Yamana Gold and Meridian Gold Provide Exploration Update

Market Wire, October, 2007

YAMANA GOLD INC. (TSX: YRI)(NYSE: AUY)(LSE: YAU) and MERIDIAN GOLD INC. (TSX: MNG)(NYSE: MDG) today announced a resource and exploration update at the Gualcamayo gold project in Argentina, an update on the Jacobina expansion project, and exploration updates for the El Penon mine in Chile and the Mercedes project in Mexico.

Gualcamayo, Argentina

AIM Mineral Resources Update

Yamana is pleased to report an update on resources for the marble and skarn hosted Amelia Ines and Magdalena (AIM) satellite deposits located 1.0 and 1.5 km northwest of the main QDD deposit. The drill results received in June have been incorporated into the previous resource estimate completed in May, resulting in an increase in measured and indicated resources of 87,000 ounces and an additional 73,000 ounces of inferred resources. Current measured and indicated resources now total 518,000 ounces of gold and inferred resources are estimated at 170,000 ounces, as detailed in the table below:

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                                                      Grade  Contained
Mineral Deposit             Resource Category Tonnes     Au  Ounces Au
                                              (000`s)  (gpt)    (000`s)
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                                     Measured    360   3.10         36
                                    Indicated  2,723   2.49        218
Amelia Ines              Measured   Indicated  3,083   2.56        254

                                     Inferred    554   1.47         26
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                                     Measured    110   2.18          8
                                    Indicated  2,972   2.70        257
Magdalena                Measured   Indicated  3,082   2.68        265

                                     Inferred  1,500   2.97        143
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                                     Measured    467   2.89         43
                                    Indicated  5,697   2.59        475
Combined AIM             Measured   Indicated  6,164   2.61        518

                                     Inferred  2,054   2.57        170
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Note: The Mineral Resources are classified as Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources and are based on CIM Standards. The Mineral Resources were estimated using a cut-off grade of 0.5 grams of gold per tonne.

The new resource model was prepared by Ron Simpson, P.Geo, from Geosim Inc., who is an independent Qualified Person as defined by National Instrument 43-101. This new AIM resource estimate will be used to complete an AIM feasibility study by the end of the year.

Approximately 2,000 metres of infill and exploration drilling are planned at Magdalena in order to convert inferred resources to the measured and indicated categories. At Magdalena, infill hole 07QD-459 returned 2.44 grams per tonne gold over 44.5 metres along the northern edge of the ore body. This intersection falls within the current pit design and will increase in pit mineable ounces.

Additional drilling is planned to test the potential of a down dip extension of the high grade channel area and to test the down plunge extension of the deposit which may ultimately connect with the QDD Lower West area.

A feasibility update in regards to the mining and processing of AIM ore in addition to QDD ore is targeted by year-end.

Gualcamayo Exploration Update

Recent drilling at Gualcamayo has further defined continuity of mineralization to the west and below the current QDD pit model and has also confirmed the mineralization potential of the target 3D area, located one km to the northwest of the QDD Lower West target area (Figures 1 and 2).

The recent results from hole QD-445, 2.07 g/t Au over 186 metres, including 5.55 g/t Au over 21 metres extend the QDD Lower West zone 100 metres to the west. The follow up hole, QD-466, drilled 100 m above QD-445, returned 2.12 g/t Au over 74 m, including a higher grade core of 4.55 g/t Au over 29 metres.

In mid-September, the Company began drilling a fan of 3 to 4 holes to the south-southwest from the first drilling station at 430 metres along the underground access, in order to determine the down dip extent of the system and the possibility of similar scale dilational zones along the structure. The first underground hole, QD-473, returned 2.25 g/t Au over 125 metres, including 3.57 g/t Au over 60 metres, which enlarges the mineralized envelope at the drill section by approximately 60 metres. Further cross cutting along strike to the west followed by step-out and definition drilling is planned to expand the mineral resources by end of 2007.

Drilling to date indicates that the QDD Lower West zone represents a large dilational zone or tensional gash with a strike length over 300 metres, minimum down dip extent of 200 metres and average thickness of 160 metres.