Mercedes Mine Tour

Operational Overview


Gerardo Fernandez
Mexico Operations Director
March 26th, 2012



Cautionary Statement
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for
statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including any
information as to the Companys strategy, plans or future financial or operating performance. Forward-looking statements are characterized by
words such as plan, expect, budget, target, project, intend, believe, anticipate, estimate and other similar words, or
statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions, assumptions and
estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and
uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the
forward-looking statements. These factors include the Companys expectations in connection with the projects and exploration programs
discussed herein being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash
flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and
zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso, the Argentine Peso and Mexican Peso versus the United States
Dollar), possible variations in ore grade or recovery rates, changes in the Companys hedging program, changes in accounting policies, changes in
the Companys corporate mineral resources, risk related to non-core mine dispositions, changes in project parameters as plans continue to be
refined, changes in project development, construction, production and commissioning time frames, risk related to joint venture operations, the
possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables
contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated,
unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated
weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government
regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance
coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in the
Companys annual Managements Discussion and Analysis and Annual Information filed with the securities regulatory authorities in all provinces
of Canada and available at www.sedar.com, and the Companys Annual Report on Form 40-F filed with the United States Securities and
Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-
looking statements if circumstances or managements estimates, assumptions or opinions should change, except as required by applicable
law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is
presented for the purpose of assisting investors in understanding the Companys expected financial and operational performance and results as
at and for the periods ended on the dates presented in the Companys plans and objectives and may not be appropriate for other purposes.

2
Visitors Guide for Safety
Remain with the guided group during the site visit
Observe our safety signs in all areas
Take care when walking up and down stairs, please use the hand rails
Keep a safe distance away from operating equipment
Personal Protection Equipment is required in all areas:
- Hi-visibility vest
- Hard hat
- Safety glasses
- Safety boots
- Ear plugs (for grinding area and near mine equipment)
- Respirator and self rescuer (for mine)
3
Safety is a top priority
Mercedes Mine Tour
Agenda
4
Location & regional profile
Organization chart
Key operational data
Construction milestones
Geology of Mercedes
Operation overview

SHEC (Safety, Health,
Environment, Community)
initiatives


Mercedes
Location & Regional Profile
5
Located in Sonora State, at an elevation
of 1,100m

Average rainfall is 400mm per year,
concentrated in 3 months in summer

Yamana, through its subsidiary in Mexico,
owns the surface land where it operates

Sonora has a strong mining tradition, and
it is the main gold producer in Mexico

Construction, services and manufacturing
companies are available in the area, as
well as power from the grid
Mining friendly jurisdiction with great infrastructure
Mercedes
Organization Chart
Gerardo
Fernandez
General Manager
Process
Gaspar
Mendez
Mine
Jesus Rivera
Geology
Mark
Hawksworth
SHEC
Marco
Pizarro
Finance
Jaime Ticona
Development
Santiago
Zuleta
Security
Terry
Blevins
HR
Gregorio
Reyes
6
Mercedes
Construction Milestones

7
XXXXXX
2011
XXXXX
2010
Construction
Start
May 2010
COMMERCIAL
PRODUCTION
Feasibility Study
Dec 2009
Plant
Start-up
Oct 28, 2011
First Pour
Nov 18, 2011
Commercial
Production
Feb 1st, 2012
Mercedes
2005 Exploration Start-up
8
December 7, 2005 2
9
Mercedes
December 2011
Mercedes
Key Operational Data
10
Brazil
25%
Argentina
20%
Chile
45%
Mexico -
Mercedes
10%
Production
Labour
25%
Material
47%
Power
11%
Contractors
7%
Others
10%
Mercedes Cash Cost Components

Design Throughput: 1,500 tpd


Mining: Underground Bench & Fill and CAF (pastefill)


Four Mines: Mercedes, Klondike, Barrancas + (Diluvio)


