2018 March El Peñón PDF

YAMANA GOLD INC.
TECHNICAL REPORT ON THE

EL PEÑÓN MINE, ANTOFAGASTA
REGION (II), CHILE
NI 43-101 Report
Qualified Persons:
Holger Krutzelmann, P.Eng.
Normand Lecuyer, P.Eng.
Chester M. Moore, P.Eng.
March 2, 2018
RPA 55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I T + 1 (416) 947 0907 www.rpacan.com
Report Control Form
Document Title Technical Report on the El Peñón Mine, Antofagasta Region

(II), Chile
Client Name & Address Yamana Gold Inc.

Royal Bank Plaza, North Tower
Suite 2200
Toronto, Ontario
M5J 2J3
Document Reference Status & FINAL

Project # 2931 Issue No. Version
Issue Date March 2, 2018
Lead Author Holger Krutzelmann (Signed)

Normand Lecuyer (Signed)
Chester Moore (Signed)
Peer Reviewer Deborah McCombe (Signed)
Project Manager Approval Chester Moore (Signed)
Project Director Approval Deborah McCombe (Signed)
Report Distribution Name No. of Copies

Client
RPA Filing 1 (project box)
Roscoe Postle Associates Inc.

55 University Avenue, Suite 501
Toronto, ON M5J 2H7
Canada
Tel: +1 416 947 0907
Fax: +1 416 947 0395
[email protected]
www.rpacan.com
TABLE OF CONTENTS
PAGE
1 SUMMARY ...................................................................................................................... 1-1

Executive Summary ....................................................................................................... 1-1
Economic Analysis ......................................................................................................... 1-6
Technical Summary ....................................................................................................... 1-6
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
7 GEOLOGICAL SETTING AND MINERALIZATION .......................................................... 7-1
Regional Geology .......................................................................................................... 7-1
Local Geology ................................................................................................................ 7-3
8 DEPOSIT TYPES ............................................................................................................ 8-1
9 EXPLORATION ............................................................................................................... 9-1
10 DRILLING .................................................................................................................... 10-1
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................ 11-1
12 DATA VERIFICATION ................................................................................................. 12-1
13 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................... 13-1
Metallurgical Testing .................................................................................................... 13-1
Historical Mill Production .............................................................................................. 13-7
14 MINERAL RESOURCE ESTIMATE ............................................................................. 14-1
Mineral Resource Summary......................................................................................... 14-1
Resource Database ..................................................................................................... 14-6
Exploratory Data Analysis ............................................................................................ 14-6
Bulk Density............................................................................................................... 14-10
Topographic Surfaces ................................................................................................ 14-10
Geological Interpretation ............................................................................................ 14-11
Compositing ............................................................................................................... 14-12
Variography ............................................................................................................... 14-13
Block Models ............................................................................................................. 14-15
Interpolation Strategy ................................................................................................. 14-15
Declustering ............................................................................................................... 14-16
Boundary Definition ................................................................................................... 14-16
Capping and Outlier Restriction ................................................................................. 14-16
Yamana Gold Inc. – El Peñón Mine, Project #2931

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Unfolding ................................................................................................................... 14-19

Validation ................................................................................................................... 14-19
Classification ............................................................................................................. 14-25
Cut-off Grade ............................................................................................................. 14-26
Dilution ...................................................................................................................... 14-26
Gold Equivalent Factor .............................................................................................. 14-28
15 MINERAL RESERVE ESTIMATE ................................................................................ 15-1
Summary ..................................................................................................................... 15-1
16 MINING METHODS ..................................................................................................... 16-1
Mine Design, Mining Method........................................................................................ 16-1
Geomechanics, Ground Support .................................................................................. 16-7
Mine Planning .............................................................................................................. 16-7
Mine Development ....................................................................................................... 16-7
Mine Equipment ......................................................................................................... 16-13
17 RECOVERY METHODS .............................................................................................. 17-1
18 PROJECT INFRASTRUCTURE .................................................................................. 18-1
19 MARKET STUDIES AND CONTRACTS ...................................................................... 19-1
Markets ........................................................................................................................ 19-1
20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT
......................................................................................................................................... 20-1
21 CAPITAL AND OPERATING COSTS .......................................................................... 21-1
Capital Costs ............................................................................................................... 21-1
Operating Costs ........................................................................................................... 21-1
22 ECONOMIC ANALYSIS............................................................................................... 22-1
23 ADJACENT PROPERTIES .......................................................................................... 23-1
24 OTHER RELEVANT DATA AND INFORMATION ........................................................ 24-1
25 INTERPRETATION AND CONCLUSIONS .................................................................. 25-1
26 RECOMMENDATIONS................................................................................................ 26-1
27 REFERENCES ............................................................................................................ 27-1
28 DATE AND SIGNATURE PAGE .................................................................................. 28-1
29 CERTIFICATE OF QUALIFIED PERSON .................................................................... 29-1
30 APPENDIX 1 ............................................................................................................... 30-1
Land Tenure ................................................................................................................ 30-1
LIST OF TABLES
PAGE
Table 1-1 Mineral Resource Estimate – December 31, 2017 ............................................ 1-2
Table 1-2 Mineral Reserve Estimate – December 31, 2017 .............................................. 1-3

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Table 6-1 Historical Production to December 31, 2017 ..................................................... 6-2

Table 10-1 Drill Summary ............................................................................................... 10-1
Table 11-1 CRM Statistics .............................................................................................. 11-5
Table 11-2 Blank Statistics ............................................................................................. 11-6
Table 11-3 Sterile Sample Statistics ............................................................................... 11-6
Table 13-1 Metallurgical Testwork by Vein ..................................................................... 13-3
Table 13-2 Gold Recoveries by Geometallurgical Unit .................................................... 13-4
Table 13-3 Silver Recoveries by Geometallurgical Unit .................................................. 13-4
Table 13-4 Average Cyanide Consumption by Geometallurgical Unit ............................. 13-5
Table 13-5 Historical Bond Work Index Testwork ........................................................... 13-6
Table 13-6 Average Bond Work Index by Geometallurgical Unit ..................................... 13-6
Table 13-7 Historical Mill Production ............................................................................... 13-7
Table 14-1 Mineral Resource Estimate – December 31, 2017 ........................................ 14-2
Table 14-2 Mineral Resource Estimates by Vein – December 31, 2017.......................... 14-3
Table 14-3 Sample Lengths in Veins .............................................................................. 14-7
Table 14-4 Bulk Density Assignments by Block Model.................................................. 14-10
Table 14-5 Typical Experimental Correlogram Parameters ........................................... 14-13
Table 14-6 Common Block Model Attributes ................................................................. 14-15
Table 14-7 Typical Grade Estimation Search Parameters............................................. 14-16
Table 14-8 Yamana Capping Levels by Vein and Domain ............................................ 14-18
Table 14-9 Composite Versus Block Grades ................................................................ 14-21
Table 14-10 ID3 Versus NN Block Grades .................................................................... 14-22
Table 14-11 Cut-off Grade Parameters ......................................................................... 14-26
Table 14-12 SMU Design Parameters .......................................................................... 14-27
Table 15-1 Mineral Reserve Estimate – December 31, 2017 .......................................... 15-1
Table 15-2 Mineral Reserve Estimates by Vein– December 31, 2017 ............................ 15-2
Table 15-3 SMU Drift Parameters ................................................................................... 15-7
Table 15-4 Economic Parameters................................................................................... 15-7
Table 15-5 SMU Mining Parameters ............................................................................... 15-9
Table 15-6 Drift and Stope Dilution ............................................................................... 15-11
Table 15-7 F1 Reconciliation of Long Term and Short Term Plans ............................... 15-15
Table 15-8 F2 Reconciliation of Mine Production and Plant .......................................... 15-15
Table 16-1 Mine Development Achieved ........................................................................ 16-8
Table 16-2 Mine Development in LOM............................................................................ 16-8
Table 16-3 Mine Material Moved..................................................................................... 16-9
Table 16-4 Life of Mine Plan ........................................................................................... 16-9
Table 16-5 Equipment List ............................................................................................ 16-13
Table 17-1 Reagent/Supply Consumptions ..................................................................... 17-9
Table 19-1 Summary of Major Contracts ........................................................................ 19-1
Table 20-1 Environmental Monitoring ............................................................................. 20-2
Table 20-2 Permit Status ................................................................................................ 20-4
Table 21-1 Sustaining Capital Costs (US$000) ............................................................... 21-1
Table 21-2 Mine Operating Costs December 31, 2017 (YTD) ......................................... 21-2
Table 21-3 Mine Operating Costs for LOM ..................................................................... 21-2
Table 21-4 Manpower List .............................................................................................. 21-3

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LIST OF FIGURES
PAGE
Figure 4-1 Location Map ................................................................................................... 4-3
Figure 4-2 Property Map ................................................................................................... 4-4
Figure 7-1 Paleocene Volcanic Belt .................................................................................. 7-2
Figure 7-2A Local Geology ............................................................................................... 7-4
Figure 7-2B Geological Legend ........................................................................................ 7-5
Figure 7-3 Schematic Plan and Cross Sections ................................................................ 7-7
Figure 9-1 Resource Development ................................................................................... 9-2
Figure 9-2 Exploration Targets 2018 ................................................................................. 9-6
Figure 10-1 Drill Plan ...................................................................................................... 10-2
Figure 10-2 Drill Section, Caseron 505 ........................................................................... 10-3
Figure 11-1 Pulp Duplicate Control Charts...................................................................... 11-7
Figure 11-2 External Duplicate Control Charts ................................................................ 11-9
Figure 14-1 Sample Lengths in Veins ............................................................................. 14-8
Figure 14-2 Sample Statistics ......................................................................................... 14-9
Figure 14-3 UGGS Wireframe Construction .................................................................. 14-12
Figure 14-4 Typical Correlograms................................................................................. 14-14
Figure 14-5 Example Swath Plots and Histogram (Esmeralda – Au) ............................ 14-23
Figure 14-6 Plan View of Blocks, Samples, and Composites (Au g/t, 505).................... 14-24
Figure 15-1 Mineral Reserves Process ........................................................................... 15-6
Figure 15-2 ELOS Dilution Graph ................................................................................. 15-12
Figure 15-3 Mined Material ........................................................................................... 15-16
FIgure 16-1 El Peñón Mine Layout ................................................................................. 16-2
Figure 16-2 Schematic Bench and Fill Mining ................................................................. 16-4
Figure 16-3 Split Blast Face............................................................................................ 16-5
Figure 16-4 Bench and Fill Stope with Down Holes and Uppers ..................................... 16-6
Figure 16-5 Ventilation Schematic ................................................................................ 16-12
Figure 17-1 Process Flowsheet ...................................................................................... 17-2
Figure 17-2 Tailings Storage Area .................................................................................. 17-7
LIST OF APPENDIX FIGURES & TABLES

PAGE
Table 30-1 El Peñón Exploitation Claim List ................................................................... 30-2
Table 30-2 PAV Exploitation Claim List......................................................................... 30-11

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1 SUMMARY
EXECUTIVE SUMMARY
Roscoe Postle Associates Inc. (RPA) was retained by Yamana Gold Inc. (Yamana) to prepare
an independent Technical Report on the El Peñón gold-silver deposit, located near
Antofagasta in northern Chile. The purpose of this report is to provide Yamana with an
independent assessment of the Mineral Reserves and Mineral Resources to support public
disclosure of information on a material operation. This Technical Report conforms to NI 43-
101 Standards of Disclosure for Mineral Projects (NI 43-101). RPA visited the property from
August 7 to 9, 2017.
Yamana is a Canadian reporting issuer listed on the Toronto Stock Exchange (TSX), and the
New York Stock Exchange (NYSE). Yamana is involved in the acquisition, exploration, and
development of gold properties in North and South America. Yamana operates a portfolio of
mines in Brazil, Chile, and Argentina. The company also holds interests in the Alumbrera mine
in Argentina and the Canadian Malartic mine in Canada.
In the third quarter of 2007, Yamana acquired and merged with Meridian Gold Inc. (Meridian),
a mid-tier gold producer with two mining operations in Chile and development and exploration
projects throughout the Americas. The El Peñón Mine, owned by Yamana’s subsidiary Minera
Meridian Limitada, was one of Meridian’s gold producers in Chile.
The El Peñón Mine currently comprises the following major assets and facilities:
• The underground mine with production of approximately 3,000 tonnes per day (tpd)
from several mineralized structures.
• The physical plant site including the administrative office complex and associated
facilities, the mill and associated facilities such as the laboratories, ore stockpiles,
waste dumps, coarse ore storage, workshops, warehouses, and the accommodation
complex and associated facilities such as cafeterias and recreation facilities.
• Facilities providing basic infrastructure to the mine, including electric power, water
treatment and supply, and sewage treatment.
• Underground infrastructure including mine ramps, ventilation raises, maintenance

shops, and mobile equipment fleet.
• Access by highway and gravel roads to Antofagasta via the national road system.

Technical Report NI 43-101 – March 2, 2018 Page 1-1
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Scott Wilson RPA, a predecessor company to RPA, carried out a previous audit of the Mineral
Resources and Mineral Reserves of the El Peñón deposit with the related Technical Report
completed on February 11, 2008. In December 2008, Scott Wilson RPA carried out a
subsequent review of the Mineral Resources and Mineral Reserves at the mine. Subsequent
audits and Technical Reports were completed on December 7, 2010 and September 12, 2017.
The December 31, 2017 Mineral Resource estimate, exclusive of Mineral Reserves, is listed
in Table 1-1.
TABLE 1-1 MINERAL RESOURCE ESTIMATE – DECEMBER 31, 2017

Yamana Gold Inc. - El Peñón Mine
Tonnes Grade Contained Metal

Category
(000 t) (g/t Au) (g/t Ag) (000 oz Au) (000 oz Ag)
Measured 311.7 8.56 191.0 85.8 1,914.1
Indicated 1,115.9 6.47 224.3 232.0 8,047.7
Total Measured + Indicated 1,427.6 6.92 217.0 317.8 9,961.8
Total Inferred 17,500 1.7 60 960 33,500
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. A cut-off grade of 2.71 g/t AuEq was used for all zones, except for the Pampa Augusta Victoria, Fortuna-
Dominador-Chiquilla Chica zones which used 2.82 g/t AuEq, 2.79 g/t AuEq and 2.81 g/t AuEq,
respectively. Cut-off grades of 0.50 g/t AuEq and 0.80 g/t AuEq were used for tailings and low grade
stocks reporting, respectively.
3. Mineral Resources were estimated considering long-term gold and silver prices of US$1,600/oz and
US$24/oz and gold and silver mill recoveries of 95% and 86.5%, respectively. Gold and silver
recoveries of 60% and 30% were used for estimating resources contained in tailings whiles recoveries of
75% and 70% were used for estimating resources contained in low-grade stocks.
4. While the results are presented undiluted and in-situ, the reported Mineral Resources consider minimum
mining widths and expected dilutions (variable by vein) to determine reasonable prospects of economic
extraction for each vein.
5. Bulk densities used vary between 2.36 t/m3 and 2.57 t/m3 for Mineral Resources contained in veins. Bulk
densities of 1.60 t/m3 and 1.75 t/m3 were used to estimate Mineral Resources contained in low-grade
stocks and tailings respectively.
6. Mineral Resources are reported exclusive of Mineral Reserves.
7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8. Numbers may not add due to rounding.
RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other relevant factors that could materially affect the Mineral Resource
estimate.
The December 31, 2017 Mineral Reserve estimate is listed in Table 1-2.

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TABLE 1-2 MINERAL RESERVE ESTIMATE – DECEMBER 31, 2017

Yamana Gold Inc. – El Peñón Mine
Tonnage Grade Contained Metal

Category
Proven 1,061.8 5.90 192.4 201.2 6,567.4
Probable 3,331.8 5.25 158.8 562.6 17,011.0
Total 4,393.6 5.41 166.9 763.8 23,578.4
Notes:
1. CIM (2014) definitions were followed for Mineral Reserves.
2. Mineral Reserves are estimated using processing recoveries from a geometallurgical model, as
recoveries are variable by ore type.
3. A cut-off grade of 3.48 g/t AuEq was used in the Mineral Reserve for most veins except as follows: a cut-
off grade of 3.62 g/t AuEq used for the Elizabeth and Victoria veins in the Pampa Augusta Victoria Area
(for a US$5.24/t additional transportation cost) and a cut-off of 3.59 g/t AuEq used for the Fortuna,
Dominador, and Laguna veins in the Fortuna and Laguna Area (for a US$3.86/t additional transportation
cost).
4. Mineral Reserves are estimated using an average long-term gold price of US$1,250/oz and a silver price
of US$18/oz.
5. A minimum mining width of 0.60 m to 1.0 m was used depending on the vein.
6. Bulk density varies from 2.36 t/m3 to 2.57 t/m3.
7. The Selective Mining Units (SMU) include Inferred Mineral Resources and unclassified material (blocks
located outside of the underground geological wireframe + grade shell (UGGS)). These materials were
treated as dilution for mine planning and Mineral Reserve estimation purposes. Zero gold and silver
grades have been assigned to them.
RPA is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant
factors that could materially affect the Mineral Reserve estimate.
CONCLUSIONS
RPA offers the following conclusions:
RISKS
• The mine has been in production for 18 years and is a mature operation. In RPA’s
opinion, there are not any significant risks and uncertainties that could reasonably be
expected to affect the reliability or confidence in the exploration information, Mineral
Resource or Mineral Reserve estimates, or projected economic outcomes.
GEOLOGY AND MINERAL RESOURCES

• The deposits at El Peñón are low to intermediate epithermal gold-silver deposits,
hosted in steeply dipping fault-controlled veins following rhyolite dome emplacement.
Gold and silver mineralization comprises disseminations of electrum, native gold and
silver, acanthite, silver sulphosalts and halides, plus accessory pyrite occurring with
quartz, adularia, carbonates, and clay minerals.
• There are 22 main vein zones and many subsidiary veins in nine vein systems that
have supported, support currently, or are planned to support surface and underground
mining operations. Vein widths range from decimetre-scale to over 20 m. Individual

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mineralized shoots measure from less than one kilometre to four kilometres in strike
length, and up to 350 m in the down-dip direction.
• Sampling and assaying are adequately completed and have been generally carried out
using industry standard quality assurance/quality control (QA/QC) practices. The
sample preparation, analysis, and security procedures at El Peñón are suitable for use
in the estimation of Mineral Resources.
• To avoid sample sharing between spatially close structures, each independent splay
or parallel vein is considered an independent estimation domain. Spatially
disconnected splay wireframes were flagged as separate estimation domains. In
RPA’s opinion, this improved interpretation technique will result in better defined
resources than previous estimates.
• The Mineral Resource estimate is appropriate for the style of mineralization and the
resource models are reasonable and acceptable to support the Mineral Resource
estimates.
• For these estimations, Yamana used a stope optimizer to determine potential economic
viability of resource blocks. This resulted in a more realistic estimate of resources
remaining after reserve estimation.
• The Measured plus Indicated Mineral Resources are estimated to be 1,427,600 t at

6.92 g/t Au and 217.0 g/t Ag containing 317,800 oz of gold and 9,962,000 oz of silver.
Inferred Mineral Resources are estimated at 17,469,000 t at 1.7 g/t Au and 60 g/t Ag
containing 960,000 oz of gold and 33,506,000 oz of silver. RPA notes that the
resources are reasonable, are in accordance with Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) definitions, and are disclosed in compliance with NI
43-101.
• Exploration potential exists to infill resources in the mines, to discover extensions of

current deposits, and to discover new deposits in the El Peñón district.
MINING AND MINERAL RESERVES

• In RPA’s opinion, the conversion process of Mineral Resources to Mineral Reserves is
robust and ensures each Selective Mining Unit (SMU) has positive economic value.
• The Proven plus Probable Mineral Reserves are estimated to be 4,393,600 t at 5.41
g/t Au and 166.9 g/t Ag containing 763,800 oz of gold and 23,578,400 oz of silver. RPA
notes that the reserves are reasonable, and are in accordance with CIM Definition
Standards for Mineral Resources and Mineral Reserves, dated May 10, 2014.
• Mineral Reserves include small quantities of open pit and low-grade stockpile material.
• The amount of additional material mined from Mineral Resources and also from outside
of the block model has been reduced over the last several years as a result of improved
planning procedures.
• Reconciliation of the long-term and short-term plans for Mineral Reserves shows that
the variances are improving. Yamana is using the SMU approach for mine planning
and Mineral Reserve estimation and has improved the block modelling procedures,

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which in turn has improved the quality of mine planning and consequently resulted in
more accurate overall results. In RPA’s opinion, the reconciliation is within reasonable
limits and efforts to track reconciliation should continue on a regular basis.
• In RPA’s opinion, El Peñón’s forecast mine and plant production targets are attainable
and reasonable, and the procedures used to forecast the life of mine (LOM) plan are
reasonable. Forecast gold production averages 150,000 oz from 2018 to 2021 and
declines to 91,000 oz in 2022. Forecast silver production averages 4,307,000 oz from
2018 to 2021 and declines to 2,639,000 oz in 2022.
METALLURGY AND MINERAL PROCESSING

• The plant operation has been operating well, with tonnages being generally consistent
over the last few years, declining in 2017 as result of the rightsizing of the operation in
late 2016. Changes in recoveries of both gold and silver have been in line with the
changes in head grade, and somewhat higher in 2017 due to reduced throughput.
ENVIRONMENTAL CONSIDERATIONS
• All required permits for operation have been granted, or applied for, with reasonable
expectation of being granted in due course.
CAPITAL AND OPERATING COSTS

• The total capital expenditures estimated by Yamana for the LOM operations are $194
million in sustaining capital, including mine development (56%), equipment and
infrastructure (21%), and reclamation and closure (23%). These costs include mine
and plant costs as well as administration capital, but do not include working capital,
exploration or any future expansions. RPA is of the opinion that the total estimated
capital expenditures for the mine are reasonable based on the calculated Mineral
Reserves.
• A total of 177,000 m of drilling is planned for 2018 to 2020 at a budgeted cost of

US$36,000,000. Yamana considers allocating additional discretionary exploration
funding based on success
• Operating costs are forecast to average US$147 per tonne over the LOM. RPA is of
the opinion that the total estimated operating costs for the mine are reasonable.
RECOMMENDATIONS
RPA offers the following recommendations:

• Yamana geologists have prepared a strategic drill program to infill resources, complete
local exploration near the mines, and to continue district exploration. The amount of
drilling proposed is based on the past success rate of adding resources at El Peñón.
A total of 177,000 m of drilling is planned for 2018 to 2020 at a budgeted cost of
funding based on results. Considering the ongoing exploration successes at El Peñón

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over the years, RPA concurs with this proposed exploration program and recommends
that it be carried out as defined.

• While the drifts are quite close to the planned design, the stopes were 11% larger than
planned in 2017, resulting in higher than designed dilution rates. The equivalent of
overbreak/slough (ELOS) design of 0.25 m should be monitored going forward to
assess whether adjustment of the ELOS is warranted.
• The extraction rate for stopes is set at 100% for the majority (86%) of the stopes,
resulting in an average extraction rate of near 98%. Mine staff apply an extraction
factor, which averages approximately 95% during the mine planning process, however
this should be reflected in the Mineral Reserves statement.
ECONOMIC ANALYSIS
This section is not required as Yamana is a producing issuer, the property is currently in
production, and there is no material expansion of current production.
RPA completed an after-tax cash flow projection generated from the LOM production schedule
and capital and operating cost estimates to confirm the positive economics of the stated
Mineral Reserves in this report. The cash flow was prepared using the stated Mineral
Reserves, metal prices, and cut-off grades.
TECHNICAL SUMMARY
PROPERTY DESCRIPTION AND LOCATION
The El Peñón Mine is located in north central Chile, at latitude 24°40’ S and longitude 69°50’
W, approximately 165 km southeast of Antofagasta. The site is in the Atacama Desert,
approximately midway between the Pacific coast and the border with Argentina. There is little
to no vegetation or wildlife in the area around the mine.
LAND TENURE
The El Peñón property consists of 436 individual mining exploitation claims owned by Meridian,
a subsidiary of Yamana. The claims comprise an area of 90,087 ha covering the El Peñón
Mine, the Fortuna area, the Laguna area, the Pampa Augusta Victoria (PAV) area, and
surrounding exploration lands.

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EXISTING INFRASTRUCTURE
Surface infrastructure at El Peñón comprises a physical plant site, including administrative
office complex and associated facilities, accommodation complex, open pit and underground
mines, the mill and associated facilities such as the laboratories, ore stockpiles, waste dumps,
coarse ore storage, backup power plant, workshops, warehouses, and dry facilities.
Underground infrastructure includes portals, access ramps, ventilation raises, maintenance

HISTORY
The discovery of El Peñón was the result of successful grassroots exploration carried out by
Meridian geologists through the early 1990s. Regional exploration focusing on Early to Mid-
Eocene volcanic belts in northern Chile led to the acquisition of the El Peñón property in 1993.
Trenching carried out that year, followed by a 13-hole drilling program, discovered significant
Au-Ag mineralization. In 1994, the first hole of a follow-up program intersected 100 m grading
10.9 g/t Au and 123.4 g/t Ag in what eventually became the Quebrada Orito deposit.
In July 1998, Meridian made the decision to place the property in production, and construction
on a 2,000 tpd mine and mill facility commenced later that same year. Production began in
September 1999, ramping up to full capacity by January 2000 and has continued to the present
day.
Since September 1999, the operation has run continually, treating both open pit and
underground ore. As of December 31, 2017, the mine has produced approximately 18,053,234
tonnes of ore grading 8.94 g/t Au and 234.99 g/t Ag.
GEOLOGY AND MINERALIZATION

The El Peñón Mine is located in the Central Depression of the Atacama Desert. The region is
underlain by Late Cretaceous to Early Eocene magmatic arc rocks, known as the Paleocene
belt.
The mineralization at El Peñón is hosted by near-horizontal to gently dipping Eocene to

Paleocene basaltic to rhyolitic volcanic rocks. The stratigraphic sequence consists of a lower
sequence of volcanic breccia and andesitic to basaltic flows, overlain by rhyolitic to dacitic

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pyroclastic rocks, dacitic to andesitic flows, and volcanic breccia. Rhyolitic intrusives, domes,
and associated flows are intercalated with earlier volcanic units.
The distribution of Cretaceous and Eocene volcanic rocks is controlled by graben structures
bounded by north-northeast trending faults. These are steeply dipping regional-scale
structures with displacements in the order of hundreds of metres. The principal direction for
late dikes and many of the highest grade mineralized faults is parallel to the bounding faults.
Mineralized faults dip steeply eastward on the east side of the property and westward on the
west side, in a fashion implying a horst/graben extensional structure.
The deposits at El Peñón are epithermal gold-silver deposits, hosted in steeply dipping fault-
controlled veins. Gold and silver mineralization comprises disseminations of electrum, native
gold and silver, acanthite, silver sulphosalts and halides, plus accessory pyrite occurring with
EXPLORATION
Exploration work completed to date has defined 22 main mineralized zones and subsidiary
veins, within ten geological trends.
Exploration has been successful in expanding the footprint of mineralization at site through
programs of geologic mapping, geochemistry, geophysics, and abundant surface and
underground drilling within a northeast trend starting, at the El Peñón area, with Quebrada
Orito in the southwest and ending with Angosta in the northeast. Exploration has also been
successful at the Fortuna and PAV areas located to the southwest and to the north of El Peñón,
respectively. Geophysical anomalies and positive drill intersections remain to be followed up
in all areas.
MINERAL RESOURCES
RPA has reviewed the Mineral Resource estimates of the El Peñón Mine, as estimated by
Yamana as of December 31, 2017. RPA carried out a number of checks to verify the various
procedures and numerical calculations used in the Yamana estimates. This included detailed
tracing of the methodology of estimating tonnage and grade of resource blocks. With few
exceptions, RPA found that values and compilations of gold grades were accurately recorded
and calculated as provided in block models. For these estimations, Yamana introduced the

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use of a stope optimizer to determine potential economic viability of resource blocks. This
resulted in a lower overall tonnage but a more realistic estimate of resources remaining after
reserve estimation.
As part of this audit, RPA carried out an independent estimate of seven veins (Al Este, Caseron
505, Cerro Martillo, Dorada, Esmeralda, Magenta, and Providencia) to allow for better
comparison of the Yamana estimates with the RPA estimates, based on the underground drill
hole data and wireframes provided. It is RPA’s opinion that the Yamana estimates and the
RPA check estimates show acceptable agreement.
The December 31, 2017 El Peñón total Measured and Indicated Mineral Resources, exclusive
of Mineral Reserves, estimated by Yamana included 1.43 million tonnes at an average grade
of approximately 6.9 g/t Au and 217 g/t Ag. This equates to approximately 317,800 ounces of
gold and 9.96 million ounces of silver. The deposits were also estimated to contain
approximately 17.5 million tonnes of Inferred Mineral Resources at an average grade of
approximately 1.7 g/t Au and 60 g/t Ag, which equates to approximately 960,000 ounces of
gold, and 33.5 million ounces of silver. In RPA’s opinion, these resource estimates are
prepared in accordance with CIM definitions and are disclosed in compliance with NI 43-101.
MINERAL RESERVES
Mineral Reserves at the El Peñón Mine are estimated using Vulcan software including the
MineModeller UG/OP, GeoModeller, Stope Optimizer, and Gantt Scheduler. The process
includes mine designs and parameters. Selective Mining Units (SMU) are designed for each
vein using metal prices, recoveries and operating costs to determine an economic value of
each SMU. SMUs with negative values are excluded from further consideration, except for
drift SMUs that are above the marginal cut-off grade.
The economic value of each potential mining outline is calculated using forecast long-term
prices of $1,250/oz Au and $18/oz Ag, using diluted tonnes and grades. Net block values are
weighted against forecast costs and metallurgical recoveries for each potential mining outline.
These combined economic revenue and cost models are part of the SMU models.
As of December 31, 2017, Proven and Probable Mineral Reserves totalled approximately
4.394 million tonnes grading 5.41 g/t Au and 166.9 g/t Ag and contained 763,800 ounces of
gold and 23.6 million ounces of silver.

