Page 1

YAMANAGOLD YAMANA GOLD REPORTS STRONG SECOND QUARTER 2021 PRODUCTION RESULTS AND CASH FLOWS ; JACOBINA AND CANADIAN MALARTIC ACHIEVE ALL - TIME QUARTERLY HIGH PRODUCTION ; MINERA FLORIDA AND EL PEÑÓN POST STANDOUT QUARTERS - TORONTO , ONTARIO , July 29 , 2021 – YAMANA GOLD INC . ( TSX : YRI ; NYSE : AUY ; LSE : AUY ) ( “ Yamana " or " the Company " ) is herein reporting its financial and operational results for the second quarter of 2021. Strong cash flow and production during the quarter were underpinned by all - time quarterly high production at Jacobina and Canadian Malartic as well as standout quarters from Minera Florida and El Peñón . NEWS RELEASE In a separate announcement published today , the Company reported significant progress on the Phase 2 expansion of Jacobina as well as strong exploration results that expand the operation's mineral resource inventory and support the phased expansion , underscoring Jacobina's exceptional long - term growth potential and ability to further extend strategic mine life . For additional details , please see the press release titled : ' Yamana Gold Reports Significant Progress on Phase 2 Expansion at Jacobina and Strong Exploration Results for the Operation ' available on the Company's website at www.yamana.com . SECOND QUARTER HIGHLIGHTS Financial Results - Strong Cash Flows Further Strengthen Cash Balances and Balance Sheet Driving Latest Increase in Dividend • • Adjusted net earnings ( 2,4 ) were $ 70.7 million or $ 0.07 per share basic and diluted . Earnings before taxes of $ 87.3 million increased significantly in relation to the comparative period earnings before taxes of $ 9.7 million . A non - cash accounting deferred income tax expense of $ 145.3 million , predominantly associated with an increase in income tax rates in Argentina as applied to certain non - producing assets ( namely Suyai and MARA ) reduced earnings for the period as under accounting principles , the difference between accounting carrying values and tax basis requires recalculation although not payment of deferred income taxes . Future cash payments associated with the deferred income tax liability are not expected . This has resulted in a net loss for accounting purposes of $ 43.9 million or $ 0.05 per share basic and diluted although no cash impact . Strong cash flows from operating activities of $ 153.5 million and cash flows from operating activities before net change in working capital of $ 167.8 million with free cash flow before dividends and debt repayments ( 2 ) of $ 51.2 million . With production and costs in line with plan for the first half of the year , the Company anticipates stronger production , lower unit costs , and increased cash flow in the third and fourth quarters . Cash and cash equivalents of $ 702.0 million , and available credit of $ 750.0 million , for total available liquidity of approximately $ 1.5 billion . Cash balances include $ 223.4 million available for utilization by the MARA Project . The remainder of cash and cash equivalents of $ 478.6 million , along with further liquidity and incoming cash flows is expected to be more than sufficient to fully fund the Company's business and capital allocation objectives . As announced today , the Company is raising its annual dividend to $ 0.12 per share , representing a nearly 15 % increase from the previous level and a cumulative increase of 500 % from the second quarter of 2019 . ( All amounts are expressed in United States Dollars unless otherwise indicated . ) ( See end notes on at end of press release ) Page ₁