Yamana Gold Announces $162.5 Million Sale of Exploration Properties

TORONTO, ONTARIO--(Marketwired - Dec. 21, 2017) - YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) ("Yamana" or the "Company") is pleased to announce it has entered into an agreement (the "Agreement") to sell certain jointly owned exploration properties of the Canadian Malartic Corporation ("CMC") including the Kirkland Lake and Hammond Reef properties (herein referred to as the "Transaction"). The Transaction is structured as a sale of assets by CMC (in which Yamana holds a 50% indirect interest) pursuant to which Agnico Eagle Mines Limited ("Agnico Eagle") will acquire all of Yamana's indirect 50% interest in the Canadian exploration assets of CMC in consideration of cash proceeds to Yamana of $162.5 million. The Transaction will not affect the Canadian Malartic mine and related assets including Odyssey, East Malartic, Midway, and East Amphi. The Transaction is scheduled to close in the first quarter of 2018.

The Transaction is consistent with the Company's stated objective to improve its financial position. Other recent and current initiatives which have or will further advance this initiative include the following.

First and foremost are planned cash flow increases which are expected as the Company continues to deliver operational improvements and advance its development stage projects, most notably Cerro Moro which remains on budget and on schedule for startup in early 2018. Mechanical completion of the key process plant facilities at Cerro Moro is on track to be completed by the end of 2017 and commissioning of the crushing and conveying circuit began in December. Mine development is now being managed by Operations having already transitioned from Technical Services. With Cerro Moro contributing to production in 2018 and with its projected low cost profile, the Company expects meaningful increases to EBITDA and cash flow for 2018 and beyond.

Secondly, the recently announced offering of senior notes provides further financial flexibility over the medium term. The Company expects to use this enhanced flexibility to replace and upgrade mine cash flows and to target further optimization and other opportunities. Yamana is committed to advancing its project pipeline with the sequencing established to manage balance sheet strength while also ensuring the pipeline is well positioned in those countries and jurisdictions where the Company has the most familiarity.