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MINING METHOD
The mining method utilized at El Peñón is the Bench and Fill Method, which is a narrow vein
longhole stoping method followed by a combination of consolidated and unconsolidated
backfill to provide the required support for continued mining. Development of the overcut, or
drill drift, and the undercut, or mucking drift, is completed at the required dimensions of four
metres in width to permit operating clearances for both the longhole drill rigs and the load-haul-
dump (LHD) equipment. These drifts are advanced using a “split-blast” method whereby the
vein material is mined first and then the remainder of the drift waste material is slashed out
and mucked. This waste material is later used for unconsolidated backfill.
Stoping dimensions are 7.5 m or 15 m in strike length and from 6 m to 16 m in height and
widths vary from one metre to six metres. Production holes are drilled with the longhole drill
then loaded, blasted, and mucked with six cubic yard scooptrams, dumped into 30 tonne trucks
and hauled to the surface stockpile. Waste backfill or cemented rockfill is placed as required.
Underground mine infrastructure includes the required ramps, cross-cuts for access and
various lateral development, as well as excavations for power stations, mine sumps, refuge
stations, maintenance shops, and other facilities. Ventilation raises are driven as required to
provide the air requirement to meet mine regulations for the mine workers and operating
underground equipment. Other installations include a shotcrete plant, backfill plant, and
communications system. The total mine system extends for approximately ten kilometres on
strike and covers a vertical extent of approximately 500 m, from the highest portal collar
elevation to the lowest mine workings.
MINERAL PROCESSING
The process plant and associated facilities process run-of-mine (ROM) ore that is delivered to
the primary crusher, using the main processes listed below:
• Crushing
• Grinding and pre-leaching thickening
• Leaching
• Counter-current decantation concentrate solution recovery
• Clarification, zinc precipitation and precipitate filtering
• Refining
• Tailings filtering
• Tailings disposal

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The El Peñón processing plant has a nominal production capacity of approximately 1.533
million tpa of stockpiled and mined ore. Mill production peaked in 2010 at 1.522 million tpa.
From 2010 to 2016 yearly mill production remained generally constant ranging from 1.4 million
tpa to 1.5 million tpa. In 2017, throughput dropped to 1.04 million tonnes to match the new
defined mine plan.
The metallurgical recovery of gold has slightly increased during the last four years, from
93.31% to 95.13%. Metallurgical recoveries of silver have remained consistent in the last three
years and increased considerably since the 2011-2013 period, during which a higher
processing rate from reduced high sulphide material from the Bonanza and Al Este veins,
negatively affected silver recoveries. Metallurgical recoveries of gold and silver increased
slightly during 2017 due to lower throughput and higher residence times.
MARKET STUDIES
The principal commodities produced at El Peñón are gold and silver in the form of doré bars,
which are freely traded, at prices that are widely known, so that prospects for sale of any
production are virtually assured.
ENVIRONMENTAL, PERMITTING AND SOCIAL CONSIDERATIONS

The El Peñón Mine is located approximately 165 km to the southeast of Antofagasta. There
are no populated areas or centres located close to the mine. The area has a desert climate,
characterized by extreme aridity, absence of humidity and very low rainfall. Other
characteristics of the area are:
• Soil of very limited usefulness (class VIII).
• Total absence of any form of plant life.
• Extremely scarce wildlife, with only eight species recognized in the Environmental
Impact Assessment (EIA).
• No permanent water courses at surface.
• Existence of fossil water, with low recharge potential below a water table at
approximately 1,600 m above sea level (MASL).
RPA understands that El Peñón is operating within environmental compliance with no

outstanding environmental citations. Environmental monitoring is ongoing at the operations
and will continue over the LOM. Key monitoring that is currently being carried out includes
water, air, noise, soil, impact on wildlife, and heritage and management.

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The El Peñón project entered the Environmental Impact Assessment System (SEIA), through
an Environmental Impact Assessment (EIA), which was approved by Exempt Resolution No.
043 in 1998. El Peñón has a number of operating permits in place. The Regulatory
Organizations that have issued these operating permits are as follows:
• Comision de Monumentos Nacionales (CMN)
• Ministerio Agricultura (MAGR)
• Comision Regional de Medio Ambiente (COREMA)
• Superintendencia de Electricidad y Combustibles (SEC)
• Servicio National de Geologia y Mineria (SERNAGEOMIN)
• Servicio de Salud de Antofagasta (SSA)
• Direccion General Aguas (DGA)
• Ministerio de Defensa Nacional (MDN)
• Ilustre Municipalidad Antofagasta (IMA)
Yamana’s social and community activities in the El Peñón district include the following:
• Excellent community and stakeholder relations
• Open door policy
• Support of medical services in Taltal
• High school and college scholarships
• Donations in infrastructure and services
• Partnerships with local groups to provide economic development
The current closure cost estimate is US$45.4 million, which includes $24.7 million for direct
costs, $4.9 million for administration of the closure, $0.9 million for monitoring and control, $7.6
million for a 25% contingency, and $7.3 million for Chilean Sales Tax.
CAPITAL AND OPERATING COST ESTIMATES

The total capital expenditures estimated by Yamana for the LOM operations (2018 to 2023)
are $194 million. These costs include mine, plant and administration capital but do not include
working capital or future expansions. Exploration drilling is budgeted at $36 million (3 years).
Operating costs are forecast to average $147/t milled including $104/t milled for the mining,
$27/t for processing and $16/t milled for general and administration costs.

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2 INTRODUCTION
Roscoe Postle Associates Inc. (RPA) was retained by Yamana Gold Inc. (Yamana) to prepare
an independent Technical Report on the El Peñón gold-silver deposit, located near
Antofagasta in northern Chile. The purpose of this report is to provide Yamana with an
independent assessment of the Mineral Reserves and Mineral Resources to support public
disclosure of information on a material operation. This Technical Report conforms to NI 43-
101-Standards of Disclosure for Mineral Projects (NI-43-101).
Yamana is a Canadian reporting issuer listed on the Toronto Stock Exchange (TSX), and the
New York Stock Exchange (NYSE). Yamana is involved in the acquisition, exploration, and
development of gold properties in North and South America. Yamana operates a portfolio of
mines in Brazil, Chile, and Argentina. The company also holds interests in the Alumbrera mine
in Argentina and the Canadian Malartic mine in Canada.
In the third quarter of 2007, Yamana acquired and merged with Meridian Gold Inc. (Meridian),
a mid-tier gold producer with two mining operations in Chile and development and exploration
projects throughout the Americas. The El Peñón Mine, owned by Yamana’s subsidiary Minera
Meridian Limitada, was one of Meridian’s gold producers in Chile.
The El Peñón Mine currently comprises the following major assets and facilities:
• The underground and open pit mines with forecasted production of approximately
3,000 tpd from several mineralized structures.
• The physical plant site including the administrative office complex and associated
facilities, the open pit and underground mine workings and associated facilities, the mill
and associated facilities such as the laboratories, ore stockpiles, waste dumps, coarse
ore storage, workshops, warehouses, and the accommodation complex and
associated facilities such as cafeterias and recreation facilities.
• Facilities providing basic infrastructure to the mine, including electric power, water
treatment and supply, and sewage treatment.
• Underground infrastructure including mine ramps, ventilation raises, maintenance

• Access by highway and gravel roads to Antofagasta via the national road system.

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SOURCES OF INFORMATION
Site visits were carried out by Normand Lecuyer, P. Eng., RPA Principal Mining Engineer, and
Chester Moore, P.Eng., RPA Principal Geologist, on August 7 to 9, 2017.
Discussions were held with the following personnel from Yamana:

• Mr. Greg Walker, Director, Mineral Resource Estimation, Yamana Gold Inc.
• Mr. Esteban Chacon, Technical Manager, Yamana Gold Inc.
• Mr. Marcos Valencia, Regional Director, Production Geology, Technical Services,
Yamana Gold Inc.
• Mr. Jaime Sepúlveda, General Manager, Yamana Gold El Peñón
• Mr. Jorge Camacho, Manager Technical Services, Yamana Gold El Peñón
• Mr. Cristian Perez, Senior Resource Estimation Engineer, Yamana Gold El Peñón
• Mr. Juan Fuentes, Geology and Exploration Superintendent, Yamana Gold El
Peñón
• Mr. Javier Ordenes, Senior Geologist, Yamana Gold El Peñón
• Mr. Sergio Castro, Superintendent Planning and Development, Yamana Gold El
Peñón
• Mr. Hugo Jorquera, QA/QC Manager, Yamana Gold El Peñón
• Mr. Rodrigo Gutierrez, Plant Superintendent, Yamana Gold El Peñón
• Mr. Alex Milos, Senior Metallurgist, Yamana Gold El Peñón
• Ms. Angeli Flores, Chief of Environment Department, Yamana Gold El Peñón
• Ms. Jaqueline Francois, Regional Tax Manager, Yamana Gold Inc.
• Mr. José Naddaf: HSEC Coordinator and Community Leader, Yamana Gold El
Peñón
Mr. Krutzelmann, P. Eng, RPA Associate Principal Metallurgical Engineer, Mr. Lecuyer, and
Mr. Moore are Qualified Persons (QP) for this report. The QPs’ responsibilities are listed in
Section 29 of this Technical Report.
The documentation reviewed, and other sources of information, are listed at the end of this
report in Section 27 References.

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LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the metric system. All currency in this
report is US dollars (US$) unless otherwise noted.
a annum kWh kilowatt-hour

A ampere L Litre
bbl barrels Lb Pound
btu British thermal units L/s litres per second
°C degree Celsius M Metre
C$ Canadian dollars M mega (million); molar
cal calorie m2 square metre
cfm cubic feet per minute m3 cubic metre
cm centimetre µ Micron
cm2 square centimetre MASL metres above sea level
d day µg Microgram
dia diameter m3/h cubic metres per hour
dmt dry metric tonne Mi Mile
dwt dead-weight ton Min Minute
°F degree Fahrenheit µm Micrometre
ft foot Mm Millimetre
ft2 square foot Mph miles per hour
ft3 cubic foot MVA megavolt-amperes
ft/s feet per second MW Megawatt
g gram MWh megawatt-hour
G giga (billion) Oz Troy ounce (31.1035g)
Gal Imperial gallon oz/st, opt ounces per short ton
g/L grams per litre Ppb parts per billion
Gpm Imperial gallons per minute Ppm parts per million
g/t grams per tonne Psia pounds per square inch absolute
gr/ft3 grains per cubic foot Psig pounds per square inch gauge
gr/m3 grains per cubic metre RL relative elevation
ha hectare S Second
hp horsepower St short ton
hr hour Stpa short tons per year
Hz hertz Stpd short tons per day
in. inch T metric tonne
in2 square inch Tpa metric tonnes per year
J joule Tpd metric tonnes per day
k kilo (thousand) US$ United States dollar
kcal kilocalorie USg United States gallon
kg kilogram USgpm US gallons per minute
km kilometre V Volt
km2 square kilometre W Watt
km/h kilometres per hour Wmt wet metric tonne
kPa kilopascal wt% weight percent
kVA kilovolt-amperes yd3 cubic yard
kW kilowatt Yr Year

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3 RELIANCE ON OTHER EXPERTS

This report has been prepared by RPA for Yamana. The information, conclusions, opinions,
and estimates contained herein are based on:
• Information available to RPA at the time of preparation of this report,
• Assumptions, conditions, and qualifications as set forth in this report, and
• Data, reports, and other information supplied by Yamana and other third party
sources.
For the purpose of this report, RPA has relied on ownership information provided by Yamana.
RPA received property information and a detailed concession listing from Yamana’s office in
Santiago, Chile. As well, RPA received a formal legal opinion from Nuñez Muñoz Y Cia. Ltda.
Abogados, dated October 2015 confirming Yamana’s ownership of mining exploitation
concessions, surface rights, and water rights at El Peñón. RPA has not researched property
title or mineral rights for the El Peñón operation and expresses no opinion as to the ownership
status of the property.
RPA has relied on Yamana for guidance on applicable taxes, royalties, and other government
levies or interests, applicable to revenue or income from the El Peñón operation.
Except for the purposes legislated under provincial securities laws, any use of this report by
any third party is at that party’s sole risk.

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4 PROPERTY DESCRIPTION AND LOCATION

The El Peñón Mine is located in north central Chile, at latitude 24°40’ S and longitude 69°50’
W, approximately 165 km southeast of Antofagasta (Figure 4-1). The site is in the Atacama
Desert, approximately midway between the Pacific coast and the border with Argentina. The
property map and location of the mineralized zones are shown in Figure 4-2. The mine
workings, process plant, waste and tailings storage areas are all located close to the
mineralized zones within the property boundaries.
The mine operates on a year round basis.
LAND TENURE
The El Peñón property consists of 436 individual mining exploitation claims owned by Minera
Meridian Limitada, a subsidiary of Yamana. The claims comprise an area of 90,087 ha
covering the El Peñón Mine, the Fortuna area, the Laguna area, the Pampa Augusta Victoria
(PAV) area, and surrounding exploration lands (Tables 30-1 and 30-2 in Appendix 1). The
boundaries of the mining exploitation concessions are legally surveyed and covered by an
additional layer of claims for increased legal protection.
Minera Meridian Limitada enjoys tax and royalty stability due to article 11 of Decree Law DL
600 Foreign Investment Statute until 2018. At the present time, the mine is subject to a 5%
royalty payment calculated over the annual taxable income in accordance with Law
20.026/2005.
In addition, a 2% Net Smelter Return (NSR) royalty is payable to Maverix Metals Inc. as agreed
as part of the purchase of the Nado claims covering the Fortuna area. A 2% NSR is also
payable to Soquimich Comercial SA for claims Providencia 1, 2, 3, 4, 5 and claims Dominador
1, 2, 4. These claims are also located in the Fortuna area. No further mining activities are
planned in the areas covered by these claims.
RPA is not aware of any environmental liabilities on the property. Yamana has all required
permits to conduct work on the property. RPA is not aware of any other significant factors and
risks that may affect access, title, or the right or ability to perform the work on the property.

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El Peñón has been operating since 1999 and has sufficient surface rights for mining and
processing operations. As well, El Peñón has sufficient water, power, and labour supplies and
sufficient areas for tailings and waste disposal.
Government regulations require that a full closure plan be submitted when mine life is less
than five years. The original closure plan was completed in 2005, updated in 2009, and again
in 2014. Subsequent revisions were submitted in 2015 and 2016 and Yamana is awaiting
government comments.

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74° 72° 70° 68°
Legend: PERU BOLIVIA Regions of Chile

National Capital Turco 18°
Belen I Tarapacá
Administrative Region Arica
Capital Huachacalla II Antofagasta
City, Town
Itiza
Lago N III Atacama
Major Airport TARAPACA Poopo IV Coquimbo
National Boundary
Pisagua Cariquima V Valparaíso
Administrative Region Negreiros Ishuaya RM Santiago Metropolitan Region
20° Pachica 20° VI
Boundary Iquique O’Higgins
Main Road Pica Villa Martin VII Maule
Secondary Road
Puerta Pintados Colchak VIII Biobío
Patillos IX
Railroad Araucanía
Ollague X Los Lagos
RioLo a
Quillagua XI Aisén
22° 22°
XII Magallanes
Tocopilla
XIV Los Ríos
Pedro De Valdivia Calama XV Arica-Parinacota
Mejillones
Sierra Corda
Baquedano
Antofagasta ANTOFAGASTA
24° Barazante El Negrillar 24°
El PEÑÓN MINE Corona Pampa
Buenos
Paposo Aires
Catalina
CHILE Taltal
Altamira
Planta Esmeralda Loro Huasi
26° 26°
Chañaral Potrerillos
Pacific
Ocean Caldera
Maricunga
Copiapo
Barranquillas
La Angostura CHILE
ATACAMA Area of
28° Carrizal Bajo
Punta De Diaz 28°
Huasco Interest
Vallenar
Jague
Domeyko
Villa Union
30°
La Serena
Coquimbo
Vicuna ARGENTINA
30°
San Jose De Jachal
Salala Ovalle
COQUIMBO Talacasto
Las Palmas
Illapel
Los Vilos
32° 32° 0 100 200 300 kilometres
Papudo VALPARAISO 0 100 200 miles
Vina del Mar Godoy Cruz
Valparaiso March 2018
San Antonio Santiago Source: Map No. 4395, UNITED NATIONS, 2010.
Puente Alto
Navidad Rancagua
34° 34° Figure 4-1
Pichilemu LIBERTADOR
Curico San Rafael
MAULE Yamana Gold Inc.
Pahuil Talca Malargue
36°
Linares
36° El Peñón Mine
Talcahuano Chillan Antofagasta Region (II), Chile
Concepción
Llico
BIO-BIO Location Map
Los Angeles
Lebu 72° 70° 68° 66°
4-3
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420,000 E 430,000 E 440,000 E 450,000 E 460,000 E 470,000 E
7,330,000 N
7,330,000 N
7,320,000 N
7,320,000 N
7,310,000 N
7,310,000 N
7,300,000 N
7,300,000 N
7,290,000 N
7,290,000 N
420,000 E 430,000 E 440,000 E 450,000 E 460,000 E 470,000 E
Figure 4-2
Yamana Gold Inc.

0 5 10 15 20
Kilometres El Peñón Mine
Antofagasta Region (II), Chile
Property Map
March 2018 Source: Yamana Gold Inc., 2017.
4-4
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5 ACCESSIBILITY, CLIMATE, LOCAL

RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
The “Accessibility, Climate, Local Resources, Infrastructure and Physiography” are described
in Pearson and Rennie (2008) and Collins, Moore and Scott (2010). Information from both
reports is reproduced below.
ACCESSIBILITY
The El Peñón Mine is accessed by a paved road approximately 165 km southeast of
Antofagasta. Travel time from Antofagasta is approximately 2.5 hours. Antofagasta is the
principal source of supplies for the mine. It is a port city with a population of 380,000 and daily
air service to Santiago.
CLIMATE
The climate in the Atacama is renowned as among the most arid in the world with a mean
annual precipitation in most areas of virtually zero. Temperatures in the area close to the mine
can range from -5°C to +30°C. Climate does not represent a problem for mining operations
which can be carried out during the whole year.
LOCAL RESOURCES
There are no significant population centers or infrastructure in the immediate vicinity of the El
Peñón Mine. The city of Antofagasta is the main source of supply for the mine. It is a port city
with a population of approximately 380,000 inhabitants which hosts a variety of commercial
establishments, hotels, restaurants, retailers, service suppliers, high schools, and universities
as well as hospitals and health clinics. The city also hosts a large number of manufacturers
and suppliers who serve the mining industry.
Skilled personnel can be easily sourced from Antofagasta or other cities of the region and
country, where mining is the main economic activity.

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INFRASTRUCTURE
Currently, the major assets and facilities associated with the mining operations are:
• The underground and open pit mines with production of approximately 3,000 tpd from
several mineralized structures.
• The plant site including administrative offices complex and associated facilities, the
open pits, which are currently not in production, and underground mine workings, and
associated facilities, the mill and associated facilities such as laboratories, stockpiles,
waste dumps, coarse ore storage, workshops, warehouses and dry facilities.
• Camp site to house workers.
• Facilities providing basic infrastructure to the mine, including: access roads, electric
power distribution system, water treatment and supply and sewage treatment.
• Underground infrastructure including portals, access ramps, ventilation raises,

maintenance shops and mobile fleet equipment.
• Access by highway and gravel roads to the surrounding area including the national
road infrastructure.
• Power is supplied to the mine site via the national power grid. Auxiliary or backup
power from generators is also available with a current 10 MW of power capacity on site.
PHYSIOGRAPHY
The mine is located in the Atacama Desert region of Chile at an elevation of approximately
1,800 MASL. Relief in the area is modest, with widely dispersed hills and peaks separated by
broad open valleys. There is little to no vegetation or wildlife in the area around the mine, and
the principal land use is mining.

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6 HISTORY
The “History” of El Peñón has been described in Pearson and Rennie (2008) and Collins,
Moore and Scott (2010). Information from both reports is reproduced below.
The discovery of El Peñón was the result of successful grassroots exploration carried out by
Meridian geologists through the early 1990s. Regional exploration focusing on Early to Mid-
Eocene volcanic belts in northern Chile led to the acquisition of the El Peñón property in 1993.
Trenching carried out that year, followed by a 13-hole drilling program, discovered significant
gold-silver mineralization. The next year, the first hole of a follow-up program intersected 100
m grading 10.9 g/t Au and 123.4 g/t Ag in what eventually became the Quebrada Orito deposit.
In July 1998, Meridian made the decision to place the property in production, and construction
on a 2,000 tpd mine and mill facility commenced later that same year. Production began in
September 1999, ramping up to full capacity by January 2000 and has continued to the present
day.
PAST PRODUCTION
Since September 1999, the operation has run continually at design and increased capacity,
treating both open pit and underground ore. As of December 31, 2017, the mine has produced
approximately 18,053,200 tonnes of ore grading 8.94 g/t Au and 234.99 g/t Ag, as shown in
Table 6-1.

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TABLE 6-1 HISTORICAL PRODUCTION TO DECEMBER 31, 2017

Yamana Gold Inc. – El Peñón Property
Year Tonnes Au Grade (g/t) Ag Grade (g/t)

1999 369,290 13.96 215.08
2000 640,045 14.71 215.43
2001 707,199 18.92 300.08
2002 582,478 17.89 270.94
2003 542,616 16.40 247.50
2004 568,170 13.90 222.04
2005 734,372 12.35 236.69
2006 861,224 8.71 230.00
2007 968,159 8.17 291.45
2008 1,044,176 6.91 298.70
2009 1,391,486 5.82 289.22
2010 1,413,459 6.23 264.72
2011 1,149,472 8.19 276.07
2012 1,192,495 7.38 220.47
2013 1,219,542 9.19 213.82
2014 1,252,689 7.51 192.07
2015 1,072,009 6.02 179.98
2016 1,303,154 5.50 171.07
2017 1,041,199 5.05 148.33
Total 18,053,234 8.94 234.99

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7 GEOLOGICAL SETTING AND

MINERALIZATION
The “Geological Setting and Mineralization” of El Peñón has been stated in Pearson and
Rennie (2008) and Collins, Moore and Scott (2010). Information from both reports is
reproduced below.
REGIONAL GEOLOGY
The El Peñón Mine is located in the Central Depression of the Atacama Desert. The region is
underlain by Late Cretaceous to Early Eocene magmatic arc rocks, known as the Paleocene
belt (Figure 7-1). Rocks in the region consist of basaltic to rhyolitic lavas and tuffs, subvolcanic
porphyritic intrusions, and granitoid stocks, which extend from southern Peru to central Chile.
This belt is host to many epithermal deposits and subvolcanic porphyry systems.
Late Cretaceous volcanic rocks comprise calc-alkaline magmatic arc rocks deposited in narrow
fault-bound extensional basins (84 Ma to 65 Ma). The margins of the basins are intruded by
dioritic to monzonitic plutons. Compressive tectonism from 65 Ma to 62 Ma resulted in the
inversion of the Late Cretaceous basins, uplift and erosion of Late Cretaceous plutonic rocks
to the west of the basin, and syntectonic magmatism along the basin-bounding faults. Volcanic
rocks continued to accumulate through the rest of the Cretaceous in new northeast-trending
trans-tensional basins partially controlled by reactivation of basin-bounding faults.
Volcanism continued to the middle Eocene. Subvolcanic domes and sills were emplaced and
the mineralization at El Peñón occurred. Eocene volcanic rocks consist of rhyolitic dome
complexes and mafic andesites and basalts.

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BO
L IV
IA
Choquelimpie
N
PALEOCENE
VOLCANIC BELT
Santiago
San Cristóbal
OCEAN
ARGENTINA
ANTOFAGASTA
EL PEÑÓN
C
PACIFI
El Guanaco
El Huesco,
Manto de la La Coipa
Falda Pascua
RMarte-Lobo
Pascua
Andacollo El Indio
El Bronce
Santiago
Figure 7-1
Yamana Gold Inc.
0 100 200 300 400 500 El Peñón Mine

Kilometres Antofagasta Region (II), Chile
Paleocene Volcanic Belt
7-2
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Deformation occurred in the mid- to late Eocene with uplift of the Precordillera triggering copper
porphyry emplacement to the east. Low angle offset of the El Peñón vein system occurred
during this period.
LOCAL GEOLOGY
The main district geological units are described as follows:
• Aeropuerto Formation (Lower Cretaceous)

Fluvial sandstones, breccias with coarse sediments, conglomerates, and
volcaniclastic breccias
• Quebrada Mala Formation (Upper Cretaceous)

Fluvial and lacustrine sands and silts, andesitic to basaltic lavas and breccias,
rhyolitic to dacitic ignimbrites
• Augusta Victoria Formation (Upper Cretaceous)

Sanidine-biotite rhyolite ignimbrites, fluvial sandstones, and trachytic lavas
• Paleocene to Eocene volcanic and subvolcanic units

Dacite lavas or domes, andesite flows rhyodacitic ignimbrites, volcanoclastic
breccias, intercalated fluvial sediments, late rhyolite, dacite domes, feeders and
hypabyssal intrusions
• Cretaceous to Eocene intrusives
• Diorite and monzonite stocks
Figure 7-2A illustrates the local geology and the geological legend is shown in Figure 7-2B.

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0 5 10 15 20
Kilometres
Figure 7-2A
Yamana Gold Inc.

Refer to Figure 7-2B for Geological Legend.
El Peñón Mine
Local Geology
7-4
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MIOCENE PLIOCENE-HOLOCENE
PIQa
NEOGENE
LATE
Pliocene to Quaternary Alluvial Deposits
PIQn
Pliocene to Quaternary Nitrate Deposits
EARLY
Mga
Atacama Gravels (Miocene 17 to 9.3 Ma)
Emh
Middle Eocene Hypabyssal Intrusions (45-42 Ma)

MIDDLE
Emv
Middle Eocene Volcanics (ca 46 Ma)
Emg
Middle Eocene Porphyritic Monzonites and
Monzodiorites of the La Mula Complex (45-43 Ma)
Eih
Lower Eocene Hypabyssal Intrusions (48-46 Ma)

EOCENE
Eig
Eiv Lower Eocene Diorites and Monzodiorites of the
La Mula Complex (50-48 Ma)
Lower Eocene Volcanic Units
CENOZOIC
SYMBOLOGY
LOWER
Eidr Psh
Lower Eocene Rhyolitic Dome and Feeders (53-50 Ma) Upper Paleocene Hypabyssal Intrusions
Eidrd Faults Invertebrate Fossil Locality
Lower Eocene Rhyodacitic Dome and Feeders (53-50 Ma)
Observed Fault Geochronology
PALEOGENE
Psdd
Upper Paleocene to Lower Eocene Dacitic Dome and Feeders (57-54 Ma) Inferred Fault min: Minimum age
K-Ar Biotite
Psdrd max: Maximum age
Upper Paleocene Rhyodacite Dome and Feeders (60-54 Ma) Covered Fault K-Ar Amphibole
K-Ar Adularia sub: Subterranean sample
Psdr Normal Fault K-Ar Sericite
Upper Paleocene to Lower EoceneRhyolite Domes, Feeders and
K-Ar Alunite
PsbrHypabyssal Intrusions (57-54 Ma) Reverse Fault K-Ar Whole Rock
Upper Paleocene to Lower Eocene Rhyolitic Breccias
(possible diatreme facies) Ar/Ar Biotite
Strike Slip Fault
Ar/Ar Amphibole
Ar/Ar Plagioclase
Psa
Folds Ar/Ar Sanidine
Ar/Ar Adularia
UPPER
Psv “Angelina-type” Porphyries (59-57 Ma)

Anticline Folds Ar/Ar Sericite
Psg
Ar/Ar Alunite
Paleocene Syenogranite, West of Anillo Complex Syncline Folds Ar/Ar Groundmass
PALEOCENE
Vein U/Pb Zircon

Upper Paleocene Volcanic Units (60-55 Ma)
Alteration Zones
Argillic alteration with sulphates

Piv
LOWER
Pih Phyllic alteration

Lower Paleocene Hypabyssal Intrusions Potassic alteration
Upper Paleocene Volcanic Units (65-60 Ma)
Argillic alteration with carbonates
Silica cap and silicified breccias with alunite

Ksav
Silicification
Augusta Victoria Formation (Campanian to Maastrichtian) Ksg Silica-carbonate alteration
Skarn
Ksqm Late Cretaceous Gabbros, Diorites and
UPPER
Quartz Monzodiorites (68-65 Ma)
Quebrada Mala Formation (Campanian to Maastrichtian)

MESOZOIC
CRETACEOUS
Kct
Kh
Early Upper Cretaceous Hypabyssal Intrusions
Cerro Trapecio Strata (informal unit; Late Lower Cretaceous) References:
Kpo
Late Lower Cretaceous Coarse Pyroxene Andesite Porphyries (”ocoites”) 1 New age related to present project, Central
Depression Project and FONDECYT (Gloria Arancibia)
LOWER
Kia 2 Sample analysed by SERNA GEO MIN for J.I. Zuluaga

Kisa 3 Marinovic et al., 1992
Santa Ana Formation (Kimmeridgian to Neocomian) 4 Rojas, 1994
Aeropuerto Formation (Neocomian) 5 Puig et al., 1988
6 Perez, 1999
JKIn Jsg
La Negra Formation (Jurassic to Lower Cretaceous) Late Jurassic Granodiorite Porphyries of the Precordillera
JURASSIC
Jcd Jp
Profeta Formation (Jurassic Marine Member)
Cerro Dominador Strata (informal unit; Lower Jurassic)
Trad Trp
PALEOZOIC
Profeta Formation (Triassic Marine Member)

TRIASSIC
Trdr
Agua Dulce Formation (Upper Triassic) Fine Fluidal Rhyolite Domes
Figure 7-2B
CARBONIFEROUS PERMIAN
Pzca
Cerro El Arbol Formation (Permian)
Pzlt Yamana Gold Inc.

La Tabla Formation (Carboniferous)
El Peñón Mine
Geological Legend
7-5
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PROPERTY GEOLOGY
Surface exposures at El Peñón are rare, and much of the mapping for the area is based on
float. The property is underlain by mostly Late Cretaceous to Early Eocene pyroclastic flows,
lavas, volcaniclastic breccias and tuffs of basalt to rhyolite composition. Several thin Early
Cretaceous rhyolite tuff and dacite to andesite flow layers occur in the northern part of the
property. These rocks are intruded by Late Cretaceous diorite and monzodiorite stocks and
dacite domes.
The mineralization at El Peñón is hosted by near-horizontal to gently dipping Eocene to

Paleocene basaltic to rhyolitic volcanic rocks. The stratigraphic sequence consists of a lower
sequence of volcanic breccia and andesitic to basaltic flows, overlain by rhyolitic to dacitic
pyroclastic rocks, dacitic to andesitic flows, and volcanic breccia. Rhyolitic intrusives, domes,
and associated flows are intercalated with earlier volcanic units.
STRUCTURE
The distribution of Cretaceous and Eocene volcanic rocks is controlled by graben structures
bounded by north-northeast-trending faults. These are steeply dipping regional-scale
structures with displacements in the order of hundreds of metres. The principal direction for
late dikes and many of the highest grade mineralized faults is parallel to the bounding faults.
Mineralized faults dip steeply eastward on the east side of the property and westward on the
west side, in a fashion implying a horst/graben extensional structure (Figure 7-3). Most of the
mining takes place along north-trending veins (dipping 75º to 85º W or 55º to 80º E). A
relatively minor amount of production has also taken place along northeast-striking structures
(N45º-50ºE/65ºW). Flat-lying faults (N40º-50ºE/20ºSE) displace the veins in places.

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Figure 7-3
Yamana Gold Inc.

