YAMANA GOLD INC. (Form: 40-F, Received: 03/29/2018 15:35:00)

As at December 31,

Total carrying amount of liabilities for cash-settled arrangements ( Note 24 )

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 40-F

(Check One)




o	Registration statement pursuant to Section 12 of the Securities Exchange Act of 1934



ý	Annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934


For fiscal year ended: December 31, 2017		Commission File number: 1-31880

YAMANA GOLD INC.

(Exact name of registrant as specified in its charter)




Canada (Province or Other Jurisdiction of Incorporation or Organization)	1041 (Primary Standard Industrial Classification Code Number, if applicable)	Not Applicable (I.R.S. Employer Identification Number, if applicable)
	Royal Bank Plaza, North Tower 200 Bay Street, Suite 2200 Toronto, Ontario M5J 2J3 (416) 815 0220
(Address and Telephone Number of Registrant’s principal executive office)
	Meridian Gold Company 4635 Longley Lane Unit 110-4A Reno, Nevada 89502 (775) 850-3700
(Name, Address and Telephone Number of Agent for Service in the United States)

Securities registered or to be registered pursuant to Section 12(b) of the Act:




Title of Each Class	Name of Each Exchange On Which Registered
Common Shares, no par value	New York Stock Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act: none

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: none

For annual reports, indicate by check mark the information filed with this form:

ý Annual Information Form ý Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 948,524,667

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements in the past 90 days.

Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes o No o

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company o

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

FORWARD-LOOKING STATEMENTS

This annual report on Form 40-F and the exhibits attached hereto contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities legislation. Except for statements of historical fact relating to Yamana Gold Inc. (the “Company”), information contained herein constitutes forward-looking statements, including, but not limited to, any information as to the Company’s strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include:


•	the Company’s expectations in connection with the production and exploration, development and expansion plans at the Company’s projects being met;

•

the Company’s plans to continue building on its base of significant gold production, gold development stage properties, exploration properties and land positions in Canada, Brazil, Chile, and Argentina through existing operating mine expansions, throughput increases, development of new mines, advancement of its exploration properties and by targeting other gold consolidation opportunities with a primary focus in the Americas;


•	the Company’s expectations regarding the timing of construction completion and production at the Cerro Moro Project;


•	the impact of proposed optimizations at the Company’s projects;


•	the effect of government regulations (or changes thereto) with respect to the restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety and receipt of necessary permits;


•	the impact of the new mining law in Brazil and the Argentina tax reform package;


•	The Company’s expectations relating to the performance of the Canadian Malartic Mine;


•	The Company’s evaluation of various monetization opportunities for its Brio Gold Inc. holding from time to time;


•	the Company’s investments and development of infrastructure improvements to enhance community relations in the locations where it operates and the further development of the Company’s social responsibility programs;


•	the payment of any future dividends;


•	the outcome of any current or pending litigation against the Company;


•	the outcome of any current or pending tax assessments involving the Company;


•	the impact of general domestic and foreign business, economic and political conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions;


•	fluctuating metal prices (such as gold, copper, silver and zinc);


•	currency exchange rates (such as the Brazilian real, the Chilean peso, the Argentine peso, and the Canadian dollar versus the United States dollar);


•	interest rates;


•	possible variations in ore grade or recovery rates;


•	changes in the Company’s hedging program;


•	changes in accounting policies;


•	changes in mineral resources and mineral reserves;


•	risks related to acquisitions and/or dispositions;


•	changes in project parameters as plans continue to be refined;


•	changes in project development, construction;


•	production and commissioning time frames;


•	risks related to joint venture operations;


•	the possibility of project cost overruns or unanticipated costs and expenses;


•	potential impairment charges;


•	higher prices for fuel, steel, power, labor and other consumables contributing to higher costs and general risks of the mining industry, including but not limited to, failure of plant, equipment or processes to operate as anticipated;


•	unexpected changes in mine life;


•	final pricing for concentrate sales;


•	unanticipated results of future studies;


•	seasonality and unanticipated weather changes;


•	costs and timing of the development of new deposits;


•	success of exploration activities;


•	permitting timelines;


•	environmental and government regulation and the risk of government expropriation or nationalization of mining operations;


•	risks related to relying on local advisors and consultants in foreign jurisdictions;


•	environmental risks;


•	unanticipated reclamation expenses;


•	title disputes or claims;


•	limitations on insurance coverage and timing and possible outcome of pending and outstanding labor disputes;


•	risks related to enforcing legal rights in foreign jurisdictions;


•	vulnerability of information systems;


•	as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended December 31, 2017 included as exhibits to this annual report on Form 40-F.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be

accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting readers in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

CURRENCY

Unless otherwise indicated, all dollar amounts in this annual report on Form 40-F are in United States dollars. The exchange rate of United States dollars into Canadian dollars on December 29, 2017, based upon the daily average exchange rate as reported by the Bank of Canada, was U.S.$1.00 = CDN$1.2545.

RESOURCE AND RESERVE ESTIMATES

The Company's Annual Information Form, which is attached hereto as Exhibit 99.1, has been prepared in accordance with the requirements of the securities laws in effect in Canada as of December 31, 2017, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) and contained in Industry Guide 7 (“Industry Guide 7”). Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101, these terms are not defined terms under Industry Guide 7 and are not permitted to be used in reports and registration statements of United States companies filed with the Commission. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Readers are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations. In contrast, the Commission only permits U.S. companies to report mineralization that does not constitute “reserves” by Commission standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this annual report on Form 40-F, the documents attached hereto and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

DISCLOSURE CONTROLS AND PROCEDURES

A. Evaluation of disclosure controls and procedures. Disclosure controls and procedures are designed to ensure that (i) information required to be disclosed by the Company in reports that it files or submits to the Commission under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and (ii) material information required to be disclosed in the Company's reports filed under the Exchange Act is accumulated and communicated to the Company's management, including its Chairman and Chief Executive Officer (“CEO”) and its Senior Vice President, Finance and Chief Financial Officer (“CFO”), as appropriate, to allow for timely decisions regarding required disclosure.

At the end of the period covered by this report, an evaluation was carried out under the supervision of and with the participation of the Company's management, including the CEO and CFO, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Exchange Act). The evaluation included documentation review, enquiries and other procedures considered by management to be appropriate in the

circumstances. Based on that evaluation, the Company's CEO and CFO have concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective.

B. Management's report on internal control over financial reporting . The Company's management is responsible for establishing and maintaining effective internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of the Company's financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2017, based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management has concluded that the Company's internal control over financial reporting was effective as of December 31, 2017.

The Company's independent registered public accounting firm, Deloitte LLP, have audited the consolidated financial statements included in this annual report and have issued a report dated February 15, 2018 on the Company's internal control over financial reporting based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

C. Attestation report of the registered public accounting firm. Deloitte LLP's attestation report, “Report of Independent Registered Public Accounting Firm”, accompanies the Company's Audited Consolidated Financial Statements for the fiscal year ended December 31, 2017, dated as of February 15, 2018, which are attached hereto as Exhibit 99.3.

D. Changes in internal control over financial reporting. During the period covered by this annual report on Form 40-F, no change occurred in the Company's internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

The Company's management, including the CEO and CFO, does not expect that its disclosure controls and procedures or internal controls and procedures will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

NOTICES PURSUANT TO REGULATION BTR

The Company was not required by Rule 104 of Regulation BTR to send any notices to any of its directors or executive officers during the fiscal year ended December 31, 2017.

AUDIT COMMITTEE FINANCIAL EXPERT

The Company's board of directors (the “Board”) has determined that it has at least one audit committee financial expert serving on its audit committee. The Board has determined that Mr. Richard Graff is an audit committee financial expert and is

independent, as that term is defined by the Exchange Act and the New York Stock Exchange's corporate governance standards applicable to the Company.

The Commission has indicated that the designation of a person as an audit committee financial expert does not make such person an “expert” for any purpose, impose on such person any duties, obligations or liability that are greater than those imposed on such person as a member of the audit committee and the Board in the absence of such designation and does not affect the duties, obligations or liability of any other member of the audit committee or Board.

CODE OF ETHICS

The Board has adopted a written code of ethics entitled, “Code of Business Conduct and Ethics” (as amended from time to time, the “Code”), by which it and all officers and employees of the Company, including the Company's principal executive officer, principal financial officer and principal accounting officer or controller, abide. There were no waivers granted in respect of the Code during the fiscal year ended December 31, 2017. The Code is posted on the Company's website at www.yamana.com. A copy of the Code may also be obtained by contacting the Corporate Secretary of the Company at the address or telephone number indicated on the cover page of this annual report on Form 40-F. If there is an amendment to the Code, or if a waiver of the Code is granted to any of Company's principal executive officer, principal financial officer, principal accounting officer or controller, the Company intends to disclose any such amendment or waiver by posting such information on the Company's website. Unless and to the extent specifically referred to herein, the information on the Company's website shall not be deemed to be incorporated by reference in this annual report on Form 40-F.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Deloitte LLP acted as the Company's independent registered public accounting firm for the fiscal year ended December 31, 2017. See page 100 of the Company's Annual Information Form, which is attached hereto as Exhibit 99.1, for the total amount billed to the Company by Deloitte LLP for services performed in the last two fiscal years by category of service (for audit fees, audit-related fees, tax fees and all other fees) in Canadian dollars.

AUDIT COMMITTEE PRE-APPROVAL POLICIES AND PROCEDURES

See page 100 of the Company's Annual Information Form, which is attached hereto as Exhibit 99.1. No audit-related fees, tax fees or other non-audit fees were approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

OFF-BALANCE SHEET ARRANGEMENTS

Except as noted in Note 33 - “Contractual Commitments” to the Consolidated Financial Statements for the fiscal year ended December 31, 2017, the Company does not have any material off-balance sheet arrangements, and the Company does not have any relationships with unconsolidated special purpose entities.

TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

The disclosure provided under Section 9, “Liquidity, Capital Resources and Contractual Commitments - Contractual Commitments”, on page 43 of Exhibit 99.2, “Management's Discussion and Analysis”, is incorporated by reference herein.

IDENTIFICATION OF THE AUDIT COMMITTEE

The Company's Board of Directors has a separately designated standing Audit Committee established in accordance with section 3(a)(58)(A) of the Exchange Act and satisfies the requirements of Exchange Act Rule 10A-3. The Company's Audit Committee is comprised of Richard Graff, John Begeman, Andrea Bertone and Jane Sadowsky, all of whom, in the opinion of the Company's Board of Directors, are independent (as determined under Rule 10A-3 of the Exchange Act and the New York Stock Exchange Listed Company Manual) and are financially literate.

CORPORATE GOVERNANCE PRACTICES

There are certain differences between the corporate governance practices applicable to the Company and those applicable to U.S. companies under NYSE listing standards. A summary of the significant differences can be found on the Company's website at www.yamana.com.

I NCORPORATION BY REFERENCE

The Company's annual report on Form 40-F for the Year Ended December 31, 2017 is incorporated by reference into the Registration Statements on Form S-8 (Commission File No. 333-159047, File No. 333-148048 and File No. 333-145300) and on Form F-3D (Commission File No. 333-217016) of the Company.

UNDERTAKING AND CONSENT TO

SERVICE OF PROCESS

A. Undertaking

Yamana Gold Inc. undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to: the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said securities.

B. Consent to Service of Process

The Company has filed an Appointment of Agent for Service of Process and Undertaking on Form F-X with respect to the class of securities in relation to which the obligation to file this Form 40-F arises.

SIGNATURES

Pursuant to the requirements of the Exchange Act, Yamana Gold Inc. certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

Date: March 29, 2018





	YAMANA GOLD INC.
By:	/s/ Peter Marrone
	Name: Peter Marrone
	Title: Chairman and Chief Executive Officer

EXHIBIT INDEX



Exhibit No.	Description

99.1	Annual Information Form for the year ended December 31, 2017
99.2	Management’s Discussion and Analysis for the year ended December 31, 2017
99.3	Audited annual financial statements for the fiscal year ended December 31, 2017
99.4	Certificate of Peter Marrone required by Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
99.5	Certificate of Jason LeBlanc required by Rule 13a-14(a) or Rule 15d-14(a), pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
99.6	Certificate of Peter Marrone pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.7	Certificate of Jason LeBlanc pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.8	Consent of Deloitte LLP, Independent Registered Public Accounting Firm
99.9	Consent of Chester Moore, P.Eng.
99.10	Consent of Hugo Miranda, ChMC (RM)
99.11	Consent of Avakash Patel, P.Eng.
99.12	Consent of Holger Krutzelmann, P.Eng.
99.13	Consent of Normand Lecuyer, P.Eng.
99.14	Consent of Donald Gervais, P. Geo.
99.15	Consent of Christian Roy, Eng.
99.16	Consent of Alain Thibault, Eng.
99.17	Consent of Carl Pednault, Eng.
99.18	Consent of Daniel Doucet, Eng.
99.19	Consent of Luiz Pignatari
99.20	Consent of Sergio Castro
99.21	Consent of Felipe Machado de Araújo
99.22	Consent of Jorge Camacho
99.23	Consent of Marcos Valencia A., FAuIMM
101	Interactive Data File

EXHIBIT 99.1

YAMANA GOLD INC.

ANNUAL INFORMATION FORM

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

March 27, 2018

200 Bay Street, Suite 2200

Royal Bank Plaza, North Tower

Toronto, Ontario M5J 2J3

EXHIBIT 99.1



Table of Contents
INTRODUCTORY NOTES	3
Cautionary Note Regarding Forward-Looking Statements	3
Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Mineral Resources	4
Currency Presentation and Exchange Rate Information	5
CORPORATE STRUCTURE	5
GENERAL DEVELOPMENT OF THE BUSINESS	7
Overview of Business	7
History	7
DESCRIPTION OF THE BUSINESS	11
Principal Products	11
Competitive Conditions	12
Operations	12
Environment and Communities	12
Risks of the Business	18
Technical Information	34
Mineral Projects	37
Summary of Mineral Reserve and Mineral Resource Estimates	37
Chapada Mine	42
El Peñón Mine	52
Canadian Malartic Mine	59
Jacobina Mining Complex	68
Minera Florida Mine	69
Gualcamayo Mine	70
Cerro Moro Project	72
Agua Rica Project	74
Suyai Project	75
Monument Bay	75
DIVIDENDS	75
DESCRIPTION OF CAPITAL STRUCTURE	76
MARKET FOR SECURITIES	76
DIRECTORS AND OFFICERS	77
PROMOTER	85
LEGAL PROCEEDINGS AND REGULATORY ACTIONS	85
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	86
TRANSFER AGENTS AND REGISTRAR	86
MATERIAL CONTRACTS	86
AUDIT COMMITTEE	86
INTERESTS OF EXPERTS	88
ADDITIONAL INFORMATION	89
SCHEDULE ”A” – CHARTER OF THE AUDIT COMMITTEE	89

EXHIBIT 99.1

ITEM 1

INTRODUCTORY NOTES

Cautionary Note Regarding Forward-Looking Statements

This annual information form contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under applicable Canadian securities legislation. Except for statements of historical fact relating to the Company (as defined herein), information contained herein constitutes forward-looking statements, including, but not limited to, any information as to the Company’s strategy, plans or future financial or operating performance. Forward-looking statements are characterized by words such as “plan”, “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. In particular, forward looking information included in this annual information form includes, without limitation, statements with respect to:


•	the Company’s expectations in connection with the production and exploration, development and expansion plans at the Company’s projects discussed herein being met;

•


•	the Company’s expectations regarding the timing of construction completion, and production at the Cerro Moro Project;


•	the impact of proposed optimizations at the Company’s projects;


•	the effect of government regulations (or changes thereto) with respect to the restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety and receipt of necessary permits;


•	the impact of the new mining law in Brazil and the Argentina tax reform package;


•	Yamana’s expectations relating to the performance of the Canadian Malartic Mine;


•	Yamana’s evaluation of various monetization opportunities for its Brio Gold holding from time to time;


•	the Company’s investments and development of infrastructure improvements to enhance community relations in the locations where it operates and the further development of the Company’s social responsibility programs;


•	the payment of any future dividends;


•	the outcome of any current or pending litigation against the Company; and


•	the outcome of any current or pending tax assessments involving the Company.

Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the impact of general domestic and foreign business, economic and political conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian real, the Chilean peso, the Argentine peso, and the Canadian dollar versus the United States dollar), interest rates, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in Mineral Resources (as defined herein) and Mineral Reserves (as defined herein), and risks related to acquisitions and/or dispositions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, potential impairment charges, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, including but not limited to, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather

EXHIBIT 99.1

changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, environmental and government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, vulnerability of information systems, as well as those risk factors discussed or referred to herein and in the Company’s annual management’s discussion and analysis filed with the securities regulatory authorities in all provinces of Canada and available under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Mineral Resources

This annual information form has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “Mineral Reserve”, “Proven Mineral Reserve” and “Probable Mineral Reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). These definitions differ significantly from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) and contained in Industry Guide 7 (“Industry Guide 7”) under the United States Securities Act of 1933, as amended (the “Securities Act”). In particular, under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report Mineral Reserves, the three-year historical average price is used in any Mineral Reserve or cash flow analysis to designate Mineral Reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, Industry Guide 7 applies different standards in order to classify mineralization as a mineral reserve. As a result, the definitions of Proven Mineral Reserves (as defined herein) and Probable Mineral Reserves (as defined herein) used in NI 43-101 differ from the definitions used in Industry Guide 7. Under Commission standards, mineralization may not be classified as a mineral reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the mineral reserve determination is made. Among other things, all necessary permits would be required to be in hand or the issuance must be imminent in order to classify mineralized material as mineral reserves under the Commission’s standards. Accordingly, Mineral Reserve estimates contained in this annual information form may not qualify as mineral reserves under Commission standards.

In addition, the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are defined in and required to be disclosed by NI 43-101. However, the Commission does not recognize Mineral Resources and United States companies are generally not permitted to disclose Mineral Resources of any category in documents they file with the Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into Mineral Reserves as defined in NI 43-101 or Industry Guide 7. Further, Inferred Mineral Resources (as defined herein) have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies. Investors are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable, or that all or any part of Measured Mineral Resources (as defined herein), Indicated Mineral Resources (as defined herein), or Inferred Mineral Resources will ever be upgraded to a higher category. In addition, disclosure of “contained ounces” in a Mineral Resource is permitted disclosure under Canadian regulations. In contrast, the Commission only permits United States companies to report mineralization that does not constitute Mineral Reserves by Commission standards as in place tonnage and grade, without reference to unit measures. Investors are cautioned that information contained in this annual information form may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.

EXHIBIT 99.1

Currency Presentation and Exchange Rate Information

This annual information form contains references to both United States dollars and Canadian dollars. All dollar amounts referenced, unless otherwise indicated, are expressed in United States dollars and Canadian dollars are referred to as “Canadian dollars” or “Cdn$”.

The closing, high, low and average exchange rates for the United States dollar in terms of Canadian dollars for the years ended December 31, 2017, December 31, 2016, December 31, 2015 and December 31, 2014 based on the closing rate reported by the Bank of Canada, were as follows:



	Year-Ended December 31
	2,017	2,016	2,015	2,014
Closing	Cdn$1.2545	Cdn$1.34	Cdn$1.38	Cdn$1.16
High	1.3743	1.46	1.40	1.16
Low	1.2128	1.25	1.17	1.06
Average ⁽¹⁾	1.2986	1.32	1.28	1.10

⁽¹⁾ Calculated as an average of the daily close rates for each period.

On March 27, 2018, the Bank of Canada rate of exchange was $1.00 = Cdn$0.7771 or Cdn$1.00 = $1.2869.

ITEM 2

CORPORATE STRUCTURE

Yamana Gold Inc. (the “Company” or “Yamana”) was continued under the Canada Business Corporations Act by Articles of Continuance dated February 7, 1995. On February 7, 2001, pursuant to Articles of Amendment, the Company created and authorized the issuance of a maximum of 8,000,000 first preference shares, Series 1. On July 30, 2003, pursuant to Articles of Amendment, the name of the Company was changed from Yamana Resources Inc. to Yamana Gold Inc. On August 12, 2003, the authorized capital of the Company was altered by consolidating all of the then issued and outstanding common shares of the Company on the basis of one new common share for 27.86 existing common shares.

The Company’s head office is located at 200 Bay Street, Royal Bank Plaza, North Tower, Suite 2200, Toronto, Ontario M5J 2J3 and its registered office is located at 2100 Scotia Plaza, 40 King Street West, Toronto, Ontario M5H 3C2.

The corporate chart that follows on the next page illustrates the Company’s principal subsidiaries (collectively, the “Subsidiaries”) as of March 28, 2018, together with the jurisdiction of incorporation of each company and the percentage of voting securities beneficially owned, controlled or directed, directly or indirectly, by the Company. As used in this annual information form, except as otherwise required by the context, reference to the “Company” or “Yamana” means Yamana Gold Inc. and the Subsidiaries.

EXHIBIT 99.1

EXHIBIT 99.1

ITEM 3

GENERAL DEVELOPMENT OF THE BUSINESS

Overview of Business

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties and land positions in Canada, Brazil, Chile, and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions and optimization initiatives, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas.

The Company’s portfolio includes six operating gold mines, one development stage project currently under construction and various advanced and near development stage projects and exploration properties in Canada, Brazil, Chile, and Argentina. Yamana operates its mines and projects under common corporate oversight. Within this structure, Chapada, El Peñón and Canadian Malartic are the Company’s material producing mines and the largest contributors to cash flow. In addition, the Company holds a majority interest in Brio Gold Inc. (“Brio Gold”), a public company which holds the Pilar mine (gold), the Fazenda Brasileiro mine (gold), the Riachos dos Machados mine (gold) (“RDM”), the C1 Santa Luz project (gold), and some related exploration concessions.

Set out below is a list of Yamana’s main properties and mines:

Material Producing Mines

• Chapada Mine (Brazil)

• El Peñón Mine (Chile)

• Canadian Malartic Mine (Canada) – 50% indirect interest

Other Producing Mines

• Jacobina Mining Complex (Brazil)

• Minera Florida Mine (Chile)

• Gualcamayo Mine (Argentina)

Development Projects

• Cerro Moro Project (Argentina)

Additional Projects

• Agua Rica Project (Argentina)

• Suyai Project (Argentina)

• Monument Bay Project (Canada)

History

Over the three most recently completed financial years, the following events contributed materially to the development of the Company’s business:

Copper Sales Agreement

On January 12, 2018, Yamana entered into a copper advanced sales program pursuant to which the Company received $125.0 million in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and first half of 2019. This production represents approximately one third of planned production in the period of the program or approximately 16% of the total production for 2018 and 2019. Copper is expected to be delivered against these prepaid volumes coincident with planned shipments of concentrate from the Chapada Mine.

Sale of Exploration Properties

On December 21, 2017, the Company announced that it entered into an agreement to sell certain jointly owned exploration properties of the Canadian Malartic Corporation ("CMC") including the Kirkland Lake and Hammond Reef properties. The transaction is structured as a sale of assets by CMC (in which Yamana holds a 50% indirect interest) pursuant to which Agnico Eagle Mines Limited ("Agnico Eagle") will acquire all of Yamana's indirect 50% interest in the Canadian exploration assets of

EXHIBIT 99.1

CMC in consideration of cash proceeds to Yamana of $162.5 million. The transaction will not affect the Canadian Malartic Mine and related assets including Odyssey, East Malartic, Midway, and East Amphi. The transaction closed on March 28, 2018.

Notes Offering

On November 29, 2017, the Company priced an offering of $300 million aggregate principal amount of 4.625% Senior Notes due December 15, 2027 (the “Initial Notes”) in a transaction that was exempt from registration under the Securities Act. In connection with the issuance of the Initial Notes, the Company entered into a registration rights agreement, dated as of December 4, 2017, with the initial purchasers of the Initial Notes, providing for the issuance of new notes in exchange for up to a like aggregate principal amount of Initial Notes. The Initial Notes are unsecured, senior obligations of Yamana and are unconditionally guaranteed by certain of Yamana’s subsidiaries that are also guarantors under Yamana's credit facility. The offering closed on November 27, 2017.

Brio Gold

On February 16, 2018, Brio Gold announced that it had entered into a definitive agreement with Leagold Mining Corporation (“Leagold”) whereby Leagold will acquire all of the issued and outstanding common shares of Brio Gold (“Brio Shares”). As a result of a series of transactions that the Company completed in 2016 and 2017, the Company currently owns 62,535,922 common shares of Brio Gold (the “Brio Shares”), representing in the aggregate approximately 53.6% of the issued and outstanding Brio Shares on a basic basis and approximately 52.8% on a fully diluted basis. The Company entered into a support agreement with Leagold, pursuant to which it agreed, among other things, to vote its Brio Shares in favour of this transaction. Based on the share exchange ratio to be provided under the offer, the Company is expected to receive 58,115,953 shares of Leagold, representing approximately 22% ownership in the combined entity. It is anticipated that the special meeting of Brio Gold shareholders to consider the transaction will be held on April 12, 2018. Currently, as a result of Yamana owning more than 50% of the issued and outstanding Brio Shares, Yamana accounts for Brio Gold on a consolidated basis. Assuming the successful completion of the acquisition by Leagold, Yamana expects it will account for Leagold on an equity accounting basis.

