Yamana Gold Reports On Operations

TORONTO - Yamana Gold reported preliminary operating results for the third quarter 2014 and mid-year highlights from its 2014 exploration program.

The Company achieved record quarterly production in the third quarter in excess of 390,000 gold equivalent ounces (GEO) at all-in sustaining cash costs within annual guidance range of between $825 and $875 per GEO. Significant contribution and increased production was mostly from Chapada, El Penon, Canadian Malartic, Mercedes and Pilar. This increase represents an increase of over 17% over second quarter production levels. Fourth quarter production is expected to increase further with increases coming mostly from Chapada, El Penon, Canadian Malartic, Mercedes, Pilar and Jacobina. Yamana continues to focus on its cornerstone operations from which it is deriving greatest increase in production at lowest cost.

The significance of results of exploration to date include the following: El Penon - mineral reserves are expected to be replaced at or above reserve grade this year and significant exploration opportunities continue to exist particularly with the recent discovery of new secondary structures oriented parallel to historical north-south targeted trends. Minera Florida - mineral resources are expected to be upgraded and expanded in support of mineral reserve growth in 2014 with infill drilling intersections at or above reserve grade. Chapada - the discovery of Santa Cruz combined with Corpo Sul and Suruca suggest the potential of a system that could be significantly larger han was originally planned. Pilar - increased certainty of the location of higher grade areas with tightened drill spacing is expected to support more efficient mining and reduced dilution to get increased production from lower tonnage. Mercedes - drilling at GAP, which is along the Mercedes to Marianas structure, is returning positive results and is being evaluated to determine if the structures are linked which would significantly increase resource and mine life. Gualcamayo - results at Rodado Southwest which is a near to surface structure near current underground mine workings continue to support the potential for a large scale, bulk tonnage underground operation with several intersections exceeding 100 meters. Cerro Moro - assay results continue to support the modeled grades and widths in the resource model.

"The strategic direction of our 2014 exploration program is to focus on infill drilling to upgrade the significant mineral resource increase we achieved through last year's program. Increasing mineral resources, and ultimately mineral reserves, at our existing operations is at the core of the value added by our exploration program," commented William Wulftange , Senior Vice President, Exploration. "We are continuing to demonstrate success with our exploration program by delivering on the plan we set-out at the beginning of the year. Impressively, we have been able to deliver results with a budget that decreased substantially from the previous year as we focus on being ever more efficient with our exploration efforts in support of the Company wide cost containment initiatives."