El Peñón Mine
Schematic Plan and
Cross Sections
7-7
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MINERALIZATION
The El Peñón deposit comprises many individual tabular, steeply dipping zones or shoots that
are amenable to mining by both underground and surface methods. Vein widths range from
decimetre-scale to over 20 m. Individual mineralized shoots measure from less than one
kilometre to four kilometres in strike length, and up to 350 m in the down-dip direction. Gold
grades range up to hundreds of grams per tonne but are more typically less than 30 g/t. Silver
grades are in the order of hundreds to thousands of grams per tonne.
There are 22 main vein zones and many subsidiary veins in nine vein systems that have
previously supported, support currently, or are planned to support surface and underground
mining operations. The veins strike predominantly north-south and dip steeply to the east and
west. North-northeast to northeast-striking fault zones are also host to mineralized zones,
however, the relative proportion of the overall deposit is small. The principal mineralized veins
are Abundancia/Paloma, Angosta, Al Este, Bonanza, Borde Oeste, Cerro Martillo/Dorada,
Dominador, El Valle/Discovery Wash, Esmeralda/Esperanza, Fortuna, Laguna, Martillo Flats,
PAV, Pampa Campamento, Playa, Providencia, Quebrada Colorada, Quebrada Orito,
Sorpresa, Ventura, Veta North-West and Vista Norte.
Gold and silver mineralization consists of disseminated electrum, acanthite, native gold, native
silver, silver sulphosalts, and silver halides occurring in a gangue of predominantly quartz,
adularia, carbonate, and clay. Electrum is the most common form of precious metals in the
deposit and occurs as micron- to millimetre-size subrounded and irregular grains. Two phases
of electrum are present: a primary phase, which contains approximately 55% Au to 65% Au,
and a secondary phase, which has resulted from supergene processes that have remobilized
silver, and which typically consists of over 95% Au.
Sulphide minerals are relatively rare (except at the northeast area of the El Peñón Block). This
may be due to oxidation, or to an initial low overall abundance such as would occur in a low
sulphidation environment. Fe- and Mn-oxyhydroxides are common with only trace
occurrences of relict sulphides. In order of abundance, trace amounts of pyrite, galena,
sphalerite, chalcocite and covellite can be present. Gangue minerals comprise fracture and
breccia-filling and replacement quartz, adularia, carbonates and clay minerals. Vein textures
often display crustiform textures, although the highest grade Au-Ag mineralization is reported
to be associated with massive banded quartz-adularia. Gangue minerals occur as open space
filling as well as replacements of primary host rock mineral phases.

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Age dating of adularia from the veins at El Peñón suggests that mineralization took place at
around 52 Ma to 53 Ma (Early Eocene). Two mineralization and alteration events have been
defined from fluid inclusion studies. The principal mineralization event resulted from circulation
of neutral, reduced fluids. It resulted in replacement of host-rock phenocrysts and groundmass
by quartz, adularia, albite, carbonate, clays, calcite and chlorite, as well as quartz-adularia
flooding and breccia-filling in the vicinity of the veins. Another, more widespread, alteration
process was derived from acidic, oxidized hydrothermal solutions. This event resulted in the
formation of lithocaps of quartz-alunite alteration and quartz-alunite breccia-filling, with minor
copper and silver, and little or no gold.

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8 DEPOSIT TYPES
The “Deposit Types” of El Peñón has been stated in Pearson and Rennie (2008) and Collins,
Moore and Scott (2010). Information from both reports is reproduced below.
The deposits at El Peñón are low to intermediate epithermal gold-silver deposits, hosted in
steeply dipping fault-controlled veins following rhyolite dome emplacement. Gold and silver
mineralization comprises disseminations of electrum, native gold and silver, acanthite, silver
sulphosalts and halides, plus accessory pyrite occurring with quartz, adularia, carbonates, and
clay minerals. These minerals were deposited from boiling of low salinity fluids circulating in
a hydrothermal system driven by the Eocene to Paleocene magmatism. Late stage oxidation
has occurred to a depth of 400 m below surface.

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9 EXPLORATION
Regional exploration carried out by Meridian, focusing on Early to Mid-Eocene volcanic belts
in northern Chile led to the acquisition of the El Peñón property in 1993. Trenching carried out
that year, followed by a 13-hole drilling program, discovered significant gold-silver
mineralization. The next year, the first hole of a follow-up program intersected 100 m grading
10.9 g/t Au and 123.4 g/t Ag in what eventually became the Quebrada Orito deposit.
Exploration has been successful in expanding the footprint of mineralization at site through
programs of geologic mapping, geochemistry, geophysics, and abundant surface and
underground drilling within the northeast trend, starting at the El Peñón area, with Quebrada
Orito in the southwest and ending with Angosta in the northeast. Exploration has also been
successful at the Fortuna and PAV areas located to the southwest and to the north of El Peñón,
respectively. Geophysical anomalies and positive drill intersections remain to be followed up
in all areas.
Exploration work completed to date has defined 22 main mineralized zones and subsidiary
veins, within ten geological trends. The main trends are illustrated in Figure 9-1.

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0 500 1000 1500 2000

Legend:
Metres
1 Quebranda Colorada
2 Conexión Dorada - Martillo
Figure 9-1
3 Martillo CS - Dora
4 Conexión Martillo - Aleste Yamana Gold Inc.
5 Providencia - Dorada Sur
6 Orito W El Peñón Mine
7 Bloque Norte (Bon-Abu-Pal) Antofagasta Region (II), Chile
8 Bloque Norte (Ventura) Resource Development
Proyectos Rajo Orito - El Valle-Discovery Wash Project
9-2
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GRIDS AND SURVEYS

All surveying has been completed using the PSAD 1956 19S coordinate system.
PETROLOGY, MINERALOGY AND RESEARCH STUDIES

A number of geologic, petrographic and mineralogical studies have been done during the
exploration and operation stages of the project. The main research studies done at El Peñón
between 1999 and 2017 are as follows:
• Pérez, M. (1999): Alteración Hidrotermal en el Depósito Epitermal de Au-Ag El Peñón,
II Región Antofagasta. Memoria para optar al título de Geólogo. Universidad de Chile,
Santiago, Chile, 109 p.
• Robbins, C.H. (2000): Geology of El Peñón gold-silver Deposit, northern Chile: The
Great Basin and beyond, geological Society of Nevada, Symposium, Reno 2000,
Proceedings, pp. 249-264.
• Warren, I.; Zuluaga, J.; Robbins, C.H.; Wulftange, W. & Simmons, S. (2004): Geology
and Geochemistry of Epithermal Au-Ag Mineralization in the El Peñón District, Northern
Chile. Society of Economic Geologists, Special Publication 11, pp. 113-139.
• Zuluaga, J.I. (2004): Geología y Mineralización del Distrito El Peñón, Segunda Región
de Antofagasta, Chile. Tesis de Magíster en Geología Económica, Universidad
Católica del Norte, Antofagasta, Chile, 150 p.
• Warren, I. (2005): Geology, Geochemistry and Ore of the El Peñón Epithermal Au-Ag
Deposit, Northern Chile: Characteristics of a bonanza-grade deposit and techniques
for exploration. PhD Thesis – Geology, University of Auckland.
• Cornejo, P.; Mpodozis, C.; Rivera, O. & Matthews, S.J. (2006): Carta Exploradora,
Regiones de Antofagasta y Atacama. Servicio Nacional de Geología y Minería
(SERNAGEOMIN), Santiago, Chile, Carta Geológica de Chile, Serie Geológica Básica,
1:100.000.
• Donoso, F. (2012): Caracterización Mineralógica de las vetas Bonanza-Aleste y sus

implicancias geometalúrgicas, Mina El Peñón, Región de Antofagasta, Memoria para
optar al título de Geólogo, Universidad Católica del Norte, Antofagasta, Chile.
• Órdenes, J. (2014): Influencia de la Mineralogía de la veta Bonanza en el Procesos

Hidrometalúrgico de Lixiviación de Au y Ag, Yacimiento El Peñón, Chile. Tesis para
optar al grado de Magíster en Geometalurgia. Universidad Católica del Norte,
Antofagasta, Chile, 168 p.
GEOPHYSICS
The geophysical studies completed by different geophysical survey companies in the El Peñón
district from 2001 to 2017 are as follows:
• (2001) Transient Electromagnetic (TEM) Surveys.

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• (2002) Controlled Source Audio-frequency Magnetotelluric (CSAMT).

• (2003) Gravity survey at the El Peñón area.
• (2004) Very Low Frequency Electromagnetics.
• (2005) Aeromagnetic and Radiometric Survey for the El Peñón and Amancaya areas.
• (2007) Gravity survey.
• (2010) Controlled Source Audi-frequency Magnetotelluric (CSAMT).
• (2010) Review of the geophysical surveys of the El Peñón Mine and surrounding
projects.
• (2011) Controlled Source Audio-frequency Magnetotelluric (CSAMT) performed in the
PAV area.
• (2014) Aeromagnetic and gravity data.
• (2014) Ground magnetics for PAV.
• (2016) Controlled Source Audio-frequency Magnetotelluric (CSAMT) for the southern
and central areas of El Peñón.
GEOCHEMISTRY
• (2001) El Peñón soil geochemistry by Minera Meridian Limitada, Luis González.
• (2002) Trace elements distribution by Minera Meridian Limitada, Luis González.
• (2002) El Peñón soil geochemistry by Minera Meridian Limitada, Claudio Lucero.
• (2004) El Peñón surface geochemistry by Minera Meridian Limitada, Guido Rojas.
• (2004) El Peñón surface geochemistry by Minera Meridian Limitada, José Iván

Zuluaga.
• (2005) El Peñón surface geochemistry sampling carried out by Ian Warren, University
of Auckland.
• (2007) Geology, geochemistry and genesis of the El Peñón epithermal Au-Ag Deposit:
Characteristics of a bonanza-grade deposit and techniques for exploration, Ian Warren,
University of Auckland.
• (2013) Surface geochemistry and ICP data base analysis, internal report by Chuck
Robins, independent consultant.
• (2016) Surface geochemistry and ICP data base analysis by Brian Townley (PhD),
Universidad de Chile.
TRENCHING
The construction of trenches at El Peñón has been carried out according to geological criteria,
in order to generate future exploration targets. Throughout the history of El Peñón, several

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trenches have been sampled to obtain geological information to justify subsequent drilling
campaigns.
The main areas where trenching has been done are Quebrada Orito and Quebrada Colorada
(in the early stages of the project) and recently El Valle, PAV, Laguna, and Fortuna.
2018 TO 2020 EXPLORATION PROGRAM

Exploration drilling for the next three years is divided into three categories: Infill, Local, and
District. Infill drilling is designed to replace production by upgrading and extending known
resources with a combined reverse circulation (RC) and diamond drilling methodology (ratio of
approximately 70% RC and 30% diamond drilling). Local exploration drilling is targeted at
upgrading of Inferred Resources and transformation of geological potential zones to Inferred
Resources. District exploration is meant to test extension of known areas of mineralization to
discover new primary structures.
The amount of drilling proposed is based on the past success rate of adding resources at El
Peñón. Infill targets in 2018 include Bonanza, Dorada, El Valle, Laguna, Providencia,
Quebrada Colorada and Quebrada Orito. Local targets proposed for 2018 include Borde
Oeste, Fortuna Este, and PAV. District targets proposed for 2018 include Angosta, Augusta
Victoria Oeste, Chiquilla Chica, Cucaracha, Lagarto, Laguna-Fortuna, and Poligrama (Figure
9-2).

US$36,000,000. Yamana considers allocating additional discretionary exploration funding
based on results. Considering the ongoing successes at El Peñón, RPA concurs with this
proposed exploration program and recommends that it be carried out as defined.

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Legend:
0 2 4 6 8 10
1 Core Mine - Peñón
Kilometres
2 Chiquilla Chica - Cerro Monono
3 Poligrama Figure 9-2
4 Borde Norte
5 Angosta Yamana Gold Inc.
6 Laguna - Fortuna
7 Pan de Azúcar El Peñón Mine
8 Lagarto Antofagasta Region (II), Chile
Gold Project
Exploration Targets 2018
Silver Project
9-6
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10 DRILLING
Systematic testing of the gold-bearing zones was started by Meridian in 1993 and continues
to the present. To the end of December 2017, approximately 2,998,519 m of drilling has been
completed at El Peñón in the Fortuna, El Peñón, and PAV blocks (Table 10-1). This includes
112,115 m completed in 2017 (29,240 m exploration and 82,875 m infill drilling), with
intersections at Aleste SS, Dorada FW West, El Valle W, Esmeralda NE, Martillo Centro Sur,
Paloma, Pampa Campamento, Ventura, and Victoria. Figures 10-1 and 10-2 illustrate a drill
plan and drill section, respectively.
TABLE 10-1 DRILL SUMMARY

Year Exploration (m) Infill (m) Total (m)

1993 2,507 0 2,507
1994 16,606 0 16,606
1995 51,451 0 51,451
1996 48,370 0 48,370
1997 85,248 0 85,248
1998 73,941 0 73,941
1999 58,561 48,325 106,886
2000 49,388 134,994 184,382
2001 101,440 80,905 182,345
2002 84,753 56,573 141,326
2003 87,581 39,072 126,653
2004 99,674 58,498 158,172
2005 107,443 52,851 160,294
2006 72,526 107,887 180,413
2007 113,507 70,534 184,041
2008 66,917 65,911 132,828
2009 93,690 22,592 116,282
2010 69,470 77,724 147,194
2011 78,746 49,919 128,665
2012 65,401 57,937 123,338
2013 70,323 26,440 96,763
2014 68,582 57,262 125,844
2015 40,950 105,807 146,757
2016 95,701 70,397 166,098
2017 29,240 82,875 112,115
TOTAL 1,732,016 1,266,503 2,998,519

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7310000 N
7305000 N
7300000 N
0 1 2 3 4 5
Kilometres
7295000 N
440000 E 445000 E 450000 E 455000 E

Figure 10-1
Yamana Gold Inc.
El Peñón Mine
Drill Plan
10-2
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1750 L
1700 L
1650 L
Legend:
< 0.10 449850 E Figure 10-2
0.10 -0.25
0.25 -0.50 Yamana Gold Inc.
0.50 -1.0
1.0 -2.5 El Peñón Mine
2.5 -5.0 0 10 20 30 40 50
5.0 -10.0 Metres
Drill Section, Caseron 505
> 10.0
March 2018 Source: RPA., 2018.
10-3
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Yamana continually conducts exploration work in order to develop drill targets to replace
reserves. Drilling is carried out on a nominal 60 m x 60 m pattern, with infill holes drilled on a
30 m x 30 m pattern. Preliminary Mineral Resource estimates are made using the drill
information. Later, the estimates are refined using chip sample assays collected from the
underground development. Underground definition drilling is completed on a 30 m x 30 m
spacing where required and short test holes are drilled from underground to locate veins and
parallel structures and to assist mining and grade control.
Surface drilling is mostly RC, with at least one diamond drill hole per 30 m section. Often,
holes are collared with RC equipment until the hole is almost in the zone, and then changed
over to diamond core. Some are cored for the entire length. Core size is HQ (63.5 mm core
diameter), sometimes reduced to NQ (47.6 mm core diameter). RC holes are drilled with 146
mm diameter equipment, which produces a hole approximately 152 mm in diameter.
The procedures used during drilling programs are as follows:
• The collar locations of all drill holes are surveyed and marked by El Peñón crews.
• A multi-shot instrument is used to provide control information on the directional

deviation (both azimuth and inclination) of each hole drilled from underground. A gyro
survey instrument is used to provide control information on the directional deviation of
each hole drilled from surface.
• Lithologic logging is done on drill core and RC chips and geotechnical observations are
made by company geologists and technicians. All information is recorded on digital
tablets using commercial software and depicts all downhole data including assay
values. This includes recording the following items as appropriate for the drilling
method:
o Drill type
o Collar coordinates
o Core diameter
o Downhole inclination
o Percent core recovery record
o Rock Quality Designation (RQD) measurements
o Lithologic contacts
o Descriptive geology
o Core angles
o Intensity of various alteration types
o Structural features, such as foliation, fracture and brecciated zones
o Recording of mineralization, e.g., quartz type, sulphide content
o Maintaining a photographic record of the core with a digital camera

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Drill core recoveries are generally good (>95%) but are moderately lower at the Quebrada
Orito and El Valle veins (>85%). The lower core recovery in those veins, however, does not
have significant impact on the quality of the samples.
Collars of surface drill holes are preserved by a PVC casing. A wooden stake with metal
plates, on which the code, azimuth, dip and other relevant information of the drill hole(s) is
recorded, is placed close to each collar.
RPA is of the opinion that the logging and recording procedures are comparable to industry
standards.
The drill contractor used on the mine property during 2016 and 2017 is AK Drilling International.

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11 SAMPLE PREPARATION, ANALYSES AND

SECURITY
SAMPLING
Samples are collected by surface and underground drilling and by panel sampling of mine
headings. Surface drilling is typically carried out to trace the structures and estimate Mineral
Resources. Mine sampling comprises both definition diamond drilling as well as sampling of
development headings for grade control. The exploration samples consist of RC cuttings and
half-core splits of diamond drill core. The mine samples are drift face panel samples and whole
drill core.
Exploration RC samples are taken at two-metre intervals outside and one-metre intervals
inside a mineralized zone. The drillers take two samples from every interval splitting the
cuttings with a riffle-type sampler. Samples are placed in plastic bags and transported to the
sample preparation facility. One sample is kept for reference and the other is prepared for
analysis. Specimens are also collected in chip trays for logging.
Surface drill core and RC chips are delivered to the logging and sampling facility located near
the mill/office complex. Core and RC chips are logged and marked for sampling by the
geologist. Sampling technicians photograph the intact core, split the core samples and RC
chip samples, place them in plastic bags, and deliver them to the sample preparation facility.
Mine drill hole samples are collected in the same fashion as exploration holes, except that they
are delivered to the mine site laboratory.
Each underground drift face is mapped and sampled by the grade technicians. Samples
comprise chips taken from panels measuring approximately one metre high and a maximum
of one metre wide. Minimum sample widths are 30 cm in the vein and 50 cm in the waste.
Boundaries to the sampled areas are placed at vein contacts and major structures. The
sample sizes are constrained to between five kilograms and nine kilograms.
The geological technicians measure the distance and direction from the nearest survey station
to the sampled interval. The samples for each face are rendered as linear strings of samples
in a fashion similar to drill holes (pseudo-drill holes). The “collar” of the drill hole is the left-

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hand end of the sample string. The “azimuth” is approximated as the direction parallel to the
drift face. Sample lengths are projected to the face onto a linear trace of the pseudo-drill hole
to account for irregularities or curvature of the face.
In RPA’s opinion, the sampling protocols match industry standards and are appropriate for the
style of mineralization at El Peñón. Other than minor intermixing of RC material during drilling,
there are no sample quality or recovery problems that could materially impact the reliability of
the sampling process.
SAMPLE PREPARATION AND ANALYSIS

El Peñón uses Geo Assay Group (Geo Assay), located in Antofagasta, as the primary
laboratory and Intertek Minerals (Intertek) located in Copiapó, as secondary laboratory for all
assaying of the surface and underground exploration and infill drilling. Both laboratories are
independent of Yamana. Pulp samples are sent for analysis in sealed batches by truck/air.
The internal laboratory at El Peñón handles all production samples from the mine, and samples
taken at the plant. The internal laboratory results are checked and validated with Geo Assay
and Intertek (ISO/IEC 17025).
Sample security is considered adequate since all samples are collected and prepared in
secure sites and transported by Yamana personnel and/or selected contractors.
Geo Assay, Intertek, and the mine laboratory (ISO/IEC 17025-2005 for doré analysis) use the
same preparation protocol, which is summarized below:
• Samples are received and dried two hours at 105°C.
• Jaw crushing to -6 mm (1/4”).
• Boyd crushing and screening; recycling until 80% -2 mm (10#).
• Rotary splitting to 1,000 g.
• LM2 pulverization to 95% -140#.
• Manually split with small scoop to 250 g.
Samples submitted to external laboratories are assayed by fire assay with atomic absorption
finish. If gold or silver grades are higher than 5 g/t or 250 g/t respectively, assaying is repeated
with a gravity finish. If RC duplicates show large differences, a screen fire assay is made.

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At the internal laboratory, standard fire assaying with a gravity finish is used. The charge for
fire assaying is 50 g. Silver is parted using nitric acid.
RPA is of the opinion that the sample preparation, sample security, and assay procedures
used for the drill samples are in keeping with industry standards.
QUALITY CONTROL AND QUALITY ASSURANCE

Quality assurance (QA) consists of evidence to demonstrate that the assay data has precision
and accuracy within generally accepted limits for the sampling and analytical method(s) used
in order to have confidence in a resource estimate. Quality control (QC) consists of procedures
used to ensure that an adequate level of quality is maintained in the process of collecting,
preparing, and assaying the exploration drilling samples. Generally, QA/QC programs are
designed to prevent or detect contamination and allow assaying (analytical), precision
(repeatability), and accuracy to be quantified. In addition, a QA/QC program can disclose the
overall sampling-assaying variability of the sampling method itself.
QA/QC PROTOCOLS
Yamana has designed and implemented a QA/QC program with action items, including re-
assaying of entire batches, in the event that blank or Certified Reference Material (CRM)
samples returned assay values outside predefined limits of acceptability.
EXPLORATION AND INFILL DRILLING

Exploration samples are controlled by the quality control department, who supervises the
traceability of the samples. The controlled stages are:
• Sampling
• Sample shipments, sample preparation and chemical analyses carried out at the
external laboratories
• Results validation:
o Reception of results
o Verification of controls
o Information entry to the Fusion Database System
o Final approval and report which is sent to the geology department
Sampling procedures are controlled by inspection at the drills. Control samples for preparation
and analysis are inserted by geologists with a frequency which is defined by geological criteria,
based on mapping results. The following controls are currently used:

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• Gold and silver CRMs to control accuracy.
• Sterile (barren rock) samples to control contamination at the sample preparation stage.
• Blank samples to control contamination at the analysis stage.
• Field, preparation and pulp duplicates, which are inserted every 40 samples to control
precision.
• Additionally, 5% of the pulps with grades greater than one gram per tonne gold
equivalent (AuEq) are checked by the secondary laboratory.
MINE FACE SAMPLES

Underground channel samples taken at faces are put in plastic bags and sent to the internal
laboratory of the mine. Generally, a standard, a blank sample, and a sterile (barren rock)
sample are inserted for one sampled face per day (under normal operating conditions 20 to 24
faces are sampled daily). The use of field duplicates for underground face samples has been
discontinued. The insertion of these controls is supervised by the production geology
department.
MINE LABORATORY
The laboratory of the mine carries out an internal QA/QC program. The samples are ordered
at the reception desk in sequence. During this procedure, a check is done to compare and
verify if the sample tickets correspond to the report attached with the sampling date and other
relevant data to ensure the traceability. The sample codes are read to the Laboratory
Information Management System (LIMS) prior to continuing to the preparation stage. The
internal controls insertion frequency is programed in the LIMS in order to insert the following
controls:
• Granulometric checks (10#) for 5% of the samples.
• Granulometric checks (140#) for 5% of the samples.
• A sterile quartz (2 in. to 3 in. in size) sample is inserted every 20 samples in order to
control contamination at the preparation stage.
• A preparation duplicate is inserted every 20 samples.
• An analysis duplicate is carried out every ten samples.
• CRMs are used to validate internal accuracy control.

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Fifty pulps per month are sent to Geo Assay and Intertek for additional external checks. As
well, the internal laboratory is constantly reviewed by the Yamana corporate QA/QC
department through the control of the quality control results and round robins with other
Yamana laboratories.
RPA has examined the QA/QC results for 2014, 2015, 2016, and 2017 for the various sample
streams at El Peñón. In 2014 and 2015, samples were analyzed at Acme Analytical
Laboratories Ltd. (Acme) (ISO 17025:2005) with secondary samples submitted to SGS
Laboratories (ISO 9001: 2008). In 2016, samples were analysed at Geo Assay with secondary
samples submitted to SGS Laboratories (ISO 9001: 2008). Secondary samples were shipped
to Intertek in 2017.
CERTIFIED REFERENCE MATERIALS

All the CRMs were made with El Peñón materials and prepared in qualified commercial
laboratories or were purchased in packages from CDN Resource Laboratories (CDN).
In RPA’s opinion, the results of the CRM analyses (Table 11-1) show acceptable performance
and analytical control.
TABLE 11-1 CRM STATISTICS

CRMs 2-3 SD >3SD

Year Metal
Inserted N % N %
2014 Gold 1,934 136 7.0 37 1.9
Silver 1,934 83 4.6 30 1.6
2015 Gold 1,641 76 4.6 30 1.8
Silver 1,652 127 7.7 42 2.5
2016 Gold 1,485 47 3.2 17 1.1
Silver 1,485 39 2.6 34 2.3
2017 Gold 823 19 2.3 12 1.5
Silver 823 21 2.6 19 2.3
BLANKS
In RPA’s opinion, the results of the blank pulp analyses (Table 11-2) show acceptable
performance and analytical control.

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TABLE 11-2 BLANK STATISTICS

Blanks Out of Range

Year Metal
Inserted N %
2014 Gold 941 4 0.4
Silver 941 0 0
2015 Gold 813 12 1.5
Silver 814 2 0.2
2016 Gold 888 2 0.2
Silver 888 0 0
2017 Gold 617 3 0.5
Silver 1,500 0 0
STERILE SAMPLES
In RPA’s opinion, the results of the sterile sample analyses, including unmineralized core and
coarse quartz (Table 11-3) show acceptable performance and sample preparation control.
TABLE 11-3 STERILE SAMPLE STATISTICS

Steriles Out of Range

Year Metal
Inserted N %
2014 Gold 169 12 7.1
Silver 169 3 1.8
2015 Gold 113 12 10.6
Silver 113 4 3.5
2016 Gold 81 3 3.7
Silver 81 1 1.2
2017 Gold 57 3 5.3
Silver 57 0 0
PULP DUPLICATES
Plots of pulp duplicate results (Figure 11-1) at the primary laboratory were examined and found
to show excellent correspondence.

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FIGURE 11-1 PULP DUPLICATE CONTROL CHARTS

2014
2015
2016
2017

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EXTERNAL DUPLICATES
Plots of external duplicate results (Figure 11-2) between the primary and the secondary
laboratories were examined and found to show acceptable correspondence.
In RPA’s opinion, the QA/QC program as designed and implemented by Yamana is adequate
and the assay results within the database are suitable for use in a Mineral Resource estimate.

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FIGURE 11-2 EXTERNAL DUPLICATE CONTROL CHARTS

2014
2015
2016
2017

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12 DATA VERIFICATION
Part of the resource database and several drill log files were reviewed by RPA for accuracy of
assay transcription from the assay certificates. No significant errors were noted. As well, RPA
reviewed the results obtained in the QA/QC check assay programs. Compilation of assay
QA/QC results is carried out on a continuous basis by a staff geologist in the Exploration
Department. The data are collected and plotted on graphs to look for problem areas, and
monthly and annual reports are generated. General performance is monitored, including the
number of samples collected, the number and type of QA/QC samples, equipment availability,
assay return times, etc. The reports also describe the progress and results of special research
projects, such as heterogeneity studies, that may be underway at the time. Any problem areas
with regard to assay verification are flagged and recommendations for appropriate action are
implemented.
In RPA’s opinion, the collection, security, and analysis of assay QA/QC data at El Peñón is
quite thorough and meets or exceeds standard industry practice.
Drill logs are verified at the point prior to entry into the database by the Geology Department.
RPA is of the opinion that data entry and verification procedures of production data at El Peñón
are in keeping with industry standards.
Based on RPA’s review of the database and primary records, plus discussions with the
Yamana personnel, RPA is of the opinion that data collection and entry, and database
verification procedures for El Peñón comply with industry standards and are adequate for the
purposes of Mineral Resource estimation.
Since El Peñón is an operating mine producing significant amounts of gold and silver, RPA did
not collect or analyze any independent samples.

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13 MINERAL PROCESSING AND

METALLURGICAL TESTING
The following is taken from Chacόn and Pérez (2017).
The low to intermediate sulphidation epithermal gold-silver mineralization mined initially at El

Peñón consisted mainly of electrum, native gold, native silver, silver halides, Fe and Mn oxide
minerals, plus minor acanthite, chalcopyrite, and galena. However, in veins discovered
recently, a radical change has been observed in the mineralogy of silver and base metals.
This change was a result of a new oxidation-reduction (redox) regime at El Peñón, from veins
predominantly consisting of oxides in the southwest area to veins mainly consisting of
sulphides in the northeast. In the northeast area, silver mineralization consists mainly of silver
sulphosalts and silver sulphides, which cause a decrease in the silver recovery. In the primary
zone, two types of mineralization can be identified depending on the occurrence of base metal
sulphides that accompany the gold and silver mineralization. These mineralization types are
defined as high sulphide mineralization and low sulphide mineralization. In the oxidized zone,
two types of materials are observed, oxidized material with low clay content and oxidized
material with high clay content.
METALLURGICAL TESTING
The metallurgical testing results presented in this report were obtained from drill hole samples
and chip samples obtained from mining faces. These samples were considered representative
of the various types and styles of mineralization and the mineral deposit. The results of this
testwork provided the basis for the development of a straightforward flowsheet for ore
treatment and also to support flowsheet changes.
Metallurgical testing carried out at El Peñón has included the following tests:
• Bond Work Index tests.
• Grain size gold and silver distributions.
• Leaching studies to address reagents, pulp density, pH, cyanide and lime
consumption and residence time.
• Sedimentation and filtration tests.

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• Mineralogical studies.
• Automated mineralogy.
Process and mineralogical testing studies that have been carried out are summarized below:
• Laboratorio Metalurgia El Peñón (2009): Informe Final Muestra Veta Al Este,
Minera Meridian Limitada, Antofagasta, Chile.
• Laboratorio Metalurgia El Peñón (2009): Informe Final Muestra Veta Bonanza,

• Laboratorio Metalurgia El Peñón (2009): Informe Final Muestra Veta Fortuna,

• Laboratorio Metalurgia El Peñón (2009): Informe Muestras Interior Mina Veta

Dorada, Minera Meridian Limitada, Antofagasta, Chile.
• Pérez, C. (2011): Análisis Microscópico Mineralógico sobre Muestras de Relaves

de Cianuración por Agitación El Peñón. Laboratorio de Minerales de Cabeza C-
2013, Guarachi Ingenieros Limitada, Santiago, Chile.
• Pérez, C. (2011): Análisis Microscópico Mineralógico sobre Muestras de Minerales

de Cabeza. Laboratorio de Minerales de Cabeza C-2013, Guarachi Ingenieros
Limitada, Santiago, Chile.
• Laboratorio ASMIN Industrial (2013-2015): Evaluación Metalúrgica de Muestras de

Mineral Provenientes de Mina El Peñón – Etapas 1 – 10.
• Laboratorio ASMIN Industrial (2016-2017): Evaluación Metalúrgica de Muestras de

Mineral Provenientes de Mina El Peñón – Etapas 11 – 16.
• Órdenes, J. & Bastias, M. (2013): “Modelamiento Geometalúrgico 2013 – Corto

Plazo”, Informe Interno, Minera Meridian Limitada, El Peñón, Chile.
• Menzies, A. (2013): QEMSCANTM Minesite Analysis of Samples from El Peñón,

Chile, Universidad Católica de Norte, Antofagasta, Chile.
• Menzies, A. (2013): QEMSCANTM Minesite Analysis of Samples – Mn Mapping

Sample UIN0001 from El Peñón, Chile, Universidad Católica del Norte,
Antofagasta, Chile.
A summary of the number of metallurgical tests that have been done by vein is provided in
Table 13-1.

