Yamana Reports Mine Operating Earnings of $8.6 Million

Business Wire, March 21, 2006

TORONTO -- (all figures in US$ unless otherwise stated)

Yamana Gold Inc. (TSX:YRI)(AMEX:AUY)(LSE(AIM):YAU) reports mine operating earnings of $8.6 million and $4.8 million for the year and quarter ended December 31, 2005, respectively.

Highlights

- Cash balance of $151.6 million as at December 31, 2005.

- Achieved average cash costs of $289 per ounce for the year and $282 per ounce for the fourth quarter from its Fazenda Nova and Fazenda Brasileiro mines. The following chart summarizes commercial production and cash costs per ounce for the end and quarter ended December 31, 2005:

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                Quarter ended December 31,   Year ended December 31,
                                      2005                      2004
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                  Production    Cash costs   Production   Cash costs
                       (oz.)       per oz.        (oz.)      per oz.
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Fazenda Nova          12,740        $  177       28,780      $   208
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Fazenda Brasileiro    17,810        $  357       74,570      $   320
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TOTAL COMMERCIAL
 PRODUCTION           30,550        $  282      103,350      $   289
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Fazenda Nova

Pre-operating              -        $    -        7,379      $     -
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Sao Francisco
 Pilot Plant           1,212        $    -        4,843      $     -
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TOTAL PRODUCTION      31,762        $    -      115,572      $     -
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- Cash flow from operations of $6.4 million before changes in
  non-cash working capital items.

- Net earnings for the year after giving effect to certain non-cash
  items were as follows:

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                             Dec. 31, 2005              Dec. 31, 2004
                           (twelve months)               (ten months)
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Net earnings (loss) per
 consolidated financial
 statements                    $   (4,111)                  $   2,783
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Adjustments:
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Stock-based compensation             2,303                      2,191
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Foreign exchange gain                (369)                    (1,848)
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Unrealized losses on
 commodity contracts                 8,615                          -
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Future income tax
 (recovery) expense                (4,447)                      (430)
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Adjusted net earnings (i)       $    1,991                   $  2,696
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Adjusted earnings per share (i) $     0.01                   $   0.03
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(i) Non-GAAP measure - A cautionary note of non-GAAP measures
    follows this press release.

- Revenues of $46 million and $16.7 million for the year and fourth quarter, respectively, from its Fazenda Brasileiro and Fazenda Nova mines.

- Commenced commercial production at its Fazenda Nova Mine.

- Commenced the start-up of mine operations at its Sao Francisco Mine with ore being loaded on to the heap leach pads by the end of November, in accordance with the mine plan.

- Ahead of schedule with the construction of its Chapada copper-gold project.

- Raised gross proceeds of $49.6 million from the early exercise of its publicly traded warrants that otherwise would not have been available to the Company until July 2008.

- Raised $105.3 million in net proceeds from the public issue of 26 million common shares in October 2005.

- Drew down on debt financing in the amount of $100 million for the construction of the Chapada copper-gold project.

- Entered into smelter off-take agreements for 150,000 tonnes of copper concentrate from its Chapada copper-gold project currently under construction.