Processing: Crushing, Grinding, Agitated Leaching,
CCD, Merrill-Crowe, and Detox


Annual Production: 105,000-120,000 GEO
Expected to increase in 2013


Work Force: 400 direct + 400 contractors
Mercedes
Mineral Reserves and Resources
11
950
204 202
492
561
2010 2011
Mercedes Mineral Reserves & Resources
(GEO 000s)
P&P M&I Inferred
1,036
Zone
Tonnes
000s
Au(g/t) Ag(g/t)
AuEq
(g/t)
Au Oz.
000s
Ag Oz.
000s
GEO
000s
Mercedes 2,803 6.11 77.0 6.66 551 6,935 600
Klondike 605 4.95 33.9 5.19 96 659 101
Barrancas 1,264 5.57 51.7 5.94 227 2,103 242
Diluvio 624 4.49 20.0 4.63 90 401 93
Total 5,297 5.66 59.3 6.08 964 10,099 1,036
Mercedes
Bench & Fill Mining Method
12
Mercedes
Mercedes Mine 3D
13
Mercedes
Mine Fleet
14
3
2
2
5
6
Jumbos
Production
drill
Support
drill
LHD
Trucks
2 Boomer L1C- Atlas Copco
1 Boomer L2C Atlas Copco
Kenworth T800B - 20T
2 ST 7 Atlas Copco
3 ST1040 Atlas Copco
2 Boltec MC- Atlas Copco
2 Simbas M7C- Atlas Copco
Mercedes
Process Flow Chart
15
Detoxification
Grinding
CCD Thickeners
Agitated Lixiviation
Pre-leach thickener
Merrill-Crowe
Smelting
Cycling Crushing
Tailing Pond
Mercedes
Plant Equipment
16
3
1
4
7
1
3
Crushers
Mill
Leach Tanks
Thickeners
Gravity
Concentrator
Filter Presses
Metso Ball Mill 16.5 x 29
Installed Power: 4000 HP
Jaw and Cone Crushers
Installed Power
150 300 HP
Leach Tanks 10 d x14 h (m)
Delkor 16.5 m diameter
Knelson 30 inches
FLSmith 10,000 m3/day
Mercedes
Plant Picture
17
Mercedes
Production and Cost Profile
18
Production Guidance 105-120k GEO
Underground Mine


Average tonnes mined/yr: ~650,000
1,800 tpd


Plant

Average tonnes/yr: ~570,000
1,500 tpd

Average gold recovery : ~95%

Average silver recovery : ~ 33%
2012 Expectations:

Production:
105,000 120,000 GEO
production is expected to
grow each quarter in 2012

Costs:
Approx. $600/ oz in Q1
Trending down throughout the
year to approx. $500

Throughput:
Approx. 1,200 tpd in Q1
Trending to 1,500 tpd

Mining Grade:
Approx. 5.0 g/t in Q1
Trending to approx. 6.5 g/t

Mercedes
2012 Opportunities
19
Increase reserves and resources via
exploration on Lupita, Diluvio, Rey de Oro
and Barrancas

Barrancas development; expected
production in late 2012

Throughput increase to 1,800 tpd

Mine operation optimization
- dilution and productivity
Mercedes
Environmental Initiatives
20
Full compliance with EIS
Detoxification and lined tailings
Flora and fauna rescue
Archaeological survey
Greenhouse construction
Monitoring protocols in place
Water
Tailings facility
Local wildlife
Mercedes
Safety Initiatives - YMS
21

Safety training
D.S.D (Daily Safety Dialogue)
PEACE Risk analysis
R.O.S
Inspections
Approaches
SHEC Committee



Certifications in Progress:

OHSAS 18.001 Certification December 2012

ISO 14001 Certification December 2012

C.I.C December 2012
Mercedes
Corporate Responsibility
22

Scholarships - Cucurpe

Support to local schools and clinic

Partnership Association
- financial support for social projects to
promote jobs and income generation,
education, culture and social welfare

Integration with community
Open Doors Program

Infrastructure projects


Visitors Guide for Safety
Remain with the guided group during the site visit
Observe our safety signs in all areas
Take care when walking up and down stairs, please use the hand rails
Keep a safe distance away from operating equipment
Personal Protection Equipment is required in all areas:
- Hi-visibility vest
- Hard hat
- Safety glasses
- Safety boots
- Ear plugs (for grinding area and near mine equipment)
- Respirator and self rescuer (for mine)
23
Safety is a top priority
24
Thank You!
Sponsor: Gerardo Fernandez
Operation Director Mexico