Initially a wholly-owned subsidiary of Yamana, Brio Gold became a stand-alone public company on December 23, 2016, whereby, through a series of transactions, Yamana sold a total of 17,324,507 Brio Shares at a price of Cdn$3.25 per share for aggregate proceeds of Cdn$56,304,648 to Yamana. Further, on March 6, 2017, the Company announced the sale to an arm’s length institutional shareholder of 6,000,000 Brio Shares at a price of Cdn$3.35 per share, for total proceeds to Yamana of Cdn$20,100,000. On June 2, 2017, the Company completed a secondary offering of 26,667,000 Brio Shares at a price of Cdn$3.00 per share for total gross proceeds to Yamana of Cdn$80,001,000.

Board and Management Update

On February 15, 2018, the Company announced that Henry Marsden was formally promoted to Senior Vice President, Exploration upon the retirement of William Wulftange. Previously serving as Yamana’s Chief Geologist, Mr. Marsden was hired by Mr. Wulftange and has been with the Company since 2016. Mr. Marsden has over 30 years of exploration experience, including over 20 years as a consulting geologist working with a variety of clients and focusing on field exploration work. He also played a key role in the discovery and advancement of several deposits including Rio Blanco and Pico Machay in Peru, and the Timmins West gold deposit in Timmins, Ontario where he was responsible for the first mineral resource which ultimately lead to mine construction. Mr. Marsden will be responsible for the development, implementation and management of Yamana’s overall exploration strategy and activities, with a focus on expanding Mineral Reserves and Mineral Resources, as well as for forging partnerships with companies focused on early stage exploration opportunities.

On September 29, 2017, the Company announced that Darcy Marud, Executive Vice President, Enterprise Strategy, would be leaving the Company. This development arose in the context of a continuation of efforts to consolidate the Company’s executive management in the Toronto office, with Barry Murphy, Senior Vice President, Technical Services, now reporting directly to Daniel Racine, Chief Operating Officer.

On August 28, 2017, the Company announced the appointment of Robert Gallagher to its board of directors. Mr. Gallagher has more than 35 years of experience in the mining industry and is a Professional Engineer with a specialty in mineral processing. Most recently, he held the position of President and Chief Executive Officer at New Gold Inc. During Mr. Gallagher's tenure, New Gold expanded its portfolio through organic growth and the addition of both producing assets and development projects. Prior to New Gold, Mr. Gallagher held increasingly senior management roles at Newmont Mining Corporation over a seven-year period, including Vice President Operations, Asia Pacific; Vice President, Indonesian Operations; and General Manager, Batu Hijau. Earlier in his career, Mr. Gallagher worked at a number of operating mines located throughout the Americas and Asia in various plant engineer, metallurgical, and mine management roles, including most notably 15 years at Placer Dome Inc.

EXHIBIT 99.1

On July 27, 2017, the Company announced the appointment of Andrea Bertone to its board of directors. Ms. Bertone has nearly 20 years of senior management experience in the energy industry in the Americas and most recently held the position of President of Duke Energy International LLC ("Duke Energy"), where she reported directly to the Chief Executive Officer of the largest utility in the United States. In this role, and based in the United States, she was responsible for operations across South and Central America. Prior to her role as President of Duke Energy, Ms. Bertone spent nearly 10 years in increasingly senior management roles with Duke Energy and its subsidiary companies. Also on July 27, 2017, the Company announced that Mr. Carl Renzoni and Mr. Patrick Mars would be retiring from the board of directors before the next annual meeting of shareholders. They subsequently retired in December 2017.

On May 15, 2017, Steve Parsons joined the Company in the role of Senior Vice President, Investor Relations and Corporate Communications. Mr. Parsons will be responsible for managing relationships with investors and other capital markets participants, and Yamana's internal and external communications strategies, including social media and media relations. Mr. Parsons comes to Yamana most recently from National Bank Financial Inc. where he was a senior gold mining analyst and had coverage of Yamana in addition to a number of its peers. Mr. Parsons spent 13 years in the investment industry with the majority of that time as a senior mining analyst covering gold and base metal companies for National Bank Financial and Wellington West Capital Markets. Prior to that, Mr. Parsons worked in the mining industry for eight years, principally as a mineral processing engineer for Placer Dome Inc. and a leading consulting firm based in Toronto. He is a mining engineer with a specialty in metallurgy.

On February 15, 2017, the Company announced the formal appointment of Mr. Jason LeBlanc as Chief Financial Officer (“CFO”) upon the retirement of Mr. Charles Main, Executive Vice President, Finance and CFO. Mr. LeBlanc joined the Company in January 2006 and has over 15 years of research-based and financial experience in the mining industry. During his time at Yamana, Mr. LeBlanc has held increasingly senior positions including most recently the position of Senior Vice President, Finance as of February 2016 as part of his transition to CFO. Mr. LeBlanc has a Master of Finance from the University of Toronto, a Bachelor of Commerce from the University of Windsor and holds a Chartered Financial Analyst designation.

Also on February 15, 2017, the Company announced the appointment of Ms. Kimberly Keating to the Company’s board of directors. Ms. Keating has nearly 20 years of experience in the Canadian energy industry with extensive engineering and project management expertise. Ms. Keating is currently Vice President, Fabrication with the Cahill Group, where among other things she has overseen the construction of the largest offshore accommodation facility built in Canada. In Ms. Keating’s career, she has made significant engineering and project management contributions to key projects in the North Atlantic offshore oil and gas industry.

On July 27, 2016, Mr. Yohann Bouchard was promoted into the role of Senior Vice President, Operations. Mr. Bouchard joined Yamana in October 2014. Mr. Bouchard has progressive technical and operating experience with a solid background of more than 20 years of mining in underground and open pit operations. Also on July 27, 2016, Gerardo Fernandez was promoted into the role of Senior Vice President, Operations. Mr. Fernandez has been with the Company since 2000, having worked in several positions in mine operations, mine planning and project development.

On May 4, 2016, the Company announced the promotion of Daniel Racine from the position of Senior Vice President, Northern Operations to the position of Executive Vice President and Chief Operating Officer. In this role, Mr. Racine will assume full oversight responsibility for the Company's operations. Mr. Racine is a registered engineer with L'Ordre des Ingenieurs du Quebec, a professional engineer with Professional Engineers Ontario and a member of the Ontario Society of Professional Engineers. Mr. Racine joined Yamana Gold in May 2014.

On February 18, 2016, Mr. Greg McKnight was promoted into the role of Executive Vice President, Business Development. He previously held the role of Senior Vice President, Business Development of the Company.

On April 28, 2015, the Company announced the appointment of Ross Gallinger as Senior Vice President, Health, Safety and Sustainable Development. Mr. Gallinger is responsible for the oversight, strategic development, delivery and management of the Company’s health, safety, environment and community policies, programs, and activities to ensure the effectiveness of such programs with the objective to improve the Company’s overall performance.

Cerro Moro Construction Decision

The Company announced, in early 2015, the formal decision to proceed with the construction of the Cerro Moro Project and provided updated project parameters with respect to timing and capital investment. During the course of 2015, detailed engineering for the 1,000 tonnes per day processing plant and mine was advanced to approximately 50% completion, in line with the published project execution schedule. Included in the 2015 work program was the upgrading and extension of the site access

EXHIBIT 99.1

road, conclusion of the locked-cycle metallurgical test work program, the placement of orders on various long-lead time items such as the tailings thickeners, and the continuation of the first stage of the construction camp. The 2016 work program included the ramp-up of site construction activities; the continuation of detailed engineering; and the advancement of underground mining in order to gain a better understanding of in-situ mining conditions. In 2017, underground development progressed according to plan, with completion of the mechanical displine at the processing facility achieved in 2017. Open pit operations commenced with mobilization beginning in December, 2017. For the first quarter of 2018, the focus will move from construction to commissioning and operational readiness, with remaining construction works on piping, electrical, instrumentation installation staged to suit the commissioning plan, and the recruitment, onboarding and training of the operational staff aligned to the start of operations in the second quarter of 2018. See “Description of the Business – Additional Projects – Cerro Moro Project”.

Sale of Mercedes

On July 28, 2016, the Company entered into an agreement with Premier Gold Inc. (“Premier”) to sell 100% of its interest in the Mercedes mine through the sale of its Mexican subsidiaries. As consideration for the sale, the Company received cash consideration of $122.5 million, six million Premier common shares, and three million Premier common share purchase warrants exercisable at Cdn$4.75 per common share for 24 months. In addition, the Company received a 1% net smelter return royalty on the Mercedes mine, that becomes payable upon the earlier of six years from the completion of the sale and the date upon which cumulative production of 450,000 ounces of gold equivalent from the Mercedes mine has been achieved, as well as a 2% net smelter return royalty on the La Silla property in Sinaloa, Mexico and the La Espera property in Sonora, Mexico. The sale was completed on September 30, 2016.

Altius

On March 31, 2016, the Company announced that it had entered into a copper purchase agreement with Altius Minerals Corporation (“Altius”) pursuant to which Altius agreed to pay Yamana total advanced payments of $60 million in cash consideration plus 400,000 Altius common share purchase warrants. The agreement provides Altius with the right to receive payments of copper related to the production from the Company’s Chapada mine in Brazil. A non-refundable deposit of $8 million was paid to Yamana on signing with the balance paid on May 3, 2016. The proceeds from this agreement were used to finance the acquisition of RDM.

Dividend Policy

In January 2016, the Company’s board of directors amended the Company’s dividend policy to set the quarterly dividends paid per common share at $0.02 annually, beginning with the declaration and payment of the first quarter 2016 dividend. Payment of any future dividends will be at the discretion of the Company’s board of directors after taking into account many factors, including the Company’s operating results, financial condition, comparability of the dividend yield to peer group gold companies and current and anticipated cash needs.

Sandstorm Gold Transactions

On October 27, 2015, the Company announced that it had entered into three metal purchase agreements with Sandstorm Gold Ltd. (“Sandstorm”), for which Sandstorm paid the Company total cash payments of $148 million and issued the Company 15 million Sandstorm common share purchase warrants with a five year term and strike price of $3.50. The warrants are exercisable when the Company has incurred an additional $40 million in capital expenditures in respect of the development and construction of the Cerro Moro mine. Sandstorm will also pay the Company an additional cash payment of $4 million in April 2016. The metal purchase agreements include a silver purchase contract related to production from the Cerro Moro mine, Minera Florida and Chapada, a copper purchase transaction related to production from Chapada, and a gold purchase transaction related to production from Agua Rica. All amounts received were used by the Company to reduce the balance outstanding on its revolving credit facility.

On October 3, 2016, the Company announced the sale of the Sandstorm warrants for total net proceeds of approximately $33.55 million, or approximately $2.24 per warrant.

Hedge Programs

As at December 31, 2017, the Company had 23 million pounds of copper forward contracts at an average sales price of $3.07 per pound and 45 million pounds of copper option contracts providing a minimum price of $2.85 per pound and a maximum price of $3.33 per pound. These contracts mature over the first half of 2018.

As at December 31, 2017, the Company had 131,900 ounces of gold option contracts providing a minimum price of $1300 per ounce and a maximum price of $1,414 per ounce. These contracts mature over the first three months of 2018.

EXHIBIT 99.1

Mega Precious – Acquisition

On June 22, 2015, the Company acquired all of the issued and outstanding common shares of Mega Precious Metals Inc. (“Mega Precious”). Mega Precious was a Canadian-based exploration company with a high quality pipeline of projects located in Manitoba, Northwestern Ontario and Nunavut. The most significant and advanced project is the Monument Bay gold/tungsten project located in northeastern Manitoba. The transaction is expected to advance the Company’s strategy to expand its presence in Canada.

Total consideration paid for the acquisition of Mega Precious was $14.5 million which consisted of approximately $0.2 million in cash, $14.0 million in Yamana common shares (4,366,675 shares) and transaction costs. Each Mega Precious shareholder received $0.068 per share comprised of Cdn$0.001 in cash and 0.02092 of a Yamana common share for each Mega common share held. As part of the acquisition and included in the total consideration paid, the Company acquired the convertible notes of Pacific Road Capital II Pty Limited, as trustee for Pacific Road Resources Fund II, and Pacific Road Capital Management GP II Limited, as general partner of Pacific Road Resources Fund II L.P. (collectively, “Pacific Road”) totaling $2.4 million, and issued 744,187 Yamana common shares at $3.21 per share, which concurrently terminated the existing agreement between Pacific Road and Mega Precious.

Dividend Reinvestment Plan

On February 18, 2015, the Company announced the implementation of a dividend reinvestment plan (the “DRIP”), effective for the first quarter dividend of 2015 forward, which provides eligible holders of the Company’s common shares with the option of reinvesting all or a portion of the dividends paid to them as shareholders (less any withholding tax) to purchase additional common shares of the Company. Participation in the DRIP is optional. The common shares acquired on behalf of eligible participants by the DRIP agent, CST Trust Company, will, at the sole option of the Company, be common shares issued from the treasury of the Company or common shares acquired on the open market through the facilities of the Toronto Stock Exchange (the “TSX”), the New York Stock Exchange (the “NYSE”) or any other stock exchange on which the common shares of the Company are then listed (each a “Listed Market”). The purchase price of the common shares purchased under the DRIP shall be the volume weighted average price of the common shares on the applicable Listed Market for the five trading days preceding the dividend payment date.

Public Offering

On February 3, 2015, the Company closed a bought deal offering (the “Public Offering”) of common shares of the Company. A total of 56,465,000 common shares were issued at a price of Cdn$5.30 per share, for aggregate gross proceeds of Cdn$299,264,500 (which included the full exercise by the underwriters of the over-allotment option for 7,365,000 common shares). The common shares of the Company were sold pursuant to an underwriting agreement (the “Underwriting Agreement”) dated January 15, 2015 between the Company and a syndicate of underwriters led by Canaccord Genuity Corp. and National Bank Financial Inc., and including CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc., Merrill Lynch Canada Inc., Credit Suisse Securities (Canada), Inc., Raymond James Ltd., Citigroup Global Markets Canada Inc., Cormark Securities Inc., Macquarie Capital Markets Canada Ltd., Morgan Stanley Canada Limited, and Barclays Capital Canada Inc. The net proceeds of the Public Offering were used to repay amounts under the Company’s $1 billion revolving credit facility, in order to reduce the Company’s debt position and further strengthen its balance sheet.

ITEM 4

DESCRIPTION OF THE BUSINESS

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties and land positions in Canada, Brazil, Chile, and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions, throughput increases, development of new mines, advancement of its exploration properties and by targeting other gold consolidation opportunities with a primary focus in the Americas.

Principal Products

The Company’s principal product is gold, with gold production forming a significant part of revenues. There is a global gold market into which Yamana can sell its gold and, as a result, the Company is not dependent on a particular purchaser with regard to the sale of the gold that it produces.

EXHIBIT 99.1

The Company produces gold-copper concentrate at its Chapada Mine, gold and silver doré bars at its El Peñón Mine, gold doré bars at its Jacobina Mining Complex (the “JMC”) and Gualcamayo Mine, and gold and silver doré bars and zinc concentrate at its Minera Florida Mine. Additionally, the Company has a 50% indirect interest in the Canadian Malartic Mine, which produces gold and silver doré bars. The Company has contracts with a number of smelters, refineries and trading companies to sell gold and silver doré and gold-copper and zinc concentrate.

Competitive Conditions

The precious metal mineral exploration and mining business is a competitive business. The Company competes with numerous other companies and individuals in the search for and the acquisition of attractive precious metal mineral properties. The ability of the Company to acquire precious metal mineral properties in the future will depend not only on its ability to develop its present properties, but also on its ability to select and acquire suitable producing properties or prospects for precious metal development or mineral exploration.

Operations

Employees

As at December 31, 2017, the Company had the following employees and contractors at its operations:



Country	Employees	Contractors	Total
Canada, Corporate	143	2	145
Canada, Canadian Malartic (50% indirect interest)	758	555	1,313
Argentina	1,286	1,040	2,326
Brazil	1,437	1,851	3,288
Chile	1,743	2,015	3,758
Netherlands	1	-	1
United States	4	1	5
Total	5,372	5,464	10,836

Domestic and Foreign Operations

The Company’s mine and mineral projects are located in Brazil, Chile, Argentina, and Canada. See “General Development of the Business – Overview of Business” for a summary of the Company’s projects. Any changes in regulations or shifts in political attitudes in any of these jurisdictions, or other jurisdictions in which Yamana has projects from time to time, are beyond the control of the Company and may adversely affect its business. Future development and operations may be affected in varying degrees by such factors as government regulations (or changes thereto) with respect to the restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety and receipt of necessary permits. The effect of these factors cannot be accurately predicted. See “– Risks of the Business”.

Environment and Communities

Protecting the environment and its employees, and maintaining a social license with the communities where the Company operates are key to Yamana’s success.

Yamana developed a mission statement in 2016 that emphasizes the importance of integrating health, safety, environment and community (HSEC) into its operational and corporate culture. One Team, One Goal: Zero reflects the belief that everyone at Yamana is responsible for the Company’s HSEC performance.

Yamana’s HSEC performance is described in its material issues report, which is available on its website ( www.yamana.com ).

EXHIBIT 99.1

Recognition

Yamana’s HSEC management and performance were recognized in the following ways in 2017:


•	Yamana was named one of the Best 50 Corporate Citizens in Canada by Corporate Knights magazine for the seventh year in a row.


•	Yamana was included in Sustainalytics’ Jantzi Social Index for the ninth consecutive year. The index partners with the Dow Jones Sustainability Index to screen the 50 top performing Canadian companies from an environmental, social and governance perspective.


•	Chapada received first place in central Brazil and second nationally in the risk management category of the Proteção awards, considered the most important health and safety honour given to a Brazilian company.

Governance

Overall governance of HSEC is supported by the Company’s board of directors, the corporate HSEC team, and an HSEC team and committee at each site.



The board of directors The sustainability committee of the board of directors oversees all aspects of health, safety and sustainability matters. It reviews policies, compliance issues and incidents, and ensures that Yamana has been diligent in carrying out the Company’s responsibilities and activities.	Corporate The corporate HSEC team is led by the Senior Vice President, Health, Safety and Sustainable Development. The team implements policy and strategy, and facilitates dialogue with external stakeholders. It also collaborates with the mine sites to co-develop standards and procedures and share best practices, with any policy or strategy modifications reviewed by Yamana’s general managers, regional directors, senior executive team and the board of directors.	Site Each site has an HSEC team and a committee chaired by the site’s general manager. The committees meet at least monthly to discuss HSEC issues and solutions and other operational practices. The committees monitor the effectiveness and performance of their site’s sustainability programs and report any material issues to the general manager who escalates matters as necessary.

Management

Yamana uses an integrated HSEC Framework to guide its approach to health, safety and sustainability. Based on industry best practices and the legal environment in the jurisdictions where the Company operates, the framework empowers sites and provides them with strategic guidance to identify areas to improve performance and implement best practices. It also provides guidelines for engaging with stakeholders and managing the impact of an operation on the local community.

Three key principles support the Company’s approach to HSEC Management – risk management, integration and external reporting and assessment:

1. Risk management

The basis of Yamana’s management approach is effective risk management. Using the HSEC Framework and specific standards within the Yamana Management System (YMS), each operation effectively maps its HSEC risks and develops an approach to:


•	planning and risk assessment


•	standard operating procedures


•	identifying legal and contractual requirements


•	industry best practices


•	company objectives


•	the link between outcomes and action plans for key performance metrics, development plans and internal auditing systems.

Operating sites are audited against the policies, standards and procedures in the YMS.

High level risks, including risks associated with tailings dam facilities, waste rock dumps, heap leach piles or cyanide usage, among others, have enhanced, specific management measures for mitigating potential failures, spills or slides.

EXHIBIT 99.1

These include permanent monitoring of each structure, and tools to help monitor specific risks. The Company also reviews monthly reports on the tailings dams, which are prepared by third party consultants. See “Risks of the Business”.

Canadian Malartic Mine, a jointly-owned operation with Agnico Eagle, operates under Agnico Eagle’s HSEC management systems. These systems are based on international best practices and are consistent with the YMS.

2. Integration

Yamana’s HSEC process involves every operation, starting with risk assessment through to implementation and monitoring. Making operational management responsible for integrating HSEC improves strategic planning and implementation, and means the outcome is owned by the entire site instead of a specific department.

3. External reporting and assessment

Yamana reports on HSEC performance annually in its material issues report following the most current guidelines produced by the Global Reporting Initiative.

Audit reports for Yamana’s cyanide management can be found on the International Cyanide Management Code website, and Yamana’s energy and emissions performance is reported to the Carbon Disclosure Project.

Yamana also maintains certifications with several external agencies, including:


•	International Cyanide Management Code


•	ISO 14001 Environmental Management Systems


•	OHSAS 18001 Occupational Health and Safety Management Systems


•	World Gold Council’s Conflict-Free Gold Standard.

Performance

Yamana regularly reports on its performance in six material areas:


•	health and safety


•	social license and human rights


•	climate change


•	tailings and waste management


•	water management


•	mine closure.

The Company has had no significant spills, releases or incidents since 2014.

Health and safety

Yamana improved its overall health and safety performance in 2017, and there were no workplace fatalities. Unfortunately, in February 2018, the Company reported a motor vehicle accident double fatality at the Gualcamayo Mine involving a local contractor. The company continues to work with authorities and the contractor to identify and implement measures to prevent future incidents.

While the frequency of lost time incidents (LTIs) increased from 0.13 to 0.22, the total recordable incident rate decreased from 0.84 to 0.75 (all data excludes Canadian Malartic). Chapada achieved a new record of 619 consecutive days without the occurrence of a lost time injury.

Yamana’s stable safety performance reflects the efforts it has made toward reaching its goal of zero serious injuries. The Company recognizes, however, that there is still significant work to be done, and has continuous learning and improvement initiatives across the organization aimed at identifying ways to make step changes in safety performance.

Yamana’s health and safety team had the following priorities in 2017 (which continue into 2018):


•	increase measurement and reporting of preventative or ‘leading’ indicators


•	increase focus on high potential incidents and sharing learnings across sites


•	ensure fatal risk controls are best-in-class and verified in the field


•	develop new leadership standards.

EXHIBIT 99.1

Social license and human rights

As in previous years, Yamana had no significant community conflicts or incidents in 2017.

Yamana’s social performance is guided by a specific set of community relations standards contained in the YMS. Underpinning these standards are a number of social policies, including Yamana’s Human Rights Policy, which is on the Company website. Yamana is committed to acting in accordance with Voluntary Principles on Security and Human Rights and requires the same adherence from its service providers. The HSEC Framework also provides best practices guidelines for stakeholder engagement, impact and benefit management.

Each operation has a community relations team that regularly engages with the local community through formal and informal engagement mechanisms. Activities in 2017 included:


•	hosting 64 community and other formal meetings at its operations, with over 1,780 participants


•	responding to 46 formal grievances, mainly related to vibration, dust and noise, all within the designated closeout period (typically 7 to 14 days).

Yamana makes substantial commitments to local community development every year. In 2017, the Company:


•	contributed $5.9 million to communities where it operates through direct community investment, donations and sponsorships. Yamana typically focuses on sustainable income generation, education, health and culture


•	maintained a local employment rate of 64%


•	maintained a host-country procurement rate of 95%.

Climate change

Yamana’s operations are balancing improved energy use and emissions, while also adapting to and mitigating the impacts related to climate change.

Yamana has a three-fold approach to climate change:

1. Adaptation – the Company monitors existing climate changes and extreme weather events that could affect its operations and modifies its facilities as necessary. It regularly examines each operation to make sure that they are prepared to withstand extreme weather events.

2. Mitigation – each operation is responsible for developing its own energy reduction strategy and setting its own targets. The Company also has energy efficiency programs that focus on decreasing fossil fuel use and reducing its carbon footprint wherever possible.

3. Preparedness – each operation has developed an emergency preparedness and response plan for extreme weather events and other foreseeable crises and emergencies. These plans, which are periodically updated and tested, ensures that if extreme events occur, site personnel and local communities understand their roles and responsibilities and are trained accordingly.

Tailings and waste management

Yamana maintains a unique, best-practice tailings management and reporting system that allows the operations and the corporate office to maintain regular vigilance over the management of each operation’s tailings-related risks.

The Company has always prioritized the management of tailings, and diligently adheres to SYGBAR, its six-point tailings management system that focuses on:


•	standards for design and construction, and use of design reviews


•	constant tailings management facility (“TMF”) monitoring and site-specific key performance indicators development and performance management


•	periodic safety inspections


•	risk assessment


•	training and continuous improvement


•	emergency response plans with dam failure analysis.

A dedicated senior corporate manager is responsible for overseeing this system and providing support to the operations to make sure they are in compliance.

