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Investor Q & A
1) Why is Yamana’s mining and exploration focus primarily in Brazil? Will Yamana look outside the Americas?
Brazil has one of the ten largest economies in the world with a large industrial base. The country’s geological potential is abundant and relatively under-explored. Additionally, the government permitting process is efficient and expedient since mining is culturally embedded in Brazil. Yamana also takes advantage of quality mining equipment that is made locally, the skilled local labor force and a well developed infrastructure including abundant hydroelectric power and transportation networks. All this combined with a relatively weak Real, makes Brazil an excellent choice for Yamana.
Yamana remains Americas focused, as this remains the area of expertise. Many companies make the mistake of growing too quickly and expanding globally before they are ready. Particularly, Yamana looks at properties in mine friendly jurisdictions with geopolitical stability, near existing infrastructure.
2) Does Yamana have any concerns regarding possible changing political situations in South America?
Yamana has excellent government relations in both Brazil, Central America and Argentina and considers these countries partners in the Company’s success. Yamana is a leading employer in Brazil and provides direct employment opportunities to approximately 8,600 individuals in South America.
3) Are your development projects proceeding as planned?
Yamana has five development projects including Gualcamayo in Argentina, São Vicente in Brazil and C1 Santa Luz in Brazil, and all projects are advancing on schedule. At Gualcamayo, we have released a resource estimate for QDD Lower West in March 2008. We have made a positive construction decision to begin mine development work at Amelia Ines and Magdalena at Gualcamayo by the end of 2008. Targeted production for São Vicente is in late 2008, and we have recently reported positive feasibility results for C1 Santa Luz, with production planned to begin in early 2010.
4) What are the terms of your warrants?
Yamana's public warrants which trade on the TSX are summarized as follows:
The YRI.wt.a warrants have an exercise price of C$2.50. On exercise the holder would receive 0.6 of a Yamana share. These warrants expire on November 20, 2008. These related to previously existing warrants of Desert Sun Mining.
The YRI.wt.b warrants have an exercise price of C$2.00. On exercise the holder would receive 0.543 of a Yamana share. These warrants expire on May 29, 2008. These relate to previously existing A warrants of Northern Orion.
The YRI.wt.c warrants have an exercise price of C$6.00. On exercise the holder would receive 0.543 of a Yamana share. These warrants expire on February 17, 2010. These relate to previously existing B warrants of Northern Orion.
5) I am receiving information from Yamana Gold from shares in a company that were converted into Yamana Gold Inc. How do I find out what my previous shares are worth now?
CIBC Mellon is Yamana Gold’s transfer agent and they can answer your questions on the share exchange. They can be reached by phone at 416-643-5500 or 1-800-387-0825, or by email at inquiries@cibcmellon.com.
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