Yamana Announces 44% Increase to Mineral Resources at Cerro Moro

Yamana Announces 44% Increase to Mineral Resources at Cerro Moro 
Provides Detail on Plans to Advance the Project 
TORONTO, ONTARIO -- (Marketwire) -- 02/13/13 --  
(All amounts are expressed in United States dollars unless otherwise
Company") today provided an update on its Cerro Moro gold project
(the "Project" or "Cerro Moro") in Santa Cruz, Argentina. Cerro Moro
is a development stage project that was acquired in mid-2012 and is
located in the Deseado area of the Santa Cruz Province, Argentina
about 70 km southwest of the port city of Puerto Deseado. 

-  Initial indicated mineral resource of 1.95 million gold equivalent ounces
   (GEO)(1), an increase of 44% from the previous estimate before the       
   Company acquired the project, contained in 4.16 million tonnes with an   
   average GEO grade of 14.6 grams per tonne (g/t); and an inferred mineral 
   resource of 490,000 GEO contained in 3.60 million tonnes with an average 
   GEO grade of 4.2 g/t                                                     
-  Initiation of the pre-development work and feasibility study leading     
   toward a planned construction decision expected in 2014 and a potential  
   start-up in 2016                                                         
-  Evaluated as a combined open pit-underground operation with:             
   - 1,000 tonnes per day (tpd) throughput                                  
    - 70% from underground, 30% from open pit                               
   - Average annual production of approximately 200,000 GEO                 
-  Initiation of a further, extensive exploration plan in 2013 with one     
   drill hole in January intercepting three separate vein zones with        
   indications that two of these occur at mineable widths with the potential
   for significant GEO grades                                               

"Our objective is to produce high quality ounces with comparatively
low costs to achieve growth in both production per share and cash
flow per share. With our initial mineral resource at Cerro Moro,
along with the initial operation plan and exploration potential, we
are confident that this asset will contribute positively to that
objective," commented Peter Marrone, Chairman and Chief Executive
Officer. "We have started pre-development work with a production
ready ramp into one of the ore bodies, the initial studies that will
lead to a feasibility study and will continue with further
exploration to advance the project. All of these tools will be
considered in our construction decision. We are committed to deliver
superior value to our shareholders and Cerro Moro will be a
significant contributor to that." 
(1) Silver is treated as a gold equivalent at a ratio of 50:1. 
In 2012, the Company spent $5 million to drill over 100 holes with
the goal of upgrading the inferred mineral resources and grow the
resource base. These results have been incorporated in the Company's
mineral resource update for Cerro Moro. 
The Project hosts an initial indicated mineral resource of 1.95
million GEO and an inferred mineral resource of 490,000 GEO both at a
1 g/t cut-off. This cut-off grade reflects a blend of underground and
open pit mining consideration. As mineral resources grow, with the
expectation that the greatest potential is within those zones that
will be mined from underground, the cut-off grade may be revised as
the proportion of underground and open pit mineral resources changes
and as the Project is further advanced. The table below shows the
mineral resources at various cut-off grades.  

             Cut-Off   Tonnes     Au     Ag    AuEq   Au oz   Ag oz      GEO
                (g/t) (000's)  (g/t)  (g/t)   (g/t) (000's) (000's)  (000's)
                  1.0   4,157    6.6  400.3    14.6     884  53,497    1,953
                  1.5   3,311    8.2  491.6    18.0     874  52,328    1,921
Indicated         2.0   2,962    9.1  542.4    20.0     869  51,651    1,901
                  2.5   2,777    9.7  573.5    21.2     864  51,204    1,888
                  3.0   2,681   10.0  591.2    21.8     861  50,949    1,880
                  3.5   2,602   10.3  606.2    22.4     858  50,703    1,872
                  4.0   2,500   10.6  626.4    23.1     852  50,346    1,860
             Cut-Off   Tonnes    Au      Ag    AuEq   Au oz   Ag oz      GEO
                (g/t) (000's)  (g/t)  (g/t)   (g/t) (000's) (000's)  (000's)
                  1.0   3,598    1.9  115.9     4.2     222  13,408      490
                  1.5   2,904    2.3  134.2     5.0     212  12,535      463
Inferred          2.0   2,617    2.4  143.5     5.3     205  12,071      447
                  2.5   2,340    2.6  154.7     5.7     194  11,642      427
                  3.0   2,106    2.7  166.3     6.0     181  11,260      406
                  3.5   1,921    2.8  175.1     6.3     171  10,817      387
                  4.0   1,725    2.9  184.9     6.6     158  10,255      363