EXHIBIT 99.1

Yamana has completed independent third-party reviews of its TMF facilities that were part of its robust internal management system. A renowned global expert in the field did the reviews in 2016 and followed up in 2017 by examining the design, construction and operation of the tailings facilities, as well as Yamana’s policies, procedures and management systems. The reviewer concluded there were no significant weaknesses or discrepancies from international best practices. The reviewer also identified opportunities for improvement, and action plans have since been put in place for implementing the improvements.

Sound environmental management also includes the responsible management of general waste, both hazardous and non-hazardous. Waste is minimized and segregated to enhance recyclability, reuse and proper disposal. If a material is considered hazardous under local legislation, it is disposed of according to specific practices.

Water management

Yamana works towards reducing its consumption of fresh water and maximizing the reuse and recycling of mine water discharges to the environment.

Water management continues to be one of the single most important areas of focus at Yamana’s sites, because of the water-intensive nature of processing ore, the scarcity of water in some areas, the wide array of climatic environments where the Company operates and the importance of water for communities and other stakeholders. Non-compliance can present a risk to a site’s license to operate, with human and aquatic health issues remaining the most significant concern.

There have been no significant spills at the Company’s operations since 2014 and all operations remain compliant with the International Cyanide Management Code. None of Yamana’s operations had process water discharges to the environment in 2017.

Yamana’s water focus has two components:

1. Monitoring – each operation has monitoring programs to confirm that mining activities do not significantly impact water supplies and to ensure there are no significant impacts on downstream users. In South America, some of these monitoring programs include community participation.

2. Management – each operation also maintains its own unique water management strategy that:


•	reflects its location-specific challenges


•	reduces freshwater consumption while recycling as much water as possible.

More than two-thirds of the water that Yamana uses to process ore is reused or recycled. Most of the fresh water comes from within the mine site or precipitation, with a small amount from rivers, lakes or streams.

Mine closure

Mine closure is closely managed by the operations with corporate oversight. Each operation has a comprehensive mine closure plan and a corresponding Asset Retirement Obligation that is updated annually. Yamana’s total liabilities for reclamation and closure cost obligations as at December 31, 2017 were $274.3 million.

Other Disclosure Relating to Ontario Securities Commission Requirements for Companies Operating in Emerging Markets

Due to the risks inherent in mineral production and the desire to organize and structure its affairs in a tax efficient manner, the Company holds each of its material properties in a separate corporate entity (through local subsidiary companies in foreign jurisdictions and other holding companies in various jurisdictions).

The risks of the corporate structure of the Company and its subsidiaries are risks that are typical and inherent for companies who have material assets and property interests held indirectly through foreign subsidiaries and located in foreign jurisdictions. The Company’s business and operations in emerging markets are exposed to various levels of political, economic and other risks and uncertainties associated with operating in a foreign jurisdiction such as difference in laws, business cultures and practices, banking systems and internal control over financial reporting. See below under “– Risks of the Business”.

The Company has implemented a system of corporate governance, internal controls over financial reporting and disclosure controls and procedures that apply at all levels of the Company and its wholly-owned subsidiaries. These systems are overseen

EXHIBIT 99.1

by the Company’s board of directors, and implemented by the Company’s senior management. The relevant features of these systems are set out below.

Control over Foreign Subsidiaries

The Company controls its foreign subsidiaries by virtue of corporate oversight and by its ownership of 100% of the shares issued by such entities (exclusive of non-material subsidiaries). The Company’s management has the (i) power to appoint and dismiss, at any time, any and all of the foreign subsidiaries’ officers and directors, (ii) power to instruct the foreign subsidiaries’ officers to pursue business activities in accordance with the Company’s wishes, and (iii) legal right, as a shareholder, to require the officers of each such foreign subsidiaries to comply with their fiduciary obligations. The Company can also enforce its rights by way of various shareholder remedies available to it under local laws. As a result, the management of the Company can effectively align its business objectives with those of the foreign subsidiaries and implement such objectives at the subsidiary level.

Board and Management Expertise

A majority of the Company’s directors have been directors for a period in excess of five years. Likewise, a majority of the Company’s senior officers have at least five years of experience in senior leadership positions with the Company. As a result of their tenure, these officers and directors have gained extensive experience conducting business in the emerging jurisdictions. Please see the biographical information on pages 81 of this AIF for further information on the senior officers’ and directors’ experience.

In addition, the board of directors, through its corporate governance practices, regularly receives management and technical updates and progress reports in connection with the foreign subsidiaries, and in so doing, maintains effective oversight of their business and operations. Further, the Company’s directors and senior officers visit the Company’s operations in foreign jurisdictions on a regular basis in order to ensure effective control and management of the Company’s foreign operations. During these visits they come into contact with local employees, government officials and business persons; such interactions enhance the visiting directors’ and officers’ knowledge of local culture and business practices. Generally, the Company’s directors visit at least one of the Company’s operations in each calendar year, on a rotating basis. Certain senior and non-senior officers visit the Company’s operations quarterly, or more frequently if circumstances require, on a rotating basis.

Internal Control Over Financial Reporting and Funds

The Company maintains internal control over financial reporting with respect to its operations in emerging jurisdictions by taking various measures. Several of the Company’s Vice Presidents have the relevant language proficiency (Spanish and Brazilian Portuguese), local cultural understanding and relevant work experience in each of the Company’s operating jurisdictions which facilitates better understanding and oversight of the Company’s operations in the foreign jurisdictions in the context of internal controls over financial reporting.

Pursuant to the requirements of NI 52-109, the Company assesses the design of its internal controls over financial reporting on an annual basis. Furthermore, key controls for the accounts in scope are tested across the Company on an annual basis and the working papers of these tests performed at all the locations are reviewed at the head office level. Please refer to the Company’s annual audited consolidated financial statements for the year ended December 31, 2017, as filed under the Company’s profile on SEDAR and on the Company’s website.

Differences in banking systems and controls between Canada and the emerging jurisdictions are addressed by having stringent controls over cash in all locations; especially over access to cash, cash disbursements, appropriate authorization levels, performing and reviewing bank reconciliations in the applicable jurisdiction on at least a monthly basis and the segregation of duties.

The difference in cultures and practices between Canada and the emerging jurisdictions is addressed by employing competent staff in Canada and the emerging jurisdictions who are familiar with the local laws, business culture and standard practices, have local language proficiency, are experienced in working in the applicable emerging jurisdiction and in dealing with the respective government authorities; and have experience and knowledge of the local banking systems and treasury requirements.

The foreign subsidiaries’ also have established practices, protocols and routines in place for the distribution of its excess cash to its foreign owners. Furthermore, the opening and closing of bank accounts in the name of a foreign subsidiary is controlled, overseen and approved by the Company’s Senior Vice President, Finance and Chief Financial Officer and the Treasurer.

EXHIBIT 99.1

The Company ensures the flow of funds between Canada and each emerging jurisdiction functions as intended by:


•	appointing common officers of the Company and the foreign subsidiary;


•	involving the Company’s Chief Financial Officer, located in Toronto, in hiring key finance personnel in each of the emerging jurisdictions; and


•	closely monitoring the finance departments in each of the emerging jurisdictions, and by regular personal visits by the Chief Financial Officer and other key executives to the emerging jurisdictions.

Communication

The Company maintains open communication with each of its foreign operations through many senior and non-senior officers who are fluent in either Brazilian Portuguese or Spanish, as applicable. In addition, all management team members in local jurisdictions are fluent in the jurisdiction’s primary language and are proficient in English. The primary language used in management and board meetings is English and material documents relating to the Company that are provided to the board of directors are in English. Although the Company does not currently have a formal communication plan, it has implemented several communications policies, including a disclosure policy and crisis communications protocols. To date, the Company has not experienced any communication-related issues.

Records

All of the minute books and corporate records and documents of the foreign subsidiaries are filed at the relevant entity’s headquarters, and with the relevant governmental or regulatory body in each applicable jurisdiction in which the applicable entity’s headquarters are located. The custodians of such documents report directly to the Company’s head office and senior management team to ensure continued oversight.

Risks of the Business

The operations of the Company are speculative due to the high-risk nature of its business, which is the acquisition, financing, exploration, development and operation of mining properties. These risk factors could materially affect the Company’s future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to the Company. The risks and uncertainties described below are not the only risks and uncertainties that the Company faces. Additional risks and uncertainties not presently known to the Company or that the Company currently deems immaterial may also impair the Company’s business operations. If any of the adverse consequences described in those risks actually occurs, the Company’s business, results of operations, cash flows and financial position would suffer. See “Cautionary Note Regarding Forward-Looking Statements.”

Gold, Copper and Silver Prices

The Company’s profitability and long-term viability depend, in large part, upon the market prices of metals that may be produced from its properties, primarily gold, copper and silver. Market price fluctuations of these commodities could adversely affect profitability of the Company’s operations and lead to impairments and write downs of mineral properties. Metal prices fluctuate widely and are affected by numerous factors beyond the Company’s control, including:


•	global and regional supply and demand for industrial products containing metals generally;


•	changes in global or regional investment or consumption patterns;


•	increased production due to new mine developments and improved mining and production methods;


•	decreased production due to mine closures;


•	interest rates and interest rate expectation;


•	expectations with respect to the rate of inflation or deflation;


•	fluctuations in the value of the United States dollar and other currencies;


•	availability and costs of metal substitutes;


•	global or regional political or economic conditions; and


•	sales by central banks, holders, speculators and other producers of metals in response to any of the above factors.

There can be no assurance that metal prices will remain at current levels or that such prices will improve. A decrease in the market prices could adversely affect the profitability of the Company’s existing mines and projects as well as its ability to finance the exploration and development of additional properties, which would have a material adverse effect on the Company’s results of operations, cash flows and financial position. A decline in metal prices may require the Company to write-down Mineral Reserve and Mineral Resource estimates by removing ores from Mineral Reserves that would not be economically processed at lower metal prices and revise life-of-mine plans (“LOM Plans”), which could result in material write-downs of investments in

EXHIBIT 99.1

mining properties. Any of these factors could result in a material adverse effect on the Company’s results of operations, cash flows and financial position. Further, if revenue from metal sales declines, the Company may experience liquidity difficulties. Its cash flow from mining operations may be insufficient to meet its operating needs, and as a result the Company could be forced to discontinue production and could lose its interest in, or be forced to sell, some or all of its properties.

In addition to adversely affecting Mineral Reserve and Mineral Resource estimates and the Company’s results of operations, cash flows and financial position, declining metal prices can impact operations by requiring a reassessment of the feasibility of a particular project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays and/or may interrupt operations until the reassessment can be completed, which may have a material adverse effect on the Company’s results of operations, cash flows and financial position. In addition, lower metal prices may require the Company to reduce funds available for exploration with the result that the depleted reserves may not be replaced.

Exploration, Development and Operating Risks

Mining operations are inherently dangerous and generally involve a high degree of risk. Yamana’s operations are subject to all the hazards and risks normally encountered in the exploration, development and production of gold, copper and silver, including, without limitation, unusual and unexpected geologic formations, seismic activity, rock bursts, cave-ins, flooding, pit wall failure and other conditions involved in the drilling and removal of material, any of which could result in damage to, or destruction of, mines and other producing facilities, personal injury or loss of life, damage to property and environmental damage, all of which may result in possible legal liability. Although the Company expects that adequate precautions to minimize risk will be taken, mining operations are subject to hazards such as fire, rock falls, geomechanical issues, equipment failure or failure of retaining dams around tailings disposal areas which may result in environmental pollution and consequent liability. The occurrence of any of these events could result in a prolonged interruption of the Company’s operations that would have a material adverse effect on its business, financial condition, results of operations and prospects.

The exploration for and development of mineral deposits involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. While the discovery of an ore body may result in substantial rewards, few properties that are explored are ultimately developed into producing mines. Major expenses may be required to locate and establish Mineral Reserves, to develop metallurgical processes and to construct mining and processing facilities at a particular site. It is impossible to ensure that the exploration or development programs planned by Yamana will result in a profitable commercial mining operation. Whether a mineral deposit will be commercially viable depends on a number of factors, some of which are: the particular attributes of the deposit, such as size, grade and proximity to infrastructure; metal prices that are highly cyclical; and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in Yamana not receiving an adequate return on invested capital.

There is no certainty that the expenditures made by Yamana towards the search and evaluation of mineral deposits will result in discoveries or development of commercial quantities of ore.

Health, Safety and Environmental Risks and Hazards

Mining, like many other extractive natural resource industries, is subject to potential risks and liabilities due to accidents that could result in serious injury or death and/or material damage to the environment and Company assets. The impact of such accidents could affect the profitability of the operations, cause an interruption to operations, lead to a loss of licenses, affect the reputation of the Company and its ability to obtain further licenses, damage community relations and reduce the perceived appeal of the Company as an employer.

All phases of the Company’s operations are subject to environmental and safety regulations in the various jurisdictions in which it operates. These regulations mandate, among other things, worker safety, water quality, water management, land reclamation, waste disposal (including the generation, transportation, storage and disposal of hazardous waste), mine development and protection of endangered and other special status species. Failure to comply with applicable health, safety and environmental laws and regulations could result in injunctions, fines, suspension or cancellation of permits and approvals and could include other penalties. Health, safety and environmental legislation is evolving in a manner that will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that the Company has been or will at all times be in full compliance with all environmental laws and regulations or hold, and be in full compliance with, all required environmental and health and safety permits. Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations

EXHIBIT 99.1

to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mining operations, including the Company, may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The potential costs and delays associated with compliance with such laws, regulations and permits could prevent the Company from proceeding with the development of a project or the operation or further development of a mine, and any non-compliance therewith may adversely affect the Company’s business, financial condition and results of operations.

Government environmental approvals and permits are currently, or may in the future be, required in connection with the Company’s operations. To the extent such approvals are required and not obtained, the Company may be curtailed or prohibited from proceeding with planned exploration or development of mineral properties.

The Company may also be held financially responsible for remediation of contamination at current or former sites, or at third party sites. The Company could also be held responsible for exposure to hazardous substances. The costs associated with such instances and liabilities could be significant.

In certain jurisdictions, the Company may be required to submit, for government approval, a reclamation plan for each of its mining/project sites. The reclamation plan establishes the Company’s obligation to reclaim property after minerals have been mined from the sites. In some jurisdictions, bonds or other forms of financial assurances are required as security to ensure performance of the required reclamation activities. The Company may incur significant reclamation costs which may materially exceed the provisions the Company has made for such reclamation. In addition, the potential for additional regulatory requirements relating to reclamation or additional reclamation activities may have a material adverse effect on the Company’s financial condition, liquidity or results of operations. When a previously unrecognized reclamation liability becomes known or a previously estimated cost is increased, the amount of that liability or additional cost may be expensed, which may materially reduce net income in that period.

The extraction process for gold and metals can produce tailings, which are the sand like materials which remain from the extraction process. Tailings are stored in engineered facilities which are designed, constructed, operated and closed in conformance with local requirements and best practices. Should a breach of these facilities occur due to extreme weather, seismic event, or other incident, the Company could suffer a material financial impact on the Company’s operations and financial condition.

Production at certain of the Company’s mines involves the use of cyanide which is a toxic material if not handled properly. Should cyanide leak or otherwise be discharged from the containment system, the Company could suffer a material impact on its business, financial condition and results of operations. The Company became a signatory to the International Cyanide Management Code in September 2008 to ensure the safe transport and use of cyanide in the production of gold. Conformance with this code is verified by independent audits, and the Company’s operations are in full compliance with this code.

The Company actively engages with local communities to provide timely information about the operations and participates in a variety of activities to contribute to the wellbeing of local communities. Health, safety, environmental or other incidents, real or perceived, could cause community unrest that manifest into protests, road blockages, or other civil disobedience activities that could materially disrupt the Company’s operations.

The mineral exploration activities of the Company are subject to various laws governing prospecting, development, production, taxes, labour standards and occupational health, mine safety, toxic substances and other matters. Although the Company believes that its exploration activities are currently carried out in accordance with all applicable rules and regulations, new rules and regulations may be enacted or existing rules and regulations may be applied in a manner that could limit or curtail production or development of the Company’s properties. Amendments to current laws and regulations governing the operations and activities of the Company or more stringent implementation thereof could have a material adverse effect on the Company’s business, financial condition and results of operations. See “– Foreign Operations and Political Risk”.

Among the other environmental risks that Yamana has identified across all of its operations are general water management (which includes cyanide management), tailings management, closure and a range of climate-change related risks. For more details regarding Yamana’s management approach to each of these areas see “Description of the Business – Environment and Communities.”

Nature and Climatic Condition Risk

The Company and the mining industry are facing continued geotechnical challenges, which could adversely impact the Company’s production and profitability. Unanticipated adverse geotechnical and hydrological conditions, such as landslides, droughts, pit wall failures and rock fragility may occur in the future and such events may not be detected in advance. Geotechnical

EXHIBIT 99.1

instabilities and adverse climatic conditions can be difficult to predict and are often affected by risks and hazards outside of the Company’s control, such as severe weather and considerable rainfall, which may lead to periodic floods, mudslides, wall instability and seismic activity, which may result in slippage of material.

Geotechnical failures could result in limited or restricted access to mine sites, suspension of operations, government investigations, increased monitoring costs, remediation costs, loss of ore and other impacts, which could cause one or more of the Company’s projects to be less profitable than currently anticipated and could result in a material adverse effect on the Company’s results of operations and financial position.

Counterparty, Credit, Liquidity and Interest Rate Risks and Access to Financing

The Company is exposed to various counterparty risks including, but not limited to: (i) financial institutions that hold the Company’s cash and short term investments; (ii) companies that have payables to the Company, including concentrate and bullion customers; (iii) providers of its risk management services (including hedging arrangements); (iv) shipping service providers that move the Company’s material; (v) the Company’s insurance providers; and (vi) the Company’s lenders. The Company seeks to limit counterparty risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of counterparties. For cash, cash equivalents and accounts receivable, credit risk is represented by the carrying amount on the balance sheet. For derivatives, the Company assumes no credit risk when the fair value of the instruments is negative. When the fair value of the instruments is positive, this is a reasonable measure of credit risk. The Company is also exposed to liquidity risks in meeting its operating and capital expenditure requirements in instances where cash positions are unable to be maintained or appropriate financing is unavailable. Under the terms of the Company’s trading agreements, counterparties cannot require the Company to immediately settle outstanding derivatives except upon the occurrence of customary events of default. The Company mitigates liquidity risk through the implementation of its capital management policy by spreading the maturity dates of derivatives over time, managing its capital expenditures and operation cash flows, and by maintaining adequate lines of credit. The Company is exposed to interest rate risk on its variable rate debt and enters into interest rate swap agreements to hedge this risk. These factors may impact the ability of the Company to obtain loans and other credit facilities and refinance existing facilities in the future and, if obtained, on terms favourable to the Company. Such failures to obtain loans and other credit facilities could require the Company to take measures to conserve cash and could adversely affect its access to the liquidity needed for the business in the longer term.

The exploration and development of the Company’s properties, including continuing exploration and development projects, and the construction of mining facilities and commencement of mining operations may require substantial additional financing. Failure to obtain sufficient financing will result in a delay or indefinite postponement of exploration, development or production on any or all of the Company’s properties or even a loss of a property interest. Additional financing may not be available when needed, or if available, the terms of such financing might not be favorable to the Company. Failure to raise capital when needed would have a material adverse effect on the Company’s business, financial condition and results of operations.

Construction and Start-up of New Mines

The success of construction projects and the start-up of new mines by the Company is subject to a number of factors including the availability and performance of engineering and construction contractors, mining contractors, suppliers and consultants, the receipt of required governmental approvals and permits in connection with the construction of mining facilities and the conduct of mining operations (including environmental permits), the successful completion and operation of ore passes, the adsorption/desorption/recovery plants and conveyors to move ore, among other operational elements. Any delay in the performance of any one or more of the contractors, suppliers, consultants or other persons on which the Company is dependent in connection with its construction activities, a delay in or failure to receive the required governmental approvals and permits in a timely manner or on reasonable terms, or a delay in or failure in connection with the completion and successful operation of the operational elements in connection with new mines could delay or prevent the construction and start-up of new mines as planned. There can be no assurance that current or future construction and start-up plans implemented by the Company will be successful, that the Company will be able to obtain sufficient funds to finance construction and start-up activities, that personnel and equipment will be available in a timely manner or on reasonable terms to successfully complete construction projects, that the Company will be able to obtain all necessary governmental approvals and permits or that the completion of the construction, the start-up costs and the ongoing operating costs associated with the development of new mines will not be significantly higher than anticipated by the Company. Any of the foregoing factors could adversely impact the operations and financial condition of the Company.

Some of the Company’s projects have no operating history upon which to base estimates of future cash flow. For example, the Company has previously provided an indication of production and cost expectations for the Cerro Moro project. However, definitive production levels will be determined once final mine plans have been developed. The capital expenditures and time

EXHIBIT 99.1

required to develop new mines or other projects are considerable and changes in costs or construction schedules can affect project economics. Thus, it is possible that actual costs may change significantly and economic returns may differ materially from the Company’s estimates.

Commercial viability of a new mine or development project is predicated on many factors. Mineral Reserves and Mineral Resources projected by feasibility studies and technical assessments performed on the projects may not be realized, and the level of future metal prices needed to ensure commercial viability may not materialize. Consequently, there is a risk that start-up of new mine and development projects may be subject to write-down and/or closure as they may not be commercially viable.

Uncertainty in the Estimation of Mineral Reserves and Mineral Resources

To extend the lives of its mines and projects, ensure the continued operation of the business and realize its growth strategy, it is essential that the Company continues to realize its existing identified Mineral Reserves, convert Mineral Resources into Mineral Reserves, increase its Mineral Resource base by adding new Mineral Resources from areas of identified mineralized potential, and/or undertake successful exploration or acquire new Mineral Resources.

No assurance can be given that the anticipated tonnages and grades in respect of Mineral Reserves and Mineral Resources contained in this annual information form will be achieved, that the indicated level of recovery will be realized or that Mineral Reserves will be mined or processed profitably. Actual Mineral Reserves may not conform to geological, metallurgical or other expectations, and the volume and grade of ore recovered may differ from estimated levels. There are numerous uncertainties inherent in estimating Mineral Reserves and Mineral Resources, including many factors beyond the Company’s control. Such estimation is a subjective process, and the accuracy of any Mineral Reserve or Mineral Resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgments used in engineering and geological interpretation. Short-term operating factors relating to the Mineral Reserves, such as the need for orderly development of the ore bodies or the processing of new or different ore grades, may cause the mining operation to be unprofitable in any particular accounting period. In addition, there can be no assurance that gold recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production. Lower market prices, increased production costs, reduced recovery rates and other factors may result in a revision of its Mineral Reserve estimates from time to time or may render the Company’s Mineral Reserves uneconomic to exploit. Mineral Reserve data is not indicative of future results of operations. If the Company’s actual Mineral Reserves and Mineral Resources are less than current estimates or if the Company fails to develop its Mineral Resource base through the realization of identified mineralized potential, its results of operations or financial condition may be materially and adversely affected. Evaluation of Mineral Reserves and Mineral Resources occurs from time to time and they may change depending on further geological interpretation, drilling results and metal prices. The category of Inferred Mineral Resource is often the least reliable Mineral Resource category and is subject to the most variability. The Company regularly evaluates its Mineral Resources and it often determines the merits of increasing the reliability of its overall Mineral Resources.

Replacement of Depleted Mineral Reserves

Given that mines have limited lives based on Proven Mineral Reserves and Probable Mineral Reserves, the Company must continually replace and expand its Mineral Reserves at its mines. The life-of-mine estimates included in this annual information form may not be correct. The Company’s ability to maintain or increase its annual production will be dependent in part on its ability to bring new mines into production and to expand Mineral Reserves at existing mines.

Uncertainty Relating to Mineral Resources

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Due to the uncertainty which may attach to Inferred Mineral Resources, there is no assurance that Inferred Mineral Resources will be upgraded to Proven Mineral Reserves and Probable Mineral Reserves as a result of continued exploration.

Commodity Prices

The profitability of the Company’s operations will be dependent upon the cost and availability of commodities which are consumed or otherwise used in connection with the Company’s operations and projects, including, but not limited to, diesel, fuel, natural gas, electricity, steel, concrete and cyanide. Commodity prices fluctuate widely and are affected by numerous factors beyond the control of the Company. Further, as many of the Company’s mines are in remote locations and energy is generally a limited resource, the Company faces the risk that there may not be sufficient energy available to carry out mining activities efficiently or that certain sources of energy may not be available.

EXHIBIT 99.1

Joint Ventures

Yamana holds an indirect 12.5% interest in the Alumbrera Mine, the other 37.5% and 50% interests being held by Goldcorp Inc. (“Goldcorp”) and Glencore plc (“Glencore”), respectively. The Company accounts for this investment under the equity method of accounting. The Company’s interest in the Alumbrera Mine is subject to the risks normally associated with the conduct of joint ventures. These risks may include, but are not limited to: disagreement with joint venture partners on how to develop and operate mines efficiently; inability of joint venture partners to meet their obligations to the joint venture or third parties; or litigation arising between joint venture partners regarding joint venture matters. The existence or occurrence of one or more of the following circumstances and events, for example, could have a material adverse impact on Company’s profitability, future cash flows, earnings, results of operations and financial condition.

