July 19, 2021 – Feasibility study update: positive results for the development of the Wasamac underground mining project

We are pleased to present today the results of the updated feasibility study for the Wasamac underground mining project, confirming our intention to advance the project to production, conditional on obtaining government authorizations which are subject to the currently ongoing environmental assessment processes.

This decision clearly places Quebec and Abitibi-Témiscamingue at the heart of Yamana Gold’s future development and affirms our desire to consolidate our presence there by accelerating and positioning our development activities. The recent hiring of resources from Quebec in management positions and the acquisition of new mining properties in Abitibi last month also bear witness to this. This announcement further consolidates Yamana Gold's position as the second largest gold producer in Quebec and indicates major investments that will generate significant positive spinoffs for all communities. The recent launch of the Yamana corporate website in French(External link) is also an additional indication of this willingness to pursue our expansion in Abitibi-Témiscamingue and in Quebec.

The Wasamac underground mining project: a new page of history

Located between Évain and Arntfield, Wasamac is a former mining property operated in the late 1960s and early 1970s. The feasibility study which will be the subject of a presentation to investors tomorrow indicates that its planned operation, which would be deploying new technologies and would be focusing on respect and cohabitation with the neighborhood, would currently result in a mine life of 10 years with a development potential of more than 15 years and an annual production rate of 200,000 ounces of gold.

A favorable decision for the development of the project which reflects Yamana's commitment to put the necessary means and efforts to develop the Wasamac project in a responsible manner

This is an important milestone in the development of our project which will allow substantial investments and mark a new phase both regarding the activities of characterization of the deposit and the design of the underground mining project, and in terms of relations with the neighborhood and communities. We are enthusiastic to continue the collaborative efforts started since the first hour with the neighborhood, the communities, and the First Nations. Inspired by Yamana's values and local and international best practices, these approaches aim to determine the conditions of acceptability of the project under development and the implementation of transparent and proactive community relations.

A "yes" conditional on obtaining environmental authorizations

Provincial and federal impact assessment and environmental assessment processes are ongoing. The authorizations resulting from these processes are required to begin construction of the Wasamac underground mining project. We are confident in our ability to secure the necessary authorizations since we approach these studies with rigor and work with the best experts, both professionals and the neighborhood, to develop a project with the lowest environmental footprint possible.

Today's announcement also recommends continuing our exploration activities into a new phase of advanced exploration. This is a hypothesis that we are currently evaluating. If we were to go ahead with this one, the exploration ramp portal would be located on the west side of the Route 117 on the Wasamac property and bulk sampling of the deposit would be done via underground ways. This would also involve obtaining additional government authorizations separate from the ongoing environmental impact assessment on the mining project. The construction of infrastructure (exploration ramp) and bulk sampling would be subject to separate government authorization processes (from the Ministry of Energy and Natural Resources for sampling and the Ministry of the Environment for the construction of infrastructure and dewatering).

In addition, exploration activities should begin in the fall on the recently acquired Francoeur-Arntfield-Lac-Fortune properties to better define mineral resources and potential synergies with the Wasamac underground mining project.

For more information about this announcement, see the corporate press release(External link).

To learn more about the Wasamac underground mining project, its environmental assessment, its exploration program and to view job offers, visit www.wasamac-consultations.com/

We always remain available to answer your questions about the Wasamac underground mining project or any other matter concerning Yamana Gold's activities.

Sincerely Yours

Marc-André Lavergne

Directeur Communauté et affaires externes

Yamana Gold