Taxes Taxes And More Taxes

At first I thought this was funny....Then I realized the awful truth of it.

Be sure to read all the way to the end!

Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his work,
Tax his pay,
He works for peanuts
Anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

When he's gone,
Do not relax,
It's time to apply
The inheritance tax.

Accounts Receivable Tax
Airline surcharge tax
Airline Fuel Tax
Airport Maintenance Tax
Building Permit Tax
Cigarette Tax
Corporate Income Tax
Death Tax
Dog License Tax
Driving Permit Tax
Environmental Tax (Fee)
Excise Taxes
Federal Income Tax
Federal Unemployment (UI)
Fishing License Tax
Food License Tax
Gasoline Tax (too much per litre)
Gross Receipts Tax
Health Tax
Hunting License Tax
Hydro Tax
Inheritance Tax
Interest Tax
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Mortgage Tax
Personal Income Tax
Property Tax
Poverty Tax
Prescription Drug Tax
Provincial Income and sales tax
Real Estate Tax
Recreational Vehicle Tax
Retail Sales Tax
Service Charge Tax
School Tax
Telephone Federal Tax
Telephone Federal, Provincial and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Water Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
--- and in 2010 the HST

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago, & our nation was one of the most prosperous in the world. We had absolutely no national debt, had a large middle class, and Mom stayed home to raise the kids.

What in "Hell" happened? Can you spell 'politicians?'

Pescod Talks about...

ENTERRA ENERGY

(T-ENT.UN)

$2.94 -0.01

BELLATRIX EXPL.

(T-BXE)

$3.79 -0.05

STERLING RESOURCES

(V-SLG)

$1.94 -0.06

We love asking the question to some of our favourite ana-

lysts, market commentators and the like, “If you could buy

only one stock today, what would it be?”

Well needless to say, commodity prices change on a daily

basis, companies discover new assets (or lose new assets),

countries change the rules and you name it. It’s an ongoing

flux of parameters to decide what your favourite pick might

be.

It gets a little easier though when you ask a person what

your top three might be and one of the hottest stock pickers

in the oil and gas sector over the last while, has been Kevin

Shaw of Wellington West. Shaw has been the one who first

came up with the importance of the Cardium plays in Al-

berta. It seems every time he mentions something, you had

to own...you had to own it.

For those who were brave enough a year ago, and

stepped into the market in the natural resource sector, you

have been amply rewarded...Now though, things are little

closer to whatever normal is. So it’s going to be much

tougher to get some of the returns that those brave folks

achieved a year ago.

It’s over to Kevin Shaw, as we ask him to bring us up-to-

date on what his three favourite picks are:

“In the domestic space ENTERRA Energy (soon to be

rebranded as “Equal Energy” upon conversion to a corpora-

tion) is an extremely cheap emerging midcap (i.e. ~10,000

boepd) with 55% oil + liquids weighting, a new team at the

helm, and 500+ development locations (95% horizontal)

across multiple resource plays….they are currently focusing

on their oil plays.

Near-term catalysts are focused on “Cardium” & early

stage emerging “Circus Viola” oil play. Currently testing 1st

Circus hztl & drilling 2nd hztl. Two Cardium hztls to spud in

late March; 79 hztls on these two oil plays alone.

Hztl tests to kick-off at Dina PPP oil pool. ENT plans to

drill two horizontal wells in light ~26 mmbbl OOIP PPP pool

post 2010 break-up; sets up potential 16+ well develop. @

~70% WI.

Reactivating liquids-rich Hunton resource play a focus in

2010. From a “Bluesky” perspective, ENT could quadruple

booked 2P reserves based on full development of

300+ hztl locations at Hunton; Up to 12-well program ex-

pected to start in Q2/10.”

BELLATRIX and STERLING are also still great buys for

both the short-term & long-term (i.e. great value plays)…but

you guys know the story on these ones already.

CGX ENERGY

TAG OIL

We’ve mentioned over the last couple of days, some of

the high risk/high reward plays that Josef Schachter has

on his radar screen as far as companies that should they

hit on one of the high impact plays, could see their stock

trade dramatically higher...if they do hit.

On our own list of high risk/high reward plays or our

high impact list, there are two that Schachter doesn’t fol-

low.

CGX Energy is one that we’ve been following ever since

a border dispute between Suriname and Guyana exploded.

Those problems have now been resolved and later this

year, little CGX Energy will be drilling the first of many

targets. The suggestion by many is that they have 11 tar-

gets bigger than 100 million barrels with two that could

close in on a billion barrels. Sometime soon, little CGX

has to get a financing done which means they will be up to

200 million shares outstanding, which means sooner or

later, they better hit on one of the big guys.

Our second nominee is Tag Oil, for the simple reason

Clive Stockdale was the guy who came up with Ultra Pe-

troleum, a story which became a 100-bagger. If he thinks

Tag Oil is going to be one of the exploration plays of the

year—so do we! President Kerry Sully is on an IR trip to

Europe that last few days and it looks like it is attracting

investor interest.

PANWESTERN ENERGY

(V-PW)

More and more people are finding a good formula in the

oil and gas patch is to find an experienced oil team and

simply follow it. Sometimes they will go through a couple

of companies in a career, but there’s an awful lot of people

following Abby Badwi as he has put together with Doug

Urch, one heck of a team at Bankers Petroleum.

It’s become a huge success and before that, they had

another success with heavy oil in Egypt. The question is,

is Abby going to retire some day and count his money? Or,

is he going to stay in a business that he’s becoming so

successful at?

The suggestion by some is that sometime in the next

year, Bankers gets sold and Abby’s going somewhere else.

So it was interesting to see the pop in PanWestern Energy in

the last couple of days when it was announced that Abby

had joined their board.

When we finally get a hold of Abby, he e-mails us this

answer as to what his plans are. He simply responds:

“PanWestern is the new vehicle of a proven management

team led by Jim McFarland of Verenex. They will be going

international. Put it on your radar screen.”

You Got Nice House

Hung Chow calls into work and says,

'Hey, I no come work today, I really sick . Got headache, stomach ache and legs hurt, I no come work.'

The boss says, 'You know something, Hung Chow?

I really need you today. When I feel sick like you do, I go to my
wife and tell her to give me Sex.

That Makes everything better and I go to work.. You try that.'

Two hours later Hung Chow calls again.

'I do what You say and I feel Great. I be at work soon.........
You got nice house :-)

Pescod Talks DEE and QEC and More

Gold: Still The Answer To Slowing Stimulus By Governments

Yamana Gold (TSE:YRI), Barrick Gold Corp. (TSE:ABX), Goldcorp (TSE:G) All Down

Yamana Gold, Barrick Gold Corp., Goldcorp

Yamana Gold (TSE:YRI), Barrick Gold Corp. (TSE:ABX), Goldcorp (TSE:G) were all down today as they helped lead a pullback in gold prices after nice gains earlier in the session for gold futures.

Some believe this is over the concerns that governments are removing stimulus measures which have been helping artificially prop up the markets.

As far as gold goes, this really doesn't have much if any effect on gold mining companies, but it's part of the pychology of investing, as we all know.

Yamana Gold, Barrick Gold Corp., Goldcorp

Petrolifera Petroleum Limited Updates Status of La Pinta 1X Testing Program

Petrolifera Petroleum Limited Updates Status of La Pinta 1X Testing Program

CALGARY, Feb. 22 /CNW/ - Petrolifera Petroleum Limited (PDP-TSX) announced today that upon opening the La Pinta 1X well to flow on test on February 18, 2010, following the installation of two inch screens to impede the influx of sand from the upper 25 foot interval of the Cienaga de Oro ("CDO") crude-oil bearing formation being tested in the well, the well ceased to flow after approximately three hours of flow, likely again due to sanding issues. Subsequent static gradient analysis indicated that the upper portion of the fluid influx into the tubing was hydrocarbons, with the balance likely mud or some combination thereof.

In order to attempt to secure a definitive test of the crude oil-bearing CDO, the company's management and advisors have reexamined and assessed the various available alternatives. These primarily included another more complex operation to re-test the CDO, or the drilling of a sidetrack to again penetrate and then test the full CDO interval which was indicated to be hydrocarbon-bearing and yielded light gravity crude oil on test. Drilling a sidetrack would also have afforded the company with the prospective ability to preplan the availability of enhanced sand control techniques, as a result of key learnings from efforts to date to secure a longer-term test the CDO formation in the La Pinta 1X well. Having regard to economic and financial factors, the perceived technical risk and assessment of the overall chance of success of these two choices, it was concluded that neither of these two alternatives were viable at this time.

Accordingly, a decision has been made to set a cement plug above the CDO and then to move uphole to test a zone in the Upper Porquero Formation. This zone was determined to be prospective based on log analysis and shows of crude oil and natural gas during the drilling of the well. If the Upper Porquero test is successful, efforts will be made to complete the well to evaluate its commercial potential. It should be noted under these circumstances that a new well bore would be needed to evaluate the deeper CDO. Alternatively, if testing of the Upper Porquero disappoints, we could still consider a sidetrack to penetrate and test the full CDO at a later date.

These procedures will be initiated as quickly as possible, using the snubbing unit still available and on location at the La Pinta 1X well.

While the company's management is disappointed that more meaningful data about the CDO could not be secured at this time, its potential has been established and may be further evaluated and confirmed at a later date with lower risk. In the interim, testing of the Upper Porquero is considered to be technically and financially prudent at this time.

Petrolifera Petroleum Limited is a Calgary-based crude oil, natural gas and natural gas liquids exploration, development and production company active in Argentina, Colombia and Peru in South America. It is currently drilling the Brillante SE 1X well on the Sierra Nevada License in the Lower Magdalena Basin onshore Colombia. Petrolifera's shares and share purchase warrants are listed for trading on the Toronto Stock Exchange under the symbol PDP and PDP.WT, respectively.

Forward Looking Information:

This press release contains forward looking information including, but not limited to, the company's remediation efforts and planned testing and possible completion of the Upper Porquero formation of the La Pinta 1X well in Colombia and additional procedures available to assess the CDO formation. Forward looking information is not based on historical facts but rather on Management's expectations regarding the company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities and expectations with respect to general economic conditions. Such forward looking information reflects Management's current beliefs and assumptions and is based on information currently available to Management. Forward looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, unavailability of or delays in receipt of required equipment, delays or changes to plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty associated with geological interpretations; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environment risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and the risk associated with international activity. There can be no assurance that planned remediation efforts and subsequent testing of Porquero formation in the La Pinta 1X well drilled on the Sierra Nevada I License will yield commercial results. Hydrocarbon shows and results of logs do not confirm the presence of commercial hydrocarbons. Additional risks and uncertainties associated with Petrolifera's future plans are described in Petrolifera's Annual Information Form for the year ended December 31, 2008. Although the forward looking information contained herein is based upon assumptions which Management believes to be reasonable, the company cannot assure investors that actual results will be consistent with this forward looking information. This forward looking information is made as of the date hereof and the company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the company's securities should not place undue reliance on this forward looking information.

For further information: Richard A. Gusella, Executive Chairman, (403) 538-6201; Or Gary D. Wine, President and Chief Operating Officer, (403) 539-8450; Or Kristen J. Bibby, Vice President, Finance and Chief Financial Officer, (403) 539-8450, inquiries@petrolifera.ca, www.petrolifera.ca

Soros Buys Gold

Mr Soros – a legend in investing circles for his $10bn (£6.37bn) bet against the pound in 1992 which forced sterling out of the European exchange rate mechanism – increased his stake in the SPDR Gold Trust in the last quarter of 2009.

Regulatory filings show that his $8.8bn investment vehicle, Soros Fund Management, raised its stake in exchange-traded fund SPDR by 3.7m shares to 6.2m shares in the three months ending December 31, 2009.

The new shares were bought at a price of $421m, taking his total holding in the fund to $663m at the end of December.

In addition, Mr Soros's investment vehicle owns 11,000 call options that will permit it to buy an extra 1.1m shares should gold prices move higher.

Soros Fund Management also increased its stake in Canadian-based gold producer Yamana Gold, buying 60,880 shares to take its total position to 85,880 shares, worth $973,314 at the end of December.

