Yamana Offers Response to Assessment Related to Argentine Legal Dispute

YAMANA GOLD INC.

responds to the announcement made today by Samco Gold relating to the receipt of the assessment of damages relating to the proceedings in the case of Ricardo Auriemma v. 0805346 B.C. Ltd. (formally Northern Orion Resources Inc., now a subsidiary of the Company). This assessment of damages relates to a contested agreement providing for a preemptive right for Auriemma to participate in the acquisition of Minera Alumbrera Inc. made by Northern Orion Resources Inc. in 2003. The court appointed arbitrator delivered an assessment of the value of the lost opportunity to Auriemma at $244 million. The Company's subsidiary will vigorously defend its position in this case and the Compa ny provides the following additional information: -- The Company believes the assessment to be a gross miscalculation of the actual value. -- The Company has identified significant errors in this assessment of value resulting from the arbitrator's use of improper valuation methodologies and his failure to follow the court's instructions causing the assessment to be significantly inflated. -- The Company's subsidiary will seek an annulment of this assessment through the judicial process. Despite the determination by the Argentine court on the existence of this preemptive right, the Company believes there is no valid basis for the claim and the Company's subsidiary will continue to utilize all legal remedies and forums to vigorously defend against this claim including any action taken to enforce the assessment against the Company's subsidiary.