Name: Chapada mine.

Controlling company: Yamana Gold (100%).

Location: The Chapada mine is situated 270 km north-west of Brasilia, Brazil.

Brief history: Anomalous copper values were first detected in the Chapada area in 1973. However, the deposit itself was identified only in 1975. In 1976, Eluma, a Brazilian copper company, acquired a 50% interest in the property and, between 1976 and 2003, systematic drilling of the deposit took place. In 2003, Yamana Gold acquired Chapada, and in February 2004 Yamana completed an updated technical report. A final feasibility study was completed in June 2004 and a construction decision was announced at that time. The project was completed by October 2006, with continuous operations beginning a month later. Commercial production was achieved in February 2007. Capacity of the flotation plant was increased to 22-million tons  a year in 2010, a 10% increase on 2009 and 38% higher than the feasibility study throughput level. In early 2011, the mine plan was updated to maintain the increased throughput level for the next 15 years, with the integration of output from the Suruca gold deposit and the Corpo Sul gold/copper deposit.

Brief description: The Chapada project consists of a series of mining and exploration licences totalling 8 369 ha. Mining is taking place at a rate of 16-million tons a year. The mine has 928 employees and an expected life-of-mine of 19 years.

Mining method: Openpit.

Products: Gold and copper.

Major infrastructure and equipment: The mine's fleet consists of trucks, excavators, and motor graders. The concentrate is shipped to third-party smelters for processing into copper and gold metal.

Geology/Mineralisation: The primary sulphide mineralisation found at Chapada consists of an epigenetic copper gold suite that was deposited during a metamorphichydrothermal mineralising event and lies beneath a saprolitic surface cover containing oxide mineralisation. The regional stratigraphy of the Chapada area comprises a Proterozoic greenstone belt succession of mixed volcaico-sedimentary sequences, which have been cut by late granitic intrusions. The area of the deposit is covered by a saprolitic layer, between 20 m and 25 m thick, in which the mineralisation is oxidised, and which grades into a transition zone of mixed oxide and sulphide minerals, ranging in thickness from 5 m to 10 m. Bedrock, containing primary sulphide mineralisation, occurs below the transition zone.

Reserves: Total proven and probable reserves as at December 31, 2012, were 431.19-million tons, grading of 0.27 g/t of gold.

Resources: Total measured and indicated resources as at December 31, 2012, were 300.56-million tons, with a grading of 0.24 g/t of gold. Total inferred resources were 118.63-million tons, with a grading of 0.22 g/t gold.

Prospects: Suruca and Corpo Sul are expected to start contributing to production in 2014.

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