Alhue (Minera Florida/Pedro Valencia)

The mine produced a total of 22,966 gold equivalent ounces in the second quarter ended Jun30/09, compared with 14,071 gold equivalent ounces and 19,302 gold equivalent ounces, in the second quarter of 2008 and first quarter of 2009, respectively. The increase in production for the second quarter compared to the first quarter was 19%. The significant increase year over year is due to the completion of the expansion project at Minera Florida. Production for the first half of 2009 is 42,268 gold equivalent ounces compared to 30,906 gold equivalent ounces in 2008. Production for the second quarter was consistent with budget expectations and is expected to increase progressively quarter-over-quarter throughout the year.

Reported that commissioning for the expansion at Minera Florida began during the fourth quarter, resulting in a throughput increase to 2,000 tonnes per day. Yamana expects to produce approximately 105,000 to 110,000 GEO at Minera Florida in 2009 at a cash cost of approximately $340-$350 per GEO. Minera Florida has the potential to increase annual production to 150,000 GEO with a change in the mining method to accommodate the recently completed expansion and mining in narrow veins. Florida’s Life-of-Mine Plan (LOMP) contemplates a mine life of 6.2 years, through to the year 2012. (Dec/08)

Yamana began commissioning the expansion resulting in a throughput increase to 2,000 tonnes per day.