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TABLE 13-1 METALLURGICAL TESTWORK BY VEIN

Geometallurgical Unit Oxide Low Clay

Low High Super High Grand
Vein Special
Grade Grade Grade Total
Carmin 1 1
Caserόn 505 1 1
Caserόn 506 2 2
Discovery Wash 4 2 6
Dominador 38 13 51
Dorada SW 8 2 10
El Valle 16 3 1 2 22
Pampa Camp. 30 25 7 5 67
Providencia 85 29 2 116
Púrpura 9 1 2 1 13
Sorpresa 16 13 2 4 35
Caserόn 504 1 2 3
Grand Total 210 89 14 14 327
Geometallurgical Unit Oxide High Clay

Vein Special
Elizabeth 31 31
Victoria 45 45
Grand Total 76 76
Geometallurgical Unit Reduced High Sulphide

Vein Special
Aleste 32 64 6 8 110
Bonanza 66 120 43 28 257
Borde Oeste 12 3 1 16
Dorada SW 7 1 8
Providencia 2 2
Ventura 17 7 4 1 29
Grand Total 127 203 54 38 422
Geometallurgical Unit Reduced Low Sulphide

Vein Special
Dorada SW 7 7
Providencia 4 4
Grand Total 11 11

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CYANIDE TESTWORK
Cyanidation testwork was carried out on the identified geometallurgical units to determine
approximate recoveries of gold and silver. A summary of statistical analyses of the gold and
silver recoveries is shown in Tables 13-2 and 13-3.
TABLE 13-2 GOLD RECOVERIES BY GEOMETALLURGICAL UNIT

Oxide Low Clay Oxide High Reduced High Sulphide Reduced Low
Au
Low High Clay Low High Sulphide Marginal
Recovery Special Special
Grade Grade Low Grade Grade Grade Low Grade
Average 93.76 95.39 99.32 81.16 88.93 90.31 83.61 87.73 85.39
Median 95.6 97.27 98.99 87.30 91.38 94.50 92.70 91.50 89.00
Maximum 99.47 99.20 99.77 95.57 99.30 99.20 99.41 94.60 98.20
Minimum 79.67 82.80 92.50 59.20 73.00 69.00 49.60 83.20 76.50
Standard
4.56 3.71 1.65 10.10 5.93 5.51 11.15 3.89 6.24
Deviation
No. Samples 190 82 24 67 124 179 79 9 57
TABLE 13-3 SILVER RECOVERIES BY GEOMETALLURGICAL UNIT

Oxide Low Clay Oxide High Reduced High Sulphide Reduced Low
Ag
Low High Clay Low High Sulphide Marginal
Recovery Special Special
Grade Grade Low Grade Grade Grade Low Grade
Average 89.64 90.71 93.50 84.35 77.77 69.09 54.06 91.33 72.19
Median 89.72 90.86 92.52 91.00 82.56 74.02 59.81 92.60 80.30
Maximum 99.6 98.77 99.61 97.90 97.80 98.30 96.20 96.20 93.10
Minimum 68.42 78.30 80.37 69.47 54.20 38.80 17.98 86.20 60.71
Standard
7.65 5.61 5.88 7.80 10.87 15.85 23.74 3.52 10.37
Deviation
No. Samples 187 80 26 61 119 178 81 9 57
CYANIDE CONSUMPTION TESTS

A total of 891 cyanide consumption tests have been completed for different veins in the
deposit. The goal has been to determine which zones of the deposit show high or low cyanide
consumptions and the influence of some mineralogical species on this parameter, especially
silver-bearing and antimony-bearing sulphosalts. Silver sulphosalts are known to have low
solubility in cyanide solutions, which subsequently results in low silver recoveries. In contrast,
silver sulphides and copper sulphides (e.g., chalcocite, digenite, and covellite) are highly
soluble in cyanide solutions, thus increasing cyanide consumption. Furthermore,
rhodochrosite (manganese-rich carbonate) is also highly soluble and oxidizes the cyanide to

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a cyanate ion, which has no leaching potential. However, unlike copper, cyanate is not
recovered. Therefore, the presence of these three groups of minerals, namely silver
sulphosalts, rhodochrosite, and especially copper sulphides, is critical in determining cyanide
consumption, and controlling the process performance of the various types of minerals in the
processing plant.
Cyanide consumption averages by geometallurgical unit are shown in Table 13-4.
TABLE 13-4 AVERAGE CYANIDE CONSUMPTION BY GEOMETALLURGICAL UNIT

Cyanide Oxide Low Clay Oxide High Reduced High Sulphide Reduced Low
Consumption Low High Clay Low High Sulphide Marginal
(kg/tonne) Special Low Grade Special Low Grade
Grade Grade Grade Grade
Average 2.73 3.39 4.10 3.95 4.71 4.63 5.26 4.02 3.43
Median 2.31 2.32 3.23 3.84 4.90 4.72 5.25 3.85 3.09
Maximum 11.14 11.14 11.14 8.86 10.92 11.12 9.61 7.01 8.70
Minimum 0.05 0.31 0.26 1.12 0.75 1.05 1.12 0.75 1.37
Standard
1.83 2.78 2.92 1.54 1.85 1.86 1.94 1.88 1.75
Deviation
No. Samples 204 89 28 54 126 199 90 11 56
BOND WORK INDEX TESTWORK

The Bond Work Index test is used to estimate the net energy requirements of the secondary
milling circuit, where the mill operates in a closed circuit with a classifier (cut mesh). The tests
consisted of simulating a closed-loop operation with 250% circulating load using a 12 in.
diameter and 12 in. length laboratory mill.
The historical results of this test are summarized in Table 13-5.

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TABLE 13-5 HISTORICAL BOND WORK INDEX TESTWORK

Work Index
Year Number Identification
kWh/ton kWh/tonne
1 Baja Ley Martillo A 17.76 19.57
2 Baja Ley Q.C. B 13.46 14.83
3 Baja Ley Q.O.Q.C. C 17.74 19.55
2004 4 Fortuna D 15.83 17.44
5 ESP> E 20.52 22.61
6 Inter F 20.32 22.39
7 Combined Sample Compόsito 17.94 19.77
1 Aleste Baja Ley CP0095542 19.64 21.65
2 Aleste Especial CP0095543 19.88 21.91
3 Fortuna Baja Ley CP0095544 15.69 17.29
4 Fortuna Especial CP0095545 14.47 15.95
2009
5 Peñón Baja Ley CP0095546 18.37 20.24
6 Peñón Especial CP0095547 17.78 19.60
7 Bonanza Especial CP0095548 16.68 18.38
8 Bonanza Especial CP0095549 16.45 18.13
2011 1 PAV COMP 1 17.73 18.27
1 Laguna Compόsito 15.17 16.72
2015
2 Ventura Compόsito 17.81 19.63
1 San Cristόbal CP0268051 15.03 16.57
2 San Cristόbal CP0268055 17.84 19.66
2015
3 San Cristόbal CP0268056 15.18 16.73
4 Chiquilla Chica C001502017 18.20 20.06
The average Work Index values by geometallurgical unit are summarized in Table 13-6.
TABLE 13-6 AVERAGE BOND WORK INDEX BY GEOMETALLURGICAL UNIT

Geometallurgical Unit Work Index (kWh/tonne)

Oxide Low Clay 19.83
Oxide High Clay 17.06
Reduced Low Sulphide -
Reduced High Sulphide 19.94

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HISTORICAL MILL PRODUCTION

A summary of the historical mill productions is shown in Table 13-7. Mill production peaked in
2010 at 1.522 million tpa. From 2010 to 2016 yearly mill production remained generally
constant ranging from 1.4 million tpa to 1.5 million tpa. In 2017, throughput dropped to 1.04
million tonnes.
The metallurgical recovery of gold has slightly increased during the last four years, from
93.31% to 95.13%. Metallurgical recoveries of silver have remained consistent in the last three
years and increased considerably since the 2011-2013 period, during which a higher
processing rate from high sulphide reduced material from the Bonanza and Al Este veins,
negatively affected silver recoveries. Metallurgical recoveries of gold and silver increased
slightly during 2017 due to lower throughput and higher residence times.
TABLE 13-7 HISTORICAL MILL PRODUCTION

Tonnage Head Grade Recovery (%) Production (oz)

Year Tonnes/ Tonnes/ Au Ag
Annual Au Ag Au Ag
Day Hour (ppm) (ppm)
2000 739,450 2,202 93 13.18 194.40 93.64 89.05 28,2718 4,018,397
2001 715,413 1,960 95 14.87 234.44 94.46 89.04 318,012 4,751,758
2002 688,876 1,887 95 15.33 249.47 95.32 90.75 328,061 5,077,188
2003 703,775 1,928 85 14.62 204.54 96.61 92.44 320,998 4,283,436
2004 837,111 2,287 100 11.96 192.69 96.46 92.19 314,080 4,812,152
2005 880,229 2,412 106 11.13 211.13 96.42 92.81 303,508 5,537,589
2006 935,105 2,562 114 8.10 234.58 95.48 92.82 230,145 6,428,905
2007 998,252 2,736 122 7.64 274.57 94.19 91.78 234,598 8,186,718
2008 1,124,567 3,073 142 6.73 305.38 92.03 89.16 224,990 9,864,275
2009 1,271,596 3,484 156 5.79 276.32 91.23 86.89 215,846 9,820,474
2010 1,522,366 4,171 189 5.74 228.47 91.13 84.07 256,530 9,427,207
2011 1,452,090 3,978 178 7.05 215.87 93.04 83.95 306,184 8,470,112
2012 1,415,292 3,878 173 7.47 199.21 93.42 79.97 317,508 7,249,430
2013 1,422,055 3,896 173 7.94 187.16 93.02 75.58 338,231 6,464,623
2014 1,475,857 4,043 184 6.36 211.96 93.31 83.88 282,617 8,475,133
2015 1,418,132 3,885 180 5.32 194.02 93.63 86.90 227,228 7,692,811
2016 1,421,243 3,894 175 5.11 153.91 94.30 85.65 220,209 6,020,758
2017 1,041,199 2,853 119 5.05 148.33 95.13 86.40 160,510 4,282,339

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14 MINERAL RESOURCE ESTIMATE

MINERAL RESOURCE SUMMARY
For this report, RPA has reviewed the Mineral Resource estimate of the El Peñón Mine, as
prepared by Yamana as of December 31, 2017. RPA carried out a number of checks to verify
the various procedures and numerical calculations used in the Yamana estimates. This
included detailed tracing of the methodology of estimating tonnage and grade of resource and
reserve blocks. With few exceptions, RPA found that values and compilations of gold and
silver grades were accurately recorded and calculated as provided by Yamana.
As part of this audit, RPA carried out an independent estimate of seven veins (Al Este, Caseron
505, Cerro Martillo, Dorada, Esmeralda, Magenta, and Providencia) to allow for better
comparison of the Yamana estimates with the RPA estimates, based on the underground data
and wireframes provided.
In RPA’s opinion, the Mineral Resource estimates are reasonable and acceptable for
subsequent Mineral Reserve work.
The Mineral Resource estimation was completed using Maptek's Vulcan software, sometimes
coupled with unfolding algorithms from UFO software version 1.0 (software developed by the
ALGES laboratory of the University of Chile in collaboration with Yamana) where deemed
appropriate to the vein morphology. Wireframes for geology and mineralization were
constructed in Vulcan based on geology sections, assay results, lithological information, and
structural data. Assays were composited to one metre lengths, then interpolated using capping
and a high yield restriction for anomalously high grades. Grade was interpolated into a sub-
blocked model with minimum block size of 0.5 m by 0.5 m by 0.5 m with a parent block size of
20 m by 20 m by 20 m. Blocks were interpolated with grade using Inverse Distance Cubed
(ID3) and checked using Nearest Neighbour (NN) methods. Block estimates were validated
using industry standard validation techniques. Classification of blocks was based on distance
based criteria.
RPA notes that the Mineral Resources listed in Tables 14-1 and 14-2 are reasonable,
acceptable for Mineral Reserve estimation, and are in accordance with the Mineral Resource

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and Mineral Reserve Classification as recommended by the Canadian Institute of Mining,

Metallurgy and Petroleum (CIM) Committee on Mineral Resources and Mineral Reserves.
The Mineral Resource estimates for the El Peñón property as of December 31, 2017 are
summarized in Table 14-1.
TABLE 14-1 MINERAL RESOURCE ESTIMATE – DECEMBER 31, 2017

Tonnes Grade Contained Metal

Category
Measured 311.7 8.56 191.0 85.8 1,914.1
Indicated 1,115.9 6.47 224.3 232.0 8,047.7
Total Measured + Indicated 1,427.6 6.92 217.0 317.8 9,961.8
Total Inferred 17,500 1.7 60 960 33,500
Notes:
RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other relevant factors that could materially affect the Mineral Resource
estimate.
The tonnage and grade of the reported Inferred Mineral Resources are uncertain in nature.
There is insufficient information to define these Mineral Resources as Measured or Indicated.
It is reasonably expected that part of the Inferred Mineral Resources could be upgraded to
Indicated Mineral Resources with continued exploration and economic evaluation.
A breakdown of the Mineral Resources by vein is listed in Table 14-2.

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TABLE 14-2 MINERAL RESOURCE ESTIMATES BY VEIN – DECEMBER 31,

2017
Measured
Grade Contained Metal
Vein Tonnage (t) Au (g/t) Ag (g/t) Au (oz) Ag (oz)
Abundancia 1,670 11.3 189.0 610 10,250
Al Este 17,670 23.1 941.9 13,150 535,000
Angelina 3,160 11.2 36.5 1,140 3,710
Angosta - - - - -
Bermellón 30 32.8 740.6 30 740
Bermuda - - - - -
Bonanza 13,100 13.6 144.1 5,740 60,710
Borde Oeste - - - - -
Caracoles - - - - -
Carmín Escarlata 8,800 15.4 179.3 4,340 50,730
Caserón 505 41,120 6.49 81.2 8,580 107,300
Caserón 506 14,800 5.66 81.2 2,690 38,620
Cerro Martillo 40,780 4.82 157.1 6,320 205,990
Cerro Martillo Central Sur - - - - -
Chiquilla Chica - - - - -
Diablada 11,160 10.2 34.2 3,650 12,290
Discovery Wash 1,050 2.73 93.7 92 3,170
Dominador 1,830 5.31 227.5 310 13,420
Dorada 6,470 5.69 333.7 1,180 69,420
Dorada SW 770 4.51 392.5 110 9,720
El Valle 11,850 4.66 112.9 1,780 43,020
Elizabeth 390 4.69 1,100 60 13,700
Esmeralda - - - - -
Esperanza 160 22.7 1,255 120 6,370
Fortuna 5,200 8.60 399.8 1,440 66,860
Fortuna Este - - - - -
La Paloma 40 3.85 307.7 - 350
Laguna 70 19.7 105.8 40 230
Magenta 10,020 10.1 191.0 3,240 61,570
Martillo Flats 4,990 6.45 412.4 1,030 66,200
Orito Norte 48,120 9.58 43.0 14,830 66,470
Orito Sur 31,310 5.54 90.6 5,580 91,190
Orito West - - - - -
Pampa Campamento 3,460 8.51 252.0 950 28,070
Pampa Providencia - - - - -
Playa 640 10.5 157.8 210 3,230
Providencia 10,120 4.31 265.1 1,400 86,260
Púrpura 210 10.8 133.5 70 880
Rieles - - - - -
Sorpresa 2,490 8.25 257.3 660 20,600
Ventura - - - - -
Veta NW 1,270 8.19 505.3 330 20,610
Victoria 6,810 10.7 313.1 2,340 68,510
Vista Norte 6,270 10.3 121.2 2,080 24,450
Total Measured 311,700 8.56 191.0 85,760 1,914,100

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Indicated
Abundancia 7,040 8.54 530.3 1,930 119,990
Al Este 53,490 8.49 342.6 14,600 589,170
Angelina 11,870 9.31 53.1 3,550 20,290
Angosta 21,600 9.56 108.9 6,640 75,610
Bermellón 4,780 9.61 419.0 1,480 64,360
Bermuda 8,480 7.29 172.0 1,990 46,930
Bonanza 44,100 10.1 145.8 14,330 206,800
Borde Oeste 10,830 11.5 454.9 3,990 158,380
Caracoles 1,100 2.83 354.3 100 12,500
Caserón 505 26,470 8.32 87.3 7,080 74,270
Caserón 506 36,700 5.08 44.0 5,990 51,900
Cerro Martillo 93,200 5.47 182.5 16,400 546,800
Cerro Martillo Central Sur 8,340 8.24 141.8 2,200 38,000
Chiquilla Chica 45,800 0.49 372.4 720 548,900
Diablada 17,570 9.41 35.4 5,320 19,980
Discovery Wash 43,880 4.58 129.6 6,460 182,770
Dominador 21,160 4.23 308.7 2,880 209,990
Dorada 50,120 5.12 322.3 8,250 519,330
Dorada SW 24,880 6.52 405.6 5,220 324,440
El Valle 50,480 4.89 83.0 7,940 134,720
Elizabeth 5,250 5.07 391.9 860 66,130
Esmeralda 17,470 8.11 261.6 4,550 146,940
Esperanza 1,470 10.1 148.4 480 7,000
Fortuna 55,600 4.43 302.8 7,910 541,190
Fortuna Este 6,180 4.23 550.1 840 109,320
La Paloma 22,430 4.96 77.9 3,580 56,210
Laguna 19,400 7.03 48.8 4,390 30,440
Magenta 15,740 9.18 121.2 4,650 61,320
Martillo Flats 48,950 7.98 414.1 12,560 651,760
Orito Norte 24,790 10.05 63.3 8,010 50,430
Orito Sur 54,610 6.04 174.0 10,600 305,510
Orito West 6,060 4.80 49.4 940 9,640
Pampa Campamento 18,960 8.49 271.9 5,170 165,740
Pampa Providencia - - - - -
Playa 5,340 5.72 154.3 980 26,470
Providencia 78,320 6.17 249.0 15,530 627,030
Púrpura 13,030 6.58 258.3 2,760 108,250
Rieles - - - - -
Sorpresa 9,620 5.96 259.4 1,840 80,210
Ventura 20,290 8.79 532.7 5,740 347,560
Veta NW 30,980 5.88 270.3 5,860 269,230
Victoria 46,590 4.12 225.9 6,180 338,340
Vista Norte 20,020 9.03 72.4 5,820 46,620
Total Indicated 1,115,940 6.47 224.3 232,010 8,047,660
TOTAL Measured + Indicated 1,427,640 6.92 217.0 317,770 9,961,770

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Inferred
Abundancia 19,700 9.5 480 6,000 304,600
Al Este 290,200 9.5 330 88,700 3,082,900
Angelina 2,300 16 74 1,200 5,500
Angosta 50,200 5.8 198 9,400 318,800
Bermellón 31,200 6.2 240 6,200 240,800
Bermuda 32,900 6.7 166 7,100 176,100
Bonanza 47,600 8.4 153 12,900 234,600
Borde Oeste 80,100 15 471 38,500 1,211,500
Caracoles 7,900 5.2 873 1,300 221,700
Caserón 505 32,900 14.3 177 15,200 187,000
Caserón 506 7,800 7.6 65 1,900 16,400
Cerro Martillo 73,900 5.7 178 13,400 423,800
Cerro Martillo Central Sur 94,300 9.3 379 28,000 1,148,900
Chiquilla Chica 191,600 0.4 410 2,700 2,524,300
Diablada 18,900 14 48 8,600 29,300
Discovery Wash 29,800 5.3 56 5,000 56,000
Dominador 34,700 4.1 181 4,600 202,300
Dorada 79,000 9.3 661 23,600 1,680,000
Dorada SW 11,900 8.2 476 3,100 181,300
El Valle 149,100 7.1 139 33,900 665,600
Elizabeth 22,400 1.6 737 1,100 530,900
Esmeralda 122,800 8.8 396 34,600 1,561,100
Esperanza 27,300 21 464 18,700 407,000
Fortuna 45,900 5.6 442 8,300 652,000
Fortuna Este 49,700 9.4 620 15,000 991,300
La Paloma 24,100 7.4 97 5,800 75,400
Laguna 28,400 14.8 116 13,500 106,400
Magenta 14,000 8.8 317 4,000 143,000
Martillo Flats 94,010 7.8 386 23,600 1,165,300
Orito Norte 3,600 7.5 42 900 4,800
Orito Sur 7,500 7.3 136 1,800 33,000
Orito West 164,000 8.2 108 43,300 570,100
Pampa Campamento 118,100 7.4 244 28,100 925,300
Pampa Providencia 38,400 17 507 20,800 625,700
Playa 12,400 11 268 4,600 106,500
Providencia 133,200 8.0 227 34,400 971,700
Púrpura 17,700 9.4 461 5,400 262,000
Rieles 300 9.2 8.2 100 100
Sorpresa 32,400 7.1 174 7,400 181,500
Ventura 73,100 7.8 493 18,400 1,158,300
Veta NW 68,900 13.7 223 30,300 493,300
Victoria 61,500 5.6 104 11,100 204,800
Vista Norte 24,700 12 111 9,900 88,300
Tailings 13,766,600 0.6 19 244,800 8,380,500
Low Grade Stocks 1,207,900 1.3 22 49,100 862,800
TOTAL Inferred 17,468,947 1.71 59.7 960,102 33,506,028

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Notes:
RESOURCE DATABASE
RPA received data from Yamana in Vulcan software. Data were amalgamated, parsed as
required, and imported by RPA into Maptek Vulcan version 10.1.4 for review.
Chip samples are taken across the face of each development round at approximately 3 m
intervals. Yamana's face sample database contains more than 50,000 face samples taken
since the mine's construction, and is validated by a QA/QC program.
The resource database comprises four drill databases, seven channel sample databases, and
three surface sample databases. It contains drilling information and analytical results up to
December 10, 2017. Information received after this date was not used in the Mineral Resource
estimate.
Section 12, Data Verification, describes the resource database verification steps carried out
by RPA and Yamana. RPA is of the opinion that the drill hole database is valid and suitable
to estimate Mineral Resources for the El Peñón property.
EXPLORATORY DATA ANALYSIS

For grade estimation, unsampled data were replaced with zero grades to prevent
overestimation. RPA observed occasional cases where block grades passed through
unsampled chips without decreasing to zero grade. RPA recommends that Yamana double

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check the estimation process to ensure that these zero grades are being assigned. RPA
compiled all drill data, flagged them by all underground geological wireframe + grade shell
(UGGS) vein solids, and found that less than 0.41% of all samples in veins contained null
values. It is unlikely that the Mineral Resource estimate could be significantly affected by these
few zero grades.
The drill hole database comprises a total of 13,685 drill holes and 90,277 channels (face
samples) with 370,546 surveys amounting to 3,151,800 m of drilling. The Mineral Resource
database contains the following numbers of samples:
• All samples in veins: 190,374
• Unsampled intervals in veins (gold): 770
• Unsampled intervals in veins (silver): 775
Almost all samples were taken between 25 cm and 1.75 m (Figure 14-1), however, most
sample lengths generally ranged from 15 cm to 1.5 m. Length statistics by sample type (Table
14-3) indicate that drill and channel populations show the same mean length.
TABLE 14-3 SAMPLE LENGTHS IN VEINS

Sample Type Count Min Max Mean CV

Drilling 34,860 0.01 8.70 0.76 0.64
Channel 154,690 0.05 4.60 0.76 0.43
All 189,550 0.01 8.70 0.76 0.48

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FIGURE 14-1 SAMPLE LENGTHS IN VEINS
Yamana compiled statistics for sample populations inside veins in each zone. Examples for
Esmeralda, Magenta and the Caseron 505 vein are shown in Figure 14-2. RPA compiled the
Vulcan sample databases and cross checked the results against Yamana’s figures and found
them acceptable.

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FIGURE 14-2 SAMPLE STATISTICS
Esmeralda
Magenta
Caseron 505

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BULK DENSITY
Bulk densities were measured for core samples and underground rock samples using a water
immersion method. For El Peñón, 80 samples were examined in September 2011 at the
University of Antifogasta, and a further 588 density samples were examined between March
2013 and July 2014 at Antirion, with seven percent of the samples cross-checked at
Laboratorio Geoanalítica in Antofagasta. Yamana calculated average bulk densities for each
zone and assigned single density values for both ore and waste to each block model. Densities
assigned are shown in Table 14-4. RPA is of the opinion that the density measurement results
show that block density assignments are reasonable for the Mineral Resource estimation.
TABLE 14-4 BULK DENSITY ASSIGNMENTS BY BLOCK MODEL

Density Density
Block Model (g/cm3) Block Model (g/cm3)
505 506 2.36 Magenta 2.43
Abundancia 2.40 Martillo Flats 2.40
Al Este 2.57 Orito West 2.44
Angosta 2.40 Orito Norte 2.44
Bermellón 2.43 Orito Sur 2.36
Bermuda 2.43 Paloma 2.40
Bonanza 2.57 Pampa Campamento 2.43
Borde Oeste 2.40 Pampa Providencia 2.43
Carmin Escarlata 2.43 PAV 2.50
Cerro Martillo 2.40 Playa 2.36
Cerro Martillo Central Sur 2.40 Providencia 2.40
Discovery 2.43 Purpura 2.43
Dorada 2.40 Rieles 2.40
Dorada SW 2.40 Sorpresa 2.43
El Valle 2.43 Ventura 2.57
Esmeralda Esperanza 2.40 Vista Norte 2.44
Fortuna 2.40 VNW 2.40
TOPOGRAPHIC SURFACES
Where appropriate, topographic information was provided as Maptek Vulcan surfaces.
Topographic surfaces were not included for many of the zones as they were located in
underground workings and were supported by underground drilling and channel sampling.

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GEOLOGICAL INTERPRETATION
Mineralized UGGS wireframes define the Mineral Resource estimation domains at El Peñón.
The UGGS wireframes were constructed in Vulcan as two types of wireframes supported by
drill hole and channel sample information, respectively (Figure 14-3). Both types of wireframes
are defined by grade shells, extended in the dip and strike directions of veins, and include
samples logged as massive quartz vein (MQV), hydrothermal breccia (HYB) or stockwork
(STW), even if the samples are below cut-off.
To avoid sample sharing between spatially close structures, each independent splay or parallel
vein is considered an independent estimation domain. Spatially disconnected splay
wireframes were flagged as separate estimation domains. In RPA’s opinion, this improved
interpretation technique will result in fewer tonnes of resources than previous estimates.
With respect to the wireframes used to support the Mineral Resource estimate, RPA offers the
following conclusions:
• The wireframes have been constructed to an acceptable standard with consideration

for the style of mineralization, lithology, alteration, structural controls, and interpretation
by the on-site geologists.
• RPA is of the opinion that the wireframes are suitable to support Mineral Resource and
Mineral Reserve estimation.

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FIGURE 14-3 UGGS WIREFRAME CONSTRUCTION
COMPOSITING
Sample coding was carried out for drill hole and channel samples. Due to the width of the
mineable shapes of drifts (split blasting) and benches, and the original sample support, it was
decided to composite the data with a regular one metre run length split at grade shell
boundaries. Composite length corresponds to double the block dimensions inside the veins.
Unsampled core intervals were set to zero grade prior to compositing. Composites shorter
than 0.10 m were discarded from Mineral Resource estimation. Coordinates, a UGGS code,
and a splay code were assigned to each composite according to centroid positions. Yamana
also generated full width composites for comparison and validation purposes.
In RPA’s opinion, the composite length is appropriate given the dominant sampling length and
is suitable to support Mineral Resource and Mineral Reserve estimation.

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VARIOGRAPHY
Variography used at El Peñón for Mineral Resource estimation is based Octal Ingeniería y
Desarrollo and Magri Consultores Limitada (2015).
Correlograms were generated for every vein, since they are more stable than traditional semi-
variograms in the presence of outliers. Experimental correlograms were calculated in the
strike, dip, and pole directions of each vein using combined drill hole and channel data by
UGGS, considering data from all the splays of the UGGS as part of a single population. Nugget
values were obtained from down hole variograms. Typical experimental correlogram
calculation parameters are shown in Table 14-5. Examples of typical correlograms are shown
in Figure 14-4.
TABLE 14-5 TYPICAL EXPERIMENTAL CORRELOGRAM PARAMETERS

Az. Azimuth Dip Lag

Color Direction Tolerance Band Tolerance Dip Band Lag Tolerance
Red Dip 22.5° 15 m 22.5° 30 m Drift level spacing 1/2 Lag
1/2 Drift level Channel sample
Green Strike 22.5° 30 m 22.5° 1/2 Lag
spacing spacing along strike
1/2 Drift level
Blue Pole 22.5° 10 m 22.5° 1m 1/2 Lag
spacing
RPA reviewed the variography methodology and performed its own analysis for Dorada and
Providencia. Overall, RPA is of the opinion that the variograms are reasonable.

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FIGURE 14-4 TYPICAL CORRELOGRAMS

Caseron 505 - Au
Caseron 505 - Ag
Esmeralda - Au
Esmeralda - Ag

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BLOCK MODELS
Yamana constructed 34 independent block models for each of the veins at El Peñón using
common parent and sub-block sizes of 20 m by 20 m by 20 m and 0.5 m by 0.5 m by 0.5 m
respectively. RPA is of the opinion that the sub-block size is sufficiently small to model the
vein boundaries. Using a 0.25 m by 0.25 m by 0.25 m minimum block size would increase
resolution on vein boundaries at the cost of a much larger net block model size. A description
of the main block model attributes is given in Table 14-6. There are additional flag and distance
variables based on individual metals not shown.
TABLE 14-6 COMMON BLOCK MODEL ATTRIBUTES

Variable Format Description

Density Float (Real * 4) Bulk Density assigned per model.
Shellug Integer (Integer * 4) Area defined by shell solids (ore & waste)
au1 Float (Real * 4) Au (g/t) variable 1
ag1 Float (Real * 4) Ag (g/t) variable 1
aueq1 Float (Real * 4) AuEq (US$/t) variable 1
nsamp1 Integer (Integer * 4) number of composites in estimate
avdist1 Float (Real * 4) average distance of composites in estimate
estvarau1 Float (Real * 4) estimation block variance au1
estvarag1 Float (Real * 4) estimation block variance ag1
krigpass1 Integer (Integer * 4) kriging pass
nholes1 Integer (Integer * 4) Number of Holes in block estimate
Categ Integer (Integer * 4) 1=measured 2=indicated 3=inferred
aunn1 Float (Real * 4) Au (g/t) nearest neighbor
agnn1 Float (Real * 4) Ag (g/t) nearest neighbor
INTERPOLATION STRATEGY
Grades were interpolated into blocks using ID3, taking into account anisotropic distances for
weight calculations. Search ellipsoids were rotated to orient the first axis along the strike
direction of the vein, the second axis along the dip direction and the third axis along the pole
direction. Anisotropic distance factors were generally set equal to 80% to 100%, the range of
the correlogram models. A summary of typical grade estimation search parameters is shown
in Table 14-7.

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TABLE 14-7 TYPICAL GRADE ESTIMATION SEARCH PARAMETERS

Data Search Min. Max. Max.

Pass Area Used Radii Composites Composites Composites/DH
1 Channel CH. 5x20x5 6 8 2
2 Channel CH. 15x30x10 4 8 2
3 Channel CH. 30x30x15 1 8 1
1 Drill hole CH. + DH. 15x15x5 4 8 2
2 Drill hole DH. 35x35x10 3 8 2
3 Drill hole DH. 60x60x15 1 8 1
RPA checked several search ellipses in non-rotated subdomains and found them to be in
accord with the strike and dip of the vein at the location of the subdomain.
DECLUSTERING
To avoid the effect of high grade clustering on the results of the basic statistics calculations, a
cell declustering technique was used. A 30 m x 30 m x 1 m cell size was used in order to
mimic the drilling grid used to define Indicated resources.
BOUNDARY DEFINITION
Yamana generated contact-plots of gold and silver grades of composites located inside and
outside the UGGS solids to define the type of boundary to be used for grade estimation (hard,
firm, or soft boundaries). Yamana determined that all veins showed characteristically abrupt
changes in grade, and as a result, used hard boundaries for grade interpolation.
RPA concurs with this assessment. Drill and channel samples in plan and section view show
ubiquitous sudden changes from very high grade to very low grade outside the vein structure.
CAPPING AND OUTLIER RESTRICTION

Both grade capping and high-yield restriction (HYR) were used to control the influence of high
grade samples in the block model.

