Production boost for Yamana

Yamana Gold’s gold production is expected to exceed 620,000 oz in 2007 increasing to more than 800,000 oz in 2008 from mines currently in production and mines under construction. Into late 2008, total gold production is expected to increase to an annualized rate of more than 1 Moz.

2007 gold production estimates for the company’s various operations in Central and South America are: 80-85,000 oz for Fazaenda Brasileiro (Brazil); 15-20,000 oz for Fazenda Nova (Brazil); 120-130,000 oz for Sao Francisco (Brazil); 180-205,000 oz for Chapada Gold (Brazil); 70-80,000 oz for San Andres (Honduras); and 120-130,000 oz for Jacobina (Brazil).

2008 gold production estimates are: 75-85,000 oz for Fazaenda Brasileiro (Brazil); 125-135,000 oz for Sao Francisco (Brazil); 170-190,000 oz for Chapada Gold (Brazil); 75-85,000 oz for San Andres (Honduras); and 170-180,000 oz for Jacobina (Brazil). Production estimates for projects in the development stage are: 45-55,000 oz for Sao Vincente and 90-100,000 Gualcamayo.

Cash costs of $114/oz for 2007 and $185/oz for 2008 were calculated with copper being treated as a by-product credit assuming a copper price of $2.50/lb and treatment and refining costs of some $65/t and $0.065/lb respectively. The company is advised that the assumed treatment and refining costs are appropriate in the context of current market rates. Projected cash costs also take into consideration the impact of the company’s hedged copper production in 2007 and 2008.

Projected gold production from advanced projects include Sao Vicente, C1 Santa Luz and Gualcamayo with the latter projects subject to completion of feasibility studies and favourable construction decisions expected in early 2007. Planned production for Gualcamayo will be 200,000 oz/y beginning in mid 2008. Planned production for C1 Santa Luz is expected to be in the range of 120,000 – 130,000 oz beginning in late 2008.

Commercial production of Chapada continues to be on track for the first quarter of 2007. Copper production is expected to be 130 – 145 Mlb in 2007 and 165 – 175 Mlb in 2008.