Meridian Gold Comments on Northern Orion Business Combination with Yamana

    Reiterates Rejection of Yamana Offer

    RENO, NV, Aug. 22 /CNW/ - Meridian Gold Inc. ("Meridian Gold" or the
"Company") (TSX:MNG) (NYSE:  MDG), in response to the announcement that Northern
Orion Resources Inc. ("Northern Orion") shareholders approved the business
combination with Yamana Gold Inc. ("Yamana"), today reiterated the unanimous
recommendation that Meridian Gold shareholders reject Yamana's unsolicited
amended offer to acquire Meridian Gold common shares.
    Brian Kennedy, Chairman of Meridian Gold's Board of Directors, stated,
"The approval by Northern Orion shareholders of the business combination with
Yamana does not change in any way the value of Yamana's unsolicited amended
offer to Meridian Gold shareholders and therefore does not affect the Board's
view that Yamana's offer fails to adequately compensate Meridian Gold
shareholders for the inherent value of the Company."
    "We believe strongly that Meridian Gold shares represent a better value
proposition for our shareholders than Yamana's unsolicited amended offer. We
continue to recommend that shareholders reject the offer," added Kennedy.
    As announced on August 20, 2007, the Meridian Gold Board of Directors
determined that the unsolicited amended offer by Yamana still fails to provide
full value for Meridian Gold shares and unanimously recommended that
shareholders reject the revised offer and not tender any of their shares.

    About Meridian Gold
    A unique mid-tier gold producer, with world-class mining operations in
Chile and Nevada and a pipeline of promising development and 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 stakeholders.

    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, including the discussion of the reasons for the Board
of Directors' recommendation that Meridian Gold shareholders reject the Yamana
offer, contains forward-looking information (as defined in the Securities Act
(Ontario)) that are 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: the value of the assets of Meridian Gold, Yamana and Northern
Orion; 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; interest and exchange rates; the price of gold and other metals;
the strength of the economic fundamentals of gold relative to other base
metals; competitive conditions in the mining industry; title to mineral
properties; financing requirements; general economic conditions; changes in
laws, rules and regulations applicable to Meridian Gold; and whether or not an
alternative transaction superior to the Yamana offer may emerge. 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.

For further information:

For further information: Meridian Gold Inc., Krista Muhr,
1-800-572-4519, Senior Manager, Investor Relations, 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; Meridian Gold Inc., 9670
Gateway Drive, Suite 200, Reno, Nevada, 89521, Phone: (775) 850-3777, Fax:
(775) 850-3733

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