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CAPPING
Yamana performed capping analysis using a combination of methods. For channel samples,
capping values were defined, based on historical criteria, at the 96th to 97th percentile of the
cumulative distribution (including declustered weighting). Drill hole data was capped using
decile analysis (e.g., Parrish Method) to define capping values. Drill data capping results were
generally close to the 99th percentile of the cumulative grade distribution. Yamana capped by
sample type as per above, per vein and sometimes for individual subdomains within vein
domains. A summary of Yamana capping by zone is shown in Table 14-8.
RPA reviewed the capping methodology and performed its own capping exercises on the
Caserón 505, Caserón 506, Dorada, Aleste, and Providencia zones, as well as performing a
visual validation of the block models in plan and section view. The capping values which RPA
chose for each vein in each zone were similar to the values chosen by Yamana. RPA is of the
opinion that Yamana's methodology is thorough and sound and that the overall capping levels
are appropriate for the deposit.

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TABLE 14-8 YAMANA CAPPING LEVELS BY VEIN AND DOMAIN

Capping Levels
Drill Holes Chips RIP
Vein Domain g/t Au g/t Ag g/t Au g/t Ag g/t Au g/t Ag
Caserón 505 5 101 2,585.07 50.25 596 28.12 409.26
Caserón 506 6 50.00 515.50 45.07 467.50
70 - - - - - -
Abundancia 72 - - - - - -
74 60.00 800.00 200.00 1,750.00 - -
18 100.00 2,202.00 215.00 4,510.00 - -
19 50.00 6,000.00 156.00 5051.00 - -
Aleste
20 75.00 3,000.00 160.00 7,900.00 - -
21 30.00 1,569.00 - - - -
Angosta 35 30.00 500.00 - - - -
Bermellón 14 30.00 800.00 150.00 3,320.00 - -
Bermuda 44 25.00 - - - - -
Caracoles 30 - - - - - -
Fortuna Norte 22 26.50 2,000.00 105.00 6,200.00 - -
Fortuna Sur 11 35.00 3,500.00 55.00 3,675.00 - -
Fortuna Este 21 20.00 1,400.00 - - - -
Dominador 23 45.00 1,540.00 35.00 920.00 - -
Laguna 33 40.00 400.00 51.00 480.00 - -
Bonanza 11 150.00 1,100.00 171.00 2,000.00 - -
71 70.00 2,000.00 - - - -
Borde Oeste 73 - - - - - -
75 - - - - - -
Carmin Escarlata 11 90.00 900.00 158.00 2,055.00 - -
50 27.00 1,460.00 40.00 1,410.00 34.26 1,103.00
Cerro Martillo 51 25.00 500.00 - - - -
52 30.00 1,000.00 - - - -
Cerro Martillo CS 53 50.00 1,500.00 - - - -
Discovery Wash 4 30.00 1000.00 22.00 630.00 - -
50 46.00 2,000.00 47.00 3,060.00 - -
Dorada 51 40.00 2,492.00 47.00 3,202.00 - -
52 21.00 2,000.00 50.81 2,459.76 - -
53 86.00 5,430.00 - - - -
50 46.80 3,000.00 28.27 2,276.47 - -
Dorada SW 51 30.00 1,725.00 - - - -
52 26.50 2,010.00 - - - -
El Valle 40 50.00 1,000.00 25.00 950.00 - -
Esmeralda 13 38.00 1554.00 183.00 5,775.00 - -
Esperanza 14 90.00 1,660.00 - - - -
Magenta 3 100.00 1,230.00 118.00 2,275.00 - -
16 56.15 4,883.00 45.00 2,770.00 - -
Martillo Flats 17 20.00 700.00 64.00 4,662.37 - -
18 30.00 2,037.00 60.00 3,922.00 - -
Orito Norte 8 90.00 445.00 55.00 302.00 131.00 1,453.00
Angelina 9 100.00 470.00 93.00 420.00 192.00 540.00
Diablada 10 60.00 300.00 101.50 435.00 - -
Orito Sur 7 28.50 790.00 44.15 797.80 - -
Orito Oeste 69 35.00 1,500.00 - - - -
La Paloma 35 77.20 815.83 161.59 2,077.96 - -
Pampa Campamento 70 60.00 1,620.00 57.00 1,200.00 - -
Pampa Providencia 66 - - - - - -
Victoria 32 45.00 1,500.00 117.10 2,573.00 110.50 11,000.00
Elizabeth 8 20.00 2,500.00 78.00 10,930.00 - -
Playa 12 - 1,000.00 81.00 2,360.00 - -
60 53.30 2,071.00 32.88 2,002.02 - -
Providencia 61 42.10 1,121.00 14.54 1,382.81 - -
62 39.3 1448.00 38.06 2,936.75 - -
Purpura 15 60.00 3,500.00 60.00 1,203.35 - -
Sorpresa 80 50.00 1,500.00 47.15 1,715.00 - -
Ventura 77 152.00 4,172.00 150.00 8,925.00 - -
Vista Norte 20 65.00 600.00 95.45 1,101.48 - -
63 60.00 2,000.00 23.17 966.52 - -
VNW 64 20.00 1,100.00 29.46 2,838.00 - -
65 20.00 800.00 41.00 2,800.00 - -
Stockpile – Escarlata 1 6.00 120.00 - - - -

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Capping Levels
Drill Holes Chips RIP
Vein Domain g/t Au g/t Ag g/t Au g/t Ag g/t Au g/t Ag
Stockpile – Orito 1 5.00 45.00 - - - -
Tailings 1 1.20 - - - - -
HIGH YIELD RESTRICTION

HYR is an interpolation technique where the spatial influence of isolated high grades are
limited above a certain threshold. Generally, continuous areas of persistent high grade are
sub-domained and estimated separately rather than using HYR in those areas.
Yamana used HYR for every domain in every zone, setting the threshold values equal to the
capping threshold and limiting the influence to 5.0 m by 2.5 m by 2.5 m strike, dip, and width
respectively.
RPA reviewed the influence of high grades in the model by visually checking the composite
grades and block grades in section and plan view, and found the results acceptable.
UNFOLDING
In order to improve the reproduction of the preferential grade continuities, composites and
blocks located inside the main splays (generally splays with channel data) were unfolded,
through the use of the UFO software version 1.0. Grade estimation was carried out
independently for each estimation domain considering vein hanging walls as the reference
plane for unfolding.
RPA is of the opinion that the interpolation strategy is thorough and reasonable.
VALIDATION
YAMANA VALIDATION
Block models were validated by means of Global Bias checks (between estimated means and
declustered composite means), swath-plots against NN estimates, and graphic analyses of
the results. RPA considers these industry standard validation techniques to be adequate for
the purpose of Mineral Reserve and Mineral Resource estimation and disclosure.

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RPA VALIDATION
RPA performed validation on seven of the 34 block models, which represent approximately
more than 40% of the resource estimate. The seven zones and stockpiles were:
• Caserón 505 and 506
• Aleste
• Cerro Martillo
• Dorada
• Esmerelda
• Magenta
• Providencia
• Stockpile and Tailings – Escarlata, Orito and Tailings
In addition to reviewing Yamana’s validation, RPA performed the following validation steps:
• Comparison between composite and block grades (Table 14-9) and between ID3 and
NN block grades (Table 14-10).
• Swath plots of composites versus blocks and NN versus ID3 interpolations (e.g., Figure
14-5). Samples are red, blocks are blue, and NN blocks are silver.
• Visual inspection of the block model and composites provided (e.g., Figure 14-6).
RPA replaced unsampled data and values lower than detection limits with zero grades and
performed validation of composites and block model via its own Global Bias checks, swath
plots, and visual checks at regular intervals in section and plan view to observe the
relationships between block estimates, composite grades, and original sample grades. RPA
concludes that grade estimation was generally reasonable and that block grades were closely
associated with sample grades. There were intermittent locations where block grades
appeared to be smoothed through high or low grade samples, but the overall grade estimation
appeared conservative. Block grade means sometimes decreased up to 12% from capped
composite grades. This appears to be attributable to the HYR applied during grade estimation.

Technical Report NI 43-101 – March 2, 2018
TABLE 14-9 COMPOSITE VERSUS BLOCK GRADES

Composite Composite Block Composite Block Composite Block Diff Mean Composite Block
Zone Element Domain Count Block Count Min Min Max Max Mean Mean (%) CV CV
505 506 Ag (g/t) 5 10,549 4,232,571 0.00 0.25 2585.07 6,533.35 143.23 133.65 -6.69 1.21 1.71
505 506 Ag (g/t) 6 5,438 2,193,728 0.10 0.10 515.20 798.53 99.07 82.08 -17.15 1.12 0.90
505 506 Au (g/t) 5 10,550 4,232,596 0.00 0.01 82.00 108.84 10.51 10.06 -4.26 1.17 0.83
505 506 Au (g/t) 6 5,440 2,193,747 0.00 0.00 50.00 59.99 9.00 7.32 -18.68 1.14 0.84
Cerro Martillo Ag (g/t) 50 13,690 7,011,928 0.00 0.25 7,881.75 1,434.14 290.30 254.41 -12.36 1.17 0.84
Cerro Martillo Ag (g/t) 51 23 192,478 15.34 15.34 338.68 984.70 129.81 136.16 4.90 0.77 0.64
Cerro Martillo Ag (g/t) 52 23 78,301 2.40 2.40 334.30 334.30 133.84 123.56 -7.68 0.82 0.71
Cerro Martillo Ag (g/t) 500 2,130 672,664 0.00 0.62 1,962.06 1,103.00 189.89 180.36 -5.02 1.10 0.81
Cerro Martillo Au (g/t) 50 13,690 7,013,350 0.00 0.01 270.08 38.31 8.24 7.18 -12.83 1.19 0.77
Cerro Martillo Au (g/t) 51 23 192,478 0.89 0.89 16.98 19.92 6.14 5.80 -5.52 0.70 0.75
Cerro Martillo Au (g/t) 52 23 78,301 0.26 0.26 12.18 11.89 3.46 3.92 13.42 0.84 0.61
Cerro Martillo Au (g/t) 500 2,130 672,664 0.00 0.10 83.34 34.26 5.89 5.62 -4.55 1.01 0.70
Dorada Ag (g/t) 50 13,265 4,581,595 0.00 0.64 3,027.03 3,027.03 611.44 579.63 -5.20 1.18 0.85
Dorada Ag (g/t) 51 1,184 1,587,335 0.00 0.60 3,117.42 3,116.26 494.30 289.24 -41.49 1.36 1.06
Dorada Ag (g/t) 52 397 729,820 0.00 2.41 2,459.76 2,459.62 293.90 267.77 -8.89 1.22 0.73
Dorada Au (g/t) 50 13,265 4,581,595 0.00 0.03 46.17 46.17 9.26 8.72 -5.88 1.20 0.83
Dorada Au (g/t) 51 1,184 1,587,335 0.00 0.00 45.92 45.90 7.93 5.62 -29.12 1.30 0.93
Dorada Au (g/t) 52 397 729,997 0.00 0.02 50.81 50.81 6.00 4.93 -17.81 1.29 0.72
Esmeralda Ag (g/t) 13 560 2,775,846 0.00 0.20 3,031.98 4,994.69 285.48 240.34 -15.81 1.82 1.41
Esmeralda Ag (g/t) 14 80 541,889 0.00 0.25 1,949.00 3,720.00 299.68 319.42 6.59 1.66 1.90
Esmeralda Au (g/t) 13 560 2,775,846 0.00 0.00 66.18 89.90 6.20 5.62 -9.24 1.65 1.11
Esmeralda Au (g/t) 14 80 541,889 0.00 0.00 87.00 87.00 9.28 9.21 -0.70 1.91 1.40
Magenta Ag (g/t) 3 9,293 3,213,095 0.00 0.25 2,291.05 2,291.05 472.86 331.13 -29.97 1.19 1.12
Magenta Au (g/t) 3 9,293 3,214,080 0.00 0.01 148.86 148.85 23.27 15.93 -31.53 1.31 1.16
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Providencia Ag (g/t) 60 14,594 5,264,754 0.00 0.25 2,071.00 2,070.98 405.42 352.66 -13.01 1.16 0.86
Providencia Ag (g/t) 61 510 1,277,202 0.00 0.80 1,382.81 1,382.70 208.54 180.57 -13.41 1.17 0.80
Providencia Ag (g/t) 62 574 1,325,342 0.11 0.11 2,936.75 2,936.75 273.13 242.99 -11.04 1.16 0.75
Providencia Au (g/t) 60 14,594 5,264,754 0.00 0.01 53.30 53.30 6.80 6.21 -8.63 1.14 0.78
Providencia Au (g/t) 61 510 1,277,219 0.00 0.00 42.10 62.10 4.36 4.90 12.45 1.33 0.88
Page 14-21
Providencia Au (g/t) 62 574 1,325,342 0.00 0.00 39.30 39.30 4.72 4.06 -13.87 1.42 0.80
TABLE 14-10 ID3 VERSUS NN BLOCK GRADES

Element
Zone Domain (g/t) Block Count NN Min ID3 Min NN Max ID3 Max NN Mean ID3 Mean NN CV ID3 CV
Magenta 3 Ag 3,213,095 0.21 0.25 2,291.05 2,291.05 336.94 331.13 1.36 1.12
505_506 5 Ag 4,232,596 0.25 0.25 6,533.35 6,533.35 134.21 133.65 1.83 1.71
505_506 6 Ag 2,193,747 0.10 0.10 800.00 798.53 83.68 82.08 1.23 0.90
Esmeralda 13 Ag 2,775,846 0.20 0.20 5,000.00 4,994.69 224.08 240.34 1.76 1.41
Esmeralda 14 Ag 541,889 0.25 0.25 3,720.00 3,720.00 315.71 319.42 2.14 1.90
Dorada 50 Ag 7,013,323 0.25 0.64 1,434.14 3,027.03 259.65 579.63 1.05 0.85
Dorada 51 Ag 1,587,335 0.60 0.60 3,117.42 3,116.26 286.46 289.24 1.32 1.06
Dorada 52 Ag 729,820 2.40 2.41 2,459.76 2,459.62 267.76 267.77 0.88 0.73
Providencia 60 Ag 5,264,754 0.25 0.25 2,071.00 2,070.98 354.03 352.66 1.12 0.86
Providencia 61 Ag 1,277,202 0.80 0.80 1,382.81 1,382.70 179.14 180.57 0.93 0.80
Providencia 62 Ag 1,325,342 0.11 0.11 2,936.75 2,936.75 238.36 242.99 0.92 0.75
Cerro_Martillo 500 Ag 672,664 0.60 0.62 1,103.00 1,103.00 179.21 180.36 1.04 0.81
Magenta 3 Au 3,214,080 0.01 0.01 148.86 148.85 16.26 15.93 1.47 1.16
505_506 5 Au 4,232,596 0.01 0.01 108.84 108.84 10.15 10.06 1.10 0.83
505_506 6 Au 2,193,747 0.00 0.00 60.00 59.99 7.31 7.32 1.14 0.84
Esmeralda 13 Au 2,775,846 0.00 0.00 90.00 89.90 5.49 5.62 1.37 1.11
Esmeralda 14 Au 541,889 0.00 0.00 87.00 87.00 8.48 9.21 1.64 1.40
Dorada 50 Au 7,013,350 0.01 0.03 38.31 46.17 7.27 8.72 1.01 0.83
Dorada 51 Au 1,587,335 0.00 0.00 45.92 45.90 5.60 5.62 1.15 0.93
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Dorada 52 Au 729,997 0.02 0.02 50.81 50.81 4.92 4.93 0.89 0.72
Providencia 60 Au 5,264,754 0.01 0.01 53.30 53.30 6.26 6.21 1.06 0.78
Providencia 61 Au 1,277,219 0.00 0.00 62.10 62.10 4.87 4.90 1.11 0.88
Providencia 62 Au 1,325,342 0.00 0.00 39.30 39.30 4.02 4.06 1.07 0.80
Page 14-22
Cerro_Martillo 500 Au 672,664 0.10 0.10 34.26 34.26 5.65 5.62 0.91 0.70
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Legend: Legend:
Block Model Block Model
Composites Composites
Volume Volume
Count Count
Mean Volume Mean Volume
Legend: Legend:
Block Model Frequency Length
Composites Frequency volume
Volume
Count
Mean Volume
Figure 14-5
Yamana Gold Inc.

El Peñón Mine
Examples Swath Plots and
Histogram (Esmeralda-Au)
14-23
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Legend:
< 0.10 Figure 14-6
0.10 -0.25
0.25 -0.50 Yamana Gold Inc.
0.50 -1.0
El Peñón Mine
1.0 -2.5 0 10 20 30 40 50 Antofagasta Region (II), Chile
2.5 -5.0
Metres Plan View of Blocks, Samples,
5.0 -10.0
> 10.0 and Composites (Au g/t, 505)
March 2018 Source: RPA., 2018.
14-24
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RPA performed advanced reporting in Vulcan software to validate Yamana's Mineral Resource
and Mineral Reserve estimates. RPA was able to closely match Yamana’s numbers using the
same criteria. RPA’s validation results suggest that the Yamana estimates are reasonable.
The block models are suitable to support Mineral Resource and Mineral Reserve estimation.
CLASSIFICATION
Definitions for Mineral Resource categories used in this report are consistent with those
defined by CIM (2014) and adopted by NI 43-101. In the CIM classification, a Mineral
Resource is defined as “a concentration or occurrence of solid material of economic interest
in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction”. Mineral Resources are classified into Measured,
Indicated, and Inferred categories. A Mineral Reserve is defined as the “economically
mineable part of a Measured and/or Indicated Mineral Resource” demonstrated by studies at
Pre-Feasibility or Feasibility level as appropriate. Mineral Reserves are classified into Proven
and Probable categories.
Mineral Resources at El Peñón are reported exclusive of Mineral Reserves. Currently, an in-
house built algorithm is used to perform Mineral Resource classification. The algorithm is as
follows:
• Blocks located inside the channel sample area wireframes are classified as Measured
Mineral Resources.
• In order to avoid direct transitions from Measured to Inferred categories, blocks located
in the drill hole area wireframes and within a 5 m radius from the channel samples, are
classified as Indicated Mineral Resources.
• If two different drill hole-intercepts are located at a maximum distance of 37.5 m from
each other in the dip and strike direction of the vein, then blocks located in an area of
18.75 m x 18.75 m around each intercept are classified as Indicated Mineral
Resources.
• The remainder of the blocks located within the drill hole area wireframe are classified
as Inferred Mineral Resources.
• Blocks located outside the UGGS solid are not classified, and are therefore not
considered to be part of the Mineral Resources.

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RPA reviewed the block model classification and concludes that the overall classification
criteria and designation are reasonable and suitable to support Mineral Resource and Mineral
Reserve estimation. RPA is of the opinion that the definitions for Mineral Resource categories
used in this report are consistent with those defined by CIM (2014) and incorporated by
reference in NI 43-101.
The algorithm method used by Yamana for smoothing classification is acceptable.
CUT-OFF GRADE
A cut-off grade of 2.71 g/t AuEq was used for all zones except for the Pampa Augusta Victoria,
Fortuna-Dominador-Laguna and Chiquilla Chica zones at 2.82 g/t AuEq, 2.79 g/t AuEq, and
2.81 g/t AuEq, respectively. Parameters used to define these cut-off grades are shown in
Table 14-11.
TABLE 14-11 CUT-OFF GRADE PARAMETERS

Parameters Units Value

Gold Price US$/oz 1,600
Silver Price US$/oz 24
Gold Recovery % 95.0
Silver Recovery % 86.5
Mining Cost US$/t 87.58
Processing Cost US$/t 27.38
G&A US$/t 16.31
Selling Cost % 1.3
Transport Cost (Fortuna) US$/t 3.86
Transport Cost (Chiquilla Chica) US$/t 4.69
Transport Cost (PAV) US$/t 5.24
AuEq Factor 75
DILUTION
The reported Mineral Resources consider minimum mining widths and expected dilutions
(variable by vein) to determine reasonable prospects of eventual economic extraction.
After the mined out material and current Mineral Reserves were subtracted from the block
models, a weighted average (2/3 to 1/3) of bench, split-blasting minimum mining widths, and

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expected dilutions (rounded to the nearest 0.1 m) were used to design the Mineral Resource
SMUs. Material lying outside the UGGS is treated as dilution for Mineral Resource estimation
and zero gold and silver grades are assigned to this material. Parameters used to design the
SMUs are shown in Table 14-12.
TABLE 14-12 SMU DESIGN PARAMETERS

Minimum Maximum
Height Expected Minimum
Vein Mining Width Mining Width
(m) Dilution (m) Dip (°)
(m) (m)
Abundancia / La Paloma 0.6 6 12 1.0 60
Al Este 0.6 6 12 0.4 60
Al Este Este 0.6 6 12 0.4 60
Angelina 0.6 6 12 0.6 60
Angosta 0.6 6 12 0.7 60
Bermellón 0.6 6 12 0.7 60
Bermuda 0.6 6 12 0.8 60
Bonanza 0.6 6 12 0.7 60
Borde Oeste 0.6 6 12 0.7 60
Caracoles 0.6 6 12 0.7 60
Carmín 0.6 6 12 0.7 60
Carmín Sur 0.6 6 12 0.7 60
Caseron 505 0.9 6 12 0.9 60
Caseron 506 0.9 6 12 1.0 60
Cerro Martillo 0.9 6 12 0.8 60
Cerro Martillo Central Sur 0.6 6 12 0.7 60
Diablada 0.9 6 12 0.8 60
Discovery Wash 0.6 6 12 0.7 60
Dominador 0.9 6 12 0.6 60
Dorada 0.9 6 12 0.6 60
Dorada SW 0.9 6 12 0.6 60
El Valle 0.9 6 12 1.0 60
Elizabeth 0.6 6 12 0.8 60
Escarlata 0.6 6 12 0.7 60
Esmeralda 0.6 6 12 0.7 60
Esperanza 0.6 6 12 0.7 60
Fortuna 0.6 6 12 0.8 60
Fortuna Este 0.6 6 12 0.7 60
Laguna 0.6 6 4 0.6 -
Magenta 0.6 6 12 0.8 60
Magenta Norte 0.6 6 12 0.8 60
Martillo Flats 0.6 6 12 0.6 60
Orito Norte 0.9 6 12 0.8 60
Orito Sur 0.9 6 12 1.0 60

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Minimum Maximum
Height Expected Minimum
Vein Mining Width Mining Width
(m) Dilution (m) Dip (°)
(m) (m)
Orito West 0.6 6 12 0.7 60
Pampa Campamento 0.6 6 12 0.8 60
Pampa Providencia 0.8 6 12 0.6 60
Playa 0.9 6 12 0.8 60
Providencia 0.9 6 12 0.6 60
Púrpura 0.6 6 12 0.8 60
Rieles 0.6 6 12 0.7 60
Sorpresa 0.6 6 12 0.6 60
Ventura 0.6 6 12 0.6 60
Victoria 0.9 6 12 0.7 60
Vista Norte 0.9 6 12 0.8 60
VNW 0.9 6 12 0.7 60
GOLD EQUIVALENT FACTOR

Gold and silver prices of US$1,250/oz and US$18.00/oz at 95% and 86.5% recovery, for gold
and silver respectively, were used to calculate the gold equivalent factor according to the
following equation:
1,250 𝑥𝑥 0.95
𝐴𝐴𝐴𝐴𝐴𝐴𝐴𝐴 𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹𝐹 = = 76.3
18 𝑥𝑥 0.865
The gold equivalent factor of 75 was chosen for wireframe modelling and UGGS construction
purposes.

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15 MINERAL RESERVE ESTIMATE

SUMMARY
Mineral Reserves at the El Peñón Mine are estimated using Vulcan software including the
MineModeller UG/OP, GeoModeller, Stope Optimizer, and Gantt Scheduler. SMUs are
designed for each vein using metal prices, recoveries, and operating costs to determine an
economic value of each SMU. SMUs with negative values are excluded from further
consideration, except for drift SMUs that are above the marginal cut-off grade.
The December 31, 2017 Mineral Reserve estimate is listed in Table 15-1.
TABLE 15-1 MINERAL RESERVE ESTIMATE – DECEMBER 31, 2017

Tonnage Grade Contained Metal

Category
Proven 1,061.80 5.90 192.4 201.2 6,567.4
Probable 3,331.82 5.25 158.8 562.6 17,011.0
Total 4,393.62 5.41 166.9 763.8 23,578.0
Notes:
3. A cut-off grade of 3.48 g/t AuEq was used in the Mineral Reserve for most veins except as follows: a cut-
off grade of 3.62 g/t AuEq used for the Elizabeth and Victoria veins in the Pampa Augusta Victoria Area
(for a US$5.24/t additional transportation cost) and a cut-off of 3.59 g/t AuEq used for the Fortuna,
Dominador, and Laguna veins in the Fortuna and Laguna Area (for a US$3.86/t additional transportation
cost).
4. Mineral Reserves are estimated using an average long-term gold price of US$1,250/oz and a silver price
of US$18/oz.
7. The SMUs include Inferred Mineral Resources and unclassified material (blocks located outside of the
UGGS). These materials were treated as dilution for mine planning and Mineral Reserve estimation
purposes. Zero gold and silver grades have been assigned to them.
RPA is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant
factors that could materially affect the Mineral Reserve estimate.
A breakdown of the Mineral Reserves by vein is listed in Table 15-2. The majority of the
Mineral Reserves are underground, with small quantities of open pit and low-grade stockpiles
included in the totals.

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TABLE 15-2 MINERAL RESERVE ESTIMATES BY VEIN– DECEMBER 31, 2017

PROVEN + PROBABLE

Vein Tonnage (t)
Au (g/t) Ag (g/t) Au (oz) Ag (oz)
Providencia 206,034 4.55 215.2 30,125 1,425,508
Sorpresa 80,668 4.40 199.5 11,422 517,310
Discovery Wash 96,835 4.68 121.1 14,577 376,914
El Valle 157,002 4.94 95.3 24,946 481,169
Al Este 272,898 5.58 245.7 48,943 2,155,408
Bonanza 102,421 7.50 59.3 24,684 195,341
Vista Norte 104,038 5.67 42.1 18,955 140,909
Orito Sur 113,402 4.72 72.4 17,214 263,780
Orito Norte 37,041 5.67 29.8 6,751 35,449
Púrpura 39,319 4.98 399.7 6,291 505,318
Cerro Martillo 193,846 4.06 152.3 25,326 949,329
Dorada 345,721 4.65 278.2 51,695 3,091,643
Dorada SW 40,806 3.31 265.7 4,339 348,534
Magenta 163,166 7.47 97.5 39,176 511,547
Magenta Norte 56,286 5.08 137.8 9,185 249,408
Carmín 67,296 9.71 40.5 21,004 87,648
Carmín Sur 53,766 8.23 60.7 14,231 104,889
Escarlata 30,652 10.69 34.0 10,536 33,517
Caracoles 1,124 1.67 196.5 60 7,105
Martillo Flats 155,497 4.45 217.9 22,257 1,089,429
Fortuna 115,619 3.97 337.6 14,772 1,254,933
Dominador 11,782 6.27 191.6 2,376 72,577
Playa 14,399 4.97 122.5 2,303 56,690
Caserón 505 205,953 6.44 66.7 42,622 441,563
Caserón 506 123,227 5.27 46.9 20,893 185,651
Diablada 84,781 6.89 41.6 18,790 113,483
Angelina 37,956 7.12 58.1 8,683 70,918
Bermellón 19,863 6.78 182.0 4,329 116,211
Victoria (PAV) 200,643 5.83 114.8 37,612 740,831
Elizabeth (PAV) 85,008 2.45 405.0 6,695 1,106,925
Esmeralda 161,025 4.87 201.0 25,211 1,040,306
Esperanza 32,519 10.11 162.1 10,570 169,488
Borde Oeste 37,699 5.15 230.8 6,244 279,726
Veta Norweste 59,689 4.46 221.2 8,566 424,430
Ventura 160,614 4.88 340.9 25,175 1,760,484
Laguna 135,031 6.71 51.5 29,124 223,768
Abundancia 59,182 10.22 144.5 19,446 274,861
La Paloma 148,309 6.08 135.4 28,999 645,749
Orito West 27,536 8.10 148.4 7,172 131,413

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Vein Tonnage (t)
Total U.G. 4,217,477 5.5 166.3 748,425 22,552,112
Chiquilla Chica 49,226 0.49 445.3 777 704,786

505 15,928 5.21 21.3 2,666 10,900
Cerro Martillo 9,719 3.80 94.6 1,186 29,564
Discovery Wash 2,813 1.61 24.7 145 2,233
El Valle 6,750 1.94 33.9 421 7,357
Orito Norte 28,954 3.51 30.3 3,267 28,172
Total Open Pit 113,389 2.3 214.8 8,463 783,012
Stockpile U.G. 57,826 3.5 126.1 6,513 234,444

Stockpile Surface 4,927 2.4 53.0 388 8,465
Total Stockpile 62,753 3.4 120.4 6,901 242,909
Total Reserves 4,393,620 5.4 166.9 763,789 23,578,033
PROVEN
Vein Tonnage (t)
Providencia 41,109 4.2 318.0 5,486 420,286
Sorpresa 14,418 4.7 170.5 2,178 79,052
Discovery Wash 15,706 4.4 118.2 2,202 59,712
El Valle 7,685 3.5 84.5 874 20,881
Al Este 90,027 7.4 280.0 21,309 810,465
Bonanza 48,840 8.9 69.3 14,002 108,762
Vista Norte 17,986 5.4 57.8 3,105 33,399
Orito Sur 30,247 5.2 83.7 5,069 81,360
Orito Norte 16,589 4.7 29.8 2,513 15,887
Púrpura 3,092 6.5 122.4 642 12,172
Cerro Martillo 49,285 4.5 177.8 7,143 281,772
Dorada 86,057 5.0 315.4 13,762 872,785
Dorada SW 18,403 3.6 294.2 2,107 174,064
Magenta 34,867 9.6 141.6 10,717 158,711
Magenta Norte 12,356 4.7 151.6 1,862 60,218
Carmín 25,397 7.4 67.3 6,080 54,943
Carmín Sur 10,610 7.2 125.3 2,470 42,754
Escarlata 6,811 6.1 60.7 1,346 13,285
Martillo Flats 13,137 3.9 190.0 1,647 80,226
Fortuna 17,632 3.2 243.4 1,828 137,986
Dominador 579 4.8 48.1 89 895
Playa 1,164 4.2 94.0 159 3,519