However, the actions of the Mr Soros's investment fund however seem to be at odds with his own viewpoint. During the World Economic Forum in Davos in late January, Mr Soros said: "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

Gold hit a new high of just over $1,225 an ounce in December, having rise 40pc in the prior 12 months, and touched an all-time high in euros of €818 an ounce earlier this week. On Wednesday, gold was trading in New York at $1,115.55 an ounce, having hit a one-month high of $1,126.85 earlier in the day.

Mr Soros is not alone in increasing his stake in the SPDR, with new filings also showing that China Investment Corporation (CIC), Beijing's main overseas investment fund, taking a 0.4pc stake in the fund worth $155.6m.

CIC's investment is equivalent to just 0.4pc of the 33.9m ounces of gold maintained by the Chinese government, but is part of a growing trend of major funds investing in the metal.

The World Gold Council said on Wednesday that pension funds began actively investing in gold last year, viewing the metal as a long-term safe haven.

Aram Shishmanian, the council's chief executive, told Reuters that although the organisation does not forecast prices, he believes the gold market will be "robust' in 2010 in spite of an 11pc global drop in demand last year because of weaker industrial output.

PDP Runs Up 22% On This News...

Petrolifera Petroleum Limited provides update on Colombian Operations

CALGARY, Feb. 17 /CNW/ - Petrolifera Petroleum Limited (PDP - TSX) announced today that it has made significant progress in the remediation program at the La Pinta 1X well on its Sierra Nevada License in the Lower Magdalena Basin, onshore Colombia.

The snubbing unit arrived on location from the United States in late January 2010 and we are now in the seventeenth day of operations. The program has resulted in the successful removal of the blockage in the tubing string in the wellbore and screens have been run to restrict the intrusion of sand during planned testing procedures. A wellhead and test lines are being made up and testing is anticipated to commence in the near term. Of consequence, costs to date are well below budget and if immediate testing of the Cienaga de Oro ("CDO") Formation proves successful, we anticipate a substantial savings relative to our original budget. We will report on results once we have definitive and reliable information.

We are also pleased to report that we spudded the Brillante SE 1X exploratory well, also on the Sierra Nevada License, at 11:00 hours on Tuesday, February 16, 2010. The projected total depth of the well is 9,500 feet and the well is considered prospective for natural gas and natural gas liquids.

Petrolifera owns a 100 percent interest in these projects.

The company also wishes to advise that Mr. Gary Wine, President and Chief Operating Officer and Mr. Kristen Bibby, Vice President Finance and Chief Financial Officer, will be participating in the RBC Capital Markets' "2010 South American Energy Symposium" to be held in Toronto, Ontario, Canada on Thursday, February 18, 2010. Subsequently, they have a series of meetings planned with various institutional investors in the U.S.A. In conjunction with participation in the Symposium and the scheduled meetings, the company has posted an amended Investor Presentation on its website at www.petrolifera.ca under the Investor Information tab.

Petrolifera Petroleum Limited is a Calgary-based crude oil, natural gas liquids and natural gas exploration, development and production company active in Argentina, Colombia and Peru in South America. Its shares and share purchase warrants are listed for trading on the Toronto Stock Exchange under the symbol PDP and PDP.WT, respectively.

Forward Looking Information

This press release contains forward looking information including, but not limited to, the company's remediation efforts and testing of the La Pinta 1X well in Colombia and the timing and costs associated therewith and the anticipated results from the Brillante SE 1X exploration well, also in Colombia. Forward looking information is not based on historical facts but rather on Management's expectations regarding the company's future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities and expectations with respect to general economic conditions. Such forward looking information reflects Management's current beliefs and assumptions and is based on information currently available to Management. Forward looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking information, including but not limited to, risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production, unavailability of or delays in receipt of required equipment, delays or changes to plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses and health, safety and environment risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and third parties located in foreign jurisdictions and the risk associated with international activity. There can be no assurance that planned remediation efforts and subsequent testing of the La Pinta 1X well drilled on the Sierra Nevada I License will yield commercial results. Hydrocarbon shows and results of logs do not confirm the presence of commercial hydrocarbons. Additional risks and uncertainties associated with Petrolifera's future plans are described in Petrolifera's Annual Information Form for the year ended December 31, 2008. Although the forward looking information contained herein is based upon assumptions which Management believes to be reasonable, the company cannot assure investors that actual results will be consistent with this forward looking information. This forward looking information is made as of the date hereof and the company assumes no obligation to update or revise this information to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the company's securities should not place undue reliance on this forward looking information.

For further information: Petrolifera Petroleum Limited, R. A. Gusella, Executive Chairman, (403) 538-6201; Or Gary D. Wine, President and Chief Operating Officer, (403) 539-8450; Or Kristen J. Bibby, Vice President Finance and Chief Financial Officer, (403) 539-8450, Inquiries@petrolifera.ca, www.petrolifera.ca

TSX Up 6th Day

The Toronto Stock Exchange clinched its sixth straight day of gains on Wednesday, the longest run in about seven months, as a slew of earnings from both Canada and the United States came in better than expected.

The S&P/TSX composite index closed up 49.11 points, or 0.42 per cent, to 11,635.49, with financials leading the way.

It marks the longest winning streak on the TSX since it went six days with gains from July 13-20.

The TSX Venture composite was down 1.42 points, or 0.09 per cent, to 1,518.72, marking its first loss in eight days.

Gains on the main TSX were reduced from earlier on Wednesday when it charged ahead by more than 100 points in morning trading.

Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, attributed the reduced rise to profit-taking, given Bay Street's extended streak as of late.

"We've had a pretty good lift in most of these share prices, so I think people are just sort of taking a 'bird in the hand is worth two in the bush' mentality," he said. "We had a bit of a lift up and they're taking some profits."

Nakamoto said there's still uncertainty surrounding the overall strength of the economic recovery globally, as well as the government debt situation in Greece and other European countries.

However, he noted that corporate earnings, for the most part, are coming in strong.

Rogers Communications Inc. beat expectations with its quarterly earnings on Wednesday, as did Loblaw Cos. Ltd. and WestJet Airlines Ltd., even though the latter two recorded significant dips in profit compared to a year earlier. At the end of the day, Rogers' stock had lost 4.58 per cent, while Loblaw was up 2.93 per cent and WestJet was ahead 1.23 per cent.

In the U.S., better-than-expected results came from Deere & Co., the maker of John Deere tractors, among other things. Its stock was up 5.02 per cent in New York.

Also on Wednesday, Statistics Canada said wholesale transactions were up 0.7 per cent to $42.8 billion in December.

And the latest data from the Canadian Real Estate Association showed housing resales down 2.8 per cent on a seasonally adjusted basis in January from December, but up 58 per cent on an unadjusted basis from January 2009. The average home price was $328,537, up 19.6 per cent from a year earlier.

On the commodities market, crude oil was up 32 cents to $77.33 U.S. a barrel, while gold rose 30 cents to $1,120.10 U.S. an ounce.

The Canadian dollar was down 15 basis points to 95.68 cents U.S..

On U.S. markets, the Dow Jones industrial average was up 40.43 points, or 0.39 per cent, to 10,309.24. The Nasdaq composite index rose 12.1 points, or 0.55 per cent, to 2,226.29.

Data for housing starts and industrial production in the U.S. in January came in better than expected Wednesday.

© Copyright (c) Canwest News Service

Yamana one investor is calling for later-term downside in the stock by buying out-of-the-money puts

Yamana Gold (NYSE: AUY) shares closed up 20 cents, or 2%, to $10.85, but at least one investor is calling for later-term downside in the stock by buying out-of-the-money puts.

More than 5,000 July 7.5 puts hit the tape so far today versus current open interest of 1,178 contracts, indicating investors traded these options to open. The majority of these options crossed at the ask price of 25 cents per contract, suggesting investors expect the stock to drop at least 33% throughout the next five months. These options have an implied volatility of 54%, compared to a 30-day historical volatility of 48%. The July 7.5 puts have dropped six cents on the day, with a 10-delta.

By opening a free virtual trading account with OptionsHouse, you can build a profit/loss diagram to help visualize this trade.

Investors could make profits of up to $7.25 if AUY shares close lower than $7.25 (the breakeven price) at July options expiration. But keep in mind that investors could sell these puts if the stock drops significantly throughout the next month and take profits instead of holding the options until they expire.

AUY shares reached a 52-week high of $14.07 on Dec. 2, but the stock has since sold off roughly 22%. AUY is scheduled to announce earnings on March 3 after the market closes (analysts expect earnings of 17 cents a share). At least one investor is betting that the stock could drop after the earnings announcement and bought puts today to protect against a potential slide.

For additional commentary on AUY:

Moderate bullishness in Yamana Gold (NYSE: AUY)

Market loses rally, sparks bearishness in Zion, Yamana

A cute little story for Valentines

The gonads of a Newfoundland dwarf hurt and ached almost all the time.

The dwarf went to the doctor and told him about his problem..

The doctor told him to drop his pants and he would have a look.

The dwarf dropped his pants. The doctor stood him up onto the

examining table, and started to examine him.

The doctor put one finger under his left gonad and told the dwarf to turn his head and cough, the usual method to check for a hernia.

"Aha!" mumbled the doctor, and as he put his finger under the right gonad, he asked the midget to cough again.

"Aha!" said the doctor once more, and reached for his surgical scissors.

Snip-snip-snip-snip on the right side..........then snip-snip-snip-snip on the left side.

The dwarf was so scared he was afraid to look, but noted with

amazement that the snipping did not hurt.

The doctor then told the midget to walk around the examining room to see if his gonads still hurt. The dwarf was absolutely delighted as he walked around and discovered his boys were no longer aching.

The doctor said," How does that feel now?"

The dwarf replied, "Perfect Doc, and I didn't even feel it.

What did you do?

The doctor replied "I cut two inches off the top of your rubber boots."

Dot-com crash losers become winners again

February 14, 2010

David Olive

PETER BAXTER/SHUTTERSTOCK

A decade ago next month, the so-called dot-com mania crested, soon followed by a widespread collapse across the entire high-tech sector. When the panic selling was over, some $8 trillion (U.S.) in stock-market value had been wiped out. Hundreds of tech start-ups disappeared.

Many of the biggest firms in the vanguard of the Internet revolution never recovered. These include telecom equipment makers Nortel Networks, Lucent Technologies and Global Crossing, and telecom provider WorldCom, the world's second-largest telecom company when it collapsed in an epic accounting scandal in 2002. And Sun Microsystems, which bragged of having put "the dot in dot-com," was merged out of existence last month with its bargain-priced acquisition by Oracle.

At the height of the Internet-driven investor euphoria, stratospheric market valuations were based not on profits, which were non-existent (indeed, so were revenues in many cases) but on new "metrics" like spiralling growth in Internet page views. "The ability to monetize shareholder ignorance has probably never been exceeded," Warren Buffett warned at the time.

After the dot-com bust and even more devastating "tech wreck" – a 38 per cent collapse in the Dow Jones industrial average by 2002, the worst stock-market drop since the Crash of 1929 – the tech sector understandably became an investor no-go zone.

Yet, discriminating tech investors who kept the faith have profited mightily from five undeniable winners of the Internet revolution:

• Cisco Systems Inc., the San Jose, Calif., firm whose best-in-class routers are the Internet's "traffic cops." Shares have doubled from a post-crash nadir of $12 in 2001.
• Google Inc., the top search engine, whose stock has quintupled since going public in 2004.
• Amazon.com Inc., the dominant online retailer, whose stock is up 1,530 per cent from its post-crash low of $7.20.
• Apple Inc., given up for dead in the 1990s when its market share in computer operating systems slipped to about 3 per cent, its stock is up 2,873 per cent since 2003 on the strength of the iPod and iPhone.
• Research In Motion Ltd. RIM), the Waterloo-based BlackBerry inventor whose stock cratered in 2000, losing 94 per cent of its peak 2000 value, only to surge 2,982 per cent since bottoming out in 2002.

These firms not only survived, but thrived.

What do they have in common?

Business smarts

• RIM's co-founders, Jim Balsillie and Mike Lazaridis, kept their eye on the business, not RIM's heady stock price, during the tech mania, to the point of requiring any employee caught mentioning the stock price to buy doughnuts for the entire staff. RIM focused on building the most secure email network, making itself indispensable to its base of corporate and government users.
• Cisco became the most M&A-savvy tech firm in history, growing rapidly from successful acquisitions in a field notorious for failed takeovers.
• Nortel, by contrast, wrote off most of the $34 billion worth of takeovers it made between 1997 and 2000.
• Amazon, like Cisco and RIM, accumulated an immense war chest of spare cash, raised in the stock market at the height of the euphoria, and carefully husbanded its cash "burn" as it grew an enterprise that consistently lost money until it refined its unproven business model to the point where last year, in the midst of a consumer recession with few equals in modern history, it turned a profit of $900 million.

Evangelical leadership

• Apple's Steve Jobs effortlessly evolved from a high priest of personal computing to a cocky champion of music and communications gadgetry.
• Cisco's John Chambers made the rounds of Fortune 500 CEOs, warning of the perils awaiting anyone foolish enough not to embrace the Internet in everything from marketing to inventory control to internal communications networks.
• RIM's Balsillie, the business half of the co-CEO-ship he shares with techie Lazaridis, got in the face of financiers, industrialists, politicians, surgeons and others for whom secure, instant communication with colleagues was, by his description, essential and possible only with a BlackBerry.

Game-changing

• Jobs, only 54, has been a prime mover in revolutionizing personal computing, animated motion pictures, the music industry and mobile communications.
• Founder and CEO Jeff Bezos has proved with Amazon that almost anything can be sold online, turning his electronic bookstore into an Internet general store, and changing consumer behaviour not only by persuading Amazon's 88 million customers to buy apparel and giftware sight unseen, but to research prosaic purchases like cleaning agents the way they do cars and houses.
• Google eclipsed an incumbent, subscriber-based America Online by making search free, deriving its prodigious revenues from advertising.

Market knowledge

An obvious requirement, one would think. Yet once-dominant firms as varied as Eastman Kodak Co., Gap Inc. and Starbucks Corp. – to say nothing of the Detroit Three – have managed to let themselves decline in customer relevance.

• Both Cisco and RIM sell to corporate customers, RIM having expanded into the consumer market only in recent years. That makes these firms acutely sensitive to the requirements of telcos such as Verizon Communications and Bell Canada, which use or distribute their products and demand the highest standards of reliability.
• Amazon exploits the global "town square" nature of the Internet to create at least 50 new community applications each year, from discussion boards and chat rooms to the world's largest inventory of consumer-written reviews – making itself not only an exceptionally customer-friendly vendor but a favoured online hangout for Sarah Vaughan and John Irving fans.

Buffett was right, of course. All movements go too far, and the undeniable promise of the Internet turned into an unsustainable gold rush.

Neither was it enough to be an evangelist for the Internet and one's role in it, or Scott McNeely's Sun Microsystems would have emerged a winner rather than a casualty of the online revolution. As in previous industrial upheavals, business fundamentals – adequate funding, relentless new product development, unflagging attention to shifts in customer demands – ultimately won out.

Sun's last CEO, Jonathan Schwartz, summed it up in a farewell haiku that alluded to the path-breaking company's failure in the last decade to keep ahead of changes in computing demands:

"Financial crisis
Stalled too many customers
CEO no more."

Dee Rockets Up - Reserve Increases

Feb 10, 2010 19:59 ET

Delphi Energy Reports Significant Growth in Reserves

CALGARY, ALBERTA--(Marketwire - Feb. 10, 2010) - Delphi Energy Corp. ("Delphi" or the "Company") (TSX:DEE) is pleased to report its crude oil and natural gas reserves information for the year ended December 31, 2009.

Highlights

- Achieved finding, development and acquisition costs ("FD&A") of $12.06 per barrel of oil equivalent ("boe") for total proved reserves and $9.21 per boe for total proved plus probable reserves. The FD&A costs over the past three years averaged $18.20 per boe for total proved and $15.42 per boe for total proved plus probable.

- Increased total proved reserves by 19 percent to 18.0 million boe and total proved plus probable reserves by 24 percent to 27.4 million boe.

- Improved recycle ratio to 2.6 in 2009 compared to 1.6 in 2008.

- Increased proved plus probable reserve life index ("RLI") to 11.0 years in 2009 compared to 9.5 years in 2008.

- Increased before tax net present value across all reserve categories despite a significant reduction in forecasted natural gas prices.

- Increased net undeveloped land to 172,200 acres; a 37 percent increase over 2008 and a 92 percent increase over 2007.

Risk has greatly increased this week. There are two reasons.

First, the Euro-bomb could explode anytime.

Second, the U.S. government dropped a bomb in telling us that the employment losses during the current recession are far worse than people had believed.

Canada fared much better with a strong +43,000 jobs growth. The unemployment rate dropped from 8.5% to 8.3%. The key issue for Canada is the fallout effect from a continued weak U.S. economy.

The Euro Bomb

The EU is in a lose-lose situation. If they rescue Greece, then other countries will have their hands out like Spain, Portugal, and Ireland. There could be others too. I doubt the main players (Germany and France) will have the stomach to bailout so many countries. The fundamental problem is that it is very difficult (near impossible) to have a currency union without a political union. While Euroland rules were established (size of deficit, government debt), they were (and are) routinely violated and there is no way to enforce - because of the lack of political union.

You create moral hazard problems. Countries will borrow and spend with the expectation that the system will bail them out. Sound familiar? If the large countries even marginally violate the rules (size of deficit, debt), then this energizes the smaller countries to brazenly violate the rules of the game.

If the EU does nothing, then the Euro will likely fall apart (or at least lose some member countries)

The real question is how deep Germany and France will want to reach into their pockets to keep the Euro going.

The Jobs Bomb

U.S. unemployment dropped by 0.3% to 9.7%. Good news, right?

At the same time, the data were "revised"

We now know that at least 8.4 million jobs have been lost in this recession. Just last month, we thought it was 7.2 million. With the stroke of the Bureau of Labor Statistics' pen, 1.2 million jobs vanished. Poof.

Let put this in perspective. The drawdown in people employed (non-farm payrolls) in this recession has been -6.11% (from December 2007, the month of the economic peak to today). In the 2001 recession, the drawdown was -1.21% (peak to trough). The 1990-1991 recession was only -1.13%. 1981 was more serious with a -3.08% drawdown. The recession of 1980 was only -1.07%.

Think of it this way. If we add up the employment losses over the past four recessions combined together, it sums to a -6.49% drawdown. We are dangerously close (-6.11%) to having this recession being as bad (in terms of jobs) as the previous four recessions!

Was there any good news?

Yes.

While the Establishment Survey suggested that nonfarm payrolls fell by 20,000, the unemployment rate is based on a different survey.

The Household Survey suggested fewer people were unemployed. That's why the rate dropped. To be clear, the civilian labor force increased from 153.059 million to 153.170 million (denominator) and the unemployed decreased from 15.267 million to 14.837 million (numerator). Dividing the two numbers produces 9.687% unemployment.

There were many other small pieces of good news including: (i) greater participation rate (people re-entering labor force rose from 64.6 to 64.7); (ii) small increases in number of hours worked and average wage; and (iii) increase in temporary employment (which is usually a leading indicator of permanent employment growth).

The biggest good news is the trend. The employment situation is stabilizing.

My fears

• Usually, temp jobs are a leading indicator of growth in permanent jobs. This time might be different. Given the longer-term economic uncertainty, companies are satisfied rolling through temporary employees.
• We might see increased CAPEX without much employment growth. Companies are in the process of replacing and/or refurbishing their depleted capital equipment. Such expenditures may lead to labor savings. As such, it is unrealistic to think of hiring back all the laid off workers.
• The long duration of unemployment will lead to workers' skills becoming stale. While companies have lots of job applicants, they might have fewer qualified applicants because of depreciated skills.
• There will not be enough growth to get us into the +300,000 monthly range for non-farm payrolls additions (we need +100,000 per month simply for population growth and 300,000 to get back all the current recession jobs lost in three years). This means that unemployment rate will be stuck at a very high level for a very long time.
• The continuing credit squeeze on small and medium sized business will defeat the recovery. Most of jobs are created by small and medium sized businesses and these firms are still severely constrained in getting credit.
• There is great economic uncertainty as a result of the extreme leverage in the U.S. economy. Corporations have reduced their leverage. Consumers have made considerable progress in increasing their savings. However, that is all offset by an exploding government debt. We are approximately at a situation where total (consumer, corporate and government) debt is 350% GDP. In the 1990s, it was about 250%. In the 1980s, 175%. In the 1950s, 60s and 70s about 150%. The previous peak was about 300% in 1933. Such a dark cloud on the horizon magnifies risk. Add to this the fear of increased taxes. Higher risk means less investment, slower employment growth, and upside prospects for the U.S. economy.

Pescod talks To ...

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Yamana Gold Target 14.50 Buy Low To Sell Much Higher Later

Oil, commodities approach bubble?

Thursday, February 04, 2010

Christopher Johnson

London — Ultra low interest rates are bringing a wave of speculation to commodities, inflating a bubble that will inevitably burst some markets, the head of a London-based fund management company said Thursday.

Jonathan Compton, managing director of long-only equity investment group Bedlam Asset Management, which has around $620-million (U.S.) assets under management, said oil, copper and some other commodities were vulnerable to sharp corrections.

Disappointed by losses in stock markets and bonds during the recession, investors had turned to commodities in the hope of better returns, many borrowing at very low interest rates.

“You will see a fantastic unwinding of the speculative longs the moment rates move up,” Mr. Compton told Reuters in an interview. “Commodities most vulnerable will be the ones that are most widely held: copper and oil ... and some very funny financials.”

Pension funds and money managers have tripled their holdings in commodities markets since 2007, industry data show, with $250-billion to $300-billion now invested by passive long-only funds.

Hedge funds and other actively managed units also hold huge stakes in commodities and together buy-side investors control as much as half of the open interest in some commodity markets.

This has made some commodities, inflated by speculative, short-term capital, vulnerable, some analysts say.

Mr. Compton is particularly scathing of some exchange-traded products, some of which he said were “structurally odd” or administered in several countries, preventing proper oversight.

ETPs and exchange-traded funds (ETFs) are listed vehicles allowing buyers to hold securities that move up and down with a commodity or other investment. Most gold ETFs are backed by bullion and seen as almost risk free. But other ETPs are more exotic, based on futures or derivatives or are highly geared.

“The industry is probably 95 per cent clean, if not more. But you only need a couple to go off and you have a domino effect. Then you get real panic and commodities get dumped,” he said.

Mr. Compton said copper and oil could both be vulnerable to downward corrections, and the fall in copper could be serious.

“Copper stands out because it is the absolute bellwether proxy industrial metal. My concern is the very long positions in ETFs ... there is rampant speculation.

“World copper stockpiles are rising and more and more ETFs are being sold,” he said. “If a commodity price is rising along with reserves, there is clearly a mismatch. ETFs are temporarily taking supply off the market -- but it is very temporary.”

He estimated the cost of mining at “well below $3,000 a tonne” compared with current futures of over $6,500.

Bedlam holds no oil shares, having sold them in the run up to the record high near $150 per barrel seen in 2008.

“With oil, stockpiles are high, while demand is basically flat and supplies are plentiful until there is a political upset somewhere and it very widely held,” he said.

But Bedlam does like some commodities.

It owns four gold miners, all of which are in its top-20 holdings: Goldcorp , Yamana Gold , Agnico-Eagle Mines and Lihir Gold. Together, these make up 9-11 per cent of the value of the funds that can hold them.

Mr. Compton says that although western central banks have been cutting gold reserves, Asian banks will increase their holdings.

He also likes grains, cocoa and the outlook for farmland.

“With grains you have quite clearly a structural bull market for many years to come,” he said. “If you could store grains for 10 years, then you would buy them and put them away.”

©2010 CTVglobemedia Publishing Inc. All rights reserved.

Yamana Gold Target 14.50 Buy Rating Dundee Securities

Post says Yamana upgraded on higher bullion prices

2010-01-21 09:28 ET - In the News

The Financial Post reports in its Thursday edition that new and improved forecasts for gold, silver and copper will bolster upside in Yamana Gold shares over the next year, says Dundee Securities analyst Ron Stewart.

The Post's David Pett, writing in Trading Desk, says Mr. Stewart upgraded Yamana to "buy" from "neutral," raising his price target on the miner 50 cents to $14.50. "We recommend investors consider YRI as a relatively stable and liquid precious metal equity based on the current outlook," the analyst said.

The update comes in the wake of Dundee's revised metals forecast that now anticipates gold bullion to average $1,200 per ounce in 2010 versus its previous estimate of $1,065 and $1,325 per ounce in 2011, up from $1,000 (all metal prices in U.S. dollars).

Silver prices are expected to hit $20 this year and $22 in 2011, up from prior forecasts of $17.50 and $16.50, while copper price expectations increased to $3.25 per pound from $3 in 2010 and to $3 from $2.75 in 2011. Mr. Stewart also raised his recommendation on Goldcorp Inc. to "buy" from "neutral."

He said, "Given the increase in our valuation and the recent dip in the share price, we now consider [Goldcorp] to be undervalued."

Globe says Yamana, others top ranking at Sentry Select

2010-01-19 09:32 ET - In the News

See In the News (C-IMG) Iamgold Corp

The Globe and Mail reports in its Tuesday, Jan. 19, edition that Sentry Select Precious Metals Growth manager Kevin MacLean sees opportunity in Iamgold and other gold miners.

The Globe's Shirley Won writes in the Number Cruncher column that Mr. MacLean invests in companies that have what he calls a "high wealth-creation yield."

He says, "These are companies that are adding to their reserves and resources at very meaningful rates relative to the size of the company, and have a high cash-flow yield." He shies away from miners during the construction phase because of concerns about things going wrong. Mr. MacLean sees gold rallying for the next few years.

He says the gold market does not need a weak U.S. dollar to rise because the supply of gold has been declining for a decade now.

"This is a commodity, which has had a persistently declining supply, and now the central banks have backed away from selling it. We are at the lowest level of supply in at least 15 years." Top holdings in Mr. MacLean's Sentry Select Precious Metals Growth fund are Iamgold, Yamana Gold, Jaguar Mining, Allied Nevada Gold, Alamos Gold and Aurizon Mines.

AMANA GOLD PROVIDES UPDATE ON AGUA RICA AND ANNOUNCES CONSTRUCTION DECISION FOR ITS ERNESTO/PAU-A-PIQUE PROJECT

Yamana's Agua Rica has NPV of $1.2-billion (U.S.)

2010-01-26 08:56 ET - News Release

Ms. Letitia Wong reports

YAMANA GOLD PROVIDES UPDATE ON AGUA RICA AND ANNOUNCES CONSTRUCTION DECISION FOR ITS ERNESTO/PAU-A-PIQUE PROJECT

Yamana Gold Inc. has provided an update on its Agua Rica project in Argentina and a construction decision on its Ernesto/Pau-a-pique project in Brazil, based on positive feasibility study results. All amounts are expressed in U.S. dollars unless otherwise indicated.

"We have maintained our focus on consistency and reliability in operations, and we have applied that focus and approach on our development-stage projects," said Peter Marrone, Yamana's chairman and chief executive officer. "In 2009, we undertook a review of Agua Rica, and Yamana is now able to further embrace this project as a potential significant future contributor to production. Our review of Agua Rica also demonstrates that the project should provide considerable value. We are now undertaking additional optimization initiatives, providing the potential for substantial additional upside to the project. We expect significant growth from our other development-stage projects for which construction decisions have been made, which now includes Ernesto/Pau-a-pique. With our core operations, development-stage projects and exploration focus, we believe that Yamana has a unique offering of growth, sustainability and value."

Agua Rica, Argentina

Yamana has continued to advance its Agua Rica project in Argentina. Agua Rica is a large-scale copper-gold-silver-molybdenum porphyry deposit located in the mining-friendly province of Catamarca, near the producing Alumbrera mine. A feasibility study was completed in 2006 and the environmental licence was issued in 2009.

The company has completed the first of several studies evaluating certain optimization initiatives over and above the evaluation of the project based on the 2006 feasibility study, all of which are expected to have a positive impact on the project. The optimization initiatives included the following:

1. New mine plan that reduces the initial overburden results in improvements in both capital and operating costs;
2. Thickening paste disposal of tailings results in significant savings in capital, with further potential for improvements;
3. Replacement of the concentrate pipeline with trucking to an existing railway system results in capital cost improvements;
4. A review of the impact of higher metal prices on mineral reserves, which the company estimates will result in higher mineral reserves and minable tonnes of ore.

Total mineral resources as reported in Yamana's 2008 annual report are summarized as follows:

• Measured mineral resources of 64.1 million tonnes of ore, with an average copper grade of 0.49 per cent for a total of 700 million pounds of copper, and an average gold grade of 0.17 gram per tonne for a total of 361,000 ounces of gold;
• Indicated mineral resources of 248.1 million tonnes of ore with an average copper grade of 0.4 per cent for a total of 2.2 billion pounds of copper, and an average gold grade of 0.16 g/t for a total of 1.3 million ounces of gold;
• Inferred mineral resources of 651 million tonnes of ore with an average copper grade of 0.34 per cent for a total of 4.9 billion pounds of copper, and an average gold grade of 0.12 g/t for a total of 2.5 million ounces of gold.

Total mineral reserves as reported in Yamana's 2008 annual report are summarized as follows:

• Proven mineral reserves of 347.8 million tonnes of ore with an average copper grade of 0.57 per cent for a total of 4.4 billion pounds of copper, and an average gold grade of 0.25 g/t for a total of 2.8 million ounces of gold;
• Probable mineral reserves of 449.9 million tonnes of ore with an average copper grade of 0.43 per cent for a total of 4.3 billion pounds of copper, and an average gold grade of 0.21 g/t for a total of three million ounces of gold.

The foregoing mineral reserve estimate was based on a copper price of $1.10 per pound and a gold price of $425 per ounce.

Based on the higher metal prices used in the optimization review, contained metal is expected to increase by at least 5 per cent. An updated full mineral reserve estimate will be completed as part of the continued review of the project.

Based on the recently completed optimization study, Agua Rica is expected to produce approximately 12.5 million tonnes of copper-gold concentrate and 357,750 tonnes of molybdenum concentrate over a 26.5-year mine life.

                                              Initial 10 years       Life of mine  Average annual copper production            365 million pounds 282 million pounds Byproduct cash costs per pound (net of molybdenum credits)                                   $0.50              $0.53 Average annual gold-equivalent production (1)      154,000 GEO        136,000 GEO Co-product cash costs (1) per gold-equivalent  ounce (GEO) (2)                                           $370               $400  Notes: (1) Yamana treats silver as a gold equivalent.        (2) Excluding royalties.  

Byproduct cash costs per pound of copper net of all byproduct credits, including gold and silver, are estimated to be approximately 30 cents, which makes Agua Rica one of the lowest-cost copper-gold projects in the world.

As part of the new analysis, Yamana has also evaluated the capital expenditures assumed in the 2006 feasibility study and has concluded a reasonable estimate would be comparable with approximately $2.1-billion. Higher consumable costs and capital costs assumed in the update were mitigated by improvements in the assumed foreign exchange rates.

The new financial and economic model used by Yamana for its new base-case analysis has assumed a copper price of $2.25 per pound and a gold price of $950 per ounce. On this basis, the assumed net present value would exceed $1.2-billion (based on a 7.5-per-cent discount rate), and the after-tax internal rate of return would be approximately 15 per cent. Higher price assumptions of $3.25 per pound of copper and $1,050 per ounce of gold would increase the net present value by approximately $500-million, and the after-tax internal rate of return would be approximately 24 per cent. Yamana continues to evaluate the merits of a partnership to derive value from Agua Rica. The value derived will be dependent on metal markets and general economic conditions.

This study now creates the new base case for the project. Yamana has concluded that this is an exceptional stand-alone project offering significant value, and currently has further optimization upside options being evaluated. They include:

1. Improving the pit slopes to further optimize mine development and reduce waste removal;
2. Optimizing the location of separate tunnels for ore and waste, which could result in savings in both capital and operating costs, in addition to providing additional flexibility to the operations;
3. Reduction in power and equipment requirements, particularly with the replacement of tailings filtration;
4. Optimizing the grinding requirements, which results in increasing plant treatment capacity without additional investment in equipment;
5. Recovery of the rare metal rhenium, which was not originally assumed in the 2006 feasibility study update. Initial metallurgical testing of Agua Rica's molybdenum concentrate suggests that the deposit may contain a significant amount of rhenium, which could provide significant byproduct credits. Demand for rhenium has grown significantly, and the price has increased substantially in the last few years and appears to have sustainable industrial applications. Yamana is advancing further drilling and metallurgical testing relating to the economic recovery of the metal. The possibility of achieving rhenium byproduct credits may significantly add to the economics and potential of the project.

A full update to the 2006 feasibility study, which would include the recently completed optimization initiatives, the additional initiatives under review, and definitive mineral reserve and production estimates, will be provided as Yamana continues to work toward a formal construction decision expected before the end of 2011.

"The approach we have taken on evaluating Agua Rica is similar to Chapada in 2003," said Ludovico Costa, Yamana's president and chief operating officer. "In this project, a previous feasibility study done in 1998 was re-evaluated for improvements and new metal prices assumed, which resulted in a positive feasibility study that has been upheld by subsequent results. We are pleased to have completed this first round of optimization initiatives at Agua Rica, which confirm the exceptional value of the project and identified several initiatives that may add further value to the project. We believe that Agua Rica is a remarkable project offering robust returns and further value enhancement."

Ernesto/Pau-a-pique, Brazil

Yamana has made a formal decision for the construction of the Ernesto/Pau-a-pique project. The construction decision is based on positive feasibility study results and an expected upgrade in mineral resources as a result of deeper drilling of the orebody. The project has an initial mine life of approximately seven years, with current mineral reserves of 710,000 ounces of gold included in measured and indicated mineral resources of 854,000 ounces of gold. The company believes there is potential to extend the mine life as it continues efforts to upgrade mineral resource ounces to the proven and probable category, and expand mineral resources at Ernesto as results demonstrate the deposit is open at depth and downdip.

The company continues to progress more detailed engineering and an exploration tunnel to facilitate drilling in deeper areas where there are further resources. Yamana also continues to conduct pilot tests on metallurgy and recoveries. Permitting is under way and construction is expected to begin in mid-2010, with production commencing in late 2012.

Key parameters of the feasibility study are set out in the tables.

                   MINERAL RESERVES AND MINERAL RESOURCES                                Mineral reserves*           Proven                   Probable          Proven and probable               Au   Ounces             Au    Ounces            Au    Ounces   Tonnes   (g/t)   (Au)     Tonnes  (g/t)   (Au)     Tonnes (g/t)   (Au)  2,279,000  3.86  283,000  4,827,000  2.75 427,000  7,106,000 3.11 710,000                                Mineral resources*          Measured                 Indicated         Measured and indicated               Au   Ounces             Au    Ounces            Au    Ounces   Tonnes   (g/t)   (Au)     Tonnes  (g/t)   (Au)     Tonnes (g/t)   (Au)  2,239,000  4.69  338,000  5,964,000  2.69 516,000  8,203,000 3.24 854,000  * Mineral resources are inclusive of mineral reserves.

INFERRED MINERAL RESOURCES               Au   Ounces Tonnes     (g/t)   (Au)  4,400,000  1.79  256,000 

Capital cost: approximately $116-million

Cash cost per ounce: $427

Average throughput: one million tonnes per year

Average production (per year): approximately 100,000 ounces

Initial mine life: seven years

After-tax IRR (internal rate of return): approximately 31 per cent

The internal rate of return of approximately 31 per cent is based on a gold price of $900 per ounce, and a Brazilian real of 1.8 in 2010 and two thereafter. The initial after-tax net present value is approximately $106-million and is based on a 5-per-cent discount rate. Total annual production is expected to average approximately 100,000 ounces of gold over the mine life, with the first two years of production averaging approximately 120,000 ounces, further improving project economics. The payback period for the Ernesto/Pau-a-pique project is estimated at two years. Assuming a gold price of $1,100 per ounce, the internal rate of return would increase substantially to 47 per cent, and the after-tax net present value with a 5-per-cent discount rate improves to $192-million. A sensitivity analysis on a 10-per-cent change of each variable on Ernesto/Pau-a-pique's after-tax IRR and NPV is provided in the table.

Assumptions sensitivities              IRR             After-tax NPV  +0% change in assumptions              31%              $106-million +10% change in gold price              38%              $145-million +10% change in Brazilian real          40%              $137-million 

Expected capital costs of approximately $116-million account for the appreciation of the local currency, as compared with the previous scoping study and the cost of acquiring the mine fleet, which was not included in the original estimate as contractor mining had been assumed.

Initial capex estimate             $86-million Impact of Brazilian real         + $12-million Acquisition of mine fleet        + $18-million Updated capex estimate             $116-million 

Cash costs are estimated at $427 per ounce and are considered highly reliable compared with estimates in the original scoping study, as they reflect Yamana's substantial operational experience in Brazil. The level of certainty of capital and operating costs has also increased with the further work completed.

            COSTS OF PROJECT            (dollars per ounce)  Initial cash cost estimate          About $356 Impact of Brazilian Real                  +$50 Change in mine costs                      +$28 Change in plant costs                Minus $20 Change in other opex                      +$13 Updated cash cost estimate          About $427 

The Ernesto/Pau-a-pique project is located in southwest Mato Grosso state, near Pontes e Lacerda in Brazil. The Pau-a-Pique deposit is approximately 62 kilometres by road south of the Ernesto deposit. The significant existing infrastructure including paved roadways supports the development of Ernesto/Pau-a-Pique as two operating mines with a common processing plant.

Ernesto/Pau-a-pique represents a modest-cost, low-capital and high-return project contributing eight to 10 per cent of overall production. Significant potential for mineral resource upgrade serves as a platform for further exploration at the Guapore belt, where Yamana has extensive exploration concessions.

Other development-stage project updates

C1 Santa Luz, Brazil

Yamana is continuing to progress development work at C1 Santa Luz:

• Permitting and start-up of mine construction are on track for mid-2010;
• Advancing metallurgical test work;
• Basic engineering to be completed mid-February.

During the permitting period, Yamana has undertaken a program to conduct pilot tests on metallurgy and recoveries, which are advancing.

Mercedes, Mexico

Yamana is continuing to progress development work at Mercedes:

• Permitting is under way and targeted to be complete mid-2010, facilitating the start-up of construction;
• Basic engineering and advanced mine development completed;
• Exploration results continue to confirm Mercedes' high geological potential;
• Work on a development ramp is progressing to confirm grade continuity and the potential to convert mineral resources to mineral reserves.

Minera Florida tailings project, Chile

Yamana is continuing to progress development work at its Minera Florida tailings project:

• Additional work completed to confirm the grade of the historical tailings;
• Basic engineering continues with production on track to commence in early 2012.

Pilar, Brazil

• Efforts continue toward an updated mineral resource estimate and basic engineering, followed by a feasibility study.

Chapada, Brazil

• Modifications to the plant to increase throughput to up to 22 million tonnes per year now in progress at a moderate capital cost of $20-million;
• Modifications include amendments to the water pumping system, increasing hydrocycloning capacity, improving the tailings pumping system and additional screening.

QDD Lower West, Argentina

• Continued drilling on the deposit is expected to increase mineral reserves, particularly in the western extension;
• A feasibility study is expected in the second half of 2010 to evaluate the possibility of accelerating production;
• Construction of an incline ramp to commence;
• Advanced metallurgical test work demonstrates the strong presence of free gold, which would allow heap-leaching through existing facilities;
• A prefeasibility study supports additional production of 80,000 to 90,000 ounces per year at Gualcamayo.

Production at Yamana is expected to ramp up substantially in 2012, as the four development-stage projects where construction decisions have been made -- C1 Santa Luz, Mercedes, Minera Florida tailings and Ernesto/Pau-a-pique -- are planned to begin production. These four projects are expected to contribute 410,000 gold-equivalent ounces annually, with production expected to be approximately 1.3 million gold-equivalent ounces in 2012, as operations commence sequentially throughout the year at each of the projects. With these new mines, an annualized production rate of approximately 1.5 million gold-equivalent ounces is expected by the beginning of 2013. Pilar/Caiamar and QDD Lower West will provide further growth for Yamana. Agua Rica is expected to be a substantial contributor to potential future production and value as the company continues to advance this project.

Quality-assurance and quality-control program

Yamana incorporates a rigorous quality-assurance and quality-control program for all of its mines and exploration projects, which conforms to industry best practices as outlined by the CSE and National Instrument 43-101. This includes the use of independent third party laboratories, and the use of professionally prepared standards and blanks, as well as analysis of sample duplicates with a second independent laboratory.

Qualified person

Evandro Cintra, PGeo, senior vice-president, technical services, for Yamana Gold, has reviewed and confirmed the data contained within this news release, and serves as the qualified person as defined in National Instrument 43-101.

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Yamana produces 1.2 million gold equivalent oz in 2009

2010-01-12 16:41 ET - News Release

Ms. Letitia Wong reports

YAMANA GOLD PROVIDES 2010 AND 2011 OPERATING OUTLOOK

Yamana Gold Inc. has released its operating outlook including production, cash costs and capital expenditure guidance for 2010 and 2011. All amounts are expressed in U.S. dollars unless otherwise indicated.

"Our objective has been to create consistency and reliability in our operations with a sustainable production platform of approximately 1.1 million gold equivalent ounces at consistent cash costs," said Peter Marrone, Yamana's chairman and chief executive officer. "Our outlook for the next few years maintains that objective. Going forward, our development stage and exploration projects, in addition to further value-enhancing opportunities, will provide Yamana with a superior organic growth profile and value proposition."

2010 and 2011 operating outlook

Production from continuing operations is expected to be in the range of 1.03 million to 1,145,000 gold equivalent ounces (GEO) in 2010 and 1,045,000 to 1.15 million GEO in 2011, representing an overall increase of up to 12 per cent in production from continuing operations in 2009. Production from discontinued operations is expected to be approximately 40,000 GEO in the first quarter of 2010, which is not included in the estimated production ranges set forth above. No further production from discontinued operations is expected after the first quarter of 2010.

Estimated gold and copper production on a mine-by-mine basis for 2010 and 2011 is detailed in an attached table.

GOLD AND COPPER PRODUCTION ESTIMATES

Gold production estimates (GEO) 2010E 2011E

Chapada 140,000-155,000 135,000-145,000
El Penon (GEO) 400,000-420,000 410,000-430,000
Gualcamayo 165,000-180,000 165,000-180,000
Jacobina 105,000-125,000 110,000-130,000
Minera Florida (GEO) 100,000-125,000 110,000-130,000
Fazenda Brasileiro 70,000-85,000 70,000-85,000
Alumbrera (12.5%) 50,000-55,000 45,000-50,000
------------------- -------------------
Total GEO(1) 1,030,000-1,145,000 1,045,000-1,150,000
=================== ===================
Copper (lb) (Chapada) 150 million to 135 million to
160 million 145 million

(1) GEO calculations are based on an assumed gold-to-silver ratio of 55:1
which is a long-term historical average. Silver production of
approximately 10 million ounces for 2010 and 2011 is treated as a
gold equivalent on this basis.

Growth is expected to ramp up substantially in 2012 as four development-stage projects including C1 Santa Luz, Mercedes and Minera Florida tailings project, where construction decisions have already been made, in addition to Ernesto/Pau-a-pique, where a feasibility study is pending, are expected to begin production. These four projects are expected to contribute an additional approximately 390,000 GEO annually. Production in 2012 is expected to be approximately 1.3 million GEO as these projects commence operations and begin to ramp up, with production by the end of 2012 expected to be at a planned annual run rate of approximately 1.5 million GEO, which represents a 46-per-cent increase in production from 2009.

A summary of expected gold production on a year by year basis is shown in an attached table.

EXPENDED GOLD PRODUCTION

Year Production (GEO)

2010 Approx. 1.1 million
2011 Approx. 1.1 million
2012 Approx. 1.3 million
2013 Approx. 1.5 million

These estimates do not include any additional production from Agua Rica or new discoveries at El Penon, where updates are expected in the first quarter of 2010, or QDD Lower West, where an update is expected in the second half of 2010.

Byproduct cash costs from continuing operations (excluding Alumbrera) are expected to be below $200 per GEO in each of 2010 and 2011 based on assumed metal prices set forth. Co-product cash costs from continuing operations (excluding Alumbrera) are expected to be in the range of $360 to $400 per GEO in 2010 and $370 to $400 per GEO in 2011. Co-product cash costs per pound of copper at Chapada are expected to be $1 to $1.10 in 2010 and $1.10 to $1.20 in 2011.

Estimated cash costs for gold on a mine-by-mine basis for 2010 and 2011 are detailed in an attached table.

ESTIMATED CASH COSTS

Co-product cash cost estimates per GEO 2010E 2011E

Chapada $280-$300 $320-$350
El Penon (per GEO) $350-$390 $340-$360
Gualcamayo $340-$380 $350-$390
Jacobina $500-$525 $500-$550
Minera Florida (per GEO) $350-$390 $340-$370
Fazenda Brasileiro $500-$550 $500-$550
---------- ----------
Byproduct cash costs Below $200 Below $200

Chapada, Brazil

Production at Chapada is expected to be in the range of 140,000 to 155,000 ounces of gold per year in 2010 and 135,000 to 145,000 ounces of gold in 2011. Co-product cash costs are expected to be $280 to $300 per ounce in 2010 and $320 to $350 per ounce in 2011. Yamana has begun with plant optimizations scheduled to increase throughput to up to 22 million tonnes per year before 2012.

El Penon, Chile

Production at El Penon is expected to be in the range of 400,000 to 420,000 GEO in 2010 with production in the first quarter of 2010 expected to be lower than production in the fourth quarter of 2009, but higher than levels in the first quarter of 2009. Production is anticipated to ramp up quarter over quarter in 2010 similar to the trend in 2009. Grade is also expected to improve throughout 2010 with a significant increase expected in the fourth quarter of 2010 and into 2011 as the development of Bonanza is completed and begins to contribute to production. Production at El Penon in 2011 is expected to be 410,000 to 430,000 GEO.

Exploration results to date at Bonanza have been better than expected and continuing exploration efforts in 2010 will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources, continuing with efforts at new discoveries and a broader regional exploration program.

Cash costs are expected to average between $350 and $390 per GEO in 2010. Cash costs are expected to be higher in the first quarter of 2010 and to decline throughout the year as production ramps up.

In the fourth quarter of 2009, the company began a transition to owner mining at El Penon. This is expected to modestly impact production and cash costs in the fourth quarter of 2009 and the first quarter of 2010 as the transition to owner mining is completed. Cash costs and production are then expected to improve going forward.

Yamana had contemplated transitioning to owner mining for some time as all other mines operated by Yamana are owner mined. Cash costs are expected to decline substantially in the fourth quarter of 2010 and cash costs in 2011 are expected to average between $340 and $360 per GEO as Bonanza begins to contribute to production and the longer-term benefits of owner mining are realized.

Gualcamayo, Argentina

Production at Gualcamayo is expected to be in the range of 165,000 to 180,000 ounces of gold in each of 2010 and 2011. Going forward, the company believes sustainable production at Gualcamayo will be approximately 180,000 ounces. Production in 2010 and 2011 is expected to come solely from the main QDD open-pit deposit. Further production increases are expected to come from Yamana's continued plans to increase throughput to 1,500 tonnes per hour and processing ore from AIM and QDD Lower West. The expansion to 1,500 tonnes per hour is planned to be completed by the end of 2010.

Metallurgical testwork continues at the AIM deposit to create more reliability and certainty in the ore metallurgy. In addition, QDD Lower West feasibility study results are expected in the second half of 2010.

The company is currently also conducting metallurgical testwork at Salamanca, which is the newest discovery at Gualcamayo. Positive drill results in 2009 support Yamana's view that Salamanca may represent an important source of further gold ounces for Gualcamayo. Drilling continues in 2010 with the objective of providing a mineral resource estimate for Salamanca in the first half of 2010.

Cash costs at Gualcamayo are expected to be in the range of $340 to $380 per ounce in 2010 and $350 and $390 per ounce in 2011.

Jacobina, Brazil

Production at Jacobina is expected to be in the range of 105,000 to 125,000 ounces of gold in 2010 increasing to 110,000 to 130,000 ounces in 2011. Yamana expects to process ore at 6,000 tonnes per day in 2010, consistent with the fourth quarter of 2009 and at the increased rate of 6,200 tonnes per day by early 2011. Yamana continues with drilling to increase certainty of grade and better layout of the drilling stopes.

The company remains focused on improving dilution and recovery as well as exploring, discovering and developing higher-grade areas including Canavieiras. Jacobina will have a period of lower grades in 2010 and 2011 as compared with 2009. Production in these years is expected to come mostly from Joao Belo with modest contributions from Basal.

Positive drill results continue to confirm the high grade at Canavieiras and the significant sample results at Moro do Vento show the potential for new inferred mineral resource ounces.

Exploration upside is in areas with grade higher than the current mine grade. With the new discovery of Serra da Lagartixa in 2009, exploration efforts in 2010 will be focused on near-mine drilling in this target and more aggressively pursuing higher-grade areas of mineralization for future mining.

Cash costs in 2010 are expected to be $500 to $525 per ounce of gold and $500 to $550 per ounce of gold in 2011.

Minera Florida, Chile

Production at Minera Florida is expected to be in the range of 100,000 to 125,000 GEO in 2010, an increase of up to 35 per cent from 2009 production levels reflecting the first full year of production following the expansion. Production in 2011 is expected to be 110,000 to 130,000 GEO. Cash costs are expected to be $350 to $390 per GEO in 2010 and $340 to $370 per GEO in 2011.

Fazenda Brasileiro, Brazil

Production at Fazenda Brasileiro is expected to be 70,000 to 85,000 ounces of gold for each of 2010 and 2011. Cash costs are expected to be $500 to $550 per ounce for each of 2010 and 2011. As Fazenda Brasileiro reaches the end of its known mine life based on mineral reserves, exploration efforts continue to focus on two newly discovered areas, CLX2 and Lagoa do Gato, which Yamana believes represent significant potential to increase the mine life. Yamana's exploration focus at Fazenda Brasileiro has been the replacement of mineral reserves and mineral resources and the company intends to continue these efforts to meaningfully increase mineral reserves and mineral resources in these new areas.

Fully funded growth

Capital expenditures for 2010 and 2011 are expected to be approximately $515-million and $455-million, respectively. This includes sustaining capital expenditures of $230-million in 2010, which includes the purchase of machinery and equipment as Yamana transitions to owner mining at El Penon (representing approximately $60-million). Sustaining capital expenditures in 2011 are expected to be $155-million. The majority of the expansionary capital costs for the two years are allocated to the development of Yamana's growth projects, C1 Santa Luz, Mercedes, the Minera Florida tailings project and Ernesto/Pau-a-pique (feasibility study to follow in January, 2010), all of which are expected to begin production in 2012.

With approximately $600-million of available cash and immediate and undrawn credit available in addition to expected robust cash flow, Yamana is fully financed for its growth.

Yamana continues to focus on exploration with an exploration budget in 2010 of between $75-million to $80-million (approximately half of which is capitalized). Yamana's 2010 exploration program will focus on increasing mineral reserves and mineral resources while continuing with its near-mine exploration program and its efforts to look for new opportunities and on the ground purchases elsewhere in the Americas. The company is focused on developing its future based on its exploration successes and organic growth.

Assumptions

Assumptions for metal prices and exchange rates are as shown in an attached table.

ASSUMPTIONS

2010 2011

Gold (US$/oz) 1,050 1,050
Silver (US$/oz) 18.80 18.80
Copper (US$/lb) 2.75 2.75
Zinc (US$/lb) 1.00 1.00

BRL real/US$ 1.80 1.80
ARG peso/US$ 4.00 4.25
CLP peso/US$ 500 500


Fourth-quarter and 2009 operational update

Yamana provided the following operational update for the fourth quarter and full year of 2009. Total production during the fourth quarter of 2009 continued to increase to a record level of approximately 325,300 GEO of which approximately 289,600 GEO was from continuing operations, representing an increase of 8 per cent from the third quarter of 2009. Production at Gualcamayo continued to ramp up to 59,000 ounces in the fourth quarter of 2009 and continues to meet and exceed expectations. At El Penon, Yamana has undergone a transition to owner mining in the quarter, which will modestly and temporarily cause a decrease in production and increase in costs affecting the fourth quarter of 2009 and the first quarter of 2010. Production in December at El Penon with the completion of the plant upgrade, although during this owner-mining transition period, was in excess of 44,000 GEO and over 109,000 GEO for the quarter. For the full year ended Dec. 31, 2009, total production for Yamana was approximately 1,201,200 GEO, of which approximately 1,026,000 GEO was from continuing operations.

Production on a mine-by-mine basis for the fourth quarter of 2009 and for the full year is summarized in an attached table.

PRODUCTION (GEO)

Q4 2009 2009

Chapada 42,200 156,200
El Penon (GEO) 109,900 394,400
Gualcamayo 59,000 143,400
Jacobina 24,800 110,500
Minera Florida (GEO) 24,700 92,400
Fazenda Brasileiro 17,500 76,400
Alumbrera (12.5%) 11,500 52,700
------- ---------
Total production from
continuing operations 289,600 1,026,000
Discontinued operations 35,700 175,200
------- ---------
Total production 325,300 1,201,200

In the fourth quarter of 2009 and for the full year of 2009, every ounce of gold from continuing operations (excluding Alumbrera) was produced at below $100 per GEO and below $190 per GEO, respectively, after byproduct credits, realizing a significant margin to the gold price. Cash costs on a co-product basis from continuing operations (excluding Alumbrera) for the fourth quarter of 2009 and for the full year of 2009 were $360 per GEO, in line with original guidance of $345 to $375 per GEO.

Financial results

Yamana will release its full fourth-quarter financial results including mineral reserve and mineral resource data after the close of business on March 3, 2010. A conference call will follow on March 4, 2010, at 11 a.m. Eastern Time.

Conference call information

Toll-free (North America): 1-888-231-8191

International: 647-427-7450

Participant audio webcast: Yaman's website

Conference call replay

Toll-free replay call (North America): 800-642-1687, passcode 46908469

Replay call: 416-849-0833, passcode 46908469

The conference call replay will be available from 2 p.m. Eastern Time on March 4, 2010, until 11:59 p.m. Eastern Time on March 18, 2010.

For further information on the conference call or audio webcast, please contact the investor relations department or visit Yamana's website,

Upcoming events

This news release is a part of a series of announcements and will be followed by results from the Ernesto/Pau-a-pique feasibility study and an update on Agua Rica. The following summarizes the upcoming events:

* Ernesto/Pau-a-pique feasibility study: January, 2010;
* Update on Agua Rica: first-quarter 2010;
* Update on El Penon exploration: first-quarter 2010;
* Update to Yamana's mineral reserves and mineral resources: first-quarter 2010;
* Pilar feasibility study: mid-2010;
* Caiamar mineral resource estimate: mid-2010;
* Salamanca mineral resource estimate: first-half 2010.

We seek Safe Harbor.

And This:

Yamana to spend up to $80-million (U.S.) in 2010

2010-01-07 18:14 ET - News Release

Ms. Letitia Wong reports

YAMANA PROVIDES EXPLORATION UPDATE

Yamana Gold Inc. has released an exploration update and has provided its exploration objectives for 2010.

Highlights from the 2009 exploration program included:

• New gold mineralized zone, Suruca, discovered at Chapada, traced along strike by at least 500 metres and average thickness of 70 metres. The discovery hole SU-11 returned 81.0 metres of 1.2 grams per tonne gold;
• New mineralized zone discovered at Fazenda Brasileiro, Lagoa do Gato, traced along strike for 1,200 metres and open in all directions with three separate gold mineralized zones. Lagoa do Gato exhibits substantially higher grade than the current mineral reserve grade at Fazenda Brasileiro. Drilling indicated economic grades and widths: FLG-010 -- 12.4 metres of 3.33 g/t Au; FLG-016 -- 22.0 metres of 3.62 g/t Au; FLG-017 -- 37.0 metres of 2.34 g/t Au; FLG-022 -- 22.0 metres of 5.50 g/t Au; FLG-026 -- 14.8 metres of 7.04 g/t Au;
• New mineralized zone discovered at Jacobina, Lagartixa, which is the displaced northern continuation of the Canavieiras deposit. Lagartixa exhibits substantially higher grade than the current mineral reserve grade at Jacobina. Drilling has tested the gold mineralized reefs for 600 metres of strike length. The discovery hole LGX-02 returned three metres of 6.03 g/t Au;
• Positive drill results confirmed and extended the Jordino deposit at Pilar. Drill holes have extended the Pilar deposit down dip. Selected deep holes include: JD123 -- four metres of 6.67 g/t Au; JD125 -- 0.7 metre of 6.56 g/t Au; JD129 -- one metre of 16.35 g/t Au;
• New gold mineralized zone, Salamanca, discovered within 10 kilometres of Gualcamayo. Drilling has delineated mineralization along a strike length of at least 250 metres which is still open along strike. The best results received from latest drilling include: 09S-01 -- 30.0 metres of 1.72 g/t Au; 09S-03 -- 52.75 metres of 2.9 g/t Au; 09S-14 -- 63.7 metres of 1.1 g/t Au;
• Two new vein deposits, Centenario and Polvorin, discovered at Minera Florida. Both deposits are located near current mine infrastructure. Selected results include: ALH0075 -- Centenario, 5.15 metres of 11.39 g/t Au, 17 g/t silver and 2.21 per cent zinc; ALH0686 -- Centenario, 13.65 metres of 9.02 g/t Au, 18 g/t Ag and 0.76 per cent Zn; ALH0739 -- Centenario, 6.72 metres of 11.14 g/t Au, 179 g/t Ag and 1.05 per cent Zn; ALH0006 -- Polvorin, 7.39 metres of 5.50 g/t Au, nine grams per tonne silver and 1.66 per cent Zn; ALH0674 -- Polvorin, 2.25 metres of 11.60 g/t Au, 49 g/t Ag and 1.94 per cent Zn; ALH0810 -- Polvorin, 2.05 metres of 12.79 g/t Au, nine grams per tonne silver and 1.55 per cent Zn.

Yamana's 2010 exploration budget is expected to be approximately $75-million (U.S.) to $80-million (U.S.), with the goal of increasing mineral reserves and mineral resources.

Main areas of focus in 2010 include:

• Define size potential of new mineralized zone, Suruca, at Chapada;
• Focus Jacobina exploration toward discovery and extension of higher grades at Canavieiras and new mineralized zones;
• Extend Pilar's mineral resource;
• Complete resource estimate at Caiamar in Brazil by mid-2010 with further update by end of year;
• Expand the resource at QDD Lower West in Argentina and continue exploration efforts at Salamanca;
• Extend known deposits at El Penon and upgrade inferred resource;
• Expand footprint of Minera Florida with successful exploration at Chancon-Membrillo.

Yamana continues with its near-mine exploration program and its efforts to look for new opportunities and on the ground purchases elsewhere in the Americas. The company is focused on developing its future based on its exploration successes and organic growth.

Brazil

Suruca -- Chapada, Brazil

Yamana has intersected a new mineralized zone at Suruca, located approximately six kilometres northeast of Yamana's Chapada mine in central Brazil.

Drilling intersections show two mineralized levels: the upper level has an average thickness of 70 metres and the lower level has an average thickness of approximately 20 metres. Exploration drilling to date has defined significant mineral intercepts with continuity along a 500-metre strike length. This mineral trend is wholly within a much larger soil geochemical gold anomaly that extends for over five kilometres on the surface.

Yamana has completed 15 holes totalling 2,866 metres to date.

               SIGNIFICANT DRILL INTERSECTIONS FROM SURUCA                                                               Gold grade Hole             From (m)          To (m)    Interval (m)           (g/t)      SU-04                7.0            24.7            17.7            0.22                     17.1            23.0             5.9            0.35 SU-08              255.5           256.3             0.8            0.42                    112.0           193.0            81.0            1.20                    147.0           148.0             1.0           48.90                    158.0           159.0             1.0            9.21                    186.0           187.4             1.3            3.98 SU-11              190.0           191.0             1.0            3.17                    203.0           231.0            28.0            1.26                    210.0           211.0             1.0           21.30                    225.0           225.6             0.6            5.00                      7.0            13.0             6.0            1.35                      7.0             8.0             1.0            7.32 SU-13               83.6           139.0            55.4            0.44                     84.3            86.0             1.7            6.46                     52.5           127.2            74.7            0.89                     59.0            60.0             1.0            9.36                     72.0            73.0             1.0            3.05                     76.0            77.0             1.0            3.67                     87.3            88.7             1.3            4.50 SU-15              116.3           117.1             0.8           16.40                    140.3           188.0            39.7            0.37                    176.0           177.0             1.0            8.18                    203.0           233.0            30.0            0.54                    218.0           219.0             1.0            9.56                    248.0           268.0            20.0            0.35 

These drilling results demonstrate the potential to add ounces from the areas surrounding the mine further extending Chapada's already long mine life of 17 years. Chapada has historically shown the ability to increase its mineral reserve base as demonstrated in 2008 when mineral reserves increased a full 50 per cent from the previous year. The company's efforts have not only been to increase mineral reserves and resources at Chapada, but to use it as a launching point for a regional exploration program. Suruca represents real potential and is a result of these efforts. Objectives for Chapada in 2010 include defining a mineral resource in the Suruca target by 2011.

Fazenda Brasileiro, Brazil

At Yamana's Fazenda Brasileiro mine, the company continues to outline significant exploration potential. The mine was originally acquired in 2003 with 2.5 years of mine life remaining based on known mineral reserves. Yamana has since been mining at Fazenda Brasileiro for six years. Recently two new areas have been discovered, CLX(2) and Lagoa do Gato, which give Yamana high confidence that significant potential remains at Fazenda Brasileiro. Historical efforts have been to consistently increase the mine life. Current efforts and recent discoveries are intended to redefine Fazenda Brasileiro with the possibility, relating to CLX(2) and Lagoa do Gato, of discovering a new mine. Yamana's exploration focus has been the replacement of mineral reserves and resources at Fazenda Brasileiro. The objective in 2010 will continue these efforts, focusing on meaningfully increasing mineral reserves and resources in these new areas.

Lagoa do Gato

Geophysical interpretation suggests that the Weber structure, which hosts Yamana's Fazenda Brasileiro mine, may continue to the northeast through the Rio Itapicuru greenstone belt in a zone called Lagoa do Gato, which is located four kilometres northeast from Fazenda Brasileiro. This zone consisted of a series of small open pits mined earlier in the 1980s during Fazenda Brasileiro's heap leach operation. Deeper exploration drilling beneath those pits has intersected mafic lenses with significant high-grade mineralization.

Drilling to date has identified three mineralized levels and has been traced for 1,200 metres, all still open along strike. The Lagoa do Gato trend is at least eight kilometres long, defined by a high magnetic signature. A total of 4,000 metres of diamond drilling have been completed to date.

            MOST SIGNIFICANT LAGOA DE GATO INTERSECTIONS                                                               Gold grade Hole             From (m)          To (m)      Length (m)           (g/t)      FLG-003           123.00          125.05            2.05            0.98                   155.60          168.00           12.40            3.33 FLG-010           157.30          159.00            1.70            8.95                   215.00          227.00           12.00            1.00                   118.45          120.00            1.55            1.04                   125.00          129.00            4.00            0.68 FLG-011           132.00          136.00            4.00            0.88                   138.00          140.00            2.00            0.58 FLG-014           105.00          117.00           12.00            1.22 FLG-015            84.00           87.00            3.00            1.57                    77.75           80.35            2.60            2.74                    87.00          109.00           22.00            3.62 FLG-016            87.00           98.00           11.00            6.48                   104.00          109.00            5.00            1.32                   283.00          310.00           27.00            2.34 FLG-017           283.00          288.00            5.00            3.63                   290.00          307.00           17.00            2.28                    76.00           79.00            3.00            1.75 FLG-018           106.00          108.00            2.00            1.78                    53.70           55.55            1.85            0.76                    64.00           67.00            3.00            1.00 FLG-019            76.00           78.00            2.00            0.93                    97.50          108.00           10.50            1.34                    47.00           48.00            1.00            2.00                    93.00           96.00            3.00            0.66 FLG-021           145.00          153.00            8.00            3.99                   164.00          168.80            4.80            0.64                   127.00          149.00           22.00            5.50                   137.35          139.00            1.65           63.82                   169.00          174.00            5.00            0.54 FLG-022           176.00          181.00            5.00            0.67                   189.00          191.00            2.00            1.44                   203.00          206.00            3.00            6.83                    10.00           26.00           10.00            1.47 FLG-024            30.00           32.00            2.00            1.22                    41.00           42.00            1.00            2.54                   119.00          122.00            3.00            1.23 FLG-025           137.70          138.85            1.00            1.64                   105.00          108.00            3.00            3.68 FLG-026           156.65          171.45           14.80            7.04                   166.00          168.00            2.00           20.52                   116.00          124.00            8.00            1.48                   142.00          143.00            1.00           10.25 FLG-027           150.00          151.00            1.00            5.75                   179.00          182.20            3.20            1.24                   199.00          203.00            4.00            1.03                   104.85          114.10            9.25            1.12                   161.00          163.00            2.00            1.20 FLG-028           170.00          176.00            6.00            1.28                   181.00          185.00            4.00            1.48 FLG-029           107.00          110.45            3.45            0.96 FLG-030           103.60          106.00            2.40            2.05 FLG-031           126.00          128.40            2.40            2.68 FLG-032           208.00          209.00            1.00            1.19      

Yamana has 20,000 metres of drilling planned for 2010 to continue efforts at these two new areas. At CLX(2), 10,000 metres of infill drilling is planned to focus on upgrading the mineral resource and 10,000 metres of exploration drilling is planned for extending Lagoa do Gato. Objectives at Fazenda Brasileiro for 2010:

• Continue to extend the Lagoa do Gato mineral resource;
• Further extend the mine life at Fazenda Brasileiro;
• Continue defining new near-mine targets;
• Upgrade mineral resources to support future production

Jacobina, Brazil

Exploration at Jacobina in 2009 focused on near-mine efforts and has provided a promising new discovery. Although most of the proven and probable mineral reserves at Jacobina are in areas that are comparatively lower grade, exploration upside is in areas with grade higher than the current mine grade. With the discoveries in 2009, exploration efforts in 2010 will be to more aggressively pursue higher-grade areas of mineralization for future mining.

A structural and stratigraphic analysis undertaken in 2008 concludes that the Serra da Lagartixa area (Lagartixa Hill), located 2.5 kilometres from the mine site, possibly consists of the north continuity of the Canavieiras block displaced by a main listric fault. Canavieiras is the most significant resource of the Jacobina mine and the possibility that it continues to the north opens important exploration upside for this mine.

The Lagartixa block is 1,500 metres long with 300 metres of outcropping mineralized conglomerate reef confirmed by old artisanal mining workings and chip samples. This reef is thought to be the reef called Maneira, which represents the topmost reef of Canavieiras.

Three holes have been completed to date and the positive results to date are confirming the continuity of the Maneira reef 700 metres down dip and 600 metres along strike. More drilling is necessary to confirm if there is a gap along such continuity. Yamana considers these results significant and will concentrate most of 2010 on near-mine drilling in this target.

              SIGNIFICANT SERRA DA LAGARTIXA INTERSECTIONS                                                               Gold grade Hole             From (m)          To (m)      Length (m)           (g/t)      LGX-02               801             804               3            6.03                    216.5             217             0.5            3.14 LGX-03            234.72           235.2               1            5.17      

Objectives at Jacobina for 2010:

• Upgrade most of the inferred mineral resource to the measured and indicated category;
• Rapidly accelerate the definition of higher-grade areas by 2012;
• Continue to focus on Canavieiras to develop Canavieiras North;
• Regional development and identification of new orebodies in a regional exploration plan between Jacobina and Pindobasu.

Pilar, Brazil

In April, 2009, Yamana delivered an update to Pilar's inferred mineral resource estimate of 12.6 million tonnes grading 3.61 grams per tonne gold containing 1.4 million gold ounces, which was a substantial increase in inferred mineral resource of 51 per cent and a grade increase of 48 per cent year over year.

In 2009, Yamana completed 26,000 metres of infill drilling spacing 50 by 50 metres and 7,000 metres of exploration drilling. The company also commenced construction of an exploration ramp to determine the continuity of grade.

Drilling in 2009 was focused on extending the main Jordino mineralization down dip and the company continues to report positive results. Extension drilling results, plus the results presented in the previous June, 2009, news release, continue to show positive drill intercepts between 100 and 300 metres down dip from the mineral resource update provided in April, 2009. A total of 12,000 metres of extension drilling has been completed since the last mineral resource.

      BEST INTERSECTIONS AT PILAR SINCE THE JUNE, 2009, NEWS RELEASE                                                                     Gold grade Hole             From (m)          To (m)      Length (m)           (g/t)                           353             357               4            6.67                      353             354               1           19.95 JD123                379             380               1            5.65                      390             391               1            3.23                      307             309               2            3.02 JD125             272.32             275            2.68            2.28                   272.32             273            0.68            6.56                   270.66             276            5.34            3.48 JD126                273             274               1           14.25                      300          300.87            0.87               8 JD129                319             320               1             3.1                      345             346               1           16.35                      167             168               1            2.09                      171             172               1            2.81 JD213                203             204               1            4.52                      215             216               1            4.21                   251.22          251.93            0.71             3.4 JD216                280          281.23            1.23            24.6                    57.98           58.75            0.77             263                       62              63               1            2.97 JD222             202.89          205.49             2.6            2.74                   204.96          205.49            0.53            3.43                   215.72             217            1.28            4.29 

The drilling program for 2010 includes 18,000 metres of extension drilling, of which 50 per cent is expected to be completed by the end of the first quarter of 2010. Drilling continues to be at the main high-grade Jordino deposit and the area between Jordino and Tres Buracos as it continues to appear open down plunge and along strike.

Objectives for Pilar in 2010:

• Upgrade inferred mineral resource to the indicated category;
• Determine continuity of grade;
• Increase total overall mineral resource.

Caiamar, Brazil

Since its purchase in July, 2009, Yamana has completed 28 holes totalling 14,000 metres of exploration drilling at the Caiamar target.

Caiamar is located approximately 38 kilometres from Yamana's Pilar project and just east of the Crixas greenstone belt, in the northern portion of a regional shear zone within the Guarinos greenstone belt. Mineralization consists of arserno-pyrite-rich quartz breccias hosted in metagreywacke layers.

A total of $3.4-million (U.S.) has been budgeted for regional exploration and 25,000 metres of drilling at Caiamar. The objective of the drill program for the first year will be to assess the potential of the deposit and evaluate the regional potential inside the Caiamar concessions, in addition to defining the orebodies.

Drilling to date has confirmed the occurrence of mineralized shoots along an area of 2.5 kilometres in length and 700 metres in width. The holes CA-007, CA-004 and CA-014 have already confirmed the continuity of central mineralized shoot 500 metres down dip.

            POSITIVE DRILLING INTERSECTIONS FROM CAIAMAR                                                                  Gold grade Hole             From (m)          To (m)      Length (m)           (g/t)                        391.50          392.00            0.50            1.94 CA-001            394.00          394.50            0.50            1.43                   414.00          414.50            0.50            1.37                   375.00          376.00            1.00            1.13 CA-002            397.00          399.00            2.00            1.64                   418.84          419.60            0.76            2.09 CA-003            679.35          680.36            1.01            1.68 CA-004            614.00          614.50            0.50            4.74                   242.00          243.00            1.00             1.9 CA-006            260.58          262.24            1.66            1.43                   554.71          555.21            0.50            5.94 CA-007            556.23          556.72            0.49            7.52                   369.00          370.00            1.00            5.83 CA-011            397.00          399.00            2.00            1.23                   410.52          411.00            0.48            1.12                   465.46          466.00            0.54            3.14 CA-013            469.00          469.50            0.50            2.11                   471.47          471.92            0.45            1.32                   564.30          565.00            0.70            2.00 CA-014            569.00          570.00            1.00            3.04                   146.00          147.00            1.00            2.69 CA-022            256.00          257.00            1.00            6.28 CA-023            393.00          394.00            1.00            1.50 CA-025            487.00          488.00            1.00            0.96                   573.09          573.59            0.50            3.36                   573.59          574.09            0.50            2.04 CA-040            575.07          575.55            0.48            2.36                   575.55          576.00            0.45            2.68                   161.00          162.00            1.00            1.19 CA-082-A          217.09          218.00            0.91            2.54                   230.00          231.00            1.00            0.98 CA-093            220.00          220.50            0.50            7.99                    93.00           94.00            1.00            1.25 CA-105            151.00          151.50            0.50            9.26                   156.50          157.00            0.50            7.99                   215.35          215.84            0.49            1.61 CA-107            223.06          223.85            0.79            1.14                   242.00          242.50            0.50            13.6                   244.00          244.50            0.50            2.02                   277.20          278.00            0.80            3.12 CA-120            283.00          283.50            0.50            1.29                   291.48          292.00            0.52            5.28                   293.50          294.00            0.50            7.23 

A total of approximately 15,000 metres of drilling has been completed in 2009 with a total of 15,000 metres planned for 2010.

