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Yamana Gold

Yamana Gold anticipates gold production of 1.4-1.5 million ounces in 2010

Yamana Gold Inc reiterated its gold production forecast for 2009 made in October 2008 of a range of 1.3 million to 1.4 million gold equivalent ounces (GEO) in 2009 at declining cash costs, and production is projected to increase to approximately 1.4 million to 1.5 million GEO in 2010 from mines currently in production.

Capital expenditures for 2009 and 2010 are expected to be approximately US$350 million and US$400 million, respectively, including sustaining capital of approximately US$130 million each year.

The majority of capital costs in 2009 is allocated for the expansion at Chapada, for development work at El Penon, for development of the satellite deposits Amelia Ines and Magdalena and initial work on QDD Lower West at Gualcamayo, for the purchase of certain additional mining concessions and for further development at Jacobina.

The decision to develop each of C1 Santa Luz and Mercedes is expected to be made mid-year pending a cost review for improved economics at C1 Santa Luz and an initial feasibility study and further exploration at Mercedes.

The current capex forecasts assume a modest amount for these projects and would increase mostly in 2010 once a construction decision is made.

Exploration expenses in 2009 are expected to total a minimum US$56 million.

Yamana's exploration program in 2009 will focus on mine and near-mine exploration
primarily in Chile, Brazil, Mexico and Argentina as the company concentrates in 2009 on expansions and advanced projects for near development.

Yamana remains well financed to fund its strategic growth plan.

In the fourth quarter of 2008, total production was approximately 255,000 GEO at cash costs of approximately US$385 per GEO which compares very favourably to costs in the third quarter of 2008.

For the year ended December 31 2008, production totaled approximately 1 million GEO at
cash costs of approximately US$385 per GEO.

Yamana expects production to increase from the first quarter in 2009 with costs trending lower as production increases and input costs continue to decline. Aggregate production for the first quarter is expected to be approximately 290,000 GEO, with cash costs of approximately US$345-US$375 per GEO for 2009.


Total production at Chapada, Brazil, in 2009 is expected to be between 140,000 and 155,000 ounces of gold and 145 to 150 million pounds of copper at a cash cost of between US$275-305 per ounce of gold and between US$0.90 -1.00 per pound of copper, respectively.

At , El Penon, Chile, Yamana expects to be mining at an effective rate of 500,000 GEO per year in 2009, targeting production of approximately 435,000 to 460,000 GEO and the creation of a stockpile. It intends to mine at a rate of 3,600 tonnes per day for the next two years before further increasing plant capacity although it will evaluate the further expansion as the proven and probable reserves increase.  Cash costs at El Penon are expected to be between US$280-310 per GEO in 2009.

At Jacobina in Brazil, the company remains on track to increase the mining
rate from developed stopes and expects to produce approximately 115,000 to 125,000 ounces of gold in 2009 at a cash cost of between US$380-US$410 per ounce.

Start-up and commissioning commenced at Gualcamayo in Argentina in December 2008 with the first gold pour at the end of 2008. Completion of the primary crusher is expected by the end of February as planned. Total production for the year at Gualcamayo is expected to be approximately 195,000 to 210,000 ounces of gold at a cash cost of between US$380-400 per ounce.

At Minera Florida, Chile, Yamana expects to produce approximately 105,000 to 110,000 GEO in 2009 at a cash cost of approximately US$340-350 per GEO.  The company will assess the potential increase to a 150,000 GEO throughput after two years of mining at the current rate.

Operations began at Sao Vicente, Brazil, with the first gold pour at the end of 2008, and the mine remains on track for commercial production in the second quarter of 2009. Total production from Sao Vicente is expected to be between 55,000 to 60,000 ounces of gold in 2009.

At Gualcamayo, Yamana expects to release a feasibility study update at QDD Lower West by the end of January 2009 with a construction decision expected by the end of the year.

The company's Pilar project in Brazil was virtually unexplored when acquired but has since advanced to be an important development project for Yamana.  An initial feasibility study is expected to be released for Mercedes in mid-February, the company added.