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Vein Tonnage (t)
Caserón 505 75,469 4.9 70.7 11,921 171,569
Caserón 506 30,471 5.3 57.4 5,156 56,209
Diablada 11,767 5.9 17.0 2,243 6,441
Angelina 13,004 6.3 40.4 2,635 16,905
Bermellón 9,996 9.0 215.3 2,881 69,176
Victoria (PAV) 61,960 7.9 117.5 15,752 234,090
Elizabeth (PAV) 37,924 3.3 463.2 4,066 564,792
Esmeralda 13,943 7.4 293.3 3,310 131,467
Esperanza 905 2.6 150.1 76 4,367
Veta Norweste 25,637 4.7 299.4 3,872 246,749
Ventura 66,954 6.2 449.4 13,375 967,306
Laguna 10,027 6.9 46.6 2,212 15,019
Abundancia 38,590 12.2 161.4 15,190 200,196
La Paloma 83 2.0 183.8 5 492
Total U.G. 976,126 6.1 200.2 191,837 6,283,549
505 5,694 3.8 52.1 702 9,539

Cerro Martillo 6,672 4.0 96.6 862 20,732
El Valle 6,750 1.9 33.9 421 7,357
Orito Norte 3,804 4.3 27.2 524 3,323
Total Open Pit 22,920 3.4 55.6 2,510 40,951
Stockpile U.G. 57,826 3.5 126.1 6,513 234,444

Stockpile Surface 4,927 2.4 53.4 388 8,465
Total Stockpile 62,753 3.4 120.4 6,901 242,909
Total Reserves 1,061,799 5.90 192.38 201,247 6,567,408
PROBABLE
Vein Tonnage (t)
Providencia 164,925 4.6 189.6 24,640 1,005,246
Sorpresa 66,250 4.3 205.8 9,244 438,267
Discovery Wash 81,129 4.7 121.6 12,375 317,209
El Valle 149,317 5.0 95.9 24,072 460,296
Al Este 182,871 4.7 228.8 27,635 1,344,978
Bonanza 53,581 6.2 50.3 10,683 86,582
Vista Norte 86,052 5.7 38.9 15,851 107,512
Orito Sur 83,155 4.5 68.2 12,145 182,425
Orito Norte 20,452 6.4 29.8 4,238 19,562
Púrpura 36,226 4.9 423.4 5,650 493,154
Cerro Martillo 144,561 3.9 143.6 18,183 667,573
Dorada 259,664 4.5 265.8 37,934 2,218,909

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Vein Tonnage (t)
Dorada SW 22,404 3.1 242.2 2,232 174,476
Magenta 128,299 6.9 85.5 28,459 352,845
Magenta Norte 43,930 5.2 134.0 7,323 189,194
Carmín 41,899 11.1 24.3 14,924 32,706
Carmín Sur 43,156 8.5 44.8 11,761 62,137
Escarlata 23,841 12.0 26.4 9,190 20,232
Caracoles 1,124 1.7 196.5 60 7,105
Martillo Flats 142,360 4.5 220.5 20,610 1,009,221
Fortuna 97,987 4.1 354.6 12,944 1,116,968
Dominador 11,203 6.4 199.0 2,287 71,683
Playa 13,236 5.0 125.0 2,144 53,172
Caserón 505 130,484 7.3 64.4 30,702 270,002
Caserón 506 92,756 5.3 43.4 15,738 129,446
Diablada 73,014 7.0 45.6 16,547 107,043
Angelina 24,952 7.5 67.3 6,048 54,014
Bermellón 9,868 4.6 148.3 1,447 47,036
Victoria (PAV) 138,683 4.9 113.7 21,861 506,753
Elizabeth (PAV) 47,084 1.7 358.1 2,629 542,151
Esmeralda 147,082 4.6 192.2 21,902 908,856
Esperanza 31,614 10.3 162.5 10,494 165,124
Borde Oeste 37,699 5.2 230.8 6,244 279,731
Veta Norweste 34,052 4.3 162.3 4,694 177,688
Ventura 93,660 3.9 263.4 11,800 793,208
Laguna 125,004 6.7 51.9 26,913 208,753
Abundancia 20,593 6.4 112.8 4,256 74,670
La Paloma 148,226 6.1 135.4 28,995 645,268
Orito West 27,536 8.1 148.4 7,172 131,416
Total U.G. 3,241,352 5.34 156.11 556,601 16,268,940
Chiquilla Chica 49,226 0.5 445.3 777 704,798

505 10,234 6.0 4.1 1,963 1,362
Cerro Martillo 3,047 3.3 90.2 324 8,832
Discovery Wash 2,813 1.6 24.7 145 2,233
El Valle - 0.0 0.0 - -
Orito Norte 25,150 3.4 30.7 2,743 24,849
Total Open Pit 90,469 2.05 255.1 5,954 742,074
Total Reserves 3,331,821 5.25 158.8 562,554 17,011,015

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Notes:
3. A cut-off grade of 3.48 g/t AuEq was used in the Mineral Reserve for most veins except as follows: a
cut-off grade of 3.62 g/t AuEq used for the Elizabeth and Victoria veins in the Pampa Augusta
Victoria Area (for a US$5.24/t additional transportation cost) and a cut-off of 3.59 g/t AuEq used for
the Fortuna, Dominador, and Laguna veins in the Fortuna and Laguna Area (for a US$3.86/t
additional transportation cost).
4. Mineral Reserves are estimated using an average long-term gold price of US$1,250/oz and a silver
price of US$18/oz.
7. The SMUs include Inferred Mineral Resources and unclassified material (blocks located outside of
the UGGS). These materials were treated as dilution for mine planning and Mineral Reserve
estimation purposes. Zero gold and silver grades have been assigned to them.
MINERAL RESERVE PROCESS

The process of Mineral Reserve estimation is shown in Figure 15-1, outlining the steps
included in the estimation process.
FIGURE 15-1 MINERAL RESERVES PROCESS
SMU DESIGN
The drift and bench SMUs are automatically designed using Vulcan Stope Optimizer. Drifts
are spaced at varying vertical intervals (sublevels between six metres to 16 m) and defined

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considering the width, grade and dip of the mineralization as well as geotechnical conditions.
The drift parameters for all veins are as listed in Table 15-3.
TABLE 15-3 SMU DRIFT PARAMETERS

Minimum Mining Maximum Mining Drift Height Expected

Vein
Width (m) Width (m) (m) Dilution (m)
All 0.6 6.0 4.0 0.5
The SMUs are 15 m in length and typically mined out in five rounds of three metres. After
drifts are completed and ground support is installed, stoping commences with development of
a slot raise at the vein extremity to provide the initial void space to continue blasting the
production longholes and advancing the stope. Typical stope dimensions are 1.2 m to six
metres in width and six metres to 16.0 m in height.
An economic value is determined for each SMU using metal prices, recoveries, and operating
costs. SMUs with negative economic values are excluded from any further analysis, except
for those drift SMUs above the marginal cut-off grade. Any Inferred Resources contained
within an SMU are treated as waste and assigned a zero grade. SMUs with positive economic
returns are analyzed for inclusion into the LOM plan. A development cost analysis is carried
out before any SMU is included in the LOM plan. Measured Mineral Resources contained in
the SMUs included in the LOM plan are converted to Proven Mineral Reserves, while Indicated
Mineral Resources contained in the SMU included in the LOM are converted to Probable
Mineral Reserves.
The economic parameters used in the Mineral Reserves estimate are shown in Table 15-4.
TABLE 15-4 ECONOMIC PARAMETERS

Parameter Units Value

Gold Price US$/oz 1,250
Silver Price US$/oz 18
Gold Recovery % Variable
Silver Recovery % Variable
Mining – Bench & Fill US/t ore 87.58
Mining - Cut & Fill US/t ore 115.00
Mining - Open Pit US/t ore 5.00

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Parameter Units Value

Processing Cost US/t ore 27.38
G&A US/t ore 16.31
Selling Cost-Gold % 1.3
Selling Cost-Silver % 1.2
Infrastructure (Drift) US$/m 2,277
Access US$/m 2,322
Lateral (Dev.) US$/m 3,337
Vertical (Dev.) US$/m 1,404
Transport Cost (Fortuna) US$/t ore 3.86
Transport Cost (Chiquilla Chica) US$/t ore 4.69
Transport Cost (PAV) US$/t ore 5.24
The economic value of each SMU is determined using the following revenue and cost formulas:
Value: I = Tm*(PAu-CvAu)/31.10348*LAu*RAu*Rm+Tm(PAg-CvAg)/31.10348*LAg*RAg*Rm
Where I = Ingreso or Value US$

Tm = Ore Tonnes (Measured + Indicated with dilution)
LAu, LAg = Mean grades for gold and silver (g/t)
PAu, PAg = Metal prices (US$/oz)
CvAu, CvAg = Cost of sales for gold and silver (US$/oz)
RAu, RAg = metallurgical recovery of gold and silver (%)
Rm = mining recovery.
and
Total Cost C = ((Cp+ G&A+ Cm)*Tm)*Rm
CMina = Mining cost US$
Tm = Ore Tonnes (Measured + Indicated with dilution)
Cp = Processing cost (US$/t feed)
Cr = Backfilling cost (US$/m3) (included in CMina)
G&A = General and Administration cost (US$/tonne feed)
Rm = Mining Recovery (%)
and
Benefit B = I-C for each SMU US$
Modelling of the resource estimation for conversion to reserves does not include a cut-off grade
or minimum mining widths. Global resources are estimated in these domains. The information
is provided to the engineering department who carry out the following process:

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1. Mined out areas are subtracted from the models (grades of these blocks are set to
zero).
2. A stope optimization process is done which considers a cut-off of 3.48 g/t AuEq
(US$1,250/oz Au and US$18/oz Ag), minimum mining widths, and expected dilution.
3. On the resulting stopes, an infrastructure analysis is done in order to review if the

extraction of these stopes pays for the development costs. Stopes that pass the
analysis are considered Mineral Reserves.
After the process is completed, the reserve SMUs are returned to the geology department who
consider this material also as mined out material in order to report resources exclusive of
reserves (grades in reserves SMUs are set to zero).
Finally, another stope optimization process is carried out on the models, in this case at a cut-
off of 2.71 g/t AuEq (US$1,600/oz Au and US$24/oz Ag) considering also minimum mining
widths and expected dilutions. These are not analyzed for infrastructure. Material in the
resulting SMUs is considered Mineral Resources.
RPA is of the opinion that the conversion process of Mineral Resources to Mineral Reserves
is robust and ensures that each SMU has positive economic value.
DILUTION
The dilution estimates of the SMUs used for the Mineral Reserves estimates for the various
veins at El Peñón are listed in Table 15-5 that follows.
TABLE 15-5 SMU MINING PARAMETERS

Minimum Mining Maximum Mining Height Expected Minimum

Vein
Width (m) Width (m) (m) Dilution (m) Dip (°)
Caseron 505 1.00 6 14 1.10 60
Caseron 506 1.00 6 14 or 16 1.30 to 1.40 60
Abundancia 0.60 6 8 1.00 60
Al Este 0.60 to 1.00 6 8 0.40 to 1.50 60
Angelina 0.60 to 1.00 6 8 or 14 0.60 to 1.30 60
Bermellón 0.60 6 8 0.60 to 0.80 60
Bonanza 0.60 to 1.00 6 12 0.80 to 1.00 60
Borde Oeste 0.60 6 8 0.80 60
Carmín 0.60 6 8 0.80 60
Carmín Sur 0.60 6 8 0.80 60

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Cerro Martillo 1.00 6 12 1.00 60

Diablada 1.00 6 14 1.00 60
Discovery Wash 0.60 6 6 or 8 0.70 to 0.80 60
Dominador 1.00 6 10 0.70 60
Dorada 1.00 6 10 0.60 to 0.70 60
Dorada SW 1.00 6 10 0.70 60
El Valle 1.00 6 10 1.20 60
Elizabeth 0.60 6 8 1.00 60
Escarlata 0.60 6 8 0.90 60
Esmeralda 0.60 6 8 0.75 60
Esperanza 0.60 6 8 0.80 60
Fortuna 0.60 6 8 1.00 60
La Paloma 0.60 to 1.00 6 8 0.50 to 1.20 60
Magenta 0.60 6 8 1.00 60
Magenta Norte 0.60 6 8 1.05 60
Martillo Flats 0.60 6 8 0.70 60
Orito Norte 1.00 5 14 1.00 to 1.20 60
Orito Sur 1.00 6 12 1.20 60
Pampa Campamento 0.60 to 1.00 6 6 or 10 0.90 to 1.00 60
Playa 1.00 6 10 1.00 60
Providencia 1.00 6 10 0.60 60
Púrpura 0.60 6 8 0.95 60
Sorpresa 0.60 to 1.00 6 6 or 8 0.60 to 0.80 60
Ventura 0.60 to 1.00 6 8 0.60 to 1.60 60
Victoria 1.00 6 12 0.80 60
Vista Norte 1.00 6 10 1.00 60
VNW 1.00 6 10 0.80 60
The dilution estimates are reconciled with Cavity Monitoring System (CMS) measurements
that are used to compare the actual stope outline to the designed stope shapes. The actual
dilution results versus the dilution design for 2017 are presented in Table 15-6 for the various
mining areas.

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TABLE 15-6 DRIFT AND STOPE DILUTION

Split Blasting - Drifts

Actual Design Actual Design
Vein Width Dilution Dilution Dilution Dilution
Mine (m) (m) (m) (%) (%)
PAV 1.53 0.53 0.60 34 39
Mina Sur 2.58 0.64 0.60 25 23
Mina Norte 1.66 0.65 0.60 39 36
Laguna 2.16 0.58 0.60 27 28
Bloque Norte 1.47 0.61 0.60 41 41
Grand Total 1.87 0.61 0.60 33 32
Bench and Fill - Stopes

Actual Design Actual Design
Vein Width Dilution Dilution Dilution Dilution
Mine (m) (m) (m) (%) (%)
Bloque Norte 1.01 1.10 0.83 108 82
Mina Norte 1.03 0.91 0.81 88 79
Mina Sur 1.52 1.13 1.07 75 71
PAV 1.01 0.97 0.88 96 97
Grand Total 1.20 1.04 0.93 86 77
While drifts are generally quite close to the planned design, the stopes are 11% larger,
resulting in higher than designed dilution rates. This indicates that stope dilution is harder to
control due to longer drill holes required, vein inclination and greater surface area opened on
both the hanging wall and footwall following blasting operations. The speed of the backfilling
cycle is important to reduce the period of time the walls are left unsupported.
The expected dilution is estimated using the Mathews Stability graph and estimated equivalent
of overbreak/slough (ELOS) as shown in Figure 15-2. RPA recommends monitoring the ELOS
value based on the ongoing measurements and results obtained.

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FIGURE 15-2 ELOS DILUTION GRAPH
EXTRACTION
The SMUs are 7.5 m or 15 m in length and six metres to 15 m in height. While dilution
thicknesses are applied as well, the extraction for 86% of SMUs is considered to be 100%,
resulting in an average approximately 2% of ore losses. In RPA’s opinion, there should be
consideration for losses during the stoping and mucking operations, in particular as the mining
method utilized is a bulk mining method requiring some portion of the mucking operations to
use remote operating load-haul-dump (LHD) equipment. Losses can be incurred through poor
visibility, material hang ups, and equipment limitations. El Peñón mine staff apply extraction
factors in their internal mine planning process, which average approximately 95%, depending
on the zone and mining method. In RPA’s opinion, the losses incurred should be reflected in
the Mineral Reserves.
Dilution and mining recovery are controlled by the engineering team at El Peñón who perform
excavation measurements, using Maptek I-Site, 3D laser scanning system to confirm stope
contours, and also the Reflex instrumental tool is used to control deviation of production blast
holes.

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CUT-OFF GRADE
The cut-off grade was determined using the Mineral Reserve metal prices, metal recoveries,
transport, treatment, and refining costs, as well as mine operating cost. At the estimated
operating cost of US$131/t processed, the breakeven cut-off grade is 3.48 g/t AuEq using a
gold price of US$1,250/oz and silver price of US$18/oz, for most zones. The exceptions
include the Elizabeth and Victoria veins in the PAV area, where a cut-off grade of 3.62 g/t AuEq
is used due to an additional US$5.24/t transportation cost, and the Fortuna and Laguna areas,
where a cut-off grade of 3.59 g/t AuEq is used due to an additional transportation cost of
US$3.86/t.
A gold equivalent factor is calculated using the metal prices and recoveries for gold and silver
of 95% and 86.5%, respectively. This resulted in a factor of 76.3, however, for wireframe
modelling and UGGS construction purposes, a gold factor of 75 was used. The gold factor is
only used for wireframe modelling during the resource and reserve estimation process.
Additional notes for the Mineral Reserves estimation are:

• Operating costs used to determine the cut-off grade do not consider the cross-cut cost
(only mine cost, processing cost, G&A, and selling cost) because the cost for cross-
cuts for each production panel in the mine is not known, as well as the number of
SMUs, this cost is to be divided.
• After stope optimization for the reserve estimation, 100% of the cross-cut cost is
considered in the infrastructure cost analysis carried out on optimized stopes before
including these in the reserves.
Metal prices are considered reasonable and in RPA’s opinion, the cut-off grades have been
appropriately derived.
RECONCILIATIONS
The F1 reconciliation of the long term plan based on the Mineral Reserves and the short term
plan based on production forecasts is indicated in Table 15-7. As demonstrated in Table 15-
7, the long term to short term variance has significantly improved in 2017. Yamana uses the
SMU approach for mine planning and Mineral Reserve estimation and have improved the block
modelling methodology to prevent the spread of metal into ancillary veins and structures. This
in turn, has improved the quality of the mining plan and has consequently provided more
accurate overall results.

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In gold vein deposits such as El Peñón, mining often occurs in areas that have not been fully
drilled and in newly discovered veins and extensions of veins. Figure 15-3 shows that the
amount of planned material from reserves has been increasing and that the mining of
unplanned material has decreased.
The F2 reconciliation of the mine production based on the short-term model compared to the
adjusted process plant results is shown below in Table 15-8. As noted in the table, the plant
reconciliation appears to have improved over the last 3.5 years, indicating a closer level of
variance. In RPA’s opinion, the reconciliation is within reasonable limits and efforts to track
reconciliation should continue on a regular basis.

TABLE 15-7 F1 RECONCILIATION OF LONG TERM AND SHORT TERM PLANS

Long Term Plan Short Term Plan Variance (%)

Reserve Grade Metal Actual Grade Metal Grade Metal
Year Tonnes Au Ag (000 oz Tonnes Au Ag (000 oz (000 oz Tonnes
(000) Au (g/t) (000) Au Ag oz Au oz Ag
(g/t) (g/t) Au) (g/t) (g/t) Au) Ag)
2014 1,065 8.9 235.8 306 8,078 917 7.6 195.2 225 5,753 (14) (14.4) (17.2) (26.4) (28.8)
2015 680 6.9 194.3 150 4,247 529 6.7 208.2 113 3,542 (22) (3.3) 7.2 (24.8) (16.6)
2016 801 5.8 170.8 150 4,397 679 5.6 177.4 123 3,870 (15) (2.9) 3.8 (17.8) (12.0)
2017 567 5.3 176.9 96 3,224 527 5.3 176.0 90 2,979 (7) 1.2 (0.5) (6.0) (7.6)
TABLE 15-8 F2 RECONCILIATION OF MINE PRODUCTION AND PLANT

Mine Production Plant Results Reconciliation

Year Production Au Ag AuEq Processing Au Ag AuEq Au Ag AuEq
Ton g/t g/t g/t Ton g/t g/t g/t % % %
2014 1,474,859 6.4 202.9 10.5 1,474,859 6.4 212.0 10.6 0.5% -4.5% -1.4%
2015 1,418,128 5.5 201.9 8.2 1,418,129 5.3 194.0 7.9 3.0% 3.9% 3.3%
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2016 1,421,241 5.2 162.6 7.4 1,421,241 5.1 153.9 7.2 2.0% 5.3% 3.0%
2017 1,041,199 5.1 148.3 7.1 1,041,199 4.9 150.6 7.0 -2.1% 1.5% -1.1%
Total 5,355,428 5.6 181.3 8.4 5,355,429 5.5 179.9 8.3 1.8% 0.8% 1.5%
Page 15-15
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FIGURE 15-3 MINED MATERIAL

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16 MINING METHODS
MINE DESIGN, MINING METHOD
The mine layout depicted in Figure 16-1 shows an isometric view, plan view, and longitudinal
view of the mine. The various veins in the El Peñón mine are accessed using ramps, as
illustrated in the isometric view, which are a suitable access method given the depth of the
mine operations and required flexibility for accessing the veins at the appropriate elevations.
The ramps provide flexibility for rapid adjustments for changes in direction and elevation.
Underground mine infrastructure includes the required ramps, cross-cuts for access and
various lateral development, as well as excavations for power stations, mine sumps, refuge
stations, maintenance shops, and other facilities. Ventilation raises are driven as required to
provide the air requirement to meet mine regulations for the mine workers and operating
underground equipment. Other installations include a shotcrete plant, backfill plant, and
communications system. The total mine system extends for approximately ten kilometres on
strike and covers a vertical extent of approximately 500 m, from the highest portal collar
elevation to the bottom most mine workings. Main access ramps measure 4.3 m high by 4.5
m wide driven at -15% gradient or as required in certain areas. Stope access drifts and drives
on ore are four metres high by four metres wide. Ventilation raises typically measure 2.4 m in
diameter.
The mining method utilized at El Peñón is the Bench and Fill Method, which is a narrow vein
longhole stoping method followed by a combination of consolidated and unconsolidated
backfill to provide the required support for continued mining. The stoping method is shown in
Figure 16-2.

2300 m
Longitudinal View
2100 m
1900 m
1700 m
1500 m
1300 m
Plan View
Isometric View
16-2
0 1/2 1 3/2 2
Kilometres
Figure 16-1
Yamana Gold Inc.
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El Peñón Mine
El Peñón Mine Layout
March 2018 Source: RPA, 2018.

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As a result of the very narrow vein widths in many areas of the mine, “split-blasting” is utilized
to reduce dilution. A typical split-blast face can be seen in Figure 16-3. The minimum width
of a split-blast is currently 1.1 m (0.6 m plus 0.5 m dilution). Once the split-blast ore is mucked
out, the remaining waste is slashed out and used for unconsolidated backfill. A top access
drift is driven for a drill drift and a bottom access drift is driven for extraction of the blasted ore.
Typical sublevel intervals are between six metres and 16 m. Drives on ore are typically four
metres by four metres, however, can be as wide as six metres. All drifts on ore are grade
control sampled either during every drill, blast, load, and haul cycle or at approximately three
metre intervals. These samples are used to delimit the economic portion of the bench. This
is then drilled using longholes, loaded, blasted, and mucked from the lower sublevel. Typical
stope dimensions are 1.2 m to six metres wide, six metres to 16 m high and 7.5 m or 15 m in
strike length. Vein widths and geotechnical characteristics will dictate how much dilution will
be extracted during the mining of the stope. Backfilling is completed after the established
length is reached, starting with a section of consolidated fill followed by unconsolidated waste
fill. A typical stope is shown in Figure 16-4. Cut and fill has also been examined as a potential
stoping method, however, it would only comprise a small part of the LOM plan.
In RPA’s opinion, the mining methods utilized are appropriate for the type of deposit.

16-4
Figure 16-2
Yamana Gold Inc.
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Legend:
In-Situ Ore Unconsolidated Backfill El Peñón Mine
Ore Drift Cemented Backfill Antofagasta Region (II), Chile
Access Cross Cut Production Drilling Schematic Bench and Fill Mining
Jumbo Drilling Round Backfilling Stope

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Figure 16-3
Yamana Gold Inc.
El Peñón Mine
Split Blast Face
16-5
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1570 Bench & Fill Stope
1570 Stope Uppers
Figure 16-4
Yamana Gold Inc.

El Peñón Mine
1570 Bench & Fill Stope with
Down Holes and Uppers
16-6
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GEOMECHANICS, GROUND SUPPORT

At El Peñón, all drift, cross-cut, and stope designs are reviewed and approved by the
geotechnical staff prior to starting any full scale production. The production stopes and
development areas are monitored by the geotechnical staff, which recommend the appropriate
ground support to be used at each face. The typical ground support recommended includes
split-sets, resin bolts, wire mesh, and shotcrete.
MINE PLANNING
The mine planning team at El Peñón is divided into short term, medium term, and long term
planning. The deliverables by area are as follows:
SHORT TERM
• Monthly and weekly mine plans
• Operational and dilution control
• Database administration
MEDIUM TERM
• Quarterly plan
• Detailed engineering – projects and mine services
• Surveying
LONG TERM
• Estimation of Mineral Reserves inventory
• 3P (Proven, Probable, and Inferred Categories) Analysis
• Business Plan: Forecasts (12 or 18 months), Budgets (3 years), Projects
MINE DEVELOPMENT
The mine development realized in 2015, 2016, and 2017 is shown in Table 16-1. Over the last
two and a half years, El Peñón operators have been able to successfully meet the development
targets within acceptable limits. The planned development targets are achieved as a result of
the multiple headings for development and an adequate equipment fleet.

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TABLE 16-1 MINE DEVELOPMENT ACHIEVED

Category 2015 2016 2017

Actual Budget Variance Actual Budget Variance Actual Budget Variance
Capital Development (m) 13,508 14,280 -5.4% 17,234 16,904 2.0% 10,899 9,055 20.4%
Operating Development (m) 27,435 27,562 -0.5% 37,455 29,230 28.1% 31,659 25,834 22.5%
Total 40,943 41,842 -2.1% 54,689 46,134 18.5% 42,558 34,889 22.0%
Horizontal Development m/d 112 115 150 126 117 96
The development required over the remaining LOM period is summarized in Table 16-2. In
RPA’s opinion, the planned LOM development is reasonable and should be achievable.
TABLE 16-2 MINE DEVELOPMENT IN LOM

Description Units Total 2018 2019 2020 2021 2022 2023

Capital Development m 44,071 9,820 13,083 9,576 8,492 2,637 462
Operating Development m 113,190 26,784 28,595 24,313 22,682 8,392 2,424
Horizontal Meters m 157,260 36,604 41,678 33,889 31,174 11,029 2,886
MINE PRODUCTION
The material moved underground consisting of ore, waste, and capital development material
is shown in Table 16-3. The table indicates that the mine operations are capable of moving
the planned volumes of ore and waste material.

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TABLE 16-3 MINE MATERIAL MOVED

2015 2016 2017

Material Moved
(000’s tonnes) Actual Budget Variance Actual Budget Variance Actual Budget Variance
Ore Mined 1,178 1,468 -20% 1,303 1,544 -16% 999 970 3%
Waste + Marginal 1,834 1,233 49% 1,372 805 71% 1,030 788 31%
Total Mined 3,011 2,701 12% 2,675 2,349 14% 2,029 1,757 15%
Capital Waste 680 692 -2% 815 795 3% 502 365 38%
Total Moved 3,691 3,393 9% 3,490 3,143 11% 2,532 2,122 19%
PRE-PRODUCTION SCHEDULE
The El Peñón mine has been operating for many years and preparation of new mining areas
occurs through the normal planning process.
LIFE OF MINE PLAN

The LOM plan is presented below in Table 16-4.
TABLE 16-4 LIFE OF MINE PLAN

Description Total 2018 2019 2020 2021 2022 2023

Tonnes Milled 4,331 894 957 933 833 606 108
Grade Au (g/t): 5.4 5.6 5.3 5.4 5.9 4.9 5.0
Grade Ag (g/t): 167.4 188.2 193.0 158.6 140.9 149.1 150.9
Au (000 oz) 714 151 152 152 151 91 17
Ag (000 oz) 20,351 4,608 4,999 4,160 3,462 2,639 483
Capital Dev. (m) 69,697 15,739 20,472 15,176 13,227 4,254 828
Operating Dev. (m) 87,564 20,865 21,206 18,713 17,947 6,775 2,058
Total Lateral Dev. (m) 157,260 36,604 41,678 33,889 31,174 11,029 2,886
In RPA’s opinion, El Peñón’s forecast production targets are attainable and reasonable, and
the procedures used to forecast the LOM Plan are reasonable. From 2018 to 2021, Yamana
plans to mine approximately 1.0 million tonnes per year, with gold grades averaging 5.5 g/t Au
and silver grades averaging 170 g/t Ag. Forecast gold production averages approximately
150,000 ounces from 2018 to 2021 and declines to 91,000 ounces in 2022 and 17,000 ounces
in 2023. Forecast silver production averages 4,307,000 ounces from 2018 to 2021 and
declines to 2,639,000 ounces in 2022 and 483,000 in 2023. The objective of the exploration
program is to continue extending the mine life with gold production at the level of 150,000 oz
per year and over 4,000,000 ounces of silver from 2021 onwards.

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INFRASTRUCTURE
See also Section 18, Project Infrastructure
SURFACE INFRASTRUCTURE
The various ore types are stored in surface stockpiles in proximity to the main crusher to allow
the loader to feed the required blend of ore to the mill for processing. Tailings are sent to the
tailings facility which has been permitted for approximately 45 million tonnes, approximately
19 million tonnes have currently been placed, and therefore, sufficient capacity is available for
future storage. The stockpiles consisting of oxides with high clay content, oxides with low clay
content, reduced high sulphides, and reduced low sulphide plus marginal ore are placed in
close proximity facilitating the required blending by the surface loader operator each shift.
Metal recoveries vary on each of these ore types for the low grade, high grade, and special
material therefore requiring great attention in the blending process.
Power is fed to the site via the supplier, Gas Atacama, grid and backup power from seven gen-
sets capable of providing approximately 10 MW of energy is available, if required.
ACCESS RAMPS
Access ramps 4.5 m wide by 4.3 m in height are used to access the various zones over the
ten kilometre strike length of the mine workings. These ramps are shown in Figure 16-1. The
ramps are driven at various gradients with predominately -15% used. Safety bays are placed
at required intervals as well as substations and sumps for dewatering.
UNDERGROUND MINE
Mine infrastructure for the underground mine operations include the following:
• Integrated operational control centre at the mine ensuring remote control of main
operational indicators.
• Fibre optics and WiFi available in main centers of the mine and surroundings.
• Leaky feeder backup installed throughout the mine allowing clear voice
communications at all times.
• Real time monitoring of drill rigs allowing control of main key performance indicators
(KPI) and ensuring the operational system (mining cycle) is achieved on a daily basis.
• Thirty-eight surface ventilation fans downcast air into the mines and all ventilation is
telemetrically controlled via variable frequency drives (VFD).

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MATERIAL HANDLING
Materials are delivered to underground workplaces with mobile equipment capable of handling
ground support material, blasting materials, and other construction materials.
VENTILATION
Adequate ventilation for the mine equipment and personnel underground is supplied via main
surface ventilation fans that downcast fresh air into the mine workings. Auxiliary fans are used
underground for development faces that are being driven and out of the main ventilation
stream. An example of the ventilation system is shown in Figure 16-5.