Consistent with Yamana's focus on production that is more reliable
and predictable, the Company will continue to prioritize planning and
rely on appropriate expertise and experience in the development of
projects to ensure efficient development while providing certainty of
production and costs. The Company will use various tools including
the application of expertise and experience gained from similar
In relation to Cerro Moro, the Company has engaged in pre-development
work by way of a production ready decline into the largest of the
known ore bodies, Escondida. In addition to advancing the timeline
for development, this pre-development work will provide a platform
for further exploration work and permit access to the ore body,
providing greater certainty and knowledge of its physical properties
and grade continuity.  
Technical and trade-off studies have been completed which support
continuation to a feasibility level study for the project. Based on
these studies, the feasibility study will consider a mine plan
combining both open pit (30%) and underground (70%) mining operations
to sustain a process plant with a throughput rate of approximately
1,000 tonnes per day and an expected recovery of approximately
200,000 GEO per annum. The feasibility study is expected to be
completed sometime in 2014. The Company will then evaluate the
results of the feasibility study together with current exploration
results and the knowledge gained through the pre-development work to
make a construction decision. Depending on the outcome of the studies
and subsequent construction decision, production should begin in
The underground mine will be accessed by means of conventional
decline haulages, the first of which will be developed as part of the
work completed prior to a construction decision and is consistent
with the approach used at Mercedes. Since the mineralization is
broadly similar to the Company's Mercedes operation in Mexico, mining
and processing operations at Cerro Moro are expected to employ
similar methods. Initial capital costs are expected to be below $400
million and operating costs are expected to be below $450 per ounce.  
The underground will be accessed through a conventional decline that
will be developed as part of the work completed prior to a
construction decision and is consistent with the approach at
The 2013 exploration program at Cerro Moro will focus on drill
testing eight priority target areas located on the northern La
Negrita block, an entirely new zone, and drill testing existing
geologic targets, geochemical anomalies and vein extensions within
nine priority target areas in the southern Escondida block, which
contains the majority of current known mineral resources. 
The 2013 exploration drilling program at Cerro Moro commenced in
mid-January and is already demonstrating success. One drill hole in
January, which was intended to test the extension of an anomalous
mineralization from prior holes, intercepted three separate vein
zones, and preliminary indications are that two of these occur at
mineable widths with the potential for significant GEO grades. Assays
for these holes are still pending. This new discovery, the
"Margarita" vein is within the La Negrita zone, which is outside of
the area containing the known mineral resources. Drilling of this and
all identified targets is expected to be ongoing throughout the year. 
The Company is expecting to spend $12 million in 2013 on exploration
to execute the 25,000 metres of drilling with the goal of expanding
the areas of mineralization to the La Negrita block and to add
significantly to the mineral resource base. 
Cerro Moro comprises eighteen tenements covering an area of
approximately 177 square kilometers. There are 8 sectors (Escondida,
Loma Escondida, Zoe, Martina, Carla, Esperanza-Nini, Gabriela, and
Deborah), all of which are located within the central portion of the
Cerro Moro tenements, included in the current mineral resource. The
Project consists of a series of low- to intermediate-sulfidation
epithermal-style veins with locally high grade gold-silver
mineralization, especially in the Escondida zone, which are hosted in
sub-volcanic and volcanic rocks. This polymetallic gold-silver
mineralization is similar to Yamana's operating mines El Penon and
Qualified Person  
William Wulftange, Director, Exploration for Yamana Gold Inc. has
reviewed and approved the scientific and technical information
contained within this press release relating to Cerro Moro and serves
as the Qualified Person as defined in National Instrument 43-101. 
About Yamana  
Yamana is a Canadian-based gold producer with significant gold
production, gold development stage properties, exploration
properties, and land positions in Brazil, Argentina, Chile, Mexico
and Colombia. Yamana plans to continue to build on this base through
existing operating mine expansions, throughput increases, development
of new mines, advancement of its exploration properties and by
targeting other gold consolidation opportunities with a primary focus
in the Americas. 
release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation. Except for statements