Partnership with Agnico Eagle

The Company has formed a 50/50 partnership with Agnico Eagle in connection with the acquisition of the Canadian Malartic Mine (the “Canadian Malartic GP”). There are a variety of general risks associated with the Canadian Malartic GP, particularly because Yamana is not the sole operator. These risks include, but are not limited to:


•	disagreement with Agnico Eagle about how to develop, operate or finance a project;


•	that Agnico Eagle may at any time have economic or business interests or goals that are, or become, inconsistent with the Company’s business interests or goals;


•	that Agnico Eagle may not comply with the Canadian Malartic GP’s partnership agreement;


•	the possibility that Agnico Eagle may become bankrupt;


•	that Agnico Eagle may be in a position to take action contrary to the Company’s instructions, requests, policies, objectives or interests;


•	possible litigation with Agnico Eagle about Canadian Malartic GP matters; and


•	the possibility that the Company may not be able to sell its interest in the Canadian Malartic GP if the Company desires to exit the Canadian Malartic GP.

These risks could result in legal liability or affect the Company’s ability to develop or operate the Canadian Malartic GP’s projects, either of which could have a material adverse effect on the Company’s future growth, results of operations, cash flows and financial position.

Brio Gold Inc.

As of the date hereof, Yamana currently owns approximately 53.6% of the outstanding Brio Shares. The value of this interest is subject to volatility in the share price of Brio’s common shares. Such market fluctuations could adversely affect the market price of Yamana’s interest in Brio and the value Yamana could realize on such interest. Also, while Yamana is a party to an investor rights agreement with Brio and currently has one nominee on Brio’s board of directors and a representative on Brio’s advisory board, it does not have significant operational control over Brio. Accordingly, the interests of Yamana, as a majority shareholder of Brio, may not be the same as those of Brio’s other shareholders, and conflicts of interest may arise from time to time that may be resolved in a manner detrimental to Yamana. In addition, decisions made by the directors and/or management of Brio may cause Brio to undertake strategies or courses of action that may not be consistent with Yamana’s short or long term objectives.

On February 16, 2018, Brio Gold entered into a definitive agreement with Leagold whereby Leagold will acquire all of the issued and outstanding Brio Shares. The Company entered into a support agreement with Leagold pursuant to which the Company agreed, among other things, to vote its Brio Shares in favour of the transaction at a special meeting of Brio Gold shareholders to consider the transaction expected to be held on April 12, 2018.

Infrastructure

Mining, processing, development and exploration activities depend, to one degree or another, on adequate infrastructure. Reliable roads, bridges, power sources and water supply are important determinants that affect capital and operating costs. Unusual or infrequent weather phenomena, sabotage, government or other interference in the maintenance or provision of such infrastructure could adversely affect the Company’s operations, financial condition and results of operations.

EXHIBIT 99.1

Permitting

The Company’s operations are subject to receiving and maintaining permits from appropriate governmental authorities. There is no assurance that delays will not occur in connection with obtaining all necessary renewals of permits for the Company’s existing operations, additional permits for any possible future changes to operations, or additional permits associated with new legislation. Prior to any development on any of its properties, the Company must receive permits from appropriate governmental authorities. There can be no assurance that the Company will continue to hold all permits necessary to develop or continue operating at any particular property. Any of these factors could have a material adverse effect on the Company’s results of operations and financial position.

Insurance and Uninsured Risks

Yamana’s business is subject to a number of risks and hazards generally, including adverse environmental conditions, industrial accidents, labour disputes, unusual or unexpected geological conditions, ground or slope failures, cave-ins, catastrophic equipment failures or unavailability of materials and equipment, changes in the regulatory environment and natural phenomena such as inclement weather conditions, floods and earthquakes. Such occurrences could result in damage to mineral properties or production facilities, personal injury or death, environmental damage to the Company’s properties or the properties of others, delays in mining, monetary losses and possible legal liability.

Yamana’s insurance will not cover all the potential risks associated with the Company’s operations. Even if available, Yamana may also be unable to maintain insurance to cover these risks at economically feasible premiums. Insurance coverage may not continue to be available or may not be adequate to cover any resulting liability. Moreover, insurance against risks such as environmental pollution or other hazards as a result of exploration and production (such as underground coverage) is not generally available to Yamana or to other companies in the mining industry on acceptable terms. Yamana might also become subject to liability for pollution or other hazards that may not be insured against or that Yamana may elect not to insure against because of premium costs or other reasons. Losses from these events could cause Yamana to incur significant costs that could have a material adverse effect upon its financial performance and results of operations. Should the Company be unable to fully fund the cost of remedying an environmental problem, the Company might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy, which may have a material adverse effect. The Company may suffer a material adverse effect on its business, results of operations, cash flows and financial position if it incurs a material loss related to any significant event that is not covered, or adequately covered, by its insurance policies.

Foreign Operations and Political Risk

The Company holds mining and exploration properties in Canada, Brazil, Argentina and Chile, exposing it to the socioeconomic conditions as well as the laws governing the mining industry in those countries. Inherent risks with conducting foreign operations include, but are not limited to: high rates of inflation; military repression; war or civil war; social and labour unrest; organized crime; hostage taking; terrorism; violent crime; extreme fluctuations in currency exchange rates; expropriation and nationalization; renegotiation or nullification of existing concessions, licenses, permits and contracts; illegal mining; changes in taxation policies; restrictions on foreign exchange and repatriation; and changing political norms, currency controls and governmental regulations that favour or require the Company to award contracts in, employ citizens of, or purchase supplies from, a particular jurisdiction.

Changes, if any, in mining or investment policies or shifts in political attitude in any of the jurisdictions in which the Company operates may adversely affect the Company’s operations or profitability. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, restrictions on production, price controls, export controls, currency remittance, importation of parts and supplies, income and other taxes, expropriation of property, foreign investment, maintenance of claims, environmental legislation, land use, land claims of local people, water use and mine safety.

Failure to comply strictly with applicable laws, regulations and local practices relating to mineral right applications and tenure could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners with carried or other interests. In addition, changes in government laws and regulations, including taxation, royalties, the repatriation of profits, restrictions on production, export controls, changes in taxation policies, environmental and ecological compliance, expropriation of property and shifts in the political stability of the country, could adversely affect the Company’s exploration, development and production initiatives in these countries.

On December 29, 2017, the Argentinean government enacted a tax reform package. The new law includes a reduction in the corporate tax rate from 35% to 30% over the next two years and to 25% thereafter. To offset this reduction, a proposed new

EXHIBIT 99.1

dividend withholding tax at a rate of 7% for the first two years and a 13% rate going forward was introduced. The dividend withholding tax can be reduced under a bilateral treaty. In addition, the Argentinean government implemented a new federal Mining Accord that establishes guidelines applicable to new mining projects in respect of taxation and royalties, and other areas of mining operations including environmental matters and mine closure plans.

On December 18, 2017, the Brazilian government enacted changes to the royalty tax rates for mining companies. The law includes an increase in the royalty tax rate from 1% to 1.5% for gold, with no change to the rate for copper. In addition, the rate will apply to gross revenue without deductions. The change in royalty rates is not expected to have a material effect on net earnings and cash flows from the Company’s operations in Brazil.

In November 2016, the Quebec government enacted changes to the income tax rate as proposed in the 2016 provincial budget. Beginning with the year ended December 31, 2017, the provincial rate is decreasing by 0.1% over the next four years with the current rate deceasing from 11.9% to 11.5% in 2020.

The Company continues to monitor developments and policies in all the jurisdictions in which it operates and the potential impact such developments and policies may have on its operations; however they cannot be accurately predicted and could have an adverse effect on the Company’s operations or profitability.

Compliance with Anti-Corruption Laws

Yamana is subject to various anti-corruption and anti-bribery laws and regulations including but not limited to the Canadian Corruption of Foreign Public Officials Act, the U.S. Foreign Corrupt Practices Act, the Extractive Sector Transparency Measure Act (“ESTMA”), as well as similar laws in the countries in which the Company conducts business. In general, these laws prohibit a company and its employees and intermediaries from bribing or making other prohibited payments to foreign officials or other persons to obtain or retain business or gain some other business advantage. ESTMA, which became effective June 1, 2015, requires public disclosure of payments to governments by mining and oil and gas companies engaged in the commercial development of oil, gas and minerals who are either publicly listed in Canada or with business or assets in Canada. Mandatory annual reporting is required for extractive companies with respect to payments made to foreign and domestic governments at all levels, including entities established by two or more governments.

In recent years, there has been a general increase in both the frequency of enforcement and the severity of penalties under such anti-corruption and anti-bribery laws, resulting in greater scrutiny and punishment of companies found in violation of such laws. Failure to comply with the applicable legislation and other similar foreign laws could expose the Company and its senior management to civil and/or criminal penalties, other sanctions and remedial measures, legal expenses and reputational damage, all of which could materially and adversely affect the Company’s business, financial condition and results of operations, as well as on the market price of the Company’s common shares. The Company has instituted policies that apply to all employees, consultants, contractors and other agents, including a code of business conduct and ethics and a whistleblower policy as well as mandatory training. However, there can be no assurance or guarantee that such efforts have been and will be completely effective in ensuring Yamana’s compliance, and the compliance of its employees, consultants, contractors and other agents, with all applicable anti-corruption and anti-bribery laws.

Increase in Production Costs

Changes in the Company’s production costs could have a major impact on its profitability. Its main production expenses are personnel and contractor costs, materials, and energy. Changes in costs of the Company’s mining and processing operations could occur as a result of unforeseen events, including international and local economic and political events, a change in commodity prices, increased costs (including oil, steel and diesel) and scarcity of labour, and could result in changes in profitability or Mineral Reserve estimates. Many of these factors may be beyond the Company’s control.

The Company relies on third party suppliers for a number of raw input materials. Any material increase in the cost of raw materials, or the inability by the Company to source third party suppliers for the supply of its raw materials, could have a material adverse effect on the Company’s results of operations or financial condition.

The Company prepares estimates of future cash costs and capital costs for its operations and projects. There is no assurance that actual costs will not exceed such estimates. Exceeding cost estimates could have an adverse impact on the Company’s future results of operations or financial condition.

EXHIBIT 99.1

Land Title

The acquisition and maintenance of title to mineral properties is a very detailed and time-consuming process. Title to, and the area of, mineral concessions may be disputed. Title insurance is generally not available for mineral properties and the Company’s ability to ensure that it has obtained secure mine tenure may be severely constrained. There is no guarantee that title to any of its properties will not be challenged or impaired. Third parties may have valid claims underlying portions of the Company’s interests, including prior unregistered liens, agreements, transfers or claims, including native land claims, and title may be affected by, among other things, undetected defects. If these challenges are successful, this could have an adverse effect on the development of the Company’s properties as well as its results of operations, cash flows and financial position. In addition, the Company may be unable to operate its properties as permitted or to enforce its rights with respect to its properties.

Termination of Mining Concessions

The Company’s mining concessions may be terminated in certain circumstances. Under the laws of the jurisdictions where the Company’s operations, development projects and prospects are located, Mineral Resources belong to the state and governmental concessions are required to explore for, and exploit, Mineral Reserves. The Company holds mining, exploration and other related concessions in each of the jurisdictions where it is operating and where it is carrying on development projects and prospects. The concessions held by the Company in respect of its operations, development projects and prospects may be terminated under certain circumstances, including where minimum production levels are not achieved by the Company (or a corresponding penalty is not paid), if certain fees are not paid or if environmental and safety standards are not met. Termination of any one or more of the Company’s mining, exploration or other concessions could have a material adverse effect on the Company’s financial condition or results of operations.

Competition

The mining industry is intensely competitive in all of its phases and the Company competes with many companies possessing greater financial and technical resources than itself. Competition in the precious metals mining industry is primarily for: mineral rich properties that can be developed and produced economically; the technical expertise to find, develop, and operate such properties; the labour to operate the properties; and the capital for the purpose of funding such properties. Many competitors not only explore for and mine precious metals, but conduct refining and marketing operations on a global basis. Such competition may result in the Company being unable to acquire desired properties, to recruit or retain qualified employees or to acquire the capital necessary to fund its operations and develop its properties. Existing or future competition in the mining industry could materially adversely affect the Company’s prospects for mineral exploration and success in the future.

Indebtedness

The Company’s ability to make scheduled payments on or refinance its debt obligations (if necessary) depends on its financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond the Company’s control, including the market prices of gold, silver and copper. The Company may be unable to maintain a level of cash flow from operating activities sufficient to permit it to pay the principal, premium, if any, and interest on the Company’s indebtedness, or maintain its debt covenants.

If the Company’s cash flows and capital resources are insufficient to fund its debt service obligations, or there is a contravention of its debt covenants, the Company could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional debt or equity capital or restructure or refinance its indebtedness. The Company may not be able to effect any such alternative measures, if necessary, on commercially reasonable terms or at all and, even if successful, those alternative actions may not allow it to meet its scheduled debt service obligations.

In addition, the Company conducts a substantial portion of its operations through its subsidiaries, certain of which in the future may not be guarantors of its indebtedness. Accordingly, repayment of its indebtedness is dependent on the generation of cash flow by its subsidiaries and their ability to make such cash available to the Company, by dividend, debt repayment or otherwise. Unless they are guarantors of the Company’s indebtedness, its subsidiaries do not have any obligation to pay amounts due on its indebtedness or to make funds available for that purpose. The Company’s subsidiaries may not be able to, or may not be permitted to, make distributions to enable the Company to make payments in respect of its indebtedness.

Each subsidiary is a distinct legal entity, and, under certain circumstances, legal and contractual restrictions may limit the Company’s ability to obtain cash from the Company’s subsidiaries. While the Indenture governing the Initial Notes and New Notes limits the ability of the Company’s subsidiaries to incur consensual restrictions on their ability to pay dividends or make

EXHIBIT 99.1

other intercompany payments to the Company, these limitations are subject to qualifications and exceptions. In the event that the Company does not receive distributions from its subsidiaries, it may be unable to make required principal and interest payments on its indebtedness.

The Company’s inability to generate sufficient cash flows to satisfy its debt obligations, or to refinance its indebtedness on commercially reasonable terms or at all, would materially and adversely affect its financial position and results of operations and its ability to satisfy its obligations.

Additional Capital

The exploration and development of the Company’s properties, including continuing exploration and development projects, and the construction or expansion of mining facilities and commencement or expansion of mining operations, may require substantial additional financing. Failure to obtain sufficient financing will result in a delay or indefinite postponement of exploration, development or production on any or all of the Company’s properties or even a loss of a property interest. Additional financing may not be available when needed or if available, the terms of such financing might not be favourable to the Company and might involve substantial dilution to existing shareholders. Failure to raise capital when needed could have a material adverse effect on the Company’s business, financial condition and results of operations.

Currency Fluctuations

Currency fluctuations may affect the Company’s capital costs and the costs that the Company incurs at its operations. Gold is sold throughout the world based principally on a United States dollar price, but a portion of the Company’s operating and capital expenses are incurred in Brazilian reais, Argentine pesos, Chilean pesos, Canadian dollars and, to a lesser extent, the Euro. The appreciation of foreign currencies, particularly the Brazilian real and the Chilean peso, against the United States dollar would increase the costs of gold production at such mining operations, which could materially and adversely affect the Company’s earnings and financial condition. The Company has hedged only a portion of its Brazilian real risks, and none of the other currencies in which it functions, and is therefore exposed to currency fluctuation risks.

Additionally, the Mega Precious assets and the Canadian Malartic Mine are located in Canada and the costs associated with such assets are primarily denominated in Canadian dollars. However, revenue generated from the sale of gold and silver from such assets is in United States dollars and some of the costs associated with such assets are denominated in currencies other than the Canadian dollar. Any appreciation of the Canadian dollar vis-à-vis these currencies could have a material adverse effect on the Company’s business, financial condition and results of operations.

Write downs and Impairments

Mineral interests are the most significant assets of the Company and represent capitalized expenditures related to the development and construction of mining properties and related property, plant and equipment and the value assigned to exploration potential on acquisition. The costs associated with mining properties are separately allocated to exploration potential, Mineral Reserves and Mineral Resources and include acquired interests in production, development and exploration-stage properties representing the fair value at the time they were acquired. The values of such mineral properties are primarily driven by the nature and amount of material interests believed to be contained or potentially contained in properties to which they relate.

The Company reviews and evaluates its mining interests and any associated or allocated goodwill for impairment at least annually or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the recoverable value of the asset is less than the carrying amount of the asset. An impairment loss is measured and recorded to the net recoverable value of the asset. The recoverable value of the asset is the higher of: (i) value in use (being the net present value of total expected future cash flows); and (ii) fair value less costs to sell.

The Company also assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or may have decreased. If any such indication exists, the Company estimates the recoverable amount and considers the reversal of the impairment loss recognized in prior periods for all assets other than goodwill. An impairment loss recognized for goodwill is not reversed in a subsequent period.

Fair value is the value obtained from an active market or binding sale agreement. Where neither exists, fair value is based on the best information available to reflect the amount the Company could receive for the asset in an arm’s length transaction. This is often estimated using discounted cash flow techniques. For value in use, recent cost levels are considered, together with expected changes in costs that are compatible with the current condition of the business and which meet the requirements of International Accounting Standard 36 in a discounted cash flow model. Where a recoverable amount is assessed using discounted

EXHIBIT 99.1

cash flow techniques, the resulting estimates are based on detailed mine and/or production plans. Assumptions underlying fair value estimates are subject to significant risks and uncertainties. Where third-party pricing services are used, the valuation techniques and assumptions used by the pricing services are reviewed by the Company to ensure compliance with the accounting policies and internal control over financial reporting of the Company. Future cash flows are estimated based on expected future production, commodity prices, operating costs and capital costs. There are numerous uncertainties inherent in estimating Mineral Reserves and Mineral Resources. Differences between management’s assumptions and market conditions could have a material effect in the future on the Company’s financial position and results of operation.

The assumptions used in the valuation of work-in process inventories by the Company include estimates of metal contained in the ore stacked on leach pads, assumptions of the amount of metal stacked that is expected to be recovered from the leach pads, estimates of metal contained in ore stock piles, assumptions of the amount of metal that will be crushed for concentrate, estimates of metal-in-circuit, estimated costs of completion to final product to be incurred and an assumption of the gold, silver and copper price expected to be realized when the gold, silver and copper is recovered. The recoverable values of assets are highly dependent on several factors including metal prices and the prevailing cost environment, and the recoverable values of some properties are more sensitive to metal prices than others. If these estimates or assumptions prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process inventories to net realizable value, which would reduce the Company’s earnings and working capital. Net realizable value is determined as the difference between costs to complete production into a saleable form and the estimated future precious metal prices based on prevailing and long-term metal prices. When the circumstances that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of write-down is reversed up to the lower of the new net realizable value or the original cost.

Although management makes its best estimates, it is possible that material changes could occur which may adversely affect management’s estimate of the net cash flows expected to be generated from its properties. Any impairment estimates, which are based on applicable key assumptions and sensitivity analysis, are based on management’s best knowledge of the amounts, events or actions at such time, and the actual future outcomes may differ from any estimates that are provided by the Company. Any impairment charges on the Company’s mineral projects could adversely affect its results of operations.

Litigation Risks

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company is currently involved in litigation and may become involved in legal disputes in the future. Defense and settlement costs can be substantial, even with respect to claims that have no merit. Due to the inherent uncertainty of the litigation process, the resolution of any particular legal proceeding may have a material adverse effect on the Company’s financial position or results of operations.

In 2004, a former director of Northern Orion Resources Inc. (“Northern Orion,” now named 0805346 B.C. Ltd.) commenced proceedings in Argentina against Northern Orion claiming damages in the amount of $177.0 million for alleged breaches of agreements entered into with the plaintiff. The plaintiff alleged that the agreements entitled him to a pre-emptive right to participate in acquisitions by Northern Orion in Argentina and claimed damages in connection with the acquisition by Northern Orion of its 12.5% equity interest in the Alumbrera Mine. On August 22, 2008, the National Commercial Court No. 13 of the City of Buenos Aires issued a first-instance judgment rejecting the claim. The plaintiff appealed this judgment to the National Commercial Appeals Court. On May 22, 2013, the appellate court overturned the first-instance decision. The appellate court determined that the plaintiff was entitled to make 50% of Northern Orion’s investment in the Alumbrera acquisition, although weighted the chance of the plaintiff’s 50% participation at 15%. The matter was remanded to the first-instance court to determine the value. The parties have undergone two valuations over the last several years, both of which have been subsequently annulled. The most recent annulled award suggested a valuation of $54.2 million, well in excess of the amount Northern Orion considered reflective of the claim. In August, 2017, Northern Orion entered into a confidential settlement agreement pursuant to which this matter was definitively and finally settled in consideration of an amount to be paid in installments over a number of years. The total amount payable pursuant to the settlement is substantially below the amount awarded in the last valuation proceeding which, under Argentinean law, the Company successfully sought to annul. At the option of the Company, all or any portion of the amount can be paid in common shares of the Company.

In December 2012, the Company received assessments from the Brazilian federal tax authorities disallowing certain deductions relating to financial instruments used to finance Brazilian operations for the years 2007 to 2012. The Company believes that these financial instruments were issued on commercial terms permitted under applicable laws and is appealing these assessments. In the third quarter of 2017, the Company elected to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Chapada Mine. This commercial resolution creates immediate financial certainty during a time of political volatility and economic reform in the country.

EXHIBIT 99.1

On October 25, 2017, the program was formally enacted into law and the Company paid $76.7 million during the year ended December 31, 2017. The final program created an option to either pay one lump sum of approximately $68 million in the first quarter of 2018, or a total of approximately $100 million plus interest in installments over 12 years. The Company elected to proceed with the lump sum payment option, and, on January 30, 2018 made the payment.

On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), a general partnership jointly owned by the Company and Agnico Eagle Mines Limited (the "Partnership"), was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. The complaint is in respect of "neighbourhood annoyances" arising from dust, noise, vibrations and blasts at the mine. The plaintiffs are seeking damages in an unspecified amount as well as punitive damages in the amount of $20 million. The class action was certified in May 2017. In November 2017, a declaratory judgment was issued allowing the Partnership to settle individually with class members for 2017. The plaintiffs have since announced that they intend to file an application for leave to appeal this declaratory judgment. On December 11, 2017, hearings were completed in respect of certain preliminary matters, including the Partnership's application for partial dismissal of the class action. The Company and the Partnership will take all necessary steps to defend themselves from this lawsuit.

On August 15, 2016, the Partnership received notice of an application for injunction relating to the Canadian Malartic mine, which had been filed under the Environment Quality Act (Quebec). A hearing related to an interlocutory injunction was completed on March 17, 2017 and a decision of the Superior Court of Quebec dismissed the injunction. An application for permanent injunction is currently pending. The Company and the Partnership have reviewed the injunction request, consider the request without merit and will take all reasonable steps to defend against this injunction. These measures include a motion for the dismissal of the application for injunction, which has been filed and will be heard at a date to be determined. While at this time the potential impacts of the injunction cannot be definitively determined, the Company expects that if the injunction were to be granted, there would be a negative impact on the operations of the Canadian Malartic mine, which could include a reduction in production.

On June 1, 2017, the Partnership was served with an application for judicial review to obtain the annulment of a governmental decree. The Partnership is an impleaded party in the proceedings. The applicant seeks to obtain the annulment of a decree authorizing the expansion of the Canadian Malartic mine. The Company and the Partnership have reviewed the application for judicial review, consider the application without merit and will take all reasonable steps to defend against this application. The hearing on the merits is scheduled to take place in October 2018. While the Company believes it is highly unlikely that the annulment will be granted, the Company expects that if the annulment were to be granted, there would be a negative impact on the operations of the Canadian Malartic mine, which could include a reduction in anticipated future production.

See “Legal Proceedings and Regulatory Actions”.

Investment Risk

Investment risk is the risk that a financial instrument’s value will deviate from the expected returns as a result of changes in market conditions, whether those changes are caused by factors specific to the individual investment or factors affecting all investments traded in the market. Although the factors that affect investment risk are outside the Company’s control, the Company mitigates investment risk by limiting its investment exposure in terms of total funds to be invested and by being selective of high quality investments.

Available for sale financial assets are reviewed quarterly for possible significant or prolonged decline in fair value requiring impairment and more frequently when economic or market concerns warrant such evaluation. The review includes an analysis of the fact and circumstances of the financial assets, the market price of actively traded securities, as well as the severity of loss, the financial position and near-term prospects of the investment, credit risk of the counterparties, the length of time the fair value has been below costs, both positive and negative evidence that the carrying amount is recoverable within a reasonable period of time, management’s intent and ability to hold the financial assets for a period of time sufficient to allow for any anticipated recovery of fair value and management’s market view and outlook. When a decline in the fair value of an available-for-sale investment has been recognized in Other Comprehensive Income (“OCI”) and there is objective evidence that the asset is impaired after management’s review, any cumulative losses that had been recognized in OCI are reclassified to net income in that period as an impairment loss. The reclassification is calculated as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized, if applicable. Impairment losses recognized in net income for an investment are subject to reversal, except for an equity instrument classified as available-for-sale.