Ventilation Arrangement (Typical)
16-12
Downcast and Upcast Raises

Vent Raises
(Raisebore)
Figure 16-5
Yamana Gold Inc.
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El Peñón Mine
Ventilation Schematic of the Bonanza Vein Ventilation Schematic

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MINE EQUIPMENT
The mine equipment currently on site for El Peñón is shown in Table 16-5.
TABLE 16-5 EQUIPMENT LIST

Type Model No. Units

Haul Trucks Cat. AD30 16
Scoops 6 yd3 Various 11
Scoops 2 yd3 Toro- LH 203 4
Scoops 1 yd3 Toro- LH 210 1
Jumbo Drill Atlas Copco M2C 7
Jumbo Drill Atlas Copco Boomer 282 1
Boltec Drill Atlas Copco H235 1
Boltec Drill Atlas Copco H235S 4
Simba Drill Atlas Copco H1254 4
Simba Drill Atlas Copco S7D 5
Simba Drill Atlas Copco H1257 1
Water Trucks Cat. AD30 4
Mine Scalers Various 9
Grader Komatsu GD675 2
Telehandler Manitou MT1030S 13
Service Trucks Normet Utililift 1430 2
Mixer Various 7
Roboshot Various 6
Excavator Hyd. Komatsu PC200 2
Wheel Loaders Various 3
Light Towers Various 15
Power Units/Gensets Various 9
There are also support units including fuel and lubrication trucks, powder trucks, man carriers,
and light vehicles used in the mining operation.

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17 RECOVERY METHODS
The process plant and associated facilities process run-of-mine (ROM) ore that is delivered to
the primary crusher, using the main processes listed below:
• Crushing
• Grinding and pre-leaching thickening
• Leaching
• Counter-current decantation concentrate solution recovery
• Clarification, zinc precipitation and precipitate filtering
• Refining
• Tailings filtering
• Tailings disposal
The process flowsheet is shown in Figure 17-1 and should be referenced in conjunction with
the following text describing the process plant.
The El Peñón processing plant has a nominal production capacity of approximately 1.533
million tpa of stockpiled and mined ore. The plant processed 2,853 tonnes per calendar day
during 2017.

Figure 17-1
Yamana Gold Inc.
Hydrocyclones El Peñón Mine

ROM
Process Flowsheet
Feed SAG Mill Grinding
Hopper Thickener
Barren
Clarified Rich Solution
Solution Pond Tank
Pebbles Unclarified
Apron Solution
Feeder Ball Mill Pond
17-2
Jaw Crusher Clarifiying

Filters
Mill Solution Pond

Leach Deaeration
Reactors Tower
Fin Ore Bin CCD Circuit
Press
Filters
Auxiliary
Stockpile Retorts
Filters
Feed
Pond Smelting
Furnace
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Tailings Dump
Doré
Pan Filters

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PRIMARY CRUSHING
ROM ore is dumped from a seven cubic metre capacity front-end loader (CAT 988H) through
a 600 mm square-grid grizzly into 100 t capacity hopper. A 1,500 mm wide apron feeder is
used to transfer ore from the dump hopper to the jaw crusher. Fine material is collected and
transported directly to the conveyor belt that carries primary crushed material. Coarse material
is fed into a 950 mm x 1,250 mm jaw crusher that produces a product with P80 of 63.5 mm.
Crushed material is transported by a conveyor belt into a 1,500 t capacity bin. Additionally, an
auxiliary crushing product stockpile is located to the northwest of the bin. The stockpile has a
capacity of 10,800 t and covers an area of approximately 40 m x 60 m.
The ore stored in the bin is transported by a variable speed 250 tonnes per hour (tph) capacity
mill feed conveyor belt to a transfer chute that discharges onto the belt that feeds the semi-
autogenous grinding (SAG) mill.
The ore from the auxiliary stockpile is fed via a front-end loader to an encapsulated hopper
with suppressor system to mitigate dust emissions. The hopper discharges onto a belt which
transports the ore to the mill feed conveyor belt.
GRINDING/PRE-LEACH THICKENING
The SAG mill is fed by crushed material, and milling solution, to achieve the required pulp
concentration inside the mill. Sodium cyanide (NaCN) solution is added as a leaching agent.
The SAG mill operates in series with a ball mill which feeds a battery of hydrocyclones. The
underflow of the hydrocyclones returns to the SAG mill. Pebbles formed in the SAG mill are
discharged by a trommel into a conveyor belt, which transports the pebbles to return to the mill
feed conveyor belt. Alternatively, the pebbles may be mixed with crushed material to be
recirculated to the grinding circuit. The concentration of the pulp fed to the hydrocyclones
circuit is controlled on-line via density measurements through a nuclear density gauge.
The classification circuit consists of six hydrocyclones with four hydrocyclones operating, and
two on stand-by. Overflow of the cyclones consists of a pulp which contains between 38%
and 40% solids with a P80 of 150 μm. Particle size is controlled on-line through a PSI 300
particle analyzer. The overflow is fed to the grinding thickener. The underflow is recirculated
to the SAG mill.

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Flocculant is added to the grinding thickener in order to optimize solids settling. The underflow
of the thickener, with a nominal solids concentration of 50% is pumped to the first leach tank.
The thickener underflow pumps consist of two variable speed pumps (generally one operating
and one stand-by) with flow rate capacity of 250 m3/h and 31 m discharge height. The velocity
is controlled based on the density of the pulp, which is measured on-line through a nuclear
density gauge. The overflow of the grinding thickener, which is considered a “rich-solution”
due to its dissolved gold content, is sent to the unclarified solution pond, having a capacity of
158 m3.
CLARIFICATION
From the unclarified solution pond, the solution is pumped to four clarifying filters that clarify
solutions to a maximum turbidity of one nephelometric turbidity unit (NTU). Clarified solutions
are transported into the clarified rich solution pond for subsequent zinc precipitation.
LEACHING
Gold and silver leaching starts at the SAG mill, where NaCN is added, resulting in an extraction
of approximately 75%.
The grinding thickener underflow is leached in six mechanically agitated reactors, with a
capacity of 7,279 m3, in a cyanide rich environment maintained by the addition of cyanide in
the grinding and leaching steps. Oxygen is also added to favor the dissolution kinetics. The
oxygen is homogenized with the pulp through recirculation pumps that propel the pulp to a
Filblast type oxygen mixer. Oxygen is supplied from a liquid oxygen storage tank. Under
normal conditions, the discharge of the last reactor is sent to the first thickener of the counter-
current decantation (CCD) circuit.
CCD CONCENTRATE SOLUTION RECOVERY

The leached pulp, with a 45% to 55% solids concentration, is transported by gravity to the CCD
circuit. The CCD circuit consists of four high capacity counter-current thickeners. The
objective of this circuit is to wash the pulp and recover the rich solution. The wash-solution
flows counter-current to the solids flow increasing in precious metals concentration. The
overflow of the first CCD thickener (CCD0) is transported by gravity to the mill solution pond,
while the discharge of the last CCD thickener (CCD3) is pumped to the filtration area.
PREGNANT SOLUTION PRECIPITATION

In normal operating conditions, the Merrill Crowe process consists of the following stages:

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• Deaeration of the clarified solution by circulating the fluid through a vacuum tower.
• Gold and silver are precipitated with the addition of zinc to the deaerated solution.
• Filtering of gold, silver, and zinc precipitates.
The rich clarified solution (maximum flow of 275 m3/h) is deaerated before entering the zinc
precipitation stage, which is performed in the vacuum tower. The vacuum tower is a 10.4 m3
capacity reactor which achieves a rich deaerated solution with a concentration of less than 1
ppm of O2. The reject solution that exits the tower is fed to the press filters.
The zinc pulp is fed with five peristaltic pumps to the feed line of each of the press filters. The
contact of the zinc pulp with the rich deaerated solution occurs in the Merrill Crowe tower and
causes the precipitation of gold, silver, and other impurities. The dosage of zinc is controlled
by assays of the rich and barren solutions every two hours.
The filtration stage is carried out in five filter presses. Before feeding a filter press with the
solution from the precipitation stage, 2 m3 of pulp, containing 37.5 g/L of bentonite clay are
recirculated for 45 minutes in order to form an initial layer on the filter surface, to avoid blockage
by the very fine undissolved zinc. After the initial layer is formed, the precipitate solution is
filtered. The solution that exits the filter is transported to the barren solution tank. To unload
a filter press, it is opened and the material is removed using a spatula and sent to the retort
furnaces.
REFINING
Precipitates obtained from the filter presses are deposited in trays with a capacity of
approximately 50 kg of precipitate with 30% moisture content. Four retort furnaces eliminate
the humidity and the mercury contained in the precipitate. Each furnace is loaded with eight
trays, kept at a temperature of 538°C for about 20 hours under vacuum conditions. The
product (calcine) is fed to the melting furnaces.
A reverberation furnace, which uses liquefied gas and air/oxygen to reach 1,220°C is used for
smelting. Calcine is fed to the furnace through a screw feeder. The melt consists of two
phases, the upper part of the slag, which is of lower density (2.5 g/L) and melts at 850°C, is
formed by silica (flux) and impurities such as copper, iron, zinc and others; and the lower phase
of the slag which consists of doré. This lower phase is of higher density (15 g/L), melts at
1,000°C and is mainly composed of silver and gold, with small amounts of impurities. The slag

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is poured into 50 kg capacity conical steel containers, while the doré is poured into 165 kg
capacity ingot molds. Emissions from the refining furnace are collected by a hood and passes
through a high temperature bag filter to recover the precious metal particles contained in the
gases. The solidified slag is recirculated to the crushing stage of the plant in order to recover
trapped gold and silver. The doré is removed from the ingot mold and loaded with a fork lift to
the bar cleaner to remove the attached slag. After this process, the bars are removed and
stored, for later weighing and shipping.
TAILS FILTERING
The objective of the filtration area is to obtain dischargeable tailings with an approximate
moisture content of about 20%. It is also desirable that the liquid contained in the moisture
has minimum concentration of cyanide and dissolved metals.
The pulp is pumped to a filtering system consisting of five dedicated agitated tanks and four
54 m2 pan filters and one 82 m2 pan filter.
TAILS DISPOSAL
The filtered tailings are transported by two conveyor belts equipped with a weightometer, and
sampler to two stockpiles, one for each belt. The storage areas consists of a 220 m2 concrete
slab and retaining wall (to protect the belts). A floor pump is located in the area to collect
solutions and cleaning water which are recycled to the filtration area.
The collected tailings are loaded on trucks by a front-end loader and transported to the tailings
storage area (Figure 17-2), located at an approximate distance of two kilometres

Waste
Process Plant Dump
Mine Air Fan Current Filtered

Tailings Deposit Design
Ventilation Raise
17-7
UTM Coordinates
Coord Point
North East Project Tailings
Site
Figure 17-2
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Yamana Gold Inc.
El Peñón Mine
Tailings Storage Area

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The total storage area is 232.8 ha. Tailings are stored on three 10 m high platforms with five
metre wide berms. Considering the current production rate, the filtered tailings storage area
has a total useful life of 21 years.
The tailings are first deposited as mounds along the storage area and then spread through the
use of a bulldozer and motor grader to form 15 cm to 30 cm thick layers, in order to expose
the surface of the cyanide containing tailings to sunshine (UV radiation) and air, and thus
favoring its degradation. The tailings are finally moved by a grader and irrigated with process
water from the wastewater treatment plant to achieve cyanide concentration reduction in the
solids. This aeration and watering process is repeated until the cyanide concentration in the
tailings is less than 2 ppm. Once the process is completed, a new layer is deposited and the
same operation is repeated.
METALLURGICAL REPORTING
The processed tonnes are based on weightometer readings that are located on the SAG mill
feed conveyor belt and at the tailings discharge point. Daily analytical results from samples of
plant solutions and tailings discharge are used to calculate plant metallurgical performance.
Metal sales and inventory contained in the circuit and refinery are determined at the end of
each month and appropriate adjustments are made. The mill reports the back-calculated head
grades of the mill feed from this information.
PLANT CONSUMPTIONS
The estimated energy consumption of the plant is between 46 kWh/t and 48 kWh/t.
Plant water consumption is estimated to be approximately 0.25 m3/t.
The tailings disposal operations require 0.13 m3/t, where 0.05 m3/t of wastewater is used.
Reagent/Supply consumptions are shown in Table 17-1.

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TABLE 17-1 REAGENT/SUPPLY CONSUMPTIONS

Description Consumption Units

Reagents
Sodium Cyanide 2.1 kg/t
Zinc 1.55 kg/kg(Au+Ag)
Lime 0.52 kg/t
Diatomaceous Earth 0.3 kg/t
Celite 545 0.01 kg/t
Celite 7F 0.3 g/t
Flocculant(Grinding) 20 g/t
Flocculant(CCD) 30 g/t
Filtering Aid 35 g/t
Anti-Fouling(CCD) 20 g/t
Anti-Fouling(Filtering) 10 g/t
Anti-Fouling(Precipitation) 15 g/t
Oxygen 7 l/t
Borax 0.59 kg/kg(Au+Ag)
Soda Ash 0.29 kg/kg(Au+Ag)
Gas 0.15 l/kg(Au+Ag)
Supplies
Balls(Ball Mill) 1 kg/t
Balls (SAG Mill) 1.8 kg/t
Refractories 1.3 t/Month
Doré Packages 0.007 Boxes/kg(Au+Ag)
Clarifying Filter Fabric 56 Fabric/Month
Press Filter Fabric 56 Fabric/Month
Band Filter Fabric 1 Fabric/28,000t

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18 PROJECT INFRASTRUCTURE
The main existing buildings and infrastructure at the site are:

• Underground and open pit mines
• Process plant and refinery
• Waste dumps
• Tailings storage area
• Concrete plant
• Cemented backfill plant
• Facilities for storage and distributions of fuels, oils, and lubricants
• Water ponds
• Service infrastructure
• Explosive storage areas
• Water supply and distribution system
• Campsite, cafeterias, and change rooms
• Sewage treatment system
• Service infrastructure, workshops and sheds
• Telecommunications system
• Materials storage areas
• Main administration building.
• Energy supply and transmission system
• Laboratory
• Mine workshops, maintenance facilities, and warehouses

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19 MARKET STUDIES AND CONTRACTS

MARKETS
The principal commodities produced at El Peñón are gold and silver in the form of doré bars,
which are freely traded, at prices that are widely known, so that prospects for sale of any
production are virtually assured.
CONTRACTS
The El Peñón mine operation has approximately 105 contracts in place that date from 1998
for the mine power supply, for example, and through to 2018 for smaller contracts. The largest
of these contracts include the power supply, camp catering services, fuel supply, cyanide
supply, ore haulage and tailings transport, underground development, and mine explosive
supplies. The list of the 12 most important contracts from a value standpoint are shown in
Table 19-1. These 12 contracts account for 86% of the total contract value.
TABLE 19-1 SUMMARY OF MAJOR CONTRACTS

Remaining Life
Year Company Service Provided
(Months)
1998 Gas Atacama Electrical Power Supply 16.60
2010 E.I. Du Pont Cyanide Supplier 23.77
Compañia De Transporte
2012 Personnel Transport Services 20.20
Ventrosa Ltda
2012 Flota Hualpen Ltda. Buses Lease 26.80
2015 Master Drillings S.A Raise Boring 0.47
2015 Sodexho Chile S.A. Catering and Camp Services 29.83
Petrobras Chile Distribucion
2016 Fuel Supply Services 38.40
Limitada
Ingenieria Montaje y Serv. Ore, Tailings Loading and
2016 22.73
Patagonia Ltda Transport Services
2016 Sodexho Chile S.A. Garbage 29.83
AK Drilling International Diamond and Reverse
2017 35.97
Perforaciones LTDA. Circulation Drilling
2017 Orica Chile S.A. Explosives Supplier 28.43
2017 Buses Hualpen Ltda. Personnel Transport Services 50.10
RPA did not review the contracts but considers the level of contracting to be within industry
norms for Chilean operations.

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20 ENVIRONMENTAL STUDIES, PERMITTING,

AND SOCIAL OR COMMUNITY IMPACT
The El Peñón mine is located approximately 165 km to the southeast of Antofagasta at an
altitude that ranges between 1,600 MASL and 1,800 MASL. There are no populated areas or
centers located close to the mine. The area has a desert climate, characterized by extreme
aridity, absence of humidity and very low rainfall. Temperatures in this area range typically
between -5°C and 30°C. Other characteristics of the area are:
• Soil of very limited usefulness (class VIII).
• Total absence of any form of plant life.
• Extremely scarce wildlife, with only eight species recognized in the EIA.
• No permanent water courses at surface.
• Existence of fossil water, with low recharge potential below a water table at
approximately 1,600 MASL.
There are seven archaeological sites considered of high relevance, due to their representative
nature of the nitrate mining (industrial archeology) in the area.
ENVIRONMENTAL STUDIES
RPA understands that El Peñón is operating within environmental compliance with no
outstanding environmental citations. Environmental monitoring is ongoing at the operations
and will continue over the life of the mine. Key monitoring that is currently done includes water,
air, noise, soil, impact on wildlife, and heritage and management. Monitoring activities and the
monitoring frequency are summarized in Table 20-1.

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TABLE 20-1 ENVIRONMENTAL MONITORING

Monitoring Frequency Parameter Area/Equipment

Chlorine, Cyanide, Campsite Cafeteria,
Daily
Turbidity, pH Osmosis Plant
Monthly Drinking Water Osmosis Plant
Recreation Room
Campsite cafeteria
Drinking Water Cyanide Ex camp
Refinery
Process Plant Dry
Osmosis Plant
Water Process Plant Dry
Semi-annually Drinking Water
Campsite Cafeteria
Weekly Flow
Water Well Monthly Flow/Phreatic Level Laguna Seca Area
Semi-annually Water Quality
Weekly Flow
Mine Drainage Monthly Flow, pH Mining Levels
Semi-annually Water Quality
Sewage Monthly Irrigation Water Sewage Treatment Plant
Semi-annually Characterization Equipment Washing Area
Meteorology Daily Various Campsite, PAV
Air Quality Campsite, PAV,
Every 3 days MP 10-MP2.5 Laguna Area
Bloque Norte area
Isokinetics Refinery Furnace
Air Inorganics
Laboratory Furnace
Refinery Furnace
Annually
Emission Laboratory Furnace
DS138
Statement Electrical Plant
Generators
Noise Exposure Biannually Maximum levels Campsite
Daily Free Cyanide
Free Cyanide
Tailings Storage Area
Every 15 days Chemical and Physical
Tailings
Soil Characterization
Chemical and Physical
Annual Tailings Storage Area
Characterization
Well Dump, Tailings retention
Monthly Humidity
Monitoring ponds
Semi-annually Inspection Wildlife Protection System
Biology Wildlife
Annually Survey Mine area
Semi-annually
Heritage Archaeology Conservation Inspection Archaeology Sites
Biannually
Management Daily El Peñón Waste Collection
Hazardous Waste Hazardous Waste Area
Scrap Removal Nonhazardous waste area
Sludge Disposal Washing Slab
Waste
Weekly Ventilation Ducts
Nonhazardous waste area
Tires
Battery Removal Hazardous Waste Area
TK Accumulation Used Oil Disposal
Mine Contractors
Inspections Monthly SGA Requirements Geology Contractors
Meridian Areas

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PROJECT PERMITTING
The El Peñón project entered the Environmental Impact Assessment System (SEIA), through
an Environmental Impact Assessment (EIA), which was approved by Exempt Resolution
No. 043 in 1998. During the operation, 21 declarations of environmental impact (DIA),
associated with transport and handling of hazardous substances, infrastructure for waste
management, extensions of mine exploitation areas, process plant optimization, backup power
generation, and tailings storage area expansion, have undergone the SEIA.
El Peñón has a number of operating permits in place. The Regulatory Organizations that have
issued these operating permits are as follows:
• Comision de Monumentos Nacionales (CMN)
• Ministerio Agricultura (MAGR)
• Comision Regional de Medio Ambiente (COREMA)
• Superintendencia de Electricidad y Combustibles (SEC)
• Servicio National de Geologia y Mineria (SERNAGEOMIN)
• Servicio de Salud de Antofagasta (SSA)
• Direccion General Aguas (DGA)
• Ministerio de Defensa Nacional (MDN)
• Ilustre Municipalidad Antofagasta (IMA)
Some of the main permits are listed in Table 20-2.

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TABLE 20-2 PERMIT STATUS

Permit Item Effective Date

Health Report 2000
Land Use Change 1998
Tailings Storage 1998
Resolution 043-98 El
Waste Dumps 1999
Peñón Project
Construction Waste Disposal 1998
Household Waste Disposal 1999
Sewage Treatment and Disposal 1999
Resolution 086-99 Power
Power Supply NA
Supply to El Peñón
Resolution 0179-02
Explosives NA
Explosives Handling
Resolution 050-03
Extension of
Mine Expansion NA
Underground Mine
Exploitation
Resolution 0163-07
Expansion and
Tailings Storage Area Construction NA
Optimization El Peñón
Mine
Waste Dumps 2007
Resolution 0192-07
Exploitation Fortuna Area
Waste Dumps 2015
RCA0106 Extension of Sewage Treatment and Disposal NA
Bonanza and Expansion
Household Waste Treatment and Disposal NA
of Transport and
Handling of Explosives Industrial Qualification 2012
Resolution 0270-10
Expansion of Tailings Tailings Storage Area Construction 2010
Storage Area
Waste Dumps 2013
Construction Waste Disposal 2013
Mining Waste Disposal 2013
RCA0233-12 Open Pit
Mine Exploitation Pampa
Household Waste Disposal 2013
Augusta Victoria
Industrial Qualification 2014
Control of Water Courses 2013
RCA0229-14 Waste Dumps 2015
Underground Mine Sewage Treatment and Disposal 2012
Exploitation Pampa Industrial Qualification 2012
Augusta Victoria Land Use Change 2014
SOCIAL OR COMMUNITY REQUIREMENTS

Yamana’s social and community activities in the El Peñón district include the following:
• Excellent community and stakeholder relations
• Open door policy
• Support of medical services in Taltal
• High school and college scholarships

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• Donations in infrastructure and services

• Partnerships with local groups to provide economic development
MINE CLOSURE REQUIREMENTS

A full closure plan has been submitted but has not been yet accepted by the government
(Sernageomin). The process to complete this task is ongoing.
On August 1, 2016, the current “Technical Report on the Remaining Life of Mine”, hereinafter
referred to as Remaining Life of Mine Report, was issued to comply with Chilean Law No.
20819, which amends Act No. 20551 on the Closure of Mining Operations and Facilities,
specifically in its Article 3 (q) and Article 13 (d) and of Supreme Decree No. 41 which approves
Regulation of the Law on Closure of Mining Operations and Facilities, specifically in its Article
7 (d), Article 13 letter g and Article 96.
At the effective date of the Remaining Life of Mine Report, the estimated life of mine was 7.2
years. It is important to note that the previously stated mine life was calculated in compliance
with Chilean Law 20551, which requires that, for mining companies whose purpose is the
extraction or benefit of one or more mineral deposits, and whose mineral extraction capacity
exceeds 10,000 tonnes per month (tpm) and is less than or equal to 500,000 tpm, the life of
the mining operation will be calculated according to the available Measured, Indicated and
Inferred Mineral Resources certified by a Competent Person as defined in the Chilean “Code
for Reporting Exploration Results, Resources and Mineral Reserves”, according with Chilean
Law 20235.
Once the full closure plan is approved, financial guarantees must be constituted in order to
assure the full and timely fulfillment of the closing obligations. For mining operations with an
estimated mine life of less than 20 years, the total of the guarantees must be constituted within
two-thirds of that estimated period.
The current closure cost estimate is US$45.4 million, which includes $24.7 million for direct
costs, $4.9 million for administration of the closure, $0.9 million for monitoring and control, $7.6
million for a 25% contingency, and $7.3 million for Chilean Sales Tax.

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21 CAPITAL AND OPERATING COSTS

CAPITAL COSTS
PRE-PRODUCTION CAPITAL
The El Peñón mine has been in operation for many years, hence there are no pre-production
capital costs.
SUSTAINING CAPITAL
The sustaining capital costs to be incurred during the LOM for the El Peñón mine is shown in
Table 21-1. In RPA’s opinion, the sustaining capital costs are reasonable.
TABLE 21-1 SUSTAINING CAPITAL COSTS (US$000)

Description Total
Capital Development 107,901
Equipment, Machinery 32,508
Infrastructure, Bldgs. 8,408
Reclamation and Closure 45,375
Total 194,192
As noted, the bulk of the sustaining capital costs are for mine development to access
production areas on a continuous basis in order to meet production requirements for the
Reserves. In addition to the sustaining capital costs presented above, Yamana has planned
a total of 177,000 m of drilling from 2018 to 2020, at a budgeted cost of US$36,000,000 to
achieve its resources conversion objectives. Yamana considers allocating additional
discretionary exploration to this program funding based on results.
OPERATING COSTS
The 2017 operating costs are shown in Table 21-2.

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TABLE 21-2 MINE OPERATING COSTS DECEMBER 31, 2017 (YTD)

Cost Item Actual Budget Variance

US$/t US$/t US$/t
Labour 60.13 51.28 8.85
Operational Materials 30.93 28.56 2.37
Maintenance Materials 11.13 10.05 1.08
Other Operating 47.13 50.07 (2.94)
G&A Expenses 8.01 8.44 (0.44)
Other Expenses (3.11) (3.17) 0.06
Total 154.22 145.23 8.99
Tonnes (000) 1,041 1,040 1.5
As seen on Table 21-2, the 2017 operating costs were 6% above the budget estimates, mainly
impacted by differences between FX budget assumptions and actual variations during the
year. RPA recommends that the mine continue its programs to reduce costs and meet
forecasts.
The projected operating costs for the LOM plan are shown in Table 21-3.
TABLE 21-3 MINE OPERATING COSTS FOR LOM

Area Total
Tonnes Milled (000) 4,331
Mine 449,820
Plant 118,596
G&A 69,187
Total 637,603
Unit Cost/t 147.20
The LOM forecasted costs reflect the current operating cost the mine is experiencing. A
portion of the mine development (25%) is included in the sustaining capital budget, which in
RPA’s opinion, is reasonable.
MANPOWER
Manpower for the El Peñón mine is shown in Table 21-4.

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TABLE 21-4 MANPOWER LIST

Area No. Persons

Mine (Operations and Maintenance) 871
Plant (Operations and Maintenance) 92
Administrative (G&A, Overhead, and Exploration) 131
Contractors 1,426
Total 2,520
The scheduled rotations for the mine departments are as follows:

• Administrative: A week Monday to Friday and followed by a second week Monday to
Thursday (8 am to 6 pm).
• Mine operations 7 days on, 7 days off (12-hour shifts)
• Plant operations 4 days on, 4 days off (12-hour shifts)
• Contractors: various schedules: typical 4 days on 4 days off; 7 days on 7 days off,
and/or 10 days on 10 days off.
Yamana, via subsidiary Meridian, has four collective bargaining agreements in place:
1.) El Sindicato de Trabajadores No. 2 de Empresa Mineral Meridian Ltda. RSV No.
02010730. From February 17, 2017 for duration of 48 months (164 persons).
2.) El Sindicato de Trabajadores No. 1 Meridian El Peñón RSV No. 02010555. From
January 11, 2017 for duration of 40 months (87 persons).
3.) El Sindicato de Trabajadores Supervisores Minera Meridian Ltda. From November 9,

2016 for a duration of 42 months (30 persons).
4.) El Sindicato de Trabajadores Minera Meridian El Peñón. From October 13, 2014 for a
duration of 48 months (130 plant personnel and 86 mine personnel).

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22 ECONOMIC ANALYSIS
This section is not required as Yamana is a producing issuer, the property is currently in
production, and there is no material expansion of current production.
RPA completed an after-tax Cash Flow Projection generated from the LOM production
schedule and capital and operating cost estimates and confirms the positive economics of the
Mineral Reserves in this report. The cash flow was prepared using the stated Mineral
Reserves metal prices and cut-off grades.

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23 ADJACENT PROPERTIES
El Peñón is the principal mineral property in the area, and RPA is not aware of any other
significant exploration properties in the immediate vicinity of the mine.

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24 OTHER RELEVANT DATA AND

INFORMATION
No additional information or explanation is necessary to make this Technical Report
understandable and not misleading.

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25 INTERPRETATION AND CONCLUSIONS

RPA offers the following conclusions:
RISKS
• The mine has been in production for 18 years and is a mature operation. In RPA’s
opinion, there are not any significant risks and uncertainties that could reasonably be
expected to affect the reliability or confidence in the exploration information, Mineral
Resource or Mineral Reserve estimates, or projected economic outcomes.

• The deposits at El Peñón are low to intermediate epithermal gold-silver deposits,
hosted in steeply dipping fault-controlled veins following rhyolite dome emplacement.
Gold and silver mineralization comprises disseminations of electrum, native gold and
silver, acanthite, silver sulphosalts and halides, plus accessory pyrite occurring with
• There are 22 main vein zones and many subsidiary veins in nine vein systems that
have supported, support currently, or are planned to support surface and underground
mining operations. Vein widths range from decimetre-scale to over 20 m. Individual
mineralized shoots measure from less than one kilometre to four kilometres in strike
length, and up to 350 m in the down-dip direction.
• Sampling and assaying are adequately completed and have been generally carried out
using industry standard QA/QC practices. The sample preparation, analysis, and
security procedures at El Peñón are suitable for use in the estimation of Mineral
Resources.
• To avoid sample sharing between spatially close structures, each independent splay
or parallel vein is considered an independent estimation domain. Spatially
disconnected splay wireframes were flagged as separate estimation domains. In
RPA’s opinion, this improved interpretation technique will result in fewer tonnes, but
better defined resources than previous estimates.
• The Mineral Resource estimate is appropriate for the style of mineralization and the
resource models are reasonable and acceptable to support the Mineral Resource
estimates.
• For these estimations, Yamana used a stope optimizer to determine potential economic
viability of resource blocks. This resulted in a more realistic estimate of resources
remaining after reserve estimation.
• The Measured plus Indicated Mineral Resources are estimated to be 1, 427,600 t at

6.92 g/t Au and 217.0 g/t Ag containing 317,800 oz of gold and 9,962,000 oz of silver.
Inferred Mineral Resources are estimated at 17,469,000 t at 1.7 g/t Au and 60 g/t Ag
containing 960,000 oz of gold and 33,506,000 oz of silver. RPA notes that the

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resources are reasonable, are in accordance with Canadian Institute of Mining,

Metallurgy and Petroleum (CIM) definitions, and are disclosed in compliance with NI
43-101.
• Exploration potential exists to infill resources in the mines, to discover extensions of

current deposits, and to discover new deposits in the El Peñón district.

• In RPA’s opinion, the conversion process of Mineral Resources to Mineral Reserves is
robust and ensures each SMU has positive economic value.
• The Proven plus Probable Mineral Reserves are estimated to be 4,393,600 t at 5.41
g/t Au and 166.9 g/t Ag containing 763,800 oz of gold and 23,578,400 oz of silver. RPA
notes that the reserves are reasonable, and are in accordance with CIM definitions.
• Mineral Reserves include small quantities of open pit and low-grade stockpile material.
• The amount of additional material mined from Mineral Resources and also from outside
of the block model has been reduced over the last several years as a result of improved
planning procedures.
• Reconciliation of the long term and short-term plans for Mineral Reserves shows that
the variances are improving. Yamana is using the SMU approach for mine planning
and Mineral Reserve estimation and has improved the block modelling procedures,
which in turn has improved the quality of mine planning and consequently more
accurate overall results. In RPA’s opinion, the reconciliation is within reasonable limits
and efforts to track reconciliation should continue on a regular basis.
• In RPA’s opinion, El Peñón’s forecast mine and plant production targets are attainable
and reasonable and the procedures used to forecast the LOM plan are reasonable.
Forecast gold production averages 150,000 oz from 2018 to 2021 and declines to
91,000 oz in 2022. Forecast silver production averages 4,307,000 oz from 2018 to
2021 and declines to 2,639,000 oz in 2022.
METALLURGY AND MINERAL PROCESSING

• The plant operation has been operating well, with tonnages being generally consistent
over the last few years, declining in 2017, as result of the rightsizing of the operation in
late 2016. Changes in recoveries of both gold and silver have been in line with the
changes in head grade, and have been somewhat higher in 2017 due to reduced
throughput.
ENVIRONMENTAL CONSIDERATIONS
• All required permits for operation have been granted, or applied for, with reasonable
expectation of being granted in due course.