of historical fact relating to the Company, information contained
herein constitutes forward-looking statements, including any
information as to the Company's strategy, plans or future financial
or operating performance. Forward-looking statements are
characterized by words such as "plan," "expect", "budget", "target",
"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, assumptions and estimates of management considered
reasonable at the date the statements are made, and are inherently
subject to a variety of risks and uncertainties and other known and
unknown factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements. 
These factors include the Company's expectations in connection with
the expected production and exploration, development and expansion
plans at the Company's projects discussed herein being met, the
impact of proposed optimizations at the Company's projects, the
impact of the proposed new mining law in Brazil and the impact of
general business and economic conditions, global liquidity and credit
availability on the timing of cash flows and the values of assets and
liabilities based on projected future conditions, fluctuating metal
prices (such as gold, copper, silver and zinc), currency exchange
rates (such as the Brazilian Real, the Chilean Peso, the Argentine
Peso, and the Mexican Peso versus the United States Dollar), possible
variations in ore grade or recovery rates, changes in the Company's
hedging program, changes in accounting policies, changes in mineral
resources and mineral reserves, risk related to non-core mine
dispositions, risks related to acquisitions, changes in project
parameters as plans continue to be refined, changes in project
development, construction, production and commissioning time frames,
risk related to joint venture operations, the possibility of project
cost overruns or unanticipated costs and expenses, higher prices for
fuel, steel, power, labour and other consumables contributing to
higher costs and general risks of the mining industry, failure of
plant, equipment or processes to operate as anticipated, unexpected
changes in mine life, final pricing for concentrate sales,
unanticipated results of future studies, seasonality and
unanticipated weather changes, costs and timing of the development of
new deposits, success of exploration activities, permitting time
lines, government regulation and the risk of government expropriation
or nationalization of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims,
limitations on insurance coverage and timing and possible outcome of
pending litigation and labour disputes, as well as those risk factors
discussed or referred to in the Company's current annual Management's
Discussion and Analysis and Annual Information Form filed with the
securities regulatory authorities in all provinces of Canada and
available at www.sedar.com, and the Company's Annual Report on Form
40-F filed with the United States Securities and Exchange Commission. 
Although the Company 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
anticipated, estimated or intended. T
here 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. The Company undertakes no obligation
to update forward-looking statements if circumstances or management's
estimates, assumptions or opinions should change, except as required
by applicable law. The reader is cautioned not to place undue
reliance on forward-looking statements. The forward-looking
information contained herein is presented for the purpose of
assisting investors in understanding the exploration and development
plans and objectives and may not be appropriate for other purposes. 
This news release uses the terms "mineral resource", "measured
mineral resource", "indicated mineral resource" and "inferred mineral
resource" are defined in and required to be disclosed by NI 43-101.
However, these terms are not defined terms under Industry Guide 7 and
are not permitted to be used in reports and registration statements
of United States companies filed with the Commission. Investors are
cautioned not to assume that any part or all of the mineral deposits
in these categories will ever be converted into reserves. "Inferred
mineral resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in rare
cases. Investors are cautioned not to assume that all or any part of
an inferred mineral resource exists or is economically or legally
mineable. Disclosure of "contained ounces" in a resource is permitted
disclosure under Canadian regulations. In contrast, the Commission
only permits U.S. companies to report mineralization that does not
constitute "reserves" by Commission standards as in place tonnage and
grade without reference to unit measures. Accordingly, information
contained in this news release may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the United States federal
securities laws and the rules and regulations of the Commission
Yamana Gold Inc.
Lisa Doddridge
Vice President, Corporate Communications
and Investor Relations
416-945-7362 or 1-888-809-0925
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