EXHIBIT 99.1

Use of Derivatives

From time to time the Company may use certain derivative products as hedging instruments and to manage the risks associated with changes in gold prices, silver prices, copper prices, interest rates, foreign currency exchange rates and energy prices. The use of derivative instruments involves certain inherent risks including, among other things: (i) credit risk — the risk of default on amounts owing to the Company by the counterparties with which the Company has entered into transactions; (ii) market liquidity risk — risk that the Company has entered into a derivative position that cannot be closed out quickly, by either liquidating such derivative instrument or by establishing an offsetting position; and (iii) unrealized mark-to-market risk — the risk that, in respect of certain derivative products, an adverse change in market prices for commodities, currencies or interest rates will result in the Company incurring an unrealized mark-to-market loss in respect of such derivative products.

Acquisitions and Integration

From time to time, the Company examines opportunities to acquire additional mining assets and businesses. Any acquisition that the Company may choose to complete may be of a significant size, may change the scale of the Company’s business and operations, and may expose the Company to new geographic, political, operating, financial and geological risks. The Company’s success in its acquisition activities depends on its ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition, and integrate the acquired operations successfully with those of the Company. Any acquisitions would be accompanied by risks. For example, there may be a significant change in commodity prices after the Company has committed to complete the transaction and established the purchase price or exchange ratio; a material ore body may prove to be below expectations; the Company may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization; the integration of the acquired business or assets may disrupt the Company’s ongoing business and its relationships with employees, customers, suppliers and contractors; and the acquired business or assets may have unknown liabilities which may be significant. In the event that the Company chooses to raise debt capital to finance any such acquisition, the Company’s leverage will be increased. If the Company chooses to use equity as consideration for such acquisition, existing shareholders may experience dilution. Alternatively, the Company may choose to finance any such acquisition with its existing resources. There can be no assurance that the Company would be successful in overcoming these risks or any other problems encountered in connection with such acquisitions.

Amendments to Mining Laws and Regulations

The mineral exploration activities of the Company are subject to various laws governing prospecting, development, production, taxes, labour standards and occupational health, mine safety, toxic substances and other matters. Mining and exploration activities are also subject to various laws and regulations relating to the protection of the environment. Although the Company believes that its exploration activities are currently carried out in accordance with all applicable rules and regulations, no assurance can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner that could limit or curtail production or development of the Company’s properties. Amendments to current laws and regulations governing the operations and activities of the Company or more stringent implementation thereof could have a material adverse effect on the Company’s business, financial condition and results of operations.

Community Relations

The Company’s relationships with the communities in which it operates and other stakeholders are critical to ensure the future success of its existing operations and the construction and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Publicity adverse to the Company, its operations or extractive industries generally, could have an adverse effect on the Company and may impact relationships with the communities in which Yamana operates and other stakeholders. While the Company is committed to operating in a socially responsible manner, there can be no assurance that its efforts in this respect will mitigate this potential risk.

The Canadian Malartic Mine, in which the Company holds a 50% interest, is located adjacent to the community of Malartic. The Partnership continues to work with the Quebec Ministry of Transport and the town of Malartic on the deviation of Quebec provincial highway No. 117 to gain access to the higher grade Barnat and Jeffrey deposits. The final layout and an environmental impact assessment were completed at the end of January 2015. The Quebec Bureau d’audiences publiques sur l’environnement (“BAPE”) issued its report on the Canadian Malartic pit extension on October 5, 2016. The BAPE report concluded that the project is acceptable and provided several recommendations intended to enhance social acceptability. The Québec government issued the decrees authorizing both the pit extension and deviation of highway 117 on April 12, 2017.

EXHIBIT 99.1

In addition, on August 2, 2016, Canadian Malartic GP, the operator of the Canadian Malartic mine, was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. See “Legal Proceedings and Regulatory Actions”. Since the spring of 2015, the Partnership has been working collaboratively with the community of Malartic and its citizens to develop a “Good Neighbour Guide” that addresses the allegations contained in the lawsuit. Implementation of the Good Neighbour Guide, which includes a compensation program and an acquisition program, began on September 1, 2016. Under the compensation program, a large portion of the residents of Malartic accepted to settle their claims in consideration of the compensations offered (96% for the retroactive period from July 1, 2013, to June 30, 2016 and 92% for the period from July 1, 2016, to December 31, 2016). Compensations for the year 2017 will be paid in the first quarter of 2018, except in the southern sector of Malartic, where the compensation program has been suspended until final judgment is rendered with respect to the right to individually settle, after the certification of the class action, with residents who are class action members. A total of 31 residences were also acquired in the southern sector of Malartic under the acquisition program of the Good Neighbour Guide, which was also suspended in December 2017 for the same reason.

The Company’s other projects, including exploration projects, may also be impacted by relations with various community stakeholders, and the Company’s ability to develop related mining assets may still be affected by unforeseen outcomes from such community relations.

Labour and Employment Matters

Production at the Company’s mining operations is dependent upon the efforts of its employees and the Company’s operations would be adversely affected if it fails to maintain satisfactory labour relations. In addition, relations between the Company and its employees may be affected by changes in the scheme of labour relations that may be introduced by the relevant governmental authorities in whose jurisdictions the Company carries on business. For example, during the first quarter of 2017, there was a temporary suspension of operations associated with the strike of one of the Company’s unions, before collective bargaining negotiations were resumed and concluded. Changes in such legislation or in the relationship between the Company and its employees may have a material adverse effect on the Company’s business, results of operations and financial condition.

Foreign Subsidiaries

The Company is a holding company that conducts operations through subsidiaries, including foreign subsidiaries. Accordingly, any limitation on the transfer of cash or other assets between the parent corporation and such entities, or among such entities, could restrict the Company’s ability to fund its operations efficiently. Any such limitations, or the perception that such limitations may exist now or in the future, could have an adverse impact on the Company’s valuation and stock price.

Reliance on Local Advisors and Consultants in Foreign Jurisdictions

The Company holds mining and exploration properties in Brazil, Argentina, and Chile, in addition to Canada. The legal and regulatory requirements in these countries with respect to conducting mineral exploration and mining activities, banking system and controls, as well as local business culture and practices are different from those in Canada and the United States. The officers and directors of the Company must rely, to a great extent, on the Company’s local legal counsel and local consultants retained by the Company in order to keep abreast of material legal, regulatory and governmental developments as they pertain to and affect the Company’s business operations, and to assist the Company with its governmental relations. The Company must rely, to some extent, on those members of management and the Company’s board of directors who have previous experience working and conducting business in these countries in order to enhance its understanding of and appreciation for the local business culture and practices. The Company also relies on the advice of local experts and professionals in connection with current and new regulations that develop in respect of banking, financing, labour, litigation and tax matters in these countries. Any developments or changes in such legal, regulatory or governmental requirements or in local business practices are beyond the control of the Company. The impact of any such changes may adversely affect the business of the Company.

Market Price of Common Shares

The common shares are listed on the TSX and the NYSE. The price of the common shares is likely to be significantly affected by short-term changes in gold prices or in the Company’s financial condition or results of operations as reflected in its quarterly earnings reports. Other factors unrelated to the Company’s performance that may have an effect on the price of the common shares include the following: the extent of analytical coverage available to investors concerning the Company’s business may be limited if investment banks with research capabilities do not continue to follow the Company’s securities; the lessening in trading volume and general market interest in the Company’s securities may affect an investor’s ability to trade significant numbers of common shares; and the size of the Company’s public float may limit the ability of some institutions to invest in the Company’s securities.

EXHIBIT 99.1

As a result of any of these factors, the market price of the common shares at any given point in time may not accurately reflect the Company’s long-term value. Securities class action litigation often has been brought against companies following periods of volatility in the market price of their securities. The Company may, in the future, be the target of similar litigation. Securities litigation could result in substantial costs and damages and divert management’s attention and resources.

Credit Rating

There can be no assurance that the credit ratings and outlook assigned to the Company’s debt securities or to Yamana will remain in effect for any given period of time or that any such rating or outlook will not be revised downward or withdrawn entirely by a rating agency. Real or anticipated changes in credit ratings or outlook assigned to the Company’s debt securities will generally affect the market price of its debt securities. In addition, real or anticipated changes in its credit ratings may also affect the cost at which the Company can access the capital markets. If such ratings decline and its cost of accessing capital markets increases, the Company may not be able to fund proposed capital expenditures and other operations in the future.

Dividend Policy

The Company has a dividend policy providing for a dividend yield that is consistent with the yield of comparable companies’ dividend rates and such policy is reviewed on a periodic basis and assessed in relation to the growth of the operating cash flows of the Company. In January 2016, the Company’s board of directors amended the Company’s dividend policy to set the quarterly dividends paid per common share at $0.02 annually, beginning with the declaration and payment of the first quarter 2016 dividend.

Payment of any future dividends will be at the discretion of the Company’s board of directors after taking into account many factors, including the Company’s operating results, financial condition, comparability of the dividend yield to peer gold companies and current and anticipated cash needs. There can be no assurance that dividends will continue to be paid in the future or on the same terms as are currently paid by the Company.

Dilution to Common Shares

During the life of the Company’s options and other rights granted or assumed by the Company, the holders are given an opportunity to profit from a rise in the market price of the common shares with a resulting dilution in the interest of the other shareholders. The Company’s ability to obtain additional financing during the period such rights that are outstanding may be adversely affected and the existence of the rights may have an adverse effect on the price of the common shares. The holders of options and other rights of the Company may exercise such securities at a time when the Company would, in all likelihood, be able to obtain any needed capital by a new offering of securities on terms more favourable than those provided by the outstanding rights.

The increase in the number of common shares in the market and the possibility of sales of such shares may have a depressive effect on the price of the common shares. In addition, as a result of the issuance of additional common shares, the voting power of the Company’s existing shareholders will be diluted.

Future Sales of Common Shares by Existing Shareholders

Sales of a large number of common shares in the public markets, or the potential for such sales, could decrease the trading price of the common shares and could impair the Company’s ability to raise capital through future sales of common shares. Substantially all of the common shares not held by affiliates of the Company can be resold without material restriction either in the United States, Canada or both.

Dependence Upon Key Management Personnel and Executives

The Company is dependent upon a number of key management personnel. The loss of the services of one or more of such key management personnel could have a material adverse effect on the Company. The Company’s ability to manage its operating, development, exploration and financing activities will depend in large part on the efforts of these individuals. The Company faces intense competition for qualified personnel, and there can be no assurance that the Company will be able to attract and retain such personnel. The loss of the services of one or more key employees or the failure to and attract and retain new personnel could have a material adverse effect on the Company’s ability to manage and expand the Company’s business. The Company has entered into employment agreements with certain of its key executives.

EXHIBIT 99.1

Possible Conflicts of Interest of Directors and Officers of the Company

Certain of the directors and officers of the Company also serve as directors and/or officers of other companies involved in natural resource exploration and development and, consequently, there exists the possibility for such directors and officers to be in a position of conflict. There can be no assurance that any decision made by any of such directors and officers involving the Company will be made in accordance with their duties and obligations to deal fairly and in good faith with a view to the best interests of the Company and its shareholders. In the event that the Company’s directors and officers are subject to conflicts of interest, there may be a material adverse effect on its business.

Disclosure and Internal Controls

Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards (“IFRS”). Disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in reports filed with securities regulatory agencies is recorded, processed, summarized and reported on a timely basis and is accumulated and communicated to the Company’s management, as appropriate, to allow timely decisions regarding required decisions. The Company has invested resources to document and analyze its system of disclosure controls and its internal control over financial reporting. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation. The Company’s failure to satisfy the requirements of applicable Canadian securities laws on an ongoing, timely basis could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm its business and negatively impact the trading price of the common shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause it to fail to meet its reporting obligations.

Enforcement of Legal Rights

The Company has material subsidiaries organized under the laws of Brazil, Argentina and Chile and certain of the Company’s directors, management and personnel are located in foreign jurisdictions. Given that the majority of the Company’s material assets and certain of its directors, management and personnel are located outside of Canada, investors may have difficulty in effecting service of process within Canada and collecting from or enforcing against the Company, or its directors and officers, any judgments issued by the Canadian courts or Canadian securities regulatory authorities and predicated on the civil liability provisions of Canadian securities legislation or other laws of Canada. Similarly, in the event a dispute arises in connection with the Company’s foreign operations, the Company may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of courts in Canada.

Failures of Information Systems or Information Security Threats

The Company has entered into agreements with third parties for hardware, software, telecommunications and other information technology (“IT”) services in connection with the Company’s operations. The Company’s operations depend, in part, on how well the Company and its suppliers protect networks, equipment, IT systems and software against damage from a number of threats, including, but not limited to, cable cuts, damage to physical plants, natural disasters, terrorism, fire, power loss, hacking, computer viruses, vandalism and theft. The Company’s operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenditures to mitigate the risks of failures. Any of these and other events could result in information system failures, delays and/or increase in capital expenses. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company’s reputation and results of operations.

Although to date the Company has not experienced any material losses relating to cyber attacks or other information security breaches, there can be no assurance that it will not incur such losses in the future. The Company’s risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access remain a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

Any of these factors could have a material adverse effect on the Company’s results of operations, cash flows and financial position.

EXHIBIT 99.1

Technical Information

Unless otherwise indicated, the estimated Mineral Reserves and Mineral Resources for the Company’s various mines and mineral projects set forth herein, with the exception of the Alumbrera Mine (see “JORC Code Definitions”, below), have been calculated in accordance with the CIM Standards. The following definitions are reproduced from the CIM Standards:

The term “ Mineral Resource ” means 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. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Material of economic interest refers to diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

The term “ Inferred Mineral Resource ” means that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes.

The term “ Indicated Mineral Resource ” means that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors (as defined below) in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.

The term “ Measured Mineral Resource ” means that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.

The term “ Mineral Reserve ” means the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral Reserves (as hereinafter defined) and Proven Mineral Reserves (as hereinafter defined). Mineral Reserves are inclusive of diluting material that will be mined in conjunction with the Mineral Reserves and delivered to the treatment plant or equivalent facility.

The term “ Probable Mineral Reserve ” means the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve. Probable Mineral Reserve estimates must be demonstrated to be economic, at the time of reporting, by at least a pre-feasibility study.

The term “ Proven Mineral Reserve ” means the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors. Proven Mineral Reserve estimates must be demonstrated to be economic, at the time of reporting, by at least a pre-feasibility study.

The term “ Modifying Factors ” means considerations used to convert Mineral Resources to Mineral Reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.

JORC Code Definitions

The estimated Ore Reserves and Mineral Resources for the Alumbrera Mine have been calculated in accordance with the current (2012) version of the Australasian Code for Reporting of Mineral Resources and Ore Reserves (the “JORC Code”), the Australian worldwide standards. The JORC Code has been accepted for current disclosure rules in Canada under NI 43-101. The following definitions are reproduced from the JORC Code:

EXHIBIT 99.1

The term “ Mineral Resource ” means a concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such form and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

The term “ Inferred Mineral Resource ” means that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

The term “ Indicated Mineral Resource ” means that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

The term “ Measured Mineral Resource ” means that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and/or grade continuity.

The term “ Ore Reserve ” means the economically mineable part of a Measured or Indicated Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, including a pre-feasibility study or a feasibility study, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves.

The term “ Probable Ore Reserve ” means the economically mineable part of an Indicated, and in some circumstances Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.

The term “ Proved Ore Reserve ” means the economically mineable part of a Measured Mineral Resource. It includes diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified.

The foregoing definitions of Ore Reserves and Mineral Resources as set forth in the JORC Code have been reconciled to the definitions set forth in the CIM Standards. If the Ore Reserves and Mineral Resources for the Alumbrera Mine were estimated in accordance with the definitions in the CIM Standards, there would be no substantive difference in such Ore Reserves and Mineral Resources.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources

This section uses the terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource”. United States investors are advised that while such terms are recognized and required by Canadian regulations, the Commission does not recognize them. Inferred Mineral Resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not, except in limited circumstances, form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. See also “Introductory Notes – Cautionary Note to United States Investors Concerning Estimates of Mineral Reserves and Mineral Resources”.

EXHIBIT 99.1

Cash Costs and All-In Sustaining Costs

The Company discloses “cash costs” because it understands that certain investors use this information to determine the Company’s ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS do not fully illustrate the ability of its operating mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. Cash costs figures are calculated in accordance with a standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard remains the generally accepted standard of reporting cash costs of production in North America. Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies.

The measure of cash costs, along with revenue from sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flows from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial measure. The terms co-product and by-product cash costs per ounce of gold or silver produced, co-product cash costs per pound of copper produced, co-product and by-product AISC per ounce of gold or silver produced and co-product AISC per pound of copper produced do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

By-Product and Co-product Cash Costs

Cash costs include mine site operating costs such as mining, processing, administration, production taxes and royalties which are not based on sales or taxable income calculations, but are exclusive of amortization, reclamation, capital, development and exploration costs. The Company believes that such measure provides useful information about the Company’s underlying cash costs of operations. Cash costs are computed on a co-product basis.

Cash costs are computed on a weighted average basis, net of by-product sales and on a co-product basis as follows:


•	Cash costs of gold and silver on a by-product basis - shown on a per ounce basis.


•	The attributable cost for each metal is calculated net of by-products by applying copper and zinc net revenues, which are incidental to the production of precious metals, as a credit to gold and silver ounces produced, thereby allowing the Company’s management and stakeholders to assess net costs of precious metal production. These costs are then divided by gold and silver ounces produced.


•	Cash costs of gold and silver on a co-product basis - shown on a per ounce basis.


•	Costs directly attributed to gold and silver will be allocated to each metal. Costs not directly attributed to each metal will be allocated based on the relative value of revenues which will be determined annually.


•	The attributable cost for each metal will then be divided by the production of each metal in calculating cash costs per ounce on a co-product basis for the period.


•	Cash costs of copper on a co-product basis - shown on a per pound basis.


•	Costs attributable to copper production are divided by commercial copper pounds produced.

By-Product and Co-product All-in Sustaining Costs

All-in sustaining costs per ounce of gold and silver produced seeks to represent total sustaining expenditures of producing gold and silver ounces from current operations, based on co-product costs, including cost components of mine sustaining capital expenditures, corporate general and administrative expense excluding stock-based compensation, and exploration and evaluation expense. All-in sustaining costs do not include capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, income tax payments, financing costs and dividend payments. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depletion, depreciation and amortization expense as it does not reflect the impact of expenditures incurred in prior periods.

All-in sustaining by-product and co-product costs reflect allocations of the aforementioned cost components on the basis that is consistent with the nature of each of the cost component to the gold, silver or copper production activities.

EXHIBIT 99.1

Co-product cash costs per ounce of gold and silver produced, and co-product all-in sustaining costs per ounce of gold and silver produced are from continuing operations and, as applicable, exclude Mercedes and Ernesto/Pau-a-Pique, a discontinued operation.

Beginning January 1, 2016, the Company revised its definition of cash costs to include, in addition to mine site direct costs, all previously un-allocated general and administrative expenses related to the mine site. Additionally, the Company has excluded the impact from Alumbrera, the results of which are now considered negligible for performance measurement purposes. Comparative balances have been restated accordingly to conform to the change in presentation adopted in the current period.

Total cost of sales agrees to the consolidated annual statement of operations that reflects continuing operations excluding Mercedes, which is classified as discontinued operations. All production costs are classified in inventory together with treatment and refining charges, commercial costs, overseas freight and other selling costs. The amount of inventories recognized as cost of sales for the reporting period corresponds to the units of products sold during that period.

Mineral Projects

Summary of Mineral Reserve and Mineral Resource Estimates

Mineral Reserves (Proven and Probable)

The following table sets forth the Mineral Reserve estimates for the Company’s mineral projects as at December 31, 2017. See “Interests of Experts”.

EXHIBIT 99.1

EXHIBIT 99.1

Mineral Resources (Measured, Indicated and Inferred)

The following table set forth the Mineral Resource estimates and for the Company’s mineral projects as at December 31, 2017. See “Interests of Experts”.

EXHIBIT 99.1

EXHIBIT 99.1

Mineral Reserve and Mineral Resource Reporting Notes

1. Metal Prices and Cut-off Grades:



Mine	Mineral Reserves	Mineral Resources
Anoki-McBean (50%)	N/A	$1,200 Au, cut-off grade at 2.5 g/t Au
Amalgamated Kirkland (50%)	N/A	$1,200 Au, cut-off grade at 2.5 g/t Au
Alumbrera Deposit (12.5%)	$1,250 Au, $2.91 Cu. Underground cut-off at 0.5% Cueq. Metallurgical recoveries are 87.85% for Cu and 72.31% for Au	0.5% Cueq within economic envelope
Bajo El Durazno Deposit (12.5% - Part of Alumbrera Projects)	$1,250 Au, $2.91 Cu. Open pit cut-off at 0.3 g/t Aueq within pit. Metallurgical recoveries are 72.83% for Cu and 66.75% for Au.	0.2 g/t Aueq within economic envelope
Arco Sul	N/A	2.5 g/t Au cut-off
Canadian Malartic (50%)	$1,200 Au, cut-off grades range from 0.35 to 0.37 g/t Au. Metallurgical recoveries for Au range from 87% to 96.7% depending on zone.	$1,200 Au, cut-off grades range from 0.35 g/t Au inside pit and 1.0 g/t Au outside or below pit. Cut-off grade Odyssey Underground at 1.0 g/t Au and East Malartic Underground at 1.25 g/t Au (MSO).
Cerro Moro	$950 Au and $18.00 Ag, Open pit cut-off at 3.4 g/t Aueq and Underground cut-off at 6.2 g/t Aueq. Metallurgical recoveries are 95% for Au and 93% for Ag..	1.0 g/t Aueq cut-off
Chapada	$1,250 Au, $3.00 Cu; $4.36 NSR cut-off at $4.06 / t (Main Pit, Corpo Sul, Cava Norte and Sucupira). Cut-off grade 0.21 g/t Au based on $1,300 / ounce Au (Suruca Oxide). Cut-off grade 0.3 g/t Au based on $900 / ounce Au (Suruca Sulphide). Metallurgical recoveries for Suruca Oxide are dependent on zone and average 85% for gold.	$1,600 / ounce Au Au, $4.00 / lb Cu (Chapada pits and Suruca SW). 0.2 g/t Au cut-off for oxide and 0.3 g/t Au cut-off for sulphide in Suruca Gold Project.
El Peñón	$1,250 Au, $18.00 Ag, Variable cut-off for Underground ranging from 3.48 g/t Aueq to 4.31 g/t Aueq dependent on zone. Reserves based on economic revenue. Metallurgical recoveries for Au ranges from 82% to 97% and Ag ranges from 56% to 95% dependent on zone.	$1,600 Au, $24.00 Ag, Variable cut-off for Underground ranging from 2.71 g/t Aueq to 2.82 g/t Aueq dependent on zone. Cut-off grade for tailings at 0.50 g/t Aueq and for low grade stock at 0.80 g/t Aueq. Metallurgical recoveries: Underground 95% Au and 86.5% Ag. Tailings 60% Au and 30% Ag. Low grade stock 75% Au and 70% Ag.
Gualcamayo	$1,250 Au, Reserves based on economic revenue with variable cut-offs . Metallurgical recoveries for Au open pit ore are 49% and 61% for Au underground ore.	Open pit resources based $1,600 Au resource pit with cut-offs dependent on zone. Underground resources based on$1,600 Au with 1.00 g/t Au cut-off for material outside of the resource pit shell.
Hammond Reef (50%)	N/A	$1,400 Au, Open pit cut-off 0.32 g/t Au West Pit and 0.34 g/t Au East Pit.
Jacobina	$1,200 Au; 1.2 g/t Au cut-off. . Metallurgical recovery for Au is 96%.	0.5 g/t Au cut-off based on $1,600 Au price and a minimum width of 1.5 m, 96.5% metallurgical recovery and incremental mining cost.
Jeronimo (57%)	$900 Au, 2.0 g/t Au cut-off. Metallurgical recovery for Au is 86%.	2.0 g/t Au cut-off
La Pepa	N/A	$780 Au, 0.30 g/t Au cut-off
Lavra Velha	N/A	$1300 Au, $3.50 Cu and 0.2g/t Au, 0.1% Cu cut-offs
Minera Florida	$1,250 Au, $18.00 Ag, $1.25 Zn. Reserves based on a 2.17 g/t Aueq cut-off. Metallurgical recoveries are 90.81% for Au, 51.63% for Ag and 57.36% for Zn.	2.50 g/t Aueq cut-off
Monument Bay	N/A	$1,200 Au, 0.4 and 0.7 g/t cut-off for open pit and 4.0 g/t Au cut-off for underground.
Suyai	N/A	5.0 g/t Au cut-off
Upper Beaver (50%)	$1,200 Au, $2.75 Cu. Reserves based on NSR cut-off of Cdn$125.00/t. Metallurgical recoveries are 95% for Au and 80% to 90% for Cu.	$1,200 Au and $2.75 Cu. Resources based on NSR cut-off of Cdn$95.00/t. Metallurgical recoveries are 95% for Au and 90% for Cu.
Agua Rica	$1,000 Au, $2.25 lb Cu, $17.00 g/t Ag, $12.00 lb Mo. Metallurgical recoveries are 84.9% for Cu, 52.7% for Au, 67.6% for Ag, 65.9% for Zn, and 68.0% for Mo.	0.2% Cu cut-off

EXHIBIT 99.1

2. All Mineral Reserves and Mineral Resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101, other than the estimates for the Alumbrera mine which have been calculated in accordance with the JORC Code which is accepted under NI 43-101.

3. All Mineral Resources are reported exclusive of Mineral Reserves.

4. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

5. Mineral Reserves and Mineral Resources are reported as of December 31, 2017.

6. For the qualified persons responsible for the Mineral Reserve and Mineral Resource estimates, see the qualified persons list below.

Material Producing Mines

Chapada Mine

Unless otherwise stated, the information, tables and figures that follow relating to the Chapada Mine are derived from, and in some instances are extracts from, the technical report entitled “Technical Report on the Chapada Mine, Goiás State, Brazil” dated March 21, 2018 (the “Chapada Report”), prepared by or under the supervision of Chester Moore, P.Eng., Hugo Miranda, ChMC (RM) and Avakash Patel, P.Eng (the “Chapada Qualified Persons”), of Roscoe Postle Associates Inc. (“RPA”) and Luiz Pignatari, Registered Member of the Chilean Mining Commission, of Edem Engenharia de Minas. The technical information contained in this section of the annual information form, other than the technical information set forth above under the heading “Mineral Projects – Summary of Mineral Reserves and Mineral Resources Estimate” has been reviewed and approved by the Chapada Qualified Persons, each of whom is a “qualified person” for the purpose of NI 43-101. See “Interests of Experts”.

Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. Reference should be made to the full text of the Chapada Report, which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review on the Company’s SEDAR profile at www.sedar.com .

Property Description, Location and Access

The Chapada Mine is located in northern Goiás State, approximately 320 kilometres north of the state capital of Goiania and 270 kilometres northwest of the national capital of Brasilia. It is situated at latitude 14° 14’ S, longitude 49° 22’ W. The Chapada Mine includes the Chapada copper-gold deposit, sub-divided into the Chapada Corpo Principal and Corpo Sul deposits, and the Suruca gold deposit. Corpo Sul is situated at the southwest extremity of the Chapada deposit. The Suruca deposit is located six kilometres northeast of the Chapada Mine at approximately latitude 14° 11’ S, longitude 49° 20’ W.

Access to the project area from Brasilia is via BR-153 (Belem/Brasilia) to Campinorte (GO) and then via GO-465 (Campinorte/Santa Terezinha) west to Alto Horizonte. The town of Alto Horizonte lies between the Suruca and Chapada deposits. Chapada Airport, suitable for small aircraft with an 800 metres long airstrip, is located close to Alto Horizonte, approximately four kilometres northeast of the Mine.

EXHIBIT 99.1

The Chapada Mine is divided into 37 claims totalling 43,866.31 ha. The claims are held in the name of Mineração Maracá Indústria e Comércio S/A (“Mineração Maracá”), a 100% owned subsidiary of Yamana. See also “– Exploration, Development and Production”.

Yamana (via Mineração Maracá) holds all of the surface rights in the area of the Chapada Mine, which incorporates all of the proposed locations of buildings, fixed installations, waste dumps, and tailing disposal in the current mine plan. Yamana is of the opinion that it can acquire the right to dispose of waste rock and tailings on additional surface property, if and when required. The land ownership is registered with the Registrar of Real Estate in Mara Rosa, Goiás.

Other than statutory royalties which are paid to the Brazilian government based on commercial copper and gold production, RPA is not aware of any rights, agreements or encumbrances to which the Chapada Mine is subject, which would adversely affect the value of the property or Mineração Maracá’s ownership interest. The environmental licensing process for Corpo Sul started in 2013 and the required licences were granted in 2014. No current environmental liabilities have been identified within the mine area. Ongoing items such as waste stockpiles, depleted heap leach piles, and tailings storage facilities will be rehabilitated during the mine life or at the time of mine closure.

History

The Chapada deposit was discovered in 1973 by a Canadian company, INCO Ltda. (“INCO”), which followed up with geochemistry, geophysics, trenching, and initial drilling. There are few outcrops in the mine area due to laterite-saprolite cover. Consequently, deposit definition required extensive diamond drill exploration. Development drilling of the deposit occurred in several campaigns from 1976 through 1996 by INCO, Parsons-Eluma Projetos e Consultoria S/C (“Parsons”), a Brazilian copper company, Eluma — Noranda, Santa Elina, and Santa Elina-Echo Bay (“Echo Bay”). Historical ownership and exploration activities are summarized in Table 1.

EXHIBIT 99.1



Table 1
Date	Owner	Activity
1973	INCO	Chapada discovery.
1975-1976		2,000 metres x 500 metres grid drilling program. Parsons acquires a 50% interest in the Chapada project.
1976-1979	INCO & Parsons	200 metres x 100 metres drill grid. A 92 metres deep shaft is completed with 255 metres of cross-cuts for exploration and metallurgical sampling.
1979		Mining concession No. 2394 covering 3,000 hectares is issued to Mineração Alonte by the Departamento Nacional da Producao Mineral (“DNPM”).
1980-1981		Soil drilling completed in the plant, tailing ponds, and potential water dam areas.
1981	Parsons	Feasibility study completed.
1994-1995		A 4,500 metres drilling program re-evaluation of a near surface gold deposit.
		Preliminary feasibility study by Watts, Griffis and McOuat.
May 1994	SERCOR	Mineração Santa Elina Industria e Comercio S/A (“SERCOR”) acquires the Chapada deposit through a subsidiary, Mineração Maracá.
July 1994	SERCOR and Echo Bay	Echo Bay acquires an initial interest in Santa Elina by purchasing 5% of the outstanding shares from SERCOR.
Dec 1994		Santa Elina completes its initial public offering.
Sep 1995		Santa Elina and Echo Bay approve the Chapada project joint venture. Santa Elina issues about 3% of the outstanding shares to Echo Bay. Echo Bay receives the option to acquire 50% interest in the project.
May 1996		Santa Elina is privatized and SERCOR and Echo Bay become equal owners of the company.
Dec 1996		Santa Elina completes an in-fill drilling program
Dec 1997		Independent Mining Consultants, Inc. reviews the Echo Bay model and completes a mine feasibility study.
Jan 1998		Kilborn Holdings Inc., (now SNC-Lavalin Group Inc.), completes the Chapada project bankable feasibility study.
Apr 2001		Construction licence issued.
May 2000	PINUS	PINUS acquires 100% of Mineração Maracá.
2003	Yamana	The property is purchased by Yamana.
2004		The feasibility study is completed.
2007		Commercial production starts.

In 2008, Yamana started a plant expansion to increase throughput from 16 million tonnes per annum to 22 million tonnes per annum.

From 2007 to the end of 2017, the Chapada Mine has processed 212 million tonnes grading 0.34 grams per tonne gold and 0.39% copper.

The Suruca deposit has been explored by various companies since the 1970s, as summarized in Table 2, and was exploited by garimpeiros in the 1980s. Yamana reports that garimpeiros produced approximately 200 kilograms of gold in that period. A historical estimate of resources was identified in the mid-1990s; however, as this estimate is historic in nature, it cannot be relied upon.

EXHIBIT 99.1

Table 2



Date	Ownership
1980 - 1981	INCO/Eluma
1987 - 1988	Cominco
1993 - 1994	WMC
1996 - 1997	Santa Elina ElinaElina/Echo Bay
2008 to present	Yamana

Geological Setting, Mineralization and Deposit Types

The Chapada area is located between the Amazonian craton to the northwest and the San Francisco craton to the southeast, within the north-northeast striking metavolcano-sedimentary Mara Rosa Magmatic Arc which is part of a large system of mobile belts that have a complex, multi-phased history of deformation.

The Chapada, Corpo Sul and Suruca deposits are located in the Eastern Belt of the Mara Rosa volcano sedimentary sequence. The Eastern Belt in the vicinity of the Chapada Mine comprises a thick package of amphibolites succeeded by volcanic and volcanoclastic rocks and overlying metasedimentary rocks. The metavolcanic-sedimentary units are intruded by metaplutonic rocks of dioritic to quartz-diorite composition. These intrusions are associated with magmatic fluids responsible for copper-gold and gold mineralization. The volcanics and sediments have been metamorphosed to biotite and amphibolite schist in the Chapada mineralized area.

The deposit has undergone hydrothermal alteration typical of a copper-gold porphyry system. Alteration styles include biotitization, sericitization, argillitization, and propylitization.

The bedrock schists are overlain by approximately 25 metres of saprolite material with a minor lateritic component near the top of the saprolite zone. Within that laterite component, there is a ferricrete zone at surface.

The primary copper-gold mineralization at Chapada is epigenetic. Copper is principally present as chalcopyrite with minor amounts of bornite. Fine grained gold is closely associated with the sulphide mineralization and was likely to be contemporaneous with the copper.

Copper mineralization occurs as finely disseminated crystals, elongated pods, lenses along foliation, crosscutting stringers, and coarse clots in occasional late stage quartz veins or pegmatites. The copper mineralization and grade are somewhat better in the central zone of the deposit along the anticline axis than in the surrounding anticlinal limbs; however, copper mineralization is pervasive over a broad area. Gold mineralization is more uneven spatially and may have been remobilized by post mineral low temperature alteration events.

The gold at Suruca is related to folded quartz vein/veinlets with sericitic and biotite alteration, rather than high sulphide concentrations. The second generation of quartz veins/veinlets with sulphides (sphalerite + galena + pyrite), carbonates and epidote also host gold which is related to zinc.

Mineralization predominately pre-dates deformation hence the gold is associated with epithermal features and not structurally controlled.

Exploration

For exploration work completed prior to Yamana, please see “–History”, above.

Yamana started exploration work in 2007 with diamond drilling mainly to the east of the pit to check for the extension of the mineralization potentially hosted in a synclinal structure.

In early 2008, consultant Richard Sillitoe defined a genetic model of mineralization with a typical porphyry copper-gold system (Cu-Au-Mo association) that underwent intense isoclinal folding and amphibolite facies metamorphism during continental

EXHIBIT 99.1

collision at the end of the Neoproterozoic. However, original mineralogy may not have been profoundly changed, due to the stability of minerals like quartz, anhydrite, pyrite, chalcopyrite, magnetite and biotite under amphibolite facies conditions.

Yamana began exploration work at Suruca in 2008 with geological mapping, chip sampling and shallow drilling at Suruca South. The 2008 drill program was designed to discover another deposit in the vicinity of Chapada Mine and to test for possible extensions of known resources. To achieve these objectives, regional geological mapping, and detailed geological mapping of the open pit were carried out, and geological model of the mine was prepared. Additionally, historic drill holes were re-logged, chip/soil samples were taken, and 5,530 m of diamond drilling was carried out in the vicinity of the Chapada Mine.

During 2010, Yamana drilled 16 holes in the southwest pit area and completed ten infill diamond drill holes in the northeast area. Samples from both the exploration and infill program were analyzed in a commercial and accredited laboratory. Yamana staff carried out quality assurance/quality control (QA/QC) and followed the protocol applied during the previous drilling programs. The drill program continued in 2011 Yamana continued a drilling program in the southwest pit area consisting of 14,362 m in 63 holes. Total drilling for the 2011 campaign was 19,305 m.

In 2013 Yamana drilled seven exploration holes for 1,704 m in the northeast section of Chapada Corpo Principal with the objective of delineating an inferred mineral resource. Several historic JVE series holes were used to estimate the mineral resource. In the same area condemnation holes were drilled to sterilize the location of waste dumps in the northeastern portion of the main Pit. In Corpo Sul, an infill drilling program was carried out in the southwest portion of the deposit on a 50 m by 50 m grid to upgrade Indicated to Measured Mineral Resources and on a 100 m by 100 m grid to convert Inferred to Indicated Mineral Resources.

In 2014, Yamana’s Exploration Team restarted the generative exploration activities at Chapada working with a deformed/metamorphosed copper-gold porphyry/skarn model for the region. Consultant Richard Sillitoe assisted with the understanding the regional geological model and district exploration strategy in early 2014. Based on this exploration information, the following work was completed: integration of previous drilling data, geological mapping with focus on hydrothermal halos, and sampling (soil, chip, and auger). As a result, in mid-2014, the Yamana claims were extended to cover the areas covered by soil and chip sampling. The main result in 2014 was the discovery of Sucupira target close to main Chapada deposit.

In 2015, the mineralization in the Sucupira was delineated with a drill grid of 100 m by 50 m along a 1,700 m NE-SW strike length, 260 m width, and an average thickness of 110 m. The mineralization has an average vertical depth between 180 m to 240 m from surface. Several holes returned average grade above 0.7% CuEq, which is higher than the current reserve grade at Chapada.

In 2016, the Baru target was discovered. It comprises a large tonnage and low grade envelope of 0.1% Cu with a richer gold core. Typical Baru mineralization was intersected by drill hole NM-237: 82.6 m grading 0.12 g/t Au, 0.25% Cu at 114 m; and 30 m grading 0.2 g/t Au, 0.35% Cu at 150 m.

In 2017, Yamana drilled ten exploration targets with the objective of delineating new potential. Additionally, the Buriti target was discovered three kilometres south of the Chapada main pit. The Buriti target comprises copper-gold sulphide mineralization (greater than 0.15% CuEq) in a 2.0 km long copper geochemical anomaly. The Buriti hydrothermal alteration is similar to Chapada with a flat geometry close to surface, gently plunging to NW. Drill hole BRT-05 contains typical mineralization with 10.15 m grading 0.3 g/t Au, 0.3% Cu at 51.85 m. Inferred mineral resources were delineated with a 500 m northeast-southwest strike length, a width of 50 m, and a 150 m depth.

See also “– Exploration, Development and Production”.

Drilling

Yamana commenced drilling the Chapada deposit in 2008. To date, Yamana and its predecessors have drilled 1,147 holes for a total of 229,254 m. Drilling has delineated the main deposit areas at a spacing of 100 m by 50 m, with a tighter 50 m pattern in the central portion of the deposit.

EXHIBIT 99.1

The 2008 and 2009 drilling campaigns were concentrated in the region named “Near Mine” and on the south portion of the area. The 2010 and 2011 campaigns targeted the Near Mine and Corpo Sul areas. The drill holes were collared at HW diameter, reduced to HQ diameter at the top of the saprolite, and changed to NQ2 when fresh rock was encountered. The drill rods were three metres long.

The majority of holes were drilled at an azimuth of 130° and an 85° dip. Drill holes with inclination between 45° and 85° were surveyed every three metres downhole using Devicom Deviflex electronic surveying instrument. No significant deviation issues were found to date. Collar surveys were taken by a Total Station GPS in UTM co-ordinates, SAD 69 Brazil datum, 22 South Zone.

Suruca

One hundred and twenty drill holes totalling 4,050 m were drilled at Suruca by previous owners; however, the database only contains details of the 1997 Santa Elina/Echo Bay holes with minimal data regarding the WMC reverse circulation drill holes.

Table 4

The majority of the historical holes were drilled within the saprolite which was characterized by low grade zones 0.1 g/t Au to 0.5 g/t Au), with occasional high grade interceptions ranging between 0.5 g/t Au and 6.0 g/t Au.

Yamana commenced drilling in the Suruca area in 2008 with seven holes for 440 m. The 2009 and 2010 drill programs used a 400 m by 200 m grid, with infill drilling at 200 m by 200 m. They extended the geometry of the deposit to a known strike length to 2,100 m, a width of 1,000 m, and 500 m depth. An infill grid of 100 m by 100 m was drilled in the northern portion of the deposit (between lines L500S and L1500S). To the end of 2017, a total of 1,002 holes for 77,301 m have been drilled at Suruca, including 18 holes for 536 m drilled by previous owners in 1996.

EXHIBIT 99.1

Table 5 – Yamana Drill Holes - Suruca

The drill holes were collared at HW diameter, reduced to HQ diameter at the top of the saprolite and changed to NQ when fresh rock was encountered. The drill rods were three metres long and the wireline core drilling method was employed. The majority of holes were drilled at an azimuth of 130° and a 60° dip, however, some holes were drilled at an azimuth of 310°. Downhole surveys were taken by the drilling contractor upon completion of the drill hole.

Regional Targets

Yamana commenced drilling in the regional targets in 2014 with 31 holes totalling 5,458 m. The 2014 and 2017 drill programs used a wide-spaced grid in order to test several targets. In 2015, the drill holes intercepted high grade copper-gold mineralization in the Formiga target. In 2017, an infill grid of 100 m by 100 m was drilled in the western portion of the Formiga target to establish inferred resources.

To the end of 2017, Yamana has drilled 230 holes for 32,736 m in regional targets. The drill holes were collared at HW diameter, reduced to HQ diameter at the top of the saprolite and changed to NQ when fresh rock was intercepted. The drill rods were three metres long and the wireline core drilling method was employed.

Drill holes with inclination between 45° and 85° were surveyed every three metres downhole using a Reflex Maxibor II or Devicom Deviflex electronic surveying instrument. In sub-vertical holes, a PeeWee or EZ-Shot instrument were used. Generally, the deviation was below 5% and no significant deviation issues were found to date.

Collar surveys were taken by a Total Station GPS in UTM co-ordinates, SAD 69 Brazil datum, 22 South Zone. Drill hole collars were cased and protected at surface with a cement block affixed with a metal tag stamped with the drill hole number, final depth, inclination, azimuth, and start and finish dates.

See also “– Exploration, Development and Production”.

Sampling, Analysis and Data Verification

Yamana’s samples are selected down the entire length of the drill hole core, sawn in half with an electric diamond bladed core saw, and sampled prior to logging. Half core samples are selected by a geology technician or trained sampler. The samples are then placed in a numbered plastic bag along with a paper sample tag, and tied closed with a piece of string. Sample weight is approximately 3.5 kilograms. Six to eight samples are placed in a larger plastic bag, loaded onto a truck owned and driven by a locally based transport company, and driven to the ALS Chemex laboratory sample preparation facility in Goiania, State of Goiás.

After sampling, the geologist completes a graphic log and logs the core in detail for lithology, structure, mineralization, and alteration. Codes are assigned for the oxidation state, consistency, and alteration including alteration halo, sulphides, silicification, biotite, sericite, epidote, amphibolite, garnet, carbonate, rhodochrosite, chlorite, and kyanite content. Angles of structures such as foliation and faults are recorded, although drill holes are not oriented. Sample intervals and sample numbers are also recorded on the exploration hole log. (When the drill hole is an infill hole, the core is quickly logged, according to the alteration halos with fewer details, and no structural drawings.)

EXHIBIT 99.1

Approximately four samples from each alteration halo per drill hole are selected for density testwork by two different methods after sampling and logging. The first method used is the water displacement method, performed in the logging shed. This method uses half core samples from eight to twelve centimetres long, coated with Vaseline to prevent water impregnation, and placed in a plastic beaker containing 500 ml of water to determine the volume of water displacement.

Sample preparation is undertaken by ALS Chemex in Goiania and involves crushing and pulverization (Codes PREP-33y and PREPINT). Upon receipt of the samples, each sample is weighed and dried at 105°C for eight hours to 12 hours. The entire sample is then crushed to 90% passing <2 mm (10 mesh), split to 0.5 kg in a riffle splitter, and pulverized to 95% passing 150 mesh. The samples are then split again to 50 g using a rotating splitter/spatula. The crusher and pulverizer are cleaned between each sample. Each fraction retained is returned to Yamana.

Samples are transported from the drill rig to Yamana’s core storage facilities at the Chapada Mine exploration camp by the drilling contractor, where Yamana geological staff log and sample the core. The samples are transported to the independent sample preparation facility by a locally based transport company, after which the samples are sent for preparation in ALX Chemex in Goiania, Brazil, and for analysis in Lima, Peru.

All Yamana samples are analyzed by fire assay with an Atomic Absorption (AAS) or ICP finish by ALS Chemex Lima, Peru, accredited by the Standards Council of Canada ISO 17025 and SGS GEOSOL, Belo Horizonte, Brazil is accredited by ISO 9001:2008. Yamana is at arm’s length with these laboratories.

Yamana conducted an external (independent of the laboratory being assessed), industry standard quality assurance/quality control (“QA/QC”) program for its drill campaigns, which followed written protocols. The QA/QC program consisted of the insertion of blanks and CRMs into the sample stream and the running of duplicate field (quarter-core) samples. Later, pulp duplicate samples were re-assayed at a secondary facility.

Yamana’s QA/QC program meets industry standard with a generally acceptable rate of insertion for CRMs and pulp duplicates. The results of the pulp duplicate assays showed good reproducibility with no discernible grade

biases. The insertion of CRMs showed that laboratory results from SGS Geosol and ALS Chemex were acceptable with respect to precision and accuracy. The results from the insertion of blanks are also generally acceptable.

In 1996, Echo Bay became actively involved in the drilling and sampling program for the Project. Samples taken by Santa Elina in 1996 were subject to a rigorous QA/QC program; Geolab in Brazil was the primary assay laboratory and a large number of samples were sent to various laboratories in North America for check assays

IMC Mining (IMC) was contracted to review the historical data. IMC’s review included the following (i) all historical QA/QC control files; and (ii) a comparison of historical data with re-assayed data from analytical laboratories in the US. IMC concluded that the historical data was appropriate for estimation of Mineral Resources.

A total of 18 Suruca diamond drill holes from Mineração Alonte were re-analysed following Yamana’s procedures. The new assay results were compatible with the historical results.

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.

Yamana has written procedures and checks for all aspects of drilling, sampling, analyses, and data compilation. For example, drill logs are verified at the point prior to entry into the database by the Geology Department.

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 and analysis of assay QA/QC data at Chapada is quite thorough and meets standard industry practice.

RPA is of the opinion that data collection and entry, and database verification procedures for Chapada comply with industry standards and the data is adequate for the purposes of Mineral Resource estimation.

EXHIBIT 99.1

Mineral Processing and Metallurgical Testing

For a discussion of mineral processing and metallurgical testing work completed by Yamana, see “ – Mining Operations”, below.

Mineral Resources and Mineral Reserves

See “– Mineral Projects – Summary of Mineral Reserves and Mineral Resources”.

RPA has reviewed the updated Mineral Resource estimates for the Chapada and Suruca deposits completed by Yamana personnel effective as of December 31, 2017. The Mineral Resource estimate is based on open pit mining scenarios and Chapada Mineral Resources are constrained by Whittle optimized pits which are based on a copper and gold net smelter return (NSR) cut-off value. At Chapada and Suruca SW, a variable NSR marginal cut-off value averaging approximately US$4.06 per tonne at Chapada and a fix US$4.50 per tonne at Suruca SW to account for the extra haulage distance, was used for sulphide and 0.3 g/t Au for oxide mineralization. For Suruca gold-only resources, a 0.2 g/t Au cut-off grade was used for oxide material and 0.3 g/t Au cut-off grade, for sulphide material.

The Mineral Resource estimates, exclusive of those mineral resources used to estimate the Mineral Reserves, are summarized in Table 1. Measured and Indicated Mineral Resources of gold are estimated at 82.2 Mt grading 0.48 g/t Au containing approximately 1.3 million ounces of gold. Measured and Indicated Mineral Resources of copper/gold are estimated at 274.2 Mt grading 0.17 g/t Au and 0.22% Cu containing approximately 1.5 million ounces of gold and 1.3 billion pounds of copper. Inferred Mineral Resources of gold are estimated at 28.0 Mt grading 0.44 g/t Au approximately 390,000 ounces of gold. Inferred Mineral Resources of copper/gold are estimated at 47.1 Mt grading 0.15 g/t Au and 0.24% Cu containing approximately 220,000 ounces of gold and 250 million pounds of copper.

Yamana personnel developed mineralization and lithology wireframes using Vulcan software, with refinements in Leapfrog 3D software. Block models were generated in MineSight measuring ten metres in each direction for Chapada (Cava Central, Cava Norte, Corpo Sul and Sucupira) and five metres in each direction for the Suruca deposits. Block grades were estimated using Ordinary Kriging (OK) in areas where sufficient composites were available to produce reliable variograms. In the absence of reliable variograms, block estimates were performed using Inverse Distance (ID) to the third power.

Classification for Chapada was based on a 50 m by 50 m drill pattern for the Measured Mineral Resources, 100 m by 100 m drill pattern for indicated, and 200 m by 200 m drill pattern for Inferred. For Suruca, classification was based on a 35 m by 35 m drill pattern for Measured Mineral Resources, 100 m by 50 m for Indicated, and 200 m by 200 m drill pattern for Inferred Mineral Resources.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that would materially affect the Mineral Resource estimate.

The resource estimates were prepared using industry standard methods and provide an acceptable representation of the deposit. RPA reviewed the reported resources, production schedules, and factors for conversion from Mineral Resources to Mineral Reserves. Based on this review, it is RPA’s opinion that the Measured and Indicated Mineral Resource within the final pit designs at Chapada Mine can be classified as Proven and Probable Mineral Reserves.

Total Proven and Probable Copper/Gold Mineral Reserves for Chapada and Suruca are estimated at 621.9 Mt grading 0.16 g/t Au and 0.25% Cu. Total Proven and Probable Gold Mineral Reserves for Suruca are estimated at 59.331 Mt grading 0.53 g/t Au.

RPA is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant factors that could materially affect the Mineral Reserve estimate.

Mining Operations

The Chapada Mine is a traditional open pit truck/shovel operation that has been in continuous operation since 2007. There are two main open pit mining areas to be developed on the property, Chapada and Suruca. Current production is entirely from Chapada, including the Corpo Principal, Cava Norte, Corpo Sul and Sucupira pits. These pits are planned to eventually join into a single pit and Sucupira pit is planned as an additional series of pushbacks. The Suruca mining area includes Suruca Oxide and Suruca Sulphide gold Mineral Reserves.

EXHIBIT 99.1

The Chapada Mine is located in gently undulating terrain at elevations between 340 MASL and 400 MASL. The Chapada open pit, which is currently being mined, has ultimate design dimensions of approximately 8.0 km along strike, up to 1.5 km wide, and 420 m deep. The Suruca open pit will be located approximately seven kilometres northeast of the Chapada open pit. Final pit dimensions for Suruca will be approximately two kilometres along strike and about one kilometre wide.

The processing plant is located at the northwest end of the Chapada pit rim. The tailings storage facility is located to the northwest of the Chapada open pit, with the pond as close as 0.5 km to the pit rim and the tailings dam being up to five kilometres to the northwest. The Life of Mine (LOM) plan is based on Mineral Reserves, as of December 31, 2017, plus an additional 68 Mt of Measured and Indicated Mineral Resources from Sucupira at an average grade of 0.26% Cu and 0.17 g/t Au. These additional resources require the relocation of surface infrastructure that will be studied in a Feasibility Study commencing in 2018.

The LOM plan is based on a processing rate of 23.4 Mtpa. The ore stockpile will be processed intermittently throughout the mine life. The mine life is 27 years plus an additional two years at the end of the mine life for processing the remainder of the ore stockpile.

Processing and Recovery Operations

The Chapada Mine treatment plant processed an average of 63,000 tpd in 2017 with average copper and gold recoveries of 80% and 57% respectively.

The first step of the process occurs in the two parallel crushing circuits. The primary crushing system consists of an in-pit gyratory crusher in series with a roll crusher and a jaw crusher in parallel. Crushing is followed by grinding in a semi-autogenous (SAG) mill followed by a ball mill. The ore is then sent to the flotation, thickening, and filtration processes. The tailings are placed in a tailings storage facility, where the embankments are constructed using the coarser material from the grinding plant.

The Suruca oxide gold deposit is currently being planned for processing through a heap leach. A feasibility study was completed for the Suruca oxide project in early 2018 and Yamana is currently assessing the project within the context of the Chapada complex. Suruca sulphide ore is currently being planned to be processed through the existing Chapada plant, with some modifications, at the end of the Chapada mine life. However, there is also an option to construct a standalone CIL or CIP plant for processing the sulphide ore. Conceptual studies are ongoing.

Conceptual studies have been completed to expand the Chapada processing plant capacity to 28 to 32 Mtpa. A feasibility study for this expansion project is schedule to commence in 2018.

Infrastructure, Permitting and Compliance Activities

Chapada currently operates one open pit mine and process plant and has all the required infrastructure necessary for a mining complex including:


•	Open pit mine and mine infrastructure including truck shop, truck wash facility, warehouse, fuel storage and distribution facility, explosive’s storage and magazine sites, and electrical power distribution and substations to support construction projects and mine operations.


•	A conventional flotation mill for processing sulphide ore and mill infrastructure including assay laboratory, maintenance shops, and offices.


•	Mine and mill infrastructure including office buildings, shops, and equipment.


•	A tailings storage facility comprising a raised dam constructed with cyclone tailings with capacity for three years and plans for further expansion.


•	Local water supplies as required.


•	Electric power from the national grid.


•	Haulage roads from the mines to the plant.


•	Stockpile areas for high grade and low grade ore.


•	Maintenance facilities.


•	Administrative office facilities.


•	Core storage and exploration offices.


•	Access road network connecting the mine infrastructure to the town site and to public roads.

Yamana has all the environmental permits required to operate the Chapada mine and process plant. Additional permits are occasionally required for expansion or construction projects. The mine life for Chapada Mine is currently 29 years, i.e., until

EXHIBIT 99.1

2047. The closure plan consists of two major types of activity: decommissioning and rehabilitation. Decommissioning involves permanently ending the mining and mineral processing operations and removing all the equipment and facilities that are not destined to remain in place for future use. Reclamation

includes reclaiming the mine site to other sustainable uses as defined in closure management plans.

Yamana is very active in engaging the local community with a series of cultural, social, and economic programs.

Capital and Operating Costs

LOM capital costs include capital projects, sustaining capital, and closure costs. LOM expansionary capital costs for Chapada are approximately $27 million and sustaining costs are approximately $290 million. The Suruca oxide pit and heap leach pre-production Capital Cost estimate is an additional $66 million including contingency. Exclusions from the capital and sustaining cost estimate include: mine development waste movement, working capital, and project financing and interest charges.

Operating costs are tracked and well understood as the mine has been in production since 2007. Operating costs are estimated for the LOM in 2018 US dollars. All in unit operating costs are $8.03 per tonne processed, consisting of mining, processing, and general and administrative costs.

Exploration, Development and Production

The Chapada Mine is divided into 37 claims covering 43,866.31 ha held in the name of Mineração Maraca. The Suruca deposit is located on claim numbers 860.708/2009 and 860.595/2009 (both Application for Mining Licences), totalling 845.75 ha. The Chapada and Corpo Sul deposits are located on claim numbers 808.931/1994, 808.923/1974, and 860.273/2003 (all Mining Licences) encompassing 3,830.19 ha.

Production at the Chapada Mine in 2017 consisted of 119,852 ounces of gold and 252,748 ounces of silver, contained in concentrate compared to 107,301 ounces of gold and 259,444 ounces of silver contained in concentrate in 2016. Chapada Mine copper production was 127.3 million pounds in 2017 compared to production of 115.5 million pounds of copper in 2016.

The Company completed a total of 43,543 metres of drilling in 383 holes over the course of the year ended December 31, 2017. The focus of the 2017 exploration program at Chapada was (i) to complete delineation drill programs at Sucupira/Baru, Corpo Sul and Suruca SW, concentrating on development of high-grade gold and copper lenses; (ii) delineation drilling at Formiga, Suruca Oxide, SW Mina and other targets with high potential to grow the mineral resource base; and (iii) to conduct exploration drilling at new near-mine targets like Buriti and Hidrotermalito. Exploration in 2018 will continue to define and expand the Suruca deposit, upgrade resources at Sucupira, Baru and explore for further near mine high-grade lenses of mineralization.

Several initiatives are underway to improve the performance of the Chapada processing plant. Following from the success of Phase I and Phase II plant optimization projects in 2016 and 2017, which has resulted in increased copper and gold recoveries, in 2018 Chapada will commence Phase III of the optimization. Commissioning is scheduled for the second quarter of 2019 and the project is expected to increase copper and gold recoveries by a further 1.5% to 2%. In addition to this, Chapada is assessing options to increase processing capacity to 28 to 32 Mt per year, with a Feasibility Study to commence in 2018.

Please refer to the section “Cautionary Note Regarding Forward-Looking Statements.”

El Peñón Mine

Unless otherwise stated, the information, tables and figures that follow relating to the El Peñón Mine are derived from, and in some instances are extracts from, the technical report entitled “Technical Report on the El Peñón Mine, Antofagasta Region, Northern Chile” dated March 2, 2018 (the “El Peñón Report”), prepared by or under the supervision of (the “El Peñón Qualified Persons”) Holger Krutzelmann, P.Eng., Normand Lecuyer, P.Eng. and Chester M. Moore, P. Eng., of RPA. The technical information contained in this section of the annual information form, other than the technical information set forth above under the heading “Mineral Projects – Summary of Mineral Reserves and Mineral Resources Estimate”, has been reviewed and approved by the El Peñón Qualified Persons, each of whom is a “qualified person” for the purpose of NI 43-101. See “Interests of Experts”.

Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. Reference should be made to the full text of the El Peñón Report, which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review on the Company’s SEDAR profile at www.sedar.com.

EXHIBIT 99.1

Property Description, Location and Access

The El Peñón Mine is located in the Atacama Desert in northern Chile, approximately 165 kilometres southeast of Antofagasta. Yamana owns 436 individual mining claims comprising an area of 90,087 hectares covering the El Peñón Mine, the Fortuna area and surrounding exploration lands. The Company became the 100% owner of El Peñón when it completed the final step of the acquisition of Meridian Gold Inc. (“Meridian”) on December 31, 2007. The mine operates on a year round basis. Antofagasta is the principle source of supply for the mine. It is a port city with a population of 80,000 and daily air service to Santiago. The mine is accessible by a paved road, with travel time from Antofagasta to the mine being approximately 2.5 hours.

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.

At the El Peñón Mine, the Company holds all the necessary environmental licenses and permits to operate the mine. RPA is not aware of any environmental liabilities on the property and 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.

History

The discovery of El Peñón was the result of successful grassroots exploration carried out by geologists of FMC Gold Company (“FMC Gold”), predecessor to Meridian, through the early 1990s. Drill programs executed from 1993 through 2007 and prior to Yamana’s purchase of Meridian, Meridian and its predecessor FMC Gold completed 962,550 meters of exploration drilling and 616,909 meters of infill drilling. This work outlined approximately 5.5 million GEO of gold and silver resources that contained approximately 3.4 million ounces GEO of gold and silver reserves. 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, continuously extending its mine life through exploration.

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 the table below.

Historical Mine Production to December 31, 2017

EXHIBIT 99.1

In the later part of 2016, the Company decided to right-size the operation in light of the updated understanding of the mineralization occurring in narrow veins, and in consideration of the amount of mine development and exploration drilling needed to sustain production in excess of 200,000 oz of gold per year. As result of this plan, the El Peñón reduced its mine throughput stabilizing production of gold around a target of 150,000 oz per year, and focused on improving mining selectivity and productivity and reducing costs across the operation. The lower throughput also improved processing plant performance, as residence time increased, resulting in higher recoveries.

The approach undertaken by the Company led to a successful 2017 year for El Peñón. The mine exceeded its targets, providing a sustainable platform for operations and development of the exploration potential aimed to extend mine life.

Geological Setting, Mineralization and Deposit Types

The El Peñón Mine is located in the Central Depression of the Atacama Desert. The region is underlain by Late Cretaceous and Early Eocene magmatic arc rocks, of the Paleocene belt. 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 hosts many epithermal deposits and subvolcanic porphyry systems.

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. 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. Most of the mining takes place along north-trending veins. A relatively minor amount of production has taken place along northeast-striking structures.

The deposits at El Peñón are low to intermediate epithermal gold-silver deposits, hosted in steeply dipping fault-controlled veins. Gold and silver mineralization consists of disseminated electrum, 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% to 65% gold, and a secondary phase, which has resulted from supergene processes that have remobilized silver and which typically consist of over 95% gold.

Sulphide minerals are relatively rare, and this may be due to oxidation, or to an initial low overall abundance such as would occur in a low sulphidation environment. Abundant iron and manganese 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 gold-silver 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.

There are thirteen 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. 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.

The deposit comprises several 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 metres. Individual mineralized shoots measure from less than one kilometre to four kilometres in strike length, and up to 350 metres in the down-dip direction. Gold grades range up to hundreds of grams per tonne but are more typically less than 30 grams per tonne. Silver grades are in the order of hundreds to thousands of grams per tonne.

This description of the deposit type and mineralization styles remains accurate through 2017.

EXHIBIT 99.1

Exploration

Regional exploration focusing on Early to Mid-Eocene volcanic belts in northern Chile led to the acquisition of the El Peñón Mine in 1993. Trenching carried out that year, followed by a 13-hole drilling program, discovered significant gold and silver mineralization. The next year, the first hole of a follow-up program intersected 100 metres grading 10.9 grams per tonne of gold and 123.4 grams per tonne of silver 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.

See also “– Exploration, Development and Production”.

Drilling

Systematic testing of the gold-bearing zones was started by Meridian in 1993 and continues to the present. Exploration work has continued in order to develop drill targets to replace Mineral Reserves. Drilling is carried out on a nominal 60 metres x 60 metres pattern, with infill holes drilled on a 30 metres x 30 metres 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 metres x 30 metres spacing where required and some drilling is carried out on a 15 metres x 15 metres pattern if needed for grade control purposes, and to aid in resolving local structural complexities. Short test holes are also used to locate veins to assist mining and grade control.

Surface drilling is mostly reverse circulation (“RC”), with at least one diamond drill hole per 30 metres 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 millimetres core diameter), sometimes reduced to NQ (47.6 millimetres diameter). RC holes are drilled with 146 millimetres diameter equipment, which produces a hole approximately 152 millimetres in diameter.

During the period of 2011 through the end of 2017, Yamana has executed exploration, infill and ore delineation programs in all sectors of the current mine extents. This work discovered new veins such as Providencia NW, Aleste Sur, Dorada Sur, Ventura and extended Bonanza to the north and south. During 2016, Yamana drilled 149,488 metres distributed in 474 holes focused on discovering near mine mineral extensions proximal to the Quebrada Colorada, Bonanza, Providencia, Aleste and other vein structures, exploration of near mine targets including Borde Este, Providencia Sur, link structures between Quebrada Orito and Pampa Campamento, Tanque de Agua and Tostado and infill drilling of inferred resources. The district exploration program completed 26,056 metres distributed in 50 holes testing geologic and geophysical targets at Chiquilla Chica, Cerro Monono, Tres Tontos Norte and other targets.

To the end of December 2017, approximately 2,998,519 m of drilling has been completed at the El Peñón Mine in the Fortuna, El Peñón, and PAV blocks. 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.

Sampling, Analysis and Data Verification

Samples are taken by surface and underground drilling and by panel sampling of mine headings. Surface drilling typically is 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 rifle-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.

EXHIBIT 99.1

Surface drill core is delivered to the logging and sampling facility located near the mill/office complex. Core is logged and marked for sampling by the geologist. Sampling technicians photograph the intact core, split the core 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 centimetres in the vein and 50 centimetres 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-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.

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).

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 1000 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.

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.

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.

Yamana has designed and implemented a QA/QC program with action items, including re-assaying of entire batches, in the event that blank or CRM samples returned assay values outside predefined limits of acceptability. RPA has examined the QA/QC results for 2014, 2015, 2016 and 2017 for the various sample streams at El Peñón.

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). The results of the CRM analyses show acceptable performance and analytical control.

Sample security is considered adequate since all samples are collected and prepared in secure sites and transported by Yamana personnel and/or selected contractors.

EXHIBIT 99.1

Mineral Processing and Metallurgical Testing

See below under “ – Mining Operations”.

Mineral Resource and Mineral Reserve Estimates

See “– Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”.

The methodology of estimating Mineral Resources includes:


•	Statistical analysis and variography of gold and silver values in the assay database as well as on sample composites.


•	Construction of a block model using Vulcan software.


•	Grade interpolation using kriging method, and inverse distance squared (ID2) method for veins which did not have sufficient data to calculate variograms.

All Mineral Reserves are estimated using modern software programs. Vulcan is the general mine package used in conjunction with Microsoft Excel and AutoCAD.

The economic value of each potential mining outline is calculated using forecast long-term prices per ounce of gold and per ounce of silver, using diluted tonnes and grades, as stated in the “– Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”. Net block values are weighed against forecast costs and metallurgical recoveries for each potential mining outline. These combined economic revenue and cost models are part of the Selective Mining Unit (“SMU”) models.

The procedure for determining the Mineral Reserve blocks for Proven Mineral Reserves and Probable Mineral Reserves is summarized below:


•	The geological interpretation and Mineral Resource estimation is supplied by the geology staff.


•	An SMU is determined based on the mining method employed, geomechanical rock properties, dilution expected, and the block values.


•	SMU solids are designed in Vulcan and AutoCAD.


•	Additional economic criteria are applied which include metal prices, operating costs, and recoveries.


•	Blocks are analyzed for inclusion into the LOM Plan.


•	If the value of the mining block is positive, then a development cost analysis is applied to the block before final inclusion in the LOM Plan.

The authors of the El Peñón Report were not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that would materially affect the Mineral Resource or Mineral Reserves estimate.

Mining Operations

Mining Method and Metallurgical Process

The primary mining method is an underground bench and fill method and all access to the veins is by ramps and crosscuts. Veins are separated by a distance of 100 metres to 500 metres. The application of this method will vary between veins, but it is usually applied to sublevels spaced between 10 metres and 18 metres. Vein dips are steep and the bench drifts are built along the strike of the vein. A top access drift is driven for drilling, and a bottom access drift is driven for ore extraction. Depending on the vein width, the access drift dimensions are generally 3.5 metres wide by 4.0 metres high. Both the drill access drift and the lower ore extraction drift are grade-control sampled every drill, blast, load and haul cycle.

For design and operating, the typical parameters for the SMU are for stope dimensions of one metre to six metres width by six metres to 16 metres height by 15 metres length. Vein widths will dictate how much dilution will be realized during the mining of the stope.

Options to reduce the mining dilution are either to use narrower stope widths or employ a resueing mining method. Resue (split blasting) mining consists of mining the ore first in a drift, and then blasting and loading just enough width to allow for mining equipment access. If narrow stope widths are used to reduce dilution, then smaller equipment is needed to work in the narrower underground openings.

EXHIBIT 99.1

Once the drifts are established and the required ground control support is applied, the production stoping of the ore body commences. Backfilling is performed after the stope is mined out.

El Peñón has employed open pit mining in the past. There are no significant open pits planned for the El Peñón veins, but small tonnages of near-surface, lower-grade material may be mined in the future to provide additional mill feed.

All underground mining drift, cross cut, and stope areas are first approved by El Peñón geotechnical staff before any full scale production commences. Monitoring of the production stopes and development areas is also performed by the geotechnical staff. Typical ground support includes, but is not limited to, split-set bolts, resin bolts, wire mesh and shotcrete.

The El Peñón processing plant has been modified with the potential to increase production capacity to approximately 4,350 tpd of stockpiled and mined ore, or 1.59 million tonnes per year. Yamana has accomplished this by steadily increasing throughput through the addition of new equipment to the process plant. However, in the context of the rightsizing plan that took place in late 2016 and was put in operating in 2017, Yamana does not use the full treatment capacity of the plant and instead the focus has changed to take advantage of the increased residence time to improve recoveries for both gold and silver and reduce operating costs. The lower throughput provides the optionality to operate with one or two grinding mills, maximizing throughput when called by the mine plan.

In 2018 the plant is scheduled to process an average of 2,850 tpd.

ROM ore is dumped from a 7.0 m3 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.

Pebbles from the SAG mill are crushed in a pebble crusher. Cyanide solution and lime are added in the grinding circuit. The grinding mills are in closed circuit with hydrocyclones.

The grinding circuit product, the cyclone overflow at a nominal P80 of 150 μm, is sent to a thickener where the solution is thickened to 50% solids with the underflow reporting to a cyanide leaching circuit. The thickener overflow is sent to the unclarified solution tank. The leaching circuit product is sent to a counter current decantation (“CCD”) circuit.

The precious metals are recovered in a zinc precipitate Merrill-Crowe process. The overflow solution from the first CCD thickener is sent to the mill solution storage tank or alternatively to the unclarified solution tank. Mill solution is recycled to the SAG mill.

Unclarified solution is sent to the clarification circuit where it is filtered ahead of reporting to the pregnant solution tank. Some additional equipment was added to the clarification circuit in 2009. The solution is then de-aerated in a vacuum tower and zinc dust is added ahead of pressure filters. A pre-coat filter aid is added ahead of the filters as well as the clarification filters. Gold and silver are precipitated on the zinc dust which is collected from the pressure filters and calcined in a mercury retort to remove contained mercury. The calcined precipitate is then smelted in a tilting furnace with slag making additives to make doré bars containing approximately 2.1% gold and 97.9% silver.

The thickened solution from the 4th thickener underflow in the CCD circuit is sent to a surge tank and then the contained water is removed by belt filters. The filtered product at approximately 20% solids is sent to the dry tailings impoundment area.

The number of processed tonnes are based on weightometer readings that are located on the SAG mill feed conveyor 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. From this information, the mill reports the back-calculated head grades of the mill feed.

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 as result of the rightsizing decision.

EXHIBIT 99.1

The metallurgical recovery of gold has 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 sulfide 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.

Processing and Recovery Operations

Please see above under “Mining Method and Metallurgical Process”.

Infrastructure, Permitting and Compliance Activities

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, workshops, warehouses, and dry facilities. Underground infrastructure includes portals, access ramps, ventilation raises, maintenance shops, and mobile equipment fleet.

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.

In 2015, El Peñón received a national safety award which recognized the mine as the top performer (out of 900 Chilean companies) in Health & Safety. The voting committee was comprised of the Ministry of Labor, National Union representatives, Industrial and Construction Associations and Universities, among others.

Capital and Operating Costs

The total capital expenditures estimated by Yamana for the LOM operations are $194 million. These costs include mine and plant costs as well as administration capital, but do not include working capital or any future expansions. The exploration Budget is $36 million between 2018 and 2020 and Yamana considers additional discretionary funding to the program based on results. RPA is of the opinion that the total estimated capital expenditures for the Project are reasonable. Operating costs are forecast to average $147 per tonne milled. The authors of the El Peñón Technical Report were of the opinion that the total estimated operating costs for the Project are reasonable.

Canadian Malartic Mine

Unless otherwise stated, the information, tables and figures that follow relating to the Canadian Malartic Mine are derived from, and in some instances are extracts from, the technical report entitled “Technical Report on the Mineral Resource and Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014, and effective June 16, 2014 (the “Canadian Malartic Report”), prepared by or under the supervision of Donald Gervais, P.Geo., Christian Roy, Eng., Alain Thibault, Eng., Carl Pednault, Eng. and Daniel Doucet, Eng. Donald Gervais, P. Geo., of Canadian Malartic General Partnership (“Canadian Malartic GP”) has reviewed and approved the technical information contained in this section of the annual information form, and is a “qualified person” for the purpose of NI 43-101. See “Interests of Experts”.

Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. Reference should be made to the full text of the Canadian Malartic Report, which has been filed with certain Canadian securities regulatory authorities pursuant to NI 43-101 and is available for review on the Company’s SEDAR profile at www.sedar.com.

Property Description, Location and Access

The Canadian Malartic property, including the Canadian Malartic Mine is located approximately 25 kilometres west of the City of Val-d’Or and 80 kilometres east of City of Rouyn-Noranda. The property lies mostly within the town of Malartic. It

EXHIBIT 99.1

straddles the townships of Fournière, Malartic and Surimau. At December 31, 2017, the Canadian Malartic Mine was estimated to have Proven and Probable Mineral Reserves containing approximately 6.38 million ounces of gold comprised of 181 million tonnes of ore grading 1.10 grams per tonne. See “– Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”.

The Canadian Malartic Mine can be accessed either from the City of Val-d’Or in the east or from Rouyn Noranda in the west via Québec provincial highway No. 117. A paved road running north-south from the town of Malartic towards Mourier Lake cuts through the central area of the Canadian Malartic Mine. The Canadian Malartic property is further accessible by a series of logging roads and trails. The Canadian Malartic property is also serviced by a rail-line which cuts through the middle of the town of Malartic. The nearest large airport is located in the City of Val-d’Or, about 25 kilometres east of the Canadian Malartic Mine.

The Company acquired its 50% interest in the Canadian Malartic property on June 16, 2014 through its joint acquisition of Osisko with Agnico Eagle. See “General Description of the Business – History – Canadian Malartic Mine – Acquisition” for further details of the Company’s acquisition of its 50% interest in the Canadian Malartic property (and mine).

The Canadian Malartic mine operates under mining leases obtained from the Ministry of Energy and Natural Resources (Quebec) and under certificates of approval granted by the Ministry of Sustainable Development, Environment and the Fight Against Climate Change (Quebec). The Canadian Malartic property is comprised of the East Amphi property, the CHL Malartic prospect, the Canadian Malartic mine and the Fournière, Midway and Piche Harvey properties. The Canadian Malartic property consists of a contiguous block comprising one mining concession, six mining leases and 272 mining claims. Expiration dates for the mining leases on the Canadian Malartic property vary between March 23, 2019 and July 27, 2037, and are automatically renewable for three further ten year terms upon payment of a small fee.

