Name: Jacobina mine.

Controlling Company: Yamana Gold (100%).

Location: The Jacobina property is located in the state of Bahia, in north-eastern Brazil, about 340 km north-west of the city of Salvador.

Brief History: The Serra do Jacobina mountains have been mined for gold since the late seventeenth century. Numerous old workings from artisanal miners can be seen along the ridges of the mountain chain. Small-scale garimpeiro activity has taken place sporadically up to the present day. The modern production history of the Jacobina mine began when the processing plant was commissioned in late 1982. Low metal prices forced the closure of the mine between 1999 and 2004, after which production restarted in mid-2005. Yamana acquired Jacobina when it completed the acquisition of Desert Sun Mining in April 2006. The higher-grade Lagartixa zone was discovered in 2009 and in 2010, mineral resources were upgraded at the Morro do Vento and Canavieiras deposits.

Brief Description: The Jacobina mine work force consists of 839 employees and 363 contractors, impacting positively on local communities. The company also signed a technical cooperation agreement with BAEPA and the Federal Mining Agency to support small-scale miners associations to promote social benefits.

Products: Gold.

Mining Method: Underground.

Major Infrastructure and Equipment: The mining method used at the Jacobina underground mine is the sublevel retreat open-stoping method. The metallurgical process involves the grinding of the run-of-mine (RoM) material into a pulp, leaching the pulp in a conventional cyanide leaching process and then extracting gold from the enriched solution in a carbon-in-pulp (CIP) circuit. The RoM material is hauled by trucks from the mine to the crushing facility adjacent to the processing plant. Rib pillars are left along the strike where required, but optimised in sections of low-grade zones within the orebody. Sill pillars and stope access pillars remain temporarily and are removed once the mining above has been completed.

Geology: The project forms a contiguous elongated rectangle, extending 155 km in a north-south direction and varying from 2.5 km to 4 km in width. This shape is a reflection of the underlying geology, with the gold-mineralised host rocks trending along the property's north-south axis. Gold at the Jacobina mine is hosted in quartz-pebble conglomerates similar to those in Tarkwa, Ghana and in the Witwatersrand, South Africa. The host rocks to the Jacobina gold mineralisation are highly sorted and rounded quartz pebble conglomerate reefs of the Serra de Corrego formation. The gold occurs as fine grains ¬– from 20 µ to 50 µ in size – and predominantly within well-packed conglomerate layers in which medium- to larger-sized quartz pebbles are present. The gold occurs within the matrix and often in association with pyrite and fuchsite.

Reserves: Total proven and probable reserves as at December 31, 2012, were 24.942-million tons, grading 3.02 g/t gold.

Resources: Total measured and indicated resources as at December 31. 2012, were 24.956-million tons, grading 2.59 g/t gold. Inferred mineral resources were 12.551-million tons, grading 3.01 g/t gold.

Prospects: Mineral reserves increased 21% in 2012, with a 10% increase in mineral reserve grade.  Since the acquisition of the mine, gold mineral reserves have increased more than 98%, representing a six-year consecutive increase. These grade increases are expected to facilitate higher future production levels.

Contact person: VP operation, Brazil, Nelson Munhoz.

Contact details:
Yamana Gold
Tel +1 416 815 0220
Fax +1 416 815 0021
Email investor@yamana.com
Website www.yamana.com