An initialfeasibility study is expected to be released for Mercedes in midFebruary

TheCompany remains on track to increase the mining rate from developedstopes and expects to produce approximately 115,000 to 125,000 ounces ofgold in 2009 at a cash cost of between $380-$410 per ounce.Gualcamayo, ArgentinaStart-up and commissioning commenced at Gualcamayo in December 2008 withthe first gold pour at the end of 2008. The Company iscommissioning the ADR plant and commercial production remains on trackfor the end of the second quarter of 2009. Gold inventory of minedmaterial exceeded 45,000 ounces at the end of December 2008 and continuesto increase. The Company has committed to the construction of the AmeliaInes and Magdalena open pit satellite deposits which is expected tocontribute to overall production by second half of 2009.

An update to theinitial feasibility study relating to the QDD Lower West deposit isexpected by the end of January 2009. Total production for the year atGualcamayo is expected to be approximately 195,000 to 210,000 ounces ofgold at a cash cost of between $380-400 per ounce.Minera Florida, ChileCommissioning for the expansion at Minera Florida began during the fourthquarter, resulting in a throughput increase to 2,000 tonnes per day. The Company will assess thepotential increase to this higher throughput rate after two years ofmining at the current rate.Sao Vicente, BrazilOperations began at Sao Vicente with the first gold pour at the end of2008, and the mine remains on track for commercial production in thesecond quarter of 2009. Total production from Sao Vicente is expected tobe between 55,000 to 60,000 ounces of gold in 2009.DEVELOPMENT & EXPLORATION PROJECTSAt Gualcamayo, Yamana expects to release a feasibility study update atQDD Lower West by the end of January 2009 with a construction decisionexpected by the end of the year.

The Company's Pilar project in Brazilwas virtually unexplored when acquired but has since advanced to be animportant development project for Yamana. In less than a year, the firstresource estimate of approximately 970,000 ounces was delivered andstrong exploration success is expected to continue. An initialfeasibility study is expected to be released for Mercedes in mid-February.DIVIDENDThe Board of Directors has elected to reduce Yamana's dividend paymentsfrom the current $0.01 per share on a monthly basis to $0.01 per share ona quarterly basis. Yamana's divided yield has been comparatively high andthe reduction will bring the dividend yield in line with its peer group.This reduction will save the Company approximately $58 million in 2009which will be reallocated to development and exploration programs.FINANCIAL RESULTSYamana will release its full fourth quarter financial results includingmineral reserve and mineral resource data after the close of business onMarch 24, 2009 A conference call will follow on March 25, 2009 at 11:00a.m. ET.Conference Call Information:Toll Free (North America):1-877-874-1570International:719-325-4765Participant Audio Webcast: Call REPLAY:-Toll Free Replay Call (North America): 888-203-1112, Passcode: 9627346Replay Call: 719-457-0820, Passcode: 9627346The conference call replay will be available from 1:00 p.m EST onMarch 25, 2009 until 11:59 p.m E.T. on April 1, 2009.For further information on the conference call or audio webcast, pleasecontact the Investor Relations Department or visit our website, PersonEvandro Cintra, P.

Yamana isproducing gold and other precious metals at intermediate companyproduction levels in addition to significant copper production. Companymanagement plans to continue to build on this base through existingoperating mine expansions and throughput increases, the advancement ofits exploration properties and by targeting other gold consolidationopportunities in Brazil, Argentina and elsewhere in the Americas.CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news releasecontains certain "forward-looking statements" within the meaning of theUnited States Private Securities Litigation Reform Act of 1995 and"forward-looking information" under applicable Canadian securitieslegislation. Except for statements of historical fact relating to thecompany, information contained herein constitutes forward-lookingstatements, including any information as to the Company's strategy, plansor future financial or operating performance. Forward-looking statementsare characterized by words such as "plan", "expect", "budget", "target","project," "intend," "believe," "anticipate", "estimate" and othersimilar 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 datethe statements are made, and are inherently subject to a variety of risksand uncertainties and other known and unknown factors that could causeactual events or results to differ materially from those projected in theforward-looking statements.These factors include, but are not limited to, the impact of generalbusiness and economic conditions, global liquidity and creditavailability on the timing of cash flows and the values of assets andliabilities based on projected future conditions, possible variations inore grade or recovery rates, fluctuating metal prices (such as gold,copper, silver and zinc), currency exchange rates (such as the BrazilianReal and the Chilean Peso versus the United States Dollar), changes inthe Company's hedging program, changes in accounting policies, changes inthe Company's corporate resources, changes in project parameters as planscontinue to be refined, changes in project development and productiontime frames, risk related to joint venture operations, the possibility ofproject cost overruns or unanticipated costs and expenses, higher pricesfor fuel, steel, power, labour and other consumables contributing tohigher costs and general risks of the mining industry, failure of plant,equipment or processes to operate as anticipated, unexpected changes inmine life, final pricing for concentrate sales, unanticipated results offuture studies, seasonality and unanticipated weather changes, costs andtiming of the development of new deposits, success of explorationactivities, permitting time lines, government regulation of miningoperations, environmental risks, unanticipated reclamation expenses,title disputes or claims, limitations on insurance coverage and timingand possible outcome of pending litigation and labour disputes, as wellas those risk factors discussed or referred to in the Company's annualManagement's Discussion and Analysis and Annual Information Form filedwith the securities regulatory authorities in all provinces of Canada andavailable at , and the Company's Annual Report on Form 40-Ffiled with the United States Securities and Exchange Commission. Althoughthe Company has attempted to identify important factors that could causeactual actions, events or results to differ materially from thosedescribed in forward-looking statements, there may be other factors thatcause actions, events or results not to be anticipated, estimated orintended. There can be no assurance that forward-looking statements willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements.