Scott Wilson Mining YAMANA GOLD INC. TECHNICAL REPORT ON THE PEDRO VALENCIA MINE OF MINERA FLORIDA LIMITADA, CENTRAL CHILE NI 43-101 Report Authors: Stuart E. Collins, P.E. Chester M. Moore, P.Eng. March 22, 2010 SCOTT WILSON ROSCOE POSTLE ASSOCIATES INC. Report Control Form Document Title Technical Report on the Pedro Valencia Mine of Minera Florida Limitada, Central Chile Client Name & Address Yamana Gold Inc. 9670 Gateway Drive Reno, Nevada 89511 Document Reference Status & Final Project #1435 Issue No. Version Issue Date March 22, 2010 Lead Author Chester Moore (Signed) Peer Reviewer Deborah McCombe (Signed) Project Manager Approval Chester Moore (Signed) Project Director Approval Rick Lambert (Signed) Report Distribution Name No. of Copies Client Scott Wilson RPA Filing 1 (project box) 1 (project file) Scott Wilson Roscoe Postle Associates Inc. 55 University Avenue, Suite 501 Toronto, Ontario M5J 2H7 Canada Tel: +1 416 947 0907 Fax: +1 416 947 0395 [email protected] SCOTT WILSON RPA www.scottwilson.com TABLE OF CONTENTS PAGE 1 SUMMARY ................................................................................................................1 -5 Executive Summary ................................................................................................1 -5 Technical Summary .............................................................................................. 1-15 2 INTRODUCTION .......................................................................................................2 -1 3 RELIANCE ON OTHER EXPERTS ........................................................................... 3-1 4 PROPERTY DESCRIPTION AND LOCATION .......................................................... 4-1 Land Tenure ...........................................................................................................4 -1 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................5 -1 6 HISTORY ..................................................................................................................6 -1 General ..................................................................................................................6 -1 Underground Exploration ........................................................................................ 6-2 7 GEOLOGICAL SETTING ..........................................................................................7 -1 Regional Geology ...................................................................................................7 -1 Local Geology ........................................................................................................7 -4 Property Geology ....................................................................................................7 -4 Tectonic Setting ......................................................................................................7 -5 8 DEPOSIT TYPES ......................................................................................................8 -1 9 MINERALIZATION ....................................................................................................9 -1 Genetic Model ........................................................................................................9 -1 Mineralized Structures ............................................................................................ 9-4 10 EXPLORATION ..................................................................................................... 10-1 11 DRILLING .............................................................................................................. 11-1 12 SAMPLING METHOD AND APPROACH .............................................................. 12-1 13 SAMPLE PREPARATION, ANALYSES AND SECURITY ..................................... 13-1 Sample Security ................................................................................................... 13-2 14 DATA VERIFICATION ........................................................................................... 14-1 15 ADJACENT PROPERTIES ................................................................................... 15-1 16 MINERAL PROCESSING AND METALLURGICAL TESTING ............................... 16-1 Metallurgical Testing ............................................................................................. 16-4 Mill Production ...................................................................................................... 16-4 17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ......................... 17-1 Summary .............................................................................................................. 17-1 Mineral Resources ................................................................................................ 17-1 Yamana Gold Inc. – Minera Florida Limitada Technical Report NI 43-101 – March 22, 2010 Page i SCOTT WILSON RPA www.scottwilson.com Mineral Reserves ................................................................................................ 17-19 18 OTHER RELEVANT DATA AND INFORMATION ................................................. 18-1 19 ADDITIONAL REQUIREMENTS ........................................................................... 19-1 Mining Operations ................................................................................................ 19-1 Markets ................................................................................................................ 19-8 Contracts .............................................................................................................. 19-8 Environmental Considerations .............................................................................. 19-8 Taxes ................................................................................................................... 19-9 Capital and Operating Cost Estimates .................................................................. 19-9 Economic Analysis ............................................................................................. 19-10 20 INTERPRETATION AND CONCLUSIONS ............................................................ 20-1 Geology and Mineral Resources ........................................................................... 20-1 Mineral Reserves and Life of Mine Plan ............................................................... 20-3 Mineral Processing ............................................................................................... 20-4 Capital and Operating Costs ................................................................................. 20-4 Economic Analysis ............................................................................................... 20-4 21 RECOMMENDATIONS ......................................................................................... 21-1 22 REFERENCES ...................................................................................................... 22-1 23 DATE AND SIGNATURE PAGE ............................................................................ 23-1 24 CERTIFICATE OF QUALIFIED PERSON ............................................................. 24-1 LIST OF TABLES PAGE Table 1-1 Pre-tax Cash Flow Summary .................................................................... 1-11 Table 1-2 2010 Exploration Program ........................................................................ 1-13 Table 1-3 Mineral Resources (December 31, 2009) ................................................. 1-19 Table 1-4 Mineral Reserves (December 31, 2009) ................................................... 1-20 Table 4-1 List of Properties in May 1999 Lease Agreement ....................................... 4-2 Table 4-2 Schedule of Payments in the Agua Fría Lease Agreement ......................... 4-3 Table 4-3 List of Mineral Concessions ........................................................................ 4-4 Table 6-1 Historical Production to December 31, 2009 ............................................... 6-2 Table 6-2 Underground Development, 1988-2009 ...................................................... 6-3 Table 11-1 Selected Mine Drill Intersections 2009 .................................................... 11-1 Table 11-2 Selected Exploration Intersections 2009 ................................................. 11-3 Table 16-1 Historical Mineral Processing Results ..................................................... 16-6 Table 17-1 Measured Mineral Resource Estimate (December 31, 2009) .................. 17-3 Table 17-2 Indicated Mineral Resource Estimate (December 31, 2009) ................... 17-4 Table 17-3 Inferred Mineral Resource Estimate (December 31, 2009) ..................... 17-5 Table 17-4 Top Cut Values ....................................................................................... 17-8 Table 17-5 Summary of Assay Records ................................................................. 17-11 Yamana Gold Inc. – Minera Florida Limitada Technical Report NI 43-101 – March 22, 2010 Page ii SCOTT WILSON RPA www.scottwilson.com Table 17-6 Summary of Assay Composites ............................................................ 17-12 Table 17-7 Mineral Resource Classification Parameters ........................................ 17-14 Table 17-8 Mineral Resources (December 31, 2009) ............................................