- Proven and probable gold reserves increase 8%; measured and indicated resources increase 22% -

TORONTO, ONTARIO -- (Marketwire) -- 03/03/09 -- YAMANA GOLD INC. (TSX: YRI)(NYSE: AUY)(LSE: YAU) today announced that proven and probable gold reserves increased to 19.4 million ounces as of December 31, 2008. Total new discovered proven and probable gold reserves totalled 2.5 million ounces in 2008. With approximately 1.0 million ounces having been mined in 2008, net gold reserves increased by approximately 1.5 million ounces, representing a net increase of eight percent. Total measured and indicated gold resources increased significantly to 15.7 million ounces, up 22 percent from 12.9 million ounces a year earlier. Approximately 7.9 million new ounces of gold were added across all categories before production, which exceeds the Company's previous expectation of 7.0 million new ounces. Discovery costs for proven and probable plus measured and indicated gold ounces were approximately US$12.00 per gold ounce which compares well to the industry average.

The increase in proven and probable gold reserves is primarily due to the addition of over 600,000 ounces at Mercedes in Mexico, and net additions of more than 1.1 million ounces at Gualcamayo in Argentina, more than 140,000 ounces at Minera Florida in Chile, more than 200,000 ounces at Jacobina and approximately 100,000 ounces at Chapada in Brazil. At Gualcamayo, the proven and probable reserve increase includes 240,000 ounces from the QDD main deposit, which will now enable the Company to evaluate further extending the mine life. At Jacobina, new reserve ounces exceeded ounces mined, resources were upgraded from inferred to measured and indicated and the average grade improved notably. At El Penon, the Company replaced most of the ounces mined and significantly increased measured and indicated resources. The proven and probable reserve estimate at El Penon does not include Bonanza and Al Este. Yamana has increased infill drilling this year with the goal of upgrading resources to reserves. The total resource estimate does not include drilling completed at Pilar for 2008 and the Company expects to provide a resource estimate update in Q2 2009.

Below is a summary of the changes in gold mineral reserves year-over-year:

Proven and probable reserves as of December 31, 2007      17.9 Moz
Net property dispositions (Rossi)                             (0.1)
Mined ounces during 2008                                     (0.95)
Discovered ounces during 2008                                  2.5
----------------------------------------------------      ---------
Proven and probable reserves as of December 31, 2008      19.4 Moz

"Yamana's exploration program last year resulted in the addition of nearly eight million new ounces of gold across all categories, and in terms of reserves we discovered about 1.5 times ounces more than we mined," said Peter Marrone, Yamana's chairman and CEO. "Yamana increased measured and indicated resources substantially last year. The objective of our exploration program this year is to continue to build on this growth through consolidation and upgrading of resources to reserves and to find new gold ounces at or near our existing mines. With gold reserves and gold resources at record levels, our goal of increasing total production by approximately 35 percent to 1.35 million gold equivalent ounces in 2009 is well supported."

Yamana's exploration budget this year is expected to total a minimum of US$56 million (US$37 million capitalized and the remainder expensed) with the goal of further increasing mineral reserves and resources. In 2009, Yamana's exploration program will focus on mine and near-mine opportunities primarily in Chile, Brazil, Mexico and Argentina as the Company concentrates on expansions and advanced projects for near development.