Mr. William Wulftange reports

YAMANA GOLD PROVIDES CORPORATE UPDATE

Yamana Gold Inc. has released preliminary operating results for the third quarter 2014 and midyear highlights from its 2014 exploration program.

The company achieved record quarterly production in the third quarter in excess of 390,000 gold equivalent ounces at all-in sustaining cash costs within annual guidance range of between $825 and $875 per gold equivalent ounce. Significant contribution and increased production was mostly from Chapada, El Penon, Canadian Malartic, Mercedes and Pilar. This increase represents an increase of over 17 per cent over second-quarter production levels. Fourth-quarter production is expected to increase further with increases coming mostly from Chapada, El Penon, Canadian Malartic, Mercedes, Pilar and Jacobina. Yamana continues to focus on its cornerstone operations from which it is deriving greatest increase in production at lowest cost. (All dollar amounts are expressed in United States dollars unless otherwise specified.)

Yamana's focus on exploration at existing operations continues to be a key to unlocking further value and creating value for shareholders. The emphasis of the 2014 program has been infill drilling to do the work necessary to upgrade the significant inferred mineral resource increase of 2013 and will continue to focus on finding higher-quality ounces, those with the greatest potential to most quickly generate cash flow. The company's exploration budget for 2014 is approximately $75-million, with approximately $50-million having been spent through the end of August.

The significance of results of exploration to date include the following:

• El Penon -- mineral reserves are expected to be replaced at or above reserve grade this year and significant exploration opportunities continue to exist particularly with the recent discovery of new secondary structures oriented parallel to historical north-south targeted trends.
• Minera Florida -- mineral resources are expected to be upgraded and expanded in support of mineral reserve growth in 2014 with infill drilling intersections at or above reserve grade.
• Chapada -- the discovery of Santa Cruz combined with Corpo Sul and Suruca suggest the potential of a system that could be significantly larger than was originally planned.
• Pilar -- increased certainty of the location of higher-grade areas with tightened drill spacing is expected to support more efficient mining and reduced dilution to get increased production from lower tonnage.
• Mercedes -- drilling at GAP, which is along the Mercedes to Marianas structure, is returning positive results and is being evaluated to determine if the structures are linked which would significantly increase resource and mine life.
• Gualcamayo -- results at Rodado Southwest which is a near-to-surface structure near current underground mine workings continue to support the potential for a large-scale, bulk-tonnage underground operation with several intersections exceeding 100 metres.
• Cerro Moro -- assay results continue to support the modelled grades and widths in the resource model.
• Canadian Malartic and Kirkland Lake -- the 2014 program is expected to provide additional insight into the best approach to unlock value at the newest portfolio of exploration assets.

"The strategic direction of our 2014 exploration program is to focus on infill drilling to upgrade the significant mineral resource increase we achieved through last year's program. Increasing mineral resources, and ultimately mineral reserves, at our existing operations is at the core of the value added by our exploration program," commented William Wulftange, senior vice-president, exploration. "We are continuing to demonstrate success with our exploration program by delivering on the plan we set out at the beginning of the year. Impressively, we have been able to deliver results with a budget that decreased substantially from the previous year as we focus on being ever more efficient with our exploration efforts in support of the companywide cost-containment initiatives."

Further information on the company's 2014 exploration update including complete drill tables and figures can be found on the company's website.

The company has filed an updated technical report entitled "Technical Report on the Chapada Mine, Brazil," dated July 31, 2014, on a voluntary basis to provide updated information.

The company has filed an updated technical report entitled "Technical Report on the Mercedes Gold-Silver Mine, Sonora State, Mexico," dated Feb. 25, 2014, updated as of May 31, 2014, on a voluntary basis in order to provide updated information.

Quality assurance and quality control

Yamana incorporates a rigorous quality assurance and quality control program for all of its mines and exploration projects which conforms to industry best practices as outlined by the CIM and National Instrument 43-101. This includes the use of independent third party laboratories and the use of professionally prepared standards and blanks and analysis of sample duplicates with a second independent laboratory. For additional information on these programs for Chapada, Gualcamayo, Mercedes, Minera Florida, Canadian Malartic and El Penon please refer to the following technical reports:

• Technical report on the Chapada mine, Brazil, dated July 31, 2014;
• Technical report for Gualcamayo project, San Juan, Argentina, dated March 25, 2011;
• Technical report on the Mercedes gold-silver mine, Sonora state, Mexico, dated Feb. 25, 2014, updated as of May 31, 2014;
• Technical report on the Pedro Valencia mine of Minera Florida Ltda., central Chile, dated March 22, 2010;
• Technical report on the mineral resource and mineral reserve estimates for the Canadian Malartic property dated Aug. 13, 2014;
• Technical report on the El Penon mine, northern Chile, dated Dec. 7, 2010.

Each of these reports can be found on SEDAR.

Qualified persons

William Wulftange, PGeo, senior vice-president of exploration, Yamana Gold, is a registered member of the Society of Mining and Metallurgical Engineers and a licensed professional geologist. Mr. Wulftange has reviewed and approved the scientific and technical information contained within this press release and is a qualified person as defined in National Instrument 43-101.

Mr. Wulftange verified the data disclosed in this press release, including the exploration, analytical and testing data underlying the information. Verification included a review and validation of the applicable assay databases and reviews of assay certificates.

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