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CAPITAL AND OPERATING COSTS

• The total capital expenditures estimated by Yamana for the LOM operations are $194
million in sustaining capital, including mine development (56%), equipment and
infrastructure (21%), and reclamation and closure (23%). These costs include mine
and plant costs as well as administration capital, but do not include working capital,
exploration or any future expansions. RPA is of the opinion that the total estimated
capital expenditures for the mine are reasonable based on the calculated Mineral
Reserves.
• A total of 177,000 m of drilling is planned for 2018 to 2020 at a budgeted cost of

funding based on success
• Operating costs are forecast to average US$147 per tonne over the LOM. RPA is of
the opinion that the total estimated operating costs for the mine are reasonable.

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26 RECOMMENDATIONS
RPA offers the following recommendations:

• Yamana geologists have prepared a strategic drill program to infill resources, complete
local exploration near the mines, and to continue district exploration. The amount of
drilling proposed is based on the past success rate of adding resources at El Peñón.
US$36,000,000. Yamana provisions for additional discretionary funding to this
program based on results. Considering the ongoing exploration successes at El Peñón
over the years, RPA concurs with this proposed exploration program and recommends
that it be carried out as defined.

• While the drifts are quite close to the planned design, the stopes were 11% larger than
planned in 2017, resulting in higher than designed dilution rates. The equivalent of
overbreak/slough (ELOS) design of 0.25 m should be monitored going forward to
assess whether adjustment of the ELOS is warranted.
• The extraction rate for stopes is set at 100% for the majority (86%) of the stopes
resulting in an average extraction rate of near 98%. Mine staff apply an extraction
factor, which averages approximately 95% during the mine planning process, however
this should be reflected in the Mineral Reserves statement.

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27 REFERENCES
Bottinelli, O. C. A., and Valencia, A. M. E., 2016, Informe Técnico de Vida Útil de la Operación
Minera (para Ley N° 20.551 sobre Cierre de Faenas e Instalaciones Mineras); Ley N°
20.819 que modifica Ley N° 20.551; Revisión N° 3, August 1, 2016.
Chacόn, M. E., Pérez, S. C. M., 2017, Yamana Gold, El Peñón Mine, Region of Antofagasta,
Chile, NI 43-101 Technical Report, 144 pp., May 23, 2017.
Collins, S. E., Moore, C. M., and Scott, K C., 2010, Technical Report on the El Peñón Mine,
Northern Chile, prepared for Yamana Gold Inc., 132 pp., December 7, 2010.
Cornejo, P.; Mpodozis, C.; Rivera, O. & Matthews, S.J. (2006): Carta Exploradora, Regiones
de Antofagasta y Atacama. Servicio Nacional de Geología y Minería (SERNAGEOMIN),
Santiago, Chile, Carta Geológica de Chile, Serie Geológica Básica, 1:100.000.
Donoso, F. (2012): Caracterización Mineralógica de las vetas Bonanza-Aleste y sus

implicancias geometalúrgicas, Mina El Peñón, Región de Antofagasta, Memoria para optar
al título de Geólogo, Universidad Católica del Norte, Antofagasta, Chile.
Jorquera, H., 2016, QAQC Annual Report 2016, prepared for Minera Meridian Ltda., 36 pp.,
December 15, 2016.
Minera Meridian Ltda., 2017, various presentations, procedures, and spreadsheets for El
Peñón Mine.
Octal Ingeniería y Desarrollo and Magri Consultores Limitada, 2015, Actualización de modelos
variográficos – El Peñón, prepared for Yamana Gold Inc., August 5, 2015.
Órdenes, J. (2014): Influencia de la Mineralogía de la veta Bonanza en el Procesos

Hidrometalúrgico de Lixiviación de Au y Ag, Yacimiento El Peñón, Chile. Tesis para optar
al grado de Magíster en Geometalurgia. Universidad Católica del Norte, Antofagasta,
Chile, 168 p.
Pearson, J. L., and Rennie, D. W., 2008, Technical Report on the El Peñón Mine, Chile,
Resource Audit, prepared for Yamana Gold Inc., 130 pp., February 11, 2008.
Pérez, M. (1999): Alteración Hidrotermal en el Depósito Epitermal de Au-Ag El Peñón, II

Región Antofagasta. Memoria para optar al título de Geólogo. Universidad de Chile,
Santiago, Chile, 109 p.
Robbins, C.H. (2000): Geology of El Peñón Gold-silver Deposit, Northern Chile: The Great
Basin and beyond, Geological Society of Nevada, Symposium, Reno 2000, Proceedings,
pp. 249-264.
Warren, I. (2005): Geology, Geochemistry and Ore of the El Peñón Epithermal Au-Ag Deposit,
Northern Chile: Characteristics of a bonanza-grade deposit and techniques for exploration.
PhD Thesis – Geology, University of Auckland.

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Warren, I., Zuluaga, J. I., Robbins, C. H., Wulftange, W. H., and Simmons, S. F., 2004, Geology
and Geochemistry of Epithermal Au-Ag Mineralization in the El Peñón District, Northern
Chile; Society of Economic Geologists, Special Publication 11, pp. 113-139.
Vega, A. M., 2015, QAQC Annual Report 2015, prepared for Minera Meridian Ltda., 46 pp.,
December 15, 2015.
Vega, A. M., 2014, QAQC Annual Report 2014, prepared for Minera Meridian Ltda., 34 pp.,
November, 2014.
Zuluaga, J.I. (2004): Geología y Mineralización del Distrito El Peñón, Segunda Región de
Antofagasta, Chile. Tesis de Magíster en Geología Económica, Universidad Católica del
Norte, Antofagasta, Chile, 150 p.

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28 DATE AND SIGNATURE PAGE

This report titled “Technical Report on the El Peñón Mine, Antofagasta Region (II), Chile” dated
March 2, 2018 was prepared and signed by the following authors:
(Signed and Sealed) “Holger Krutzelmann”
Dated at Toronto, ON Holger Krutzelmann

March 2, 2018 Principal Metallurgist
(Signed and Sealed) “Normand Lecuyer”
Dated at Toronto, ON Normand Lecuyer, P.Eng

March 2, 2018 Principal Mining Engineer
(Signed and Sealed) “Chester M. Moore”
Dated at Toronto, ON Chester M. Moore, P.Eng.

March 2, 2018 Principal Geologist

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29 CERTIFICATE OF QUALIFIED PERSON

HOLGER KRUTZELMANN
I, Holger Krutzelmann, P. Eng., as an author of this report entitled “Technical Report on the El
Peñón Mine, Antofagasta Region (II), Chile” prepared for Yamana Gold Inc. and dated of
March 2, 2018, do hereby certify that:
1. I am Associate Principal Metallurgist with Roscoe Postle Associates Inc. of Suite 501, 55
University Ave Toronto, ON, M5J 2H7.
2. I am a graduate of Queen’s University, Kingston, Ontario, Canada in 1978 with a B.Sc.

degree in Mining Engineering (Mineral Processing).
3. I am registered as a Professional Engineer with Professional Engineers Ontario (Reg.

#90455304). I have worked in the mineral processing field, in operating, metallurgical,
managerial; and engineering functions, for a total of 38 years since my graduation. My
relevant experience for the purpose of the Technical Report is:
• Reviews and reports as a metallurgical consultant on a number of mining
operations and projects for due diligence and financial monitoring requirements.
• Senior Metallurgist/Project Manager on numerous gold and base metal studies
for a leading Canadian engineering company.
• Management and operational experience at several Canadian and U.S. milling
operations treating various metals, including copper, zinc, gold and silver.
4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-
101) and certify that by reason of my education, affiliation with a professional association
(as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be
a "qualified person" for the purposes of NI 43-101.
5. I have not visited the Project.
6. I am responsible for Sections 13, 17, and 18 and contributed to Sections 1, 25, 26, and 27
of the Technical Report.
7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.
8. I have had no prior involvement with the property that is the subject of the Technical Report.
9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI
43-101 and Form 43-101F1.

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10. At the effective date of the Technical Report, to the best of my knowledge, information, and
belief, the Sections for which I am responsible in the Technical Report contain all scientific
and technical information that is required to be disclosed to make the Technical Report not
misleading.
Dated this 2nd day of March, 2018.
(Signed and Sealed) “Holger Krutzelmann”
Holger Krutzelmann, P.Eng.

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NORMAND L. LECUYER
I, Normand L. Lecuyer, P.Eng., as an author of this report entitled “Technical Report on the El
Peñón Mine, Antofagasta Region (II), Chile” prepared for Yamana Gold Inc. and dated March
2, 2018, do hereby certify that:
1. I am Principal Mining Engineer with Roscoe Postle Associates Inc. of Suite 501, 55
University Ave Toronto, ON, M5J 2H7.
2. I am a graduate of Queen’s University, Kingston, Canada, in 1976 with a B.Sc. (Hons.)

degree in Mining Engineering.
3. I am registered as a Professional Engineer in the provinces of Ontario (Reg.

#26055251) and Québec (Reg. #34914). I have worked as a mining engineer for
approximately 38 years since my graduation. My relevant experience for the purpose
of the Technical Report is:
• Review and report as a consultant on numerous exploration and mining projects
around the world for due diligence and regulatory requirements.
• Vice-President Operations for a number of mining companies.
• Mine Manager at an underground gold mine in Northern Ontario, Canada.
• Manager of Mining/Technical Services at a number of base-metal mines in Canada
and North Africa.
• Vice-President Engineering at two gold operations in the Abitibi area of Quebec,
Canada.
4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI
43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.
5. I visited El Peñón on August 7 to 9, 2017, and previously visited the operations from
November 13 to 16, 2007.
6. I am responsible for Sections 15, 16, 19, and 21 and contributed to Sections 1, 25, 26,
and 27 of the Technical Report.
8. I have previously prepared a Mineral Reserve audit report on the El Peñón mine that
is described in this Technical Report.
9. I have read NI 43-101, and the Technical Report has been prepared in compliance with
NI 43-101 and Form 43-101F1.

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10. At the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the Sections for which I am responsible in the Technical Report
contains/contain all scientific and technical information that is required to be disclosed
to make the Technical Report not misleading.
(Signed and Sealed) “Normand Lecuyer”
Normand L. Lecuyer, P.Eng.

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CHESTER M. MOORE
I, Chester M. Moore, P.Eng., as an author of this report entitled “Technical Report on the El
Peñón Mine, Antofagasta Region (II), Chile” prepared for Yamana Gold Inc. and dated March
2, 2018, do hereby certify that:
1. I am Principal Geologist with Roscoe Postle Associates Inc. of Suite 501, 55 University
Ave Toronto, ON, M5J 2H7.
2. I am a graduate of the University of Toronto, Toronto, Ontario, Canada in 1972 with a

Bachelor of Applied Science degree in Geological Engineering.
3. I am registered as a Professional Engineer in the Province of Ontario (Reg.

#32455016). I have worked as a geologist for 44 years since my graduation. My
relevant experience for the purpose of the Technical Report is:
• Mineral Resource and Reserve estimation, feasibility studies, due diligence,
corporate review and audit on exploration projects and mining operations world
wide
• Various advanced exploration and mine geology positions at base metal and gold
mining operations in Ontario, Manitoba and Saskatchewan
• Director, Mineral Reserve Estimation and Reporting at the corporate offices of a
major Canadian base metal producer
4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI
43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.
5. I visited El Peñón on August 7 to 9, 2017, and previously visited the operations from
December 7 to 9, 2009, and on November 13 to 16, 2007.
6. I am responsible for Sections 2 to 12, 14, 20, 23, and 24 and contributed to Sections
1, 25, 26, and 27 of the Technical Report.
8. I have previously prepared Technical Reports on the El Peñón mine that is described
in this Technical Report
9. I have read NI 43-101, and the Technical Report has been prepared in compliance with
NI 43-101 and Form 43-101F1.
10. At the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the Sections for which I am responsible in the Technical Report contain all
contains all scientific and technical information that is required to be disclosed to make
the Technical Report not misleading.
(Signed and Sealed) “Chester M. Moore”
Chester M. Moore, P.Eng.

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30 APPENDIX 1
LAND TENURE

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TABLE 30-1 EL PEÑÓN EXPLOITATION CLAIM LIST

Yamana Gold Inc. – El Peñón Property
Property Name National Roll Area (ha) Validity

1 AURIA 10 1 AL 60 02201-5122-0 60 Indefinite
5 AZUL 01 1-10 02201-2619-6 100 Indefinite
6 AZUL 02 1-10 02201-2620-K 100 Indefinite
7 AZUL 03 1-10 02201-2621-8 100 Indefinite
8 AZUL 04 1-10 02201-2622-6 100 Indefinite
9 AZUL 05 1-10 02201-2623-4 100 Indefinite
10 AZUL 06 1-10 02201-2624-2 100 Indefinite
11 AZUL 07 1-10 02201-2625-0 100 Indefinite
12 AZUL 08 1-10 02201-2626-9 100 Indefinite
13 AZUL 09 1-10 02201-2627-7 100 Indefinite
14 AZUL 10 1-10 02201-2628-5 100 Indefinite
15 AZUL 11 1-10 02201-2629-3 100 Indefinite
16 AZUL 12 1-10 02201-2630-7 100 Indefinite
17 AZUL 13 1-10 02201-2631-5 100 Indefinite
18 AZUL 14 1-10 02201-2632-3 100 Indefinite
19 AZUL 15 1-10 02201-2633-1 100 Indefinite
20 AZUL 16 1-10 02201-2634-K 100 Indefinite
21 AZUL 17 1-10 02201-2635-8 100 Indefinite
22 AZUL 18 1-5 02201-2636-6 50 Indefinite
23 AZUL 19 1-10 02201-2637-4 100 Indefinite
24 AZUL 22 1-5 02201-2640-4 50 Indefinite
25 AZUL 23 1-10 02201-2641-2 100 Indefinite
26 AZUL 24 1-10 02201-2642-0 100 Indefinite
27 BLANCA 1, 1 AL 30 02201-5721-0 300 Indefinite
28 BLANCA 1, 1 AL 20 02201-4370-8 100 Indefinite
29 BLANCA 10 1 AL 30 02201-5727-K 300 Indefinite
30 BLANCA 11 1 AL 20 02201-5728-8 200 Indefinite
32 BLANCA 13 1 AL 20 02201-5730-K 200 Indefinite

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43 BLANCO CHIQUILLA 2 1 AL 30 02201-6498-5 300 Indefinite
44 BLANCO NORTE 110 1 AL 30 02201-6524 300 Indefinite
45 BLANCO NORTE 2B 1 AL 20 02201-6218-4 200 Indefinite
46 BLANCO NORTE 3B 1 AL 20 02201-6215-K 200 Indefinite
49 BLANCO NORTE 8 1 AL 30 02201-6351-2 300 Indefinite
50 BLANCO NORTE 9 1 AL 30 02201-6352-0 300 Indefinite
51 BLANCO SUR 1 1 AL 30 02201-6499-3 300 Indefinite
59 BLANCO SUR 8 1 AL 30 02201-6506-K 200 Indefinite
61 CERRO AZUL 01 1-5 02201-2704-4 50 Indefinite
72 CERRO AZUL 12 1-5 02201-2715-K 50 Indefinite

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100 CERRO AZUL A 1-10 02201-2608-0 100 Indefinite
101 CERRO AZUL B 1-5 02201-2609-9 50 Indefinite
102 CERRO AZUL PNTE. A 1-5 02201-2610-2 50 Indefinite
103 CERRO AZUL PNTE. B 1-10 02201-2611-0 100 Indefinite
104 CERRO AZUL PNTE. C 1-10 02201-2612-9 100 Indefinite
105 CERRO AZUL PNTE. D 1-10 02201-2613-7 100 Indefinite
106 CERRO AZUL PNTE. E 1-5 02201-2614-5 50 Indefinite
107 CERRO AZUL PNTE. F 1-5 02201-2615-3 50 Indefinite
108 CERRO AZUL PNTE. G 1-5 02201-2616-1 50 Indefinite
109 CERRO AZUL PNTE. H 1-10 02201-2617-K 100 Indefinite
110 CERRO AZUL PNTE. I 1-10 02201-2618-8 100 Indefinite
111 CERRO DOS 1 AL 20 02201-4312-0 100 Indefinite
112 CERRO IMAN 1-30 02201-1796-0 300 Indefinite
113 CERRO IMAN II 1-10 02201-1845-2 100 Indefinite
114 CERRO IMAN III 1-10 02201-1846-0 100 Indefinite
115 CERRO IMAN IV 1-5 02201-1847-9 50 Indefinite
116 CERRO IMAN IX 1-10 02201-2315-4 100 Indefinite
117 CERRO IMAN SUR 1 AL 10 02201-2369-3 100 Indefinite
118 CERRO IMAN SUR 1 AL 5 02201-4488-7 50 Indefinite
119 CERRO IMAN V 1-10 02201-1848-7 100 Indefinite
120 CERRO IMAN VI 1-10 02201-1849-5 100 Indefinite
121 CERRO IMAN VII 1-10 02201-1850-9 100 Indefinite
122 CERRO IMAN VIII 1-10 02201-2314-6 100 Indefinite
123 CERRO IMAN X 1-10 02201-2316-2 100 Indefinite
124 CERRO IMAN XI 1-10 02201-2317-0 100 Indefinite
125 CERRO IMAN XII 1-10 02201-2318-9 100 Indefinite
126 CERRO IMAN XIII 1-10 02201-2319-7 100 Indefinite
127 CERRO IMAN XIV 1 AL 10 02201-2320-0 100 Indefinite
128 CERRO IMAN XV 1 AL 10 02201-2321-9 100 Indefinite
129 CERRO IMAN XVII 1-10 02201-2450-9 100 Indefinite
130 CERRO IMAN XVIII 1-15 02201-2366-9 50 Indefinite
131 CERRO UNO 1 AL 20 02201-4311-2 100 Indefinite
132 CHICA 15, 1 AL 20 02201-5443-2 200 Indefinite

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135 CHICA 30 1 AL 20 02201-5446-7 200 Indefinite
136 CHICA 31 A 1-10 02201-5447-5 75 Indefinite
137 CHICA 31 B 1-10 02201-5448-3 100 Indefinite
138 CHIQUILLA CHICA II 1-30 02201-4786-K 300 Indefinite
139 CHIQUILLA CHICA III 1 AL 30 02201-4787-8 300 Indefinite
140 CHIQUILLA CHICA IV 1-30 02201-4788-6 300 Indefinite
141 CHIQUILLA CHICA IX 1-30 02201-4792-4 300 Indefinite
142 CHIQUILLA CHICA VI 1-30 02201-4790-8 300 Indefinite
143 CHIQUILLA CHICA X 1-30 02201-4830-0 300 Indefinite
144 CHIQUILLA CHICA XI 1-30 02201-4793-2 300 Indefinite
145 CHIQUILLA CHICA XIX 1-30 02201-4798-3 300 Indefinite
146 CHIQUILLA CHICA XVI 1-30 02201-4832-7 300 Indefinite
147 CHIQUILLA CHICA XVII 1-30 02201-4833-5 300 Indefinite
148 CHIQUILLA CHICA XVIII 1-30 02201-4797-5 300 Indefinite
149 CHIQUILLA CHICA XX 1-30 02201-4799-1 300 Indefinite
150 CHIQUILLA CHICA XXIII 1-30 02201-4801-7 300 Indefinite
151 CHIQUILLA CHICA XXIX 1-30 02201-4804-1 300 Indefinite
152 CHIQUILLA CHICA XXVI 1-30 02201-4834-3 300 Indefinite
153 CHIQUILLA CHICA XXVIII 1-30 02201-4803-3 300 Indefinite
154 CHIQUILLA CHICA XXX 1-30 02201-4805-K 300 Indefinite
155 CHIQUILLA CHICA V 1-30 02201-4789-4 300 Indefinite
156 CHIQUILLA CHICA VII 1-30 02201-4791-6 300 Indefinite
157 CHIQUILLA CHICA VIII 1-30 02201-4829-7 300 Indefinite
158 CHIQUILLA CHICA XXVII 1-30 02201-4802-5 300 Indefinite
159 DOMINADOR 1, DEL 1 AL 5 02201-2743-5 50 Indefinite
160 DOMINADOR 1,1 AL 20 02201-3109-2 100 Indefinite
161 DOMINADOR 2, DEL 1 AL 5 02201-2744-5 50 Indefinite
DOMINADOR 4, DEL 1 AL
164 02201-2745-1 150 Indefinite
3ORED15
166 EL PEÑÓN 10 1 AL 20 02201-3491-1 100 Indefinite
168 EL PEÑÓN 12 1 AL 20 02201-3492-K 100 Indefinite

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212 ENCANTADA 1 1 AL 60 02201-3964-6 300 Indefinite
221 ENCANTADA 22 1 AL 20 02201-3976-K 100 Indefinite

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225 FRANCISCA XIX 1-20 02201-4780-0 200 Indefinite
226 FRANCISCA XXIII 1-30 02201-4781-9 300 Indefinite
227 FRANCISCA XXIV 1-30 02201-4782-7 300 Indefinite
228 LA ENCANTADA 1 AL 10 02201-2799-0 0 Indefinite
229 LA SUERTE 1 AL 20 02201-4965-K 100 Indefinite
230 LAGUNA 1 1 AL 60 02201-4099-7 300 Indefinite
237 LAS CONDES CINCO 1 AL 60 02201-3151-3 300 Indefinite
238 LAS CONDES CUATRO 1 AL 60 02201-3150-5 300 Indefinite
239 LAS CONDES DIEZ 1 AL 10 02201-3156-4 50 Indefinite
240 LAS CONDES DOS 1 AL 30 02201-3148-3 150 Indefinite
241 LAS CONDES NUEVE 1 AL 60 02201-3155-6 300 Indefinite
242 LAS CONDES OCHO 1 AL 60 02201-3154-8 300 Indefinite
243 LAS CONDES ONCE 1 AL 10 02201-3157-2 50 Indefinite
244 LAS CONDES SEIS 1 AL 30 02201-3152-1 150 Indefinite
245 LAS CONDES SIETE 1 AL 30 02201-3153-K 150 Indefinite
246 LAS CONDES TRES 1 AL 20 02201-3149-1 100 Indefinite
247 LAS CONDES UNO 1 AL 40 02201-3147-5 200 Indefinite
248 LINA 1 1 AL 60 02201-4451-5 300 Indefinite
252 LINA 14 1/10-21/40 02201-4457-7 150 Indefinite
255 LINA 4 1 AL 60 02201-4254-K 300 Indefinite
261 LINEA 1 1 AL 60 02201-4136-5 300 Indefinite
264 LINEA 4 1 AL 60 02201-4139-K 300 Indefinite
265 LOBA 1 1 AL 60 02201-4061-K 300 Indefinite
266 LOBA 3 1 AL 60 02201-4063-6 300 Indefinite

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272 LOBA 7 1 AL 40 02201-4061-K 200 Indefinite
273 LOBITA 1 1 AL 40 02201-4002-4 200 Indefinite
284 LOBO 18, 1 AL 30 02201-6197-8 300 Indefinite
285 LOBO 19, 1 AL 30 022016196-K 300 Indefinite
286 LOBO 20, 1 AL 30 022016195-1 300 Indefinite
287 MAGICA 1 1 AL 40 02201-6565-5 200 Indefinite
288 MAGICA 2 1 AL 40 02201-6566-3 200 Indefinite
289 MERLIN 40 1 AL60 02201-6656-2 300 Indefinite
290 NADIAN 4A, 1 AL 40 02201-6169-2 200 Indefinite
291 NADIAN 4B, 1 AL 40 02201-6170-6 200 Indefinite
293 NADIAN 7B, 1 AL 60 02201-6172-2 300 Indefinite
294 NADIAN 8 B, 1 AL 60 02201-6174-9 300 Indefinite
297 NADO 1, 1 AL 60 02201-5529-3 300 Indefinite
298 NADO 10, 1 al 60 02201-5538-2 300 Indefinite
299 NADO 11,1 AL 60 02201-5539-0 300 Indefinite
309 NADO 20, 1 AL 60 02201-5548-K 300 Indefinite

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312 NADO 23, 1 AL 20 02201-5551-K 100 Indefinite
320 NADO 6,1 AL 60 02201-5534-K 300 Indefinite
324 NIVA 3 1 AL 60 02202-5455-0 300 Indefinite
327 PAISAJE 1 1 AL 40 02201-3651-5 200 Indefinite
332 PAISAJE 18 1 AL 60 02201-3668-K 300 Indefinite
344 PAISAJE UNO 1 AL 20 02201-3208-0 100 Indefinite
345 PAMPA AUGUSTA I, 1 AL 59 02201-5271-5 292 Indefinite
346 PEÑÓN 50 1 AL 10 02201-3977-8 50 Indefinite

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359 PROVIDENCIA 1 II DEL 1 AL 30 02201-3556-K 300 Indefinite
360 PROVIDENCIA 1 II DEL 61 AL 90 02201-3558-6 300 Indefinite
363 PROVIDENCIA 2 II 1/40 02201-3561-6 400 Indefinite
371 PROVIDENCIA CINCO 1-60 02201-3077-0 300 Indefinite
372 PROVIDENCIA CUATRO 1-60 02201-3076-2 300 Indefinite
373 PROVIDENCIA DIEZ 1-10 02201-3082-7 50 Indefinite
374 PROVIDENCIA DOS 1-30 02201-3074-6 150 Indefinite
375 PROVIDENCIA NUEVE 1-60 02201-3081-9 300 Indefinite
376 PROVIDENCIA OCHO 1-60 02201-3080-0 300 Indefinite
377 PROVIDENCIA ONCE 1-10 02201-3083-5 50 Indefinite
378 PROVIDENCIA SEIS 1-30 02201-3078-9 150 Indefinite
379 PROVIDENCIA SIETE 1-30 02201-3079-7 150 Indefinite
380 PROVIDENCIA TRES 1-20 02201-3075-4 100 Indefinite
381 PROVIDENCIA UNO 1-40 02201-3073-8 200 Indefinite
382 PROVIDENCIA 5 II 1 AL 30 RED10 02201-3569-1 100 Indefinite
PROVIDENCIA 5 II 31 AL 60
383 02201-3569-1 100 Indefinite
ORE10
PROVIDENCIA 5 II 61 AL 90
384 02201-3569-1 100 Indefinite
ORE10
385 PUNTA BLANCA 1, 1 AL 30 02201-5474-2 300 Indefinite
388 SERRUCHO 1 1 AL 60 02201-3591-8 300 Indefinite
393 TACO 1 1 AL 20 02201-4154-3 100 Indefinite
394 TOSTADO 1 1 AL 60 02201-3612-4 300 Indefinite
398 TOSTADO 12 1 AL 40 02201-3623-K 200 Indefinite

www.rpacan.com

406 TOSTADO 2,1 AL 20 02201-3146-7 100 Indefinite
412 TOSTADO 25 1 AL 40 02201-4187-K 200 Indefinite
420 VERDE 4 6 AL 10 Y 16 AL 20 02201-4317-1 50 Indefinite
TOTAL 87,387
TABLE 30-2 PAV EXPLOITATION CLAIM LIST


1 LLANO 1 1 AL 20 02201-4539-5 100 Indefinite
8 LLANO 7 1 AL 20 02201-4545-K 100 Indefinite
11 PAMPA 4 1 AL 60 02201-4730-4 300 Indefinite
TOTAL 2,700


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YAMANA GOLD INC.

TECHNICAL REPORT ON THE

Document Title Technical Report on the El Peñón Mine, Antofagasta Region

Client Name & Address Yamana Gold Inc.

Document Reference Status & FINAL

Issue Date March 2, 2018

Lead Author Holger Krutzelmann (Signed)

Peer Reviewer Deborah McCombe (Signed)

Project Manager Approval Chester Moore (Signed)

Project Director Approval Deborah McCombe (Signed)

Report Distribution Name No. of Copies

RPA Filing 1 (project box)

Roscoe Postle Associates Inc.

1 SUMMARY ...................................................................................................................... 1-1

Yamana Gold Inc. – El Peñón Mine, Project #2931

Unfolding ................................................................................................................... 14-19

Yamana Gold Inc. – El Peñón Mine, Project #2931

Table 6-1 Historical Production to December 31, 2017 ..................................................... 6-2

Yamana Gold Inc. – El Peñón Mine, Project #2931

LIST OF APPENDIX FIGURES & TABLES

Yamana Gold Inc. – El Peñón Mine, Project #2931

• Underground infrastructure including mine ramps, ventilation raises, maintenance

Yamana Gold Inc. – El Peñón Mine, Project #2931

TABLE 1-1 MINERAL RESOURCE ESTIMATE – DECEMBER 31, 2017

Tonnes Grade Contained Metal

Total Inferred 17,500 1.7 60 960 33,500

Yamana Gold Inc. – El Peñón Mine, Project #2931

TABLE 1-2 MINERAL RESERVE ESTIMATE – DECEMBER 31, 2017

Tonnage Grade Contained Metal

GEOLOGY AND MINERAL RESOURCES

Yamana Gold Inc. – El Peñón Mine, Project #2931

• The Measured plus Indicated Mineral Resources are estimated to be 1,427,600 t at

• Exploration potential exists to infill resources in the mines, to discover extensions of

MINING AND MINERAL RESERVES

Yamana Gold Inc. – El Peñón Mine, Project #2931

METALLURGY AND MINERAL PROCESSING

CAPITAL AND OPERATING COSTS

• A total of 177,000 m of drilling is planned for 2018 to 2020 at a budgeted cost of

GEOLOGY AND MINERAL RESOURCES

Yamana Gold Inc. – El Peñón Mine, Project #2931

MINING AND MINERAL RESERVES

Yamana Gold Inc. – El Peñón Mine, Project #2931

Underground infrastructure includes portals, access ramps, ventilation raises, maintenance

GEOLOGY AND MINERALIZATION

The mineralization at El Peñón is hosted by near-horizontal to gently dipping Eocene to

Yamana Gold Inc. – El Peñón Mine, Project #2931

Yamana Gold Inc. – El Peñón Mine, Project #2931

Yamana Gold Inc. – El Peñón Mine, Project #2931

Yamana Gold Inc. – El Peñón Mine, Project #2931

ENVIRONMENTAL, PERMITTING AND SOCIAL CONSIDERATIONS

RPA understands that El Peñón is operating within environmental compliance with no

Yamana Gold Inc. – El Peñón Mine, Project #2931

CAPITAL AND OPERATING COST ESTIMATES

Yamana Gold Inc. – El Peñón Mine, Project #2931

• Underground infrastructure including mine ramps, ventilation raises, maintenance

Yamana Gold Inc. – El Peñón Mine, Project #2931

Discussions were held with the following personnel from Yamana:

Yamana Gold Inc. – El Peñón Mine, Project #2931

a annum kWh kilowatt-hour