Yamana Comments on Meridian Exploration Update - Nothing New - Offer Remains Full, Fair and Final

    TSX: YRI
    NYSE:   AUY
    LSE: YAU

today responded to a press release issued this morning by Meridian Gold with
respect to some of their recent exploration results. From Yamana's point of
view, the results did not include anything that would not have been expected
by Yamana and that would cause it to consider altering the terms of its offer
for Meridian shares. In formulating its views on value for Meridian's assets,
Yamana has already factored in a considerable amount of exploration success in
addition to resource to reserve conversions.
    "The recent results announced by Meridian are much of the same for El
Penon and in our view are why we are able to make an offer for Meridian shares
in the first place" commented Peter Marrone, chairman and chief executive
officer for Yamana. "By their own admission, Meridian's shares are trading at
one of the highest cash flow per share multiples. We continue to believe that
the combination transaction we have proposed is the best alternative for
surfacing value for Meridian shareholders. We re-iterate that our offer is
full, fair and final."
    With respect to updates for Meridian's development assets, it is Yamana's
view that this highlights the development risk that exists for Meridian's
stated goal of doubling production by 2011. Meridian has been indicating that
it has had the goal of becoming a one million ounce gold producer since 2002.
    Yamana is offering C$4.00 and 2.235 Yamana shares per Meridian share. The
expiry of the Yamana offer is Friday, September 7, 2007. Yamana urges any
Meridian shareholders who have not already done so to tender their shares

    About Yamana

    Yamana is a Canadian gold producer with significant gold production, gold
development stage properties, exploration properties, and land positions in
Brazil, Argentina and Central America. Yamana is producing gold at
intermediate company production levels in addition to significant copper
production. Yamana's management plans to continue to build on this base
through the advancement of its exploration properties and by targeting other
gold consolidation opportunities in Brazil, Argentina and elsewhere in the

    IMPORTANT NOTICE: This communication does not constitute an offer to buy
or an invitation to sell, any of the securities of Yamana, Northern Orion or
Meridian. Such an offer may only be made pursuant to a registration statement
and prospectus filed with the U.S. Securities and Exchange Commission and an
offer to purchase and circular filed with Canadian securities regulatory
authorities. Yamana has filed with the U.S. Securities and Exchange Commission
a Registration Statement on Form F-10 as well as a Schedule TO tender offer
statement both of which include the offer and take-over bid circular relating
to the Meridian offer as amended by a notice of variation and extension and is
mailing the offer and take-over circular and notice of variation and extension
to Meridian shareholders. Investors and security holders are urged to read the
Registration Statement, the offer and take-over bid circular, the notice of
variation and extension and any other relevant documents filed with the SEC
and Canadian securities regulators, regarding the proposed business
combination transaction because they contain important information. Investors
may obtain a free copy of the offer and take-over bid circular, notice of
variation and extension and other documents filed by Yamana with the SEC at
the SEC's website at www.sec.gov. The offer and take-over bid circular, the
notice of variation and extension and other documents may also be obtained for
free on Yamana's website at www.yamana.com or by directing a request to
Yamana's investor relations department.
    Persons who are resident in the United Kingdom should note the following

    (i) the formal offering and takeover-bid circular to be issued to
        Meridian shareholders ("Offer and Circular") will not constitute a
        prospectus for the purposes of the Prospectus Rules ("Prospectus
        Rules") published by the Financial Services Authority of the United
        Kingdom (the "FSA"). Accordingly, the Offer and Circular has not
        been, and will not be, approved by the FSA or by London Stock
        Exchange plc. No action has been or is intended to be taken by Yamana
        or by Genuity Capital Markets or Canaccord Capital Corporation, or
        any of their affiliated entities, that would permit a public offer of
        Yamana Common Shares to be made in the United Kingdom, which would
        require an approved prospectus to be made available to the public in
        the United Kingdom (in accordance with the United Kingdom Financial
        Services and Markets Act 2000 ("FSMA") and the Prospectus Rules
        before such an offer was made.

    (ii)The Offer will be made to or directed at, and deposits of Meridian
        shares will be accepted from, only those shareholders in the United
        Kingdom who are (or who are acting on behalf of), and who are able to
        establish to the satisfaction of Yamana that they are (or are acting
        on behalf of): "qualified investors" within the meaning of
        section 86(7) of FSMA, and who are also persons falling within
        Article 19(5) or Article 49(2)(a) to (d) of the Financial Services
        and Markets Act 2000 (Financial Promotion) Order 2005. UK
        shareholders receiving the Offer and Circular should consult with
        their legal advisors to determine whether they are eligible to
        receive and accept the Offer.

    FORWARD-LOOKING STATEMENTS: This news release contains certain
"forward-looking statements" and "forward-looking information" under
applicable Canadian securities laws concerning Yamana's respective
transactions with Northern Orion and Meridian. Except for statements of
historical fact, certain information contained herein constitutes
forward-looking statements.
    Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and
other similar words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking statements are based on the opinions and
estimates of management at the date the statements are made, and are based on
a number of assumptions and subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. Assumptions
upon which such forward-looking statements are based include that Yamana will
be successful in acquiring at least 66 2/3% of the issued and outstanding
Meridian shares, that all required third party regulatory, governmental and
court approvals for the transactions will be obtained and all other conditions
to completion of the transactions will be satisfied or waived. Many of these
assumptions are based on factors and events that are not within the control of
Yamana or Northern Orion and there is no assurance they will prove to be
correct. Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include Yamana failing
to acquire at least 66 2/3% of the issued and outstanding Meridian shares,
failing to obtain the final court order approving the Northern Orion
transaction, as well as changes in market conditions and other risk factors
discussed or referred to in the annual Management's Discussion and Analysis
and Annual Information Form for each of Yamana and Northern Orion filed with
the securities regulatory authorities in all provinces of Canada and available
at www.sedar.com, and the Annual Report on Form 40-F of each of Yamana and
Northern Orion filed with the United States Securities and Exchange
Commission. Although Yamana and Northern Orion have attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Yamana and
Northern Orion undertake no obligation to update forward-looking statements if
circumstances or management's estimates or opinions should change except as
required by applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements.

For further information:

For further information: FOR INVESTOR QUESTIONS, CONTACT: Kingsdale
Shareholder Services, Toll-free: 1-866-897-7644, Banks and brokers, call
collect: (416) 867-2272, Email: contactus@kingsdaleshareholder.com; or MEDIA
CONTACT: Mansfield Communications Inc., Hugh Mansfield, (416) 599-0024; or FOR
FURTHER INFORMATION: Yamana Gold Inc., Peter Marrone, Chairman & Chief
Executive Officer, (416) 815-0220, Email: investor@yamana.com; or Yamana Gold
Inc., Jodi Peake, Director, Investor Relations, (416) 815-0220, Email:
investor@yamana.com, Website: www.yamana.com

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