since Yamana announced their unsolicited offer on June 27, 2007, the Board
draws shareholders' attention to the following facts:
      -  Since June 27, 2007, Meridian Gold's peer group of mid-cap
         North American Gold Companies(1) has risen by an average of
         17.3%. Assuming Meridian Gold would have performed in line
         with this peer group, Yamana's unsolicited offer would
         represent today a premium of only 1%.

      -  More broadly, since June 27, 2007 the XAU(2) has risen by
         12.1%. Assuming Meridian Gold would have performed in line
         with the XAU, Yamana's unsolicited offer would represent a
         premium today of only 6%.

    It is clear that Yamana's unsolicited offer continues to represent an
inadequate premium for control of Meridian Gold.
    Meridian Gold's Board of Directors continues to unanimously recommend
that shareholders reject the Yamana offer and not tender their shares.
Shareholders who have previously tendered are urged to withdraw their shares.
    Any shareholders that have questions about whether to tender their shares
or that have already tendered their shares and wish to withdraw their shares
should contact Georgeson Shareholder at 1-888-605-7618.

    About Meridian Gold
    A unique mid-tier gold producer, with world-class mining operations in
Chile and Nevada and a pipeline of promising exploration projects throughout
the Americas, Meridian Gold's success to date has been based on grassroots
gold discoveries and a low-cost strategy, resulting in a better approach to
adding value and balancing growth. Meridian Gold strives to be "The Premier
Value Gold Mining Company," while building a better future for all of its

    Additional Information for Meridian Gold Shareholders
    Shareholders of Meridian Gold and other interested parties are advised to
read Meridian Gold's Directors' Circular and the Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the U.S. Securities and Exchange
Commission ("SEC") on July 31, 2007 (including any amendments or supplements
thereto and the other documents filed as exhibits thereto), because they
contain important information. Shareholders may obtain a free copy of the
Directors' Circular and Meridian Gold's Schedule 14D-9 at the Investor
Relations section of Meridian Gold's website at, or by
contacting Georgeson Shareholder, the information agent retained by Meridian
Gold, at 1-888-605-7618. Free copies of the Directors' Circular are also
available at and, together with Meridian Gold's Schedule 14D-9,
at The Directors' Circular was filed by Meridian Gold as an
exhibit to Meridian Gold's Schedule 14D-9.

    Cautionary Statement
    This press release contains forward-looking information (as defined in
the Securities Act (Ontario)) that is based on expectations, estimates and
projections as of the date of this press release. These forward-looking
statements can often, but not always, be identified by the use of
forward-looking terminology such as "plans", "predicts", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases, or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur
or be achieved. Actual results and developments (including forecasted
production, earnings and cash flows) are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking statements
contained in this press release.
    Forward-looking statements contained in this press release are based on a
number of assumptions that may prove to be incorrect, including, but not
limited to: timely implementation of Meridian Gold's anticipated drilling
program; the successful completion of new development projects, planned
expansions or other projects within the timelines anticipated and at
anticipated production levels; the accuracy of reserve and resource estimates,
grades, mine life and cash cost estimates; whether mineral resources can be
developed; title to mineral properties; financing requirements; general
economic conditions; and changes in laws, rules and regulations applicable to
Meridian Gold. In addition to being subject to a number of assumptions,
forward-looking statements in this press release involve known and unknown
risks, uncertainties and other factors that may cause actual results and
developments to be materially different from those expressed or implied by
such forward-looking statements, including the risks identified under "Note
Concerning Resource Calculations" in Meridian Gold's Directors' Circular as
well as the risks identified in the filings by Meridian Gold with the SEC and
Canadian provincial securities regulatory authorities, including Meridian
Gold's Annual Report on Form 40-F for the fiscal year ended December 31, 2006.
    Meridian Gold believes that the expectations reflected in the
forward-looking statements contained in this press release are reasonable, but
no assurance can be given that these expectations will prove to be correct. In
addition, although Meridian Gold 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 as anticipated, estimated or
intended. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release.

    (1) Meridian's peer group of mid-cap North American Gold
        Companies is defined as Agnico-Eagle Mines Limited, Compania
        de Minas Buenaventura S.A.A., Kinross Gold Corporation and
        IAMGOLD Corporation

    (2) The XAU is the PHLX (Philadelphia Stock Exchange) Gold/Silver
        Sector Index, a capitalization-weighted index composed of 16
        companies involved in the gold and silver mining industry.
        Price performance has been adjusted to a Canadian dollar

For further information:

For further information: Meridian Gold Inc., Investor Relations: Krista
Muhr, Senior Manager, 1-800-572-4519, fax: (775) 850-3733, or Georgeson Shareholder, 1-888-605-7618, (212)
440-9800 or Media Relations: Sard Verbinnen & Co., Dan Gagnier, (212) 687-8080
x.226, Paul Kranhold, (415) 618-8750

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