Yamana Gold Completes Early Exercise of Listed Share Purchase Warrants

On August 29, 2005, Yamana Gold Inc. completed a transaction in respect of the early exercise of Yamana's TSX and AMEX-listed common share purchase warrants by way of an amendment to the terms of the common share purchase warrants. In connection with the transaction, each warrant exercised during a 30-day early exercise entitled the holder to acquire 0.0356 of a common share in addition to the one common share otherwise issuable upon exercise of the common share purchase warrants. Yamana raised aggregate proceeds of C$59.8 million upon the exercise or exchange of all of the warrants. BMO Nesbitt Burns Inc. acted as financial advisor to Yamana. This transaction represented the first circumstance in which the TSX permitted the amendment of essential terms of listed common share purchase warrants.

Yamana was represented by Cassels Brock & Blackwell LLP with a team led by Mark Bennett (securities) and included Andrea FitzGerald and Patrick Gleeson (securities) and Chris Norton (tax), and by Gil Cornblum and Ryan Pardo (corporate/securities) and Gabe Gartner (tax) of Dorsey & Whitney LLP, who acted as US counsel to Yamana.

BMO Nesbitt Burns was represented by Fraser Milner Casgrain LLP with a securities team led by Michael Melanson and included Leslie Johnson, James Clare and Ali Naushahi.