Objectives for Caiamar in 2010:

• Confirm mineral resource based on historical drilling through infill drilling;
• Provide a mineral resource estimate by mid-2010;
• Provide a subsequent update to the midyear mineral resource estimate by extension drilling by the end of 2010.

Argentina

Salamanca -- Gualcamayo, Argentina

Exploration efforts continued at the Salamanca area located approximately 10 kilometres north of Yamana's Gualcamayo gold mine within the Gualcamayo mine area in Argentina.

Yamana recently completed a core drilling campaign comprising 17 drill holes for a total of 3,000 metres concentrating on the Salamanca mineralized tensional gash. The high-grade gold values encountered support the interpretation that the main intercepted structure might continue deeper and maintain the robust gold tenor.

Results to date continue to compare favourably with results from the three known mineral deposits at Gualcamayo, which have mineral resource grades of 1.08 grams per tonne gold at QDD and 2.6 g/t gold at both QDD Lower West and AIM. The sediment-hosted mineralization at Salamanca is consistent with the other known mineral deposits at Gualcamayo.

 NEW RESULTS FROM SALAMANCA (IN ADDITION TO THOSE RELEASED IN STOCKWATCH                            ON SEPT. 30, 2009)                                                               Gold grade Hole             From (m)          To (m)    Interval (m)           (g/t)                            42              72              30            1.72 09S-01                80             108              28            1.03                       80              96              16             1.4                       41              92              51             1.1 09S-02                41              54              13            2.22                       85              92               7            1.61                       80          132.75           52.75             2.9 09S-03                98             130              32            4.07                     43.3              62            18.7            1.01 09S-10               137             148              11            1.08                     24.3              88            63.7             1.1 09S-14                34              42               8            2.14                       50              62              12            1.24 

A subsequent 2,000-metre drill program is scheduled to commence in early 2010 and will continue to explore the deeper levels as well as to test the strike continuation of the mineralized dilational bend at Salamanca.

These drilling results continue to confirm Yamana's view that Salamanca represents an important source of further gold ounces for Gualcamayo with the potential to extend the mine life. These results will be used to support a mineral resource estimate in the first half of 2010.

Objectives for Gualcamayo in 2010:

• Drill program of 2,000 metres of drilling at Salamanca;
• Provide a mineral resource estimate for Salamanca in the first half of 2010;
• Extend the QDD Lower West high-grade deposit along strike and down plunge;
• Expand the resource at QDD Lower West through upgrading inferred mineral resource ounces to the measured and indicated category and adding new ounces.

Chile

El Penon, Chile

Exploration efforts in 2009 were principally focused on replacing ounces at El Penon and focusing on new areas of mineralization for exploration. With that objective completed, 2010 exploration will focus on extending the known deposits, infill drilling to upgrade certain inferred mineral resources to the indicated resource category and a broader regional exploration program. The 2010 exploration program is to include 69,500 metres of exploration drilling and 24,550 metres of infill drilling with a budget of $18.4-million (U.S.), $5.8-million (U.S.) higher than the original budgeted amount for 2009.

Objectives for El Penon in 2010:

• Upgrade 500,000 gold equivalent ounces to the indicated mineral resource category;
• Identify 500,000 ounces of new mineral resource;
• Identify new vein zones that can sustain a longer mine life.

Minera Florida, Chile

In 2009, two new zones of mineralization were discovered, Centenario and Polvorin.

At Centenario, 49 diamond drill holes totalling 7,594 metres were completed and outlined mineralization along a strike length of 250 metres and a dip length of 100 metres. The mineralization consists of quartz veins, veinlets and stockworks in andesite flows with widths varying from 0.25 metre to eight metres but averaging between one metre and three metres.

At Polvorin, 43 diamond drill holes totalling 8,090 metres have outlined mineralization along 400 metres of strike length and up to 200 metres of dip length, with an average width of approximately two metres. The mineralization is typified by zones of hydrothermal breccia with zones of massive quartz veins. Sulphide mineralization consists of disseminations of pyrite, sphalerite and magnetite with traces of galena.

                           CENTENARIO VEIN      Hole    From (m)   To (m)  Length   Au (g/t)    Ag    Zn (%) AuEq (g/t)                               (m)             (g/t)  ALH0075   293.2   298.35    5.15      11.39     17      2.21     12.13 ALH0664  123.95   128.00    4.05       2.54     17      1.50      3.11 ALH0666   44.23    45.89    1.66       1.51      2      0.09      1.56 ALH0667   48.44    53.11    4.67       2.26      9      0.17      2.42 ALH0669   126.9   136.20    9.30       9.53     13      0.67      9.86 ALH0670   40.83    43.16    2.33      15.91     12      0.35     16.14 ALH0675   79.45    88.84    9.39       6.94     12      1.21      7.38 ALH0677   71.36    77.09    5.73       5.07     13      1.06      5.49 ALH0686  150.74   164.39   13.65       9.02     18      0.76      9.45 ALH0691  109.68   113.78    4.10       9.66     10      0.59      9.93 ALH0695   99.64   101.78    2.14       4.91     11      0.92      5.27 ALH0698   99.98   102.50    2.52       6.65      4      0.88      6.91 ALH0700  133.08   133.33    0.25       1.08      1      0.39      1.18 ALH0704  170.36   181.01   10.65       5.18     14      0.83      5.56 ALH0708   153.4   154.36    0.96       2.12      4      0.30      2.24 ALH0711   50.41    52.60    2.19       2.41      2      0.06      2.45 ALH0714   40.18    41.24    1.06       4.96     30      0.25      5.43 ALH0716   83.23    92.55    9.32       5.14     13      0.68      5.47 ALH0717   90.44   107.66   17.22       1.29     10      0.95      1.64 ALH0719  165.86   167.84    1.98      15.99     21      2.03     16.75 ALH0722   94.84    95.22    0.38       2.59      5      0.19      2.71 ALH0726  173.72   174.15    0.43       1.96      1      0.03      1.98 ALH0729  119.56   123.80    4.24       5.54      9      0.49      5.77 ALH0732  139.87   144.50    4.63       1.00      5      0.21      1.13 ALH0736   96.76    98.62    1.86       2.16      5      0.73      2.40 ALH0739  159.78   166.50    6.72      11.14    179      1.05     13.84 ALH0751  104.87   105.85    0.98      11.84     14      0.72     12.20 ALH0754  108.78   114.64    5.86       2.96      7      1.39      3.37 ALH0758   94.15    95.51    1.36       1.26      6      0.40      1.42 ALH0760   80.02    82.36    2.34       9.52     18      1.09     10.01 ALH0763   76.34    79.82    3.48       1.04      2      0.94      1.28 ALH0766   58.69    61.48    2.79       1.15      6      2.42      1.77 ALH0796   103.8   105.71    1.91       3.19     10      0.66      3.47 ALH0802   110.3   113.41    3.11       2.12      5      0.55      2.32 ALH0809  166.54   166.92    0.38       3.03    361      0.46      8.11     

                            POLVORIN VEIN      Hole    From (m)  To (m)  Length    Au (g/t)    Ag     Zn (%) AuEq (g/t)                               (m)             (g/t)  ALH0006  217.56   224.95    7.39       5.50      9      1.66       6.00 ALH0008  386.95   390.78    3.83       3.43      7      1.61       3.90 ALH0210   26.71    31.50    4.79       5.71     17      1.69       6.33 ALH0672  198.18   199.58    1.31       7.95      8      2.76       8.68 ALH0674  201.51   203.76    2.25      11.60     49      1.94      12.71 ALH0676  189.27   190.90    1.63       9.08     12      1.59       9.60 ALH0678  199.88   202.57    2.69       5.91     12      2.50       6.64 ALH0681  199.17   202.81    3.64       7.53     17      0.73       7.93 ALH0689  132.74   133.92    1.18       7.33   1293      1.15      25.40 ALH0707  187.93   188.63    0.70       1.73     14      0.12       1.95 ALH0712  100.32   101.61    1.29       2.13     11      1.25       2.57 ALH0715  207.89   210.09    2.20       4.55     24      3.21       5.61 ALH0720  195.93   198.00    2.07       5.94      6      0.33       6.10 ALH0723  232.17   232.92    0.75       2.13      5      0.40       2.29 ALH0788  229.47   230.40    0.93       2.86      7      4.08       3.87 ALH0794  205.77   206.25    0.48       5.80      7      1.03       6.13 ALH0800  197.55   198.51    0.96       6.85     34      5.20       8.50 ALH0807   96.41    98.20    1.79       4.27      6      0.15      4.40 ALH0810   91.01    93.06    2.05      12.79      9      1.55      13.27 ALH0811  133.01   135.05    2.04       4.33      6      0.43       4.50 

The exploration program for Minera Florida in 2010 includes 12,900 metres of exploration drilling for near-mine targets and 18,000 metres of infill drilling to recategorize inferred mineral resources to the indicated category. Multiple veins are to be explored with two new regional targets. Exploration also continues in the areas surrounding Minera Florida with the objective to identify new ounces.

Objectives for Minera Florida in 2010:

• Upgrade 150,000 gold equivalent ounces from the inferred mineral resource category to the indicated resource category;
• Identify a minimum of 100,000 ounces of new mineral resource;
• Identify new vein zones that can sustain a longer mine life.

Other areas

Solferino, Colombia

Yamana has recently acquired an exploration concession and project called Solferino located in the district of Anori, in the province of Antioquia, in the central part of Colombia.

Solferino is a mesothermal vein system of quartz veins and veinlets, which form a stockwork with a width of more than 20 metres. Previous and more recent underground workings have defined a system with a length of 200 metres and a minimum vertical expression of 70 metres. Yamana has identified and sampled two main high-grade quartz veins.

Yamana has budgeted approximately $1.0-million (U.S.) for exploration in 2010 for 5,000 metres of drilling. The exploration program at Solferino will be focused on defining mineral resource potential.

Colombia remains within Yamana's geographical focus on stable jurisdictions in the Americas. Yamana believes Colombia has significant exploration potential.

Upcoming events

This press release which is one of a series of announcements to come, will be followed initially by Yamana's 2010 and 2011 operational outlook and update, results from the Ernesto/Pau-a-pique feasibility study, and an update on Agua Rica. The following summarizes the upcoming events:

• Operational outlook and update -- January, 2010;
• Ernesto/Pau-a-pique feasibility study -- January, 2010;
• Update on Agua Rica -- January, 2010;
• Update to Yamana's mineral reserves and resources -- February, 2010;
• Pilar feasibility study -- mid-2010;
• Caiamar mineral resource estimate -- mid-2010;
• Salamanca mineral resource estimate -- H1-2010.

Quality assurance and quality control

Yamana incorporates a rigorous quality assurance and quality control program for all of its mines and exploration projects which conforms to industry best practices as outlined by the CSE and National Instrument 43-101. This includes the use of independent third party laboratories and the use of professionally prepared standards and blanks and analysis of sample duplicates with a second independent laboratory.

Qualified persons

Walter Soechting, PGeo, senior geologist for Yamana Gold, has reviewed and confirmed the data contained within this press release relating to Gualcamayo and Salamanca and serves as the qualified person as defined in National Instrument 43-101.

Greg Walker, PGeo, senior geologist for Yamana Gold, has reviewed and confirmed the data contained within this press release relating to Minera Florida and serves as the qualified person as defined in National Instrument 43-101.

Sergio Brandao, PGeo, senior geologist for Yamana Gold, has reviewed and confirmed the data contained within this press release relating to Suruca (Chapada), Jacobina, Fazenda Brasileiro, Pilar and Caiamar and serves as the qualified person as defined in National Instrument 43-101.

We seek Safe Harbor.