The Canadian Malartic mining claims give Canadian Malartic GP the right to explore for mineral substances on the subject land; the mining leases give Canadian Malartic GP the right to mine mineral substances on the subject land; and the mining concession gives Canadian Malartic GP the right to mine mineral substances and with surface rights limited to those necessary for mining activities on the subject land. Expiration dates for the mining leases on the Canadian Malartic property vary between March 23, 2019 and July 27, 2037, and are automatically renewable for three further ten year terms upon payment of a small fee.

Following the joint acquisition of the Canadian Malartic Mine by the Company and Agnico Eagle, most of the mining claims are subject to a 5% net smelter return royalty payable to Osisko Gold Royalties Ltd. (“Osisko Gold Royalties”). The mining claims comprising the CHL Malartic prospect are subject to 3% net smelter return royalties payable to each of Osisko Gold Royalties and Abitibi Royalties Inc. In addition, of the 205 mining titles constituting the Canadian Malartic property, 101 are also subject to other net smelter return royalties that vary between 1% and 2%, payable under varying circumstances. In 2017, Canadian Malartic GP, the operator of the Canadian Malartic mine, paid Cdn$64.25 million in the aggregate with respect to these net smelter return royalties, and expects to pay approximately Cdn$63.48 million in 2018.

As of December 31, 2010, the Canadian Malartic Mine had received all formal government permits required for its construction and related activities, with the exception of the authorization for the mill and mine operations. The official certificate of authorization for the mill and operations was granted on March 31, 2011, at which point the Canadian Malartic Mine was fully permitted.

History

Gold was first discovered in the Malartic area in 1923. Gold production on the Canadian Malartic property began in 1935 and continued uninterrupted until 1965. Following various ownership changes over the ensuing years, Osisko Mining Corp. (“Osisko”) acquired ownership of the original Canadian Malartic property in 2004. In the next three years, Osisko acquired the claims covering the former Barnat-Sladen mine (1938-1970 & 1976-1979), the East Malartic mine (1938-1983) and the East Amphi mine (1998-1999 & 2006-2007) to create the actual Canadian Malartic property. Based on a feasibility study completed in December 2008, Osisko completed construction of a 55,000 tpd mill complex, tailings impoundment area, 5 million cubic metre polishing pond and road network by February 2011 and the mill was commissioned in March 2011. The Canadian Malartic Mine achieved commercial production on May 19, 2011. From 2011 until December 31, 2017, the Canadian Malartic mine produced 3.39M ounces of gold and 3.26M ounces of silver from 118.4M tonnes of ore grading 1.00 grams of gold per tonne and 1.16 grams of silver per tonne.

During the period from 1935 to 1983, the Canadian Malartic, Barnat/Sladen and East Malartic mines produced a total of 5,545,000 ounces of gold and 1,854,300 ounces of silver, mostly from underground operations. Two small open pits (Buckshot and Mammoth) were excavated at the Barnat and East Malartic mines, to recover mineralization from crown pillars after the backfilling of underground stopes.

EXHIBIT 99.1

Gold production statistics for the Canadian Malartic, Barnat/Sladen and East Malartic mines (from Lavergne, 1985) ¹



	Canadian Malartic Mine	Barnat/Sladen	East Malartic Mine	Total
Years of Production	1935 – 1965	1938 – 1970	1938 – 1983
Ore milled (metric tonnes)	9,929,000	8,452,000	18,316,000	36,697,000
Au Grade (g/t)	3.77	4.73	5.19	4.70
Ag Grade (g/t)	2.47	1.17	1.27	1.57
Gold ounces	1,203,477	1,285,321	3,056,251	5,545,050
Silver ounces	788,485	317,934	747,869	1,854,288

¹ Canadian Malartic Report

Before the acquisition by Agnico Eagle and Yamana in June 2014, the Canadian Malartic mine was previously owned by Osisko Mining Corp. (“Osisko”) (2004-2014). Founded in 1998 by Robert Wares, Osisko tagged this area in early 2004 as a probable porphyry gold system that constituted a high priority acquisition target. The acquisition of the initial claim block (2004) led to the acquisition of a large, unpublished paper database from the old Canadian Malartic mining operations. Digitalisation, compilation and analysis of the large database over the following four months, including logs of over 4,500 surface and underground drill holes, allowed Osisko to refine the geological model for the gold deposit and confirm its bulk tonnage potential. This led to immediate drill-testing of the model and in March 2005, Osisko drilled its first hole at the western extremity of the deposit. Subsequent 2005 drilling (total of 7,400 m) successfully tested N-S sections, establishing the 500 to 700 m width of the deposit to a depth of approximately 250 m. The continued drilling success in 2006 led to additional financings for Osisko, paving the way for a major drill program launched in the fall 2007: a 330,000 m definition drill program on a 30 x 30 m grid, covering the entire deposit and designed to convert the deposit to a NI 43-101 compliant Measured and Indicated (M&I) resource. In March 2008, a preliminary economic assessment study of the Canadian Malartic Project was filed on the SEDAR website. By September 2008, Osisko had outlined an in situ M&I resource of 7.69 Moz gold (232.2 Mt @ 1.03 g/t Au; 6.42 M in-pit M&I ounces in a US$775 Whittle pit shell and cut-off grade of 0.36 g/t Au), with an additional 0.72 Moz in the Inferred category (Hennessey et al., 2008). The feasibility study was completed by December 2008, outlining Proven & Probable (P&P) reserves of 6.28 Moz gold (183.3 Mt @ 1.07 g/t Au with a lower cut-off of 0.36 g/t Au at US$775/oz) (Runnels al., 2008c). The study recommended a 55,000 tpd milling operation with strip ratio of 1.78 with a LOM of 10 years for 5.4 M oz recovered (85.9% recovery by whole-ore leach). CAPEX was estimated at US$790 million with OPEX at US$320/oz. The year 2009 focused on definition drilling of the South Barnat deposit, representing in good part the eastern extension of the Canadian Malartic deposit where it is truncated by the Cadillac Fault. Approximately 180,000 m were drilled into the Sladen Extension and the South Barnat deposit. In February 2009, the first resource estimate on South Barnat (Belzile, 2009a) added 2.04 M in-pit ounces in the Measured and Indicated categories (37.1 Mt @ 1.71 g/t Au). A second resource estimate was published on June 2009 stating that Osisko had outlined an in situ M&I in-pit resource of 2.04 Moz in a US$775 Whittle pit shell (cut-off grade of 0.36 g/t Au), with an additional 0.07 Moz in the Inferred category (Belzile, 2009b). By January 2010, this new extension was added to the main Canadian Malartic deposit and a new integrated P&P reserve of 8.97 M oz gold (245.8 Mt @ 1.13 g/t Au) was calculated (Belzile and Gignac, 2010). The new reserve was calculated using a US$825 engineered pit shell at a lower cut-off of 0.34 g/t Au.

Meanwhile, the construction permits for the Canadian Malartic Mill and mine site civil works were obtained in August 2009. By the beginning of 2010, construction was well underway and permitting was obtained for a satellite (starter) pit. Construction of a 60,000 tpd mill complex, tailings impoundment area, 5 million cubic metre polishing pond and road network was completed by February 2011 and the mill was commissioned in March 2011. A new reserve estimate was release in March 2011, outlining a P&P reserve of 10.71 M oz gold (343.7 Mt @ 0.97 g/t Au) (Belzile and Gignac, 2011). The new reserve was calculated using a US$1000 engineered pit shell at 0.30 g/t Au lower cut-off. The mine reached commercial production on May 19, 2011 and produced from 2011 to December 31, 2016 a total of 3,389,468 oz Au.

EXHIBIT 99.1

Gold and silver production from 2011 to December 31, 2017



Canadian Malartic Mill Gold Production from 2011 to 2017
Year	Tonnes milled (metric tons)	Feed grade (g/metric ton)	Metal Feed (oz)	Metal Recovered (Oz)	Recovery Factor
2,011	8 502 323	0.835	228 222	200 137	87.7%
2,012	14 046 526	0.962	434 415	388 478	89.4%
2,013	18 008 250	0.924	534 706	475 277	88.9%
2,014	18 705 550	1.002	602 893	535 470	88.8%
2,015	19 089 527	1.048	643 376	571 617	88.8%
2,016	19 641 392	1.038	655 342	585 027	89.3%
2,017	20 357 605	1.092	714 992	633 461	88.6%
TOTAL	118 351 174	1.002	3 813 945	3 389 468	88.9%



Canadian Malartic Mill Silver Production from 2011 to 2017
Year	Tonnes milled (metric tons)	Feed grade (g/metric ton)	Metal Feed (oz)	Metal Recovered (Oz)	Recovery Factor
2,011	8 502 323	0.700	191 283	114 130	59.7%
2,012	14 046 526	0.760	343 079	230 273	67.1%
2,013	18 008 250	1.035	599 480	422 619	70.5%
2,014	18 705 550	1.185	712 614	533 315	74.8%
2,015	19 089 527	1.272	780 759	600 908	77%
2,016	19 641 393	1.352	854 019	680 859	79.6%
2,017	20 357 605	1.447	947 119	682 169	72%
TOTAL	118 351 174	1.164	4 428 350	3 263 362	73.7%

Geological Setting, Mineralization and Deposit Types

The Canadian Malartic property straddles the southern margin of the eastern portion of the Abitibi Subprovince, an Archean greenstone belt situated in the southeastern part of the Superior Province of the Canadian Shield. The Abitibi Subprovince is limited to the north by gneisses and plutons of the Opatica Subprovince, and to the south by metasediments and intrusive rocks of the Pontiac Subprovince. The contact between the Pontiac Subprovince and the rocks of the Abitibi greenstone belt is characterized by a major fault corridor, the east-west trending Larder Lake–Cadillac Fault Zone (“LLCFZ”). This structure runs from Larder Lake, Ontario through Rouyn-Noranda, Cadillac, Malartic, Val-d’Or and Louvicourt, Québec, at which point it is truncated by the Grenville Front.

The regional stratigraphy of the southeastern Abitibi area is divided into groups of alternating volcanic and sedimentary rocks, generally oriented at N280° – N330° and separated by fault zones. The main lithostratigraphic divisions in this region are, from south to north, the Pontiac Group of the Pontiac Subprovince and the Piché, Cadillac, Blake River, Kewagama and Malartic groups of the Abitibi Subprovince. The various lithological groups within the Abitibi Subprovince are metamorphosed to greenschist facies. Metamorphic grade increases toward the southern limit of the Abitibi belt, where rocks of the Piché Group and the northern part of the Pontiac Group have been metamorphosed to upper greenschist facies.

The majority of the Canadian Malartic property is underlain by metasedimentary units of the Pontiac Group, lying immediately south of the LLCFZ. The north-central portion of the property covers an approximately 9.5 kilometre section of the LLCFZ corridor and is underlain by mafic-ultramafic metavolcanic rocks of the Piché Group cut by intermediate porphyritic and mafic intrusions. The Cadillac Group covers the northern part of the property (north of the LLCFZ). It consists of greywacke containing lenses of conglomerate.

EXHIBIT 99.1

Surface drilling by Lac Minerals Ltd. in the 1980s defined several near-surface mineralized zones now included in the Canadian Malartic deposit (the F, P, A, Wolfe and Gilbert zones), all expressions of a larger, continuous mineralized system located at depth around the historical underground workings of the Canadian Malartic and Sladen mines. In addition to these, the Western Porphyry Zone occurs 1 kilometre northeast of the main Canadian Malartic deposit and the Gouldie mineralized zone occurs approximately 1.2 kilometres southeast of the main Canadian Malartic deposit, although the relationship between these zones and the main deposit is presently unknown.

Mineralization in the Canadian Malartic deposit occurs as a continuous shell of 1 to 5% disseminated pyrite associated with fine native gold and traces of chalcopyrite, sphalerite and tellurides. The gold resource is mostly hosted by altered clastic sediments of the Pontiac Group (70%) overlying an epizonal quartz-monzodioritic porphyry intrusion. A portion of the deposit also occurs in the upper portions of the porphyry body (30%).

The South Barnat deposit is located to the north and south of the old South Barnat (part of Barnat-Sladen) and East Malartic mine workings, largely along the southern edge of the LLCFZ. The disseminated/stockwork gold mineralization at South Barnat is hosted both in potassic-altered, silicified greywackes of the Pontiac Group (south of the fault contact) and in potassic-altered porphyry dykes and schistose, carbonatized and biotitic ultramafic rocks (north of the fault contact).

Several mineralized zones have been documented within the LLCFZ (South Barnat, Buckshot, East Malartic, Jeffrey, Odyssey, East Amphi, Fourax), most of which are generally spatially associated with stockworks and disseminations within mafic or intermediate porphyritic intrusions.

Exploration

The combined amount of gold in Proven and Probable Mineral Reserves at the Canadian Malartic Mine at the end of 2017 is 6.37 million ounces (100% basis), which represents a decrease of 10.3% as compared to January, 2017. The reduction in Mineral Reserves is principally associated with ore mined during 2017. See “– Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”.

In 2017, there was a drilling program performed by mine geology team aiming the below pit mineralization extension. 60 holes (54,500 metres) were drilled for definition (conversion) drilling and 3 holes (4,500 metres) were for targets at 800 meters below pit. Expenditures on diamond drilling for all this program during 2017 were approximately $3.1 million (50% basis). For exploration on the Canadian Malartic property other than pit area, in 2017, 116 holes (82,757 metres) were drilled for definition (conversion) drilling and 20 holes (9,366 metres) were for exploration. Exploration expenditures at the Canadian Malartic mine during 2017 were approximately C$6.99 million (50% basis). The main focus of the 2017 exploration program concentrated on drill definition of the Odyssey deposit located 1.5 kilometres east of the current limit of the Canadian Malartic pit.

As follow up to previous drill programs, the 2017 exploration program concentrated on infill drilling of the internal zones at the Odyssey deposit and exploration and confirmation drilling at the East Malartic historic mine area. The Odyssey deposit is located 1.5 kilometers east of the Canadian Malartic Pit while the East Malartic historic mine is located adjacent to and east of the Canadian Malartic Mine. Exploration will define and upgrade resources at Odyssey and East Malartic.

Odyssey

As follow up to previous drill programs, the 2017 exploration program on concentrated further defining the internal zones between the Odyssey North and South zones and expanding and upgrading the mineral resources in Odyssey South. The deposit is located 1.5 kilometers east of the Canadian Malartic Pit. As a result of 2016 drill program results with previous years results an initial mineral resource was estimated. Inferred mineral resources (on a 50% basis) are estimated at 0.714 million ounces from 10.3 million tonnes grading 2.15 g/t gold. This inferred mineral resource estimate does not include 2017 results from Internal Zones. South and North Zones have mineral continuity along 1.1 and 1.5 kilometer strike lengths respectively and at depths from approximately 300 meters to over 1.4 kilometers from surface. The Odyssey deposit is hosted within or near a quartz-monzonite intrusive, known as Porphyry #12. Gold mineralization at Odyssey North Zone is associated with the interpreted eastern extension of the Sladen Fault on the intrusive’s north side in contact with Piche aged volcanics. Odyssey South Zone lies at or in proximity to the south side of the intrusive in contact with Pontiac sediments. Odyssey Internal Zones are found in multiple locations within the intrusive itself.

Midway

The newly acquired Midway property was purchased in 2016 consisting of three sub-properties: Fourniere, Piche-Harvey and Midway and having a total of 84 claims for 3,202 hectares. Former producer Malartic Goldfields Mine is located on the

EXHIBIT 99.1

property having produced 1.70M gold ounces at 5.91 g/t Au from 1939 to 1965. The property has a 1.5% underlying royalty with buyback provisions. In 2017, an estimated $0.66M is budgeted for 9,000 meters of drilling, (50% basis).

Drilling

Please see above under “– Exploration”.

Sampling, Analysis and Data Verification

Sampling of gold mineralization from the Canadian Malartic Mine has been essentially limited to the collection of samples of diamond drill core. A limited amount of surface sampling on the property was performed by independent consulting geologists during the summers of 2005 and 2007; these samples were submitted for assay using the same general protocol as that employed for core samples.

All samples are analyzed for gold by ALS Minerals in Val-d’Or, Québec, a laboratory which is certified ISO 9001:2000. Yamana and this laboratory are at arm’s length. Samples are analyzed by standard 50 gram FA with atomic absorption finish and any samples yielding greater than 10 grams per tonne gold are reanalyzed with a gravimetric finish.

All aspects of the sampling method and approach were reviewed by Micon International Limited during its site visit for the Canadian Malartic Report and by Belzile Solutions Inc. during its site visits for the Canadian Malartic Report. The QA/QC procedures for ensuring the security of core samples, the integrity of chain-of-custody for samples and the accuracy of laboratory analyses are in line with current industry practice.

Core samples collected at the drill site are stored in closed core boxes sealed with fibre tape or wire and are delivered to the exploration offices at shift change. All core logging, sampling and storage takes place at the regional exploration office located beside the Canadian Malartic Mine complex. The compound is surrounded by chain-link fence and monitored by closed-circuit video cameras. During the night and week-ends, the compound is monitored every hour by the Canadian Malartic Mine’s security guards.

Following the logging and core marking procedures described above, the core passes to the sampling facility. At this point, the core is no longer handled by on-site geologists. Core sampling is performed by qualified technicians and quality control is maintained through regular verification by the core shack supervisor.

Core is broken, as necessary, into manageable lengths. Pieces are removed from the box without disturbing the sample tags, cut in half lengthwise with a diamond saw, and then both halves are carefully repositioned in the box. When a complete hole has been processed in this manner, one half of the core is collected for assay while the other half remains in the core box for future reference.

The technician packs one half of the split core sample intervals into vinyl sample bags that are sequentially numbered to match the serial number sequences in the tag booklets used by the core-logging geologists. The blank portion of the triplicate sample tag is placed in the bag with the sample, while the portion marked with the sample interval is stapled into the bottom of the core box at the point where the sample interval begins.

Sealed sample bags are packed into large weaved nylon shipping bags. When full, shipping bags are sealed with tamper-proof, serially numbered, red plastic security tags. Bags are assigned sequential numbers which are matched against the security tags and loaded on sequentially numbered, plastic-wrapped wood pallets. This information is also forwarded to the core shack supervisor.

Aluminum tags embossed with the hole number, box number and box interval (from/to) are prepared and stapled onto the ends of each core box. Core boxes are then moved to permanent on-site storage in steel core racks. Rejects and pulps from the laboratory are sent back to the Canadian Malartic site and stored in large domed structures with limited access.

The core shack supervisor prepares the sample submission form for the assay laboratory. This form identifies the barrels/shipping bags by number, as well as the sequence of samples packed in each. Couriers from ALS Minerals arrive once per day at the core-processing facility to transport the pallets of sealed bags directly back to the laboratories. Once at the laboratory, a manager checks the shipping bag tag intregrity.

EXHIBIT 99.1

Mineral Processing and Metallurgical Testing

Please see below under “Processing and Recovery Operations” .

Mineral Resource and Mineral Reserve Estimates

See “– Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”.

Reserve numbers could be affected by permitting process where ounces in excess of three million are subject to CM Extension permit allowance.

Mining Operations

Mining at the Canadian Malartic Mine is done by open pit method using excavators and trucks. In order to maximize productivity and limit the number of units operating in the pit, large scale equipment was selected for the mine operation. The primary loading tools are hydraulic excavators, with wheel loaders used as a secondary loading tool. The mine production schedule was developed to feed the mill at a nominal rate of 55,000 tpd.

The throughput at the Canadian Malartic Mine in 2017 averaged 55,774tpd compared with 53,665tpd in 2016. The increase throughput in 2017 was largely due to crushing and grinding improvement and processing optimization.

Mining and Milling Facilities

Surface Plan of the Canadian Malartic Mine (as at December 31, 2017)

EXHIBIT 99.1

The Canadian Malartic mine is a large open pit operation comprised of the Canadian Malartic pit. The Partnership continues to work with the Quebec Ministry of Transport and the town of Malartic on the deviation of Quebec provincial highway No. 117 to gain access to the higher grade Barnat and Jeffrey deposits. The final layout and an environmental impact assessment were completed at the end of January 2015. The Quebec Bureau d’audiences publiques sur l’environnement (“BAPE”) issued its report on the Canadian Malartic pit extension on October 5, 2016. The BAPE report concluded that the project is acceptable and provided several recommendations intended to enhance social acceptability. The Québec government issued the decrees authorizing both the pit extension and deviation of highway 117 on April 12, 2017. Road construction is expected to take two years.

Surface Facilities

Surface facilities at the Canadian Malartic Mine include the administration/warehouse building, the mine office/truck shop building, the process plant and the crushing plant. The processing plant has a daily capacity of 55,000 tonnes of ore.

Processing and Recovery Operations

Ore is processed through conventional cyanidation. Ore blasted from the pit is first crushed by a gyratory crusher followed by secondary crushing prior to grinding. Ground ore feeds successively into leach and CIP circuits. A Zadra elution circuit is used to extract the gold from the loaded carbon. Pregnant solution is processed via electrowinning and the resulting precipitate is smelted into gold/silver dore bars. Mill tails are thickened and detoxified using a Caro acid process, reducing cyanide levels below 20 parts per million. Detoxified slurry is subsequently pumped to a conventional tailings facility.

Infrastructure, Permitting and Compliance Activities

Most of the required Certificates of Authorization related to the mine extension and highway 117 deviation have been submitted and authorizations have been granted by the Ministry of Sustainable Development, Environment and the Fight Against Climate Change (Quebec). As per the decrees related to the mine extension and highway 117 deviation, additional Certificates of Authorizations will be required.

In 2015, an action plan was developed and implemented by the Partnership to mitigate noise, vibrations, atmospheric emissions and ancillary issues. Mitigation measures were put in place to improve the process and avoid any environmental non compliance. As a result, in both 2016 and 2017, the Partnership improved its environmental performance compared to previous years. With respect to activities in 2017, the Partnership received three non compliances. All non-compliances were related to blasting. The mine’s team of on site environmental experts continues to monitor regulatory compliance in terms of approvals, permits and observance of directives and requirements and continues to implement improvement measures.

On August 2, 2016, the Partnership was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine in the southern sector of Malartic. The class action was certified on May 5, 2017. See “Legal Proceedings and Regulatory Actions” for further details on the class action lawsuit.

Since the spring of 2015, the Partnership has been working collaboratively with the community of Malartic and its citizens to develop a “Good Neighbour Guide” that addresses the allegations contained in the lawsuit. Implementation of the Good Neighbour Guide, which includes a compensation program and an acquisition program, began on September 1, 2016. Under the compensation program, a large portion of the residents of Malartic accepted to settle their claims in consideration of the compensations offered (96% for the retroactive period from July 1, 2013, to June 30, 2016 and 92% for the period from July 1, 2016, to December 31, 2016). Compensations for the year 2017 will be paid in the first quarter of 2018, except in the southern sector of Malartic, where the compensation program has been suspended until final judgment is rendered with respect to the right to individually settle, after the certification of the class action, with residents who are class action members. A total of 31 residences were also acquired in the southern sector of Malartic under the acquisition program of the Good Neighbour Guide, which was also suspended in December 2017 for the same reason.

The original design of the waste rock pile was developed to accommodate approximately 326 million tonnes of mechanically placed waste rock requiring a total storage volume of approximately 161 million cubic metres. The revised design including extension project is set for 740 million tonnes.

The expansion of the open pit, with the production from the Canadian Malartic pit extension (Barnat deposit), will increase the total amount of tailings to 342 million tonnes over the life of mine. The total capacity of the current tailings management facility is estimated at 198 million tonnes. An additional tailings cell has been authorized by the Ministry of Sustainable Development, Environment and the Fight Against Climate Change (Quebec) and construction started in the 3rd quarter of 2017. This cell will add capacity for approximately 50 million tonnes of tailings and will be in operation in 2018. Also, the Partnership

EXHIBIT 99.1

plans to store tailings in the Canadian Malartic pit at the end of its operations. According to the mine plan up to 100 million tonnes of tailings will be deposited in the pit when mining in the Canadian Malartic pit is completed. Therefore the tailings storage capacity is slightly in excess of the total amount of tailings to be stored.

Regulatory approval for the proposed tailings deposition in the Canadian Malartic pit and the expansion of the currently authorized tailings area are part of the approval process for the Canadian Malartic pit extension (Barnat deposit). At this stage, the Company is awaiting the decision of the Quebec ministry. Golder Associates Ltd. is designing the tailings extension component and have prepared a hydrogeological study to demonstrate that the Canadian Malartic pit would provide a hydraulic trap and contain the tailings with minimum environmental risk. Delay in the expected timing of the permits required for the Canadian Malartic pit extension could have a negative impact on the mining sequence at Canadian Malartic. The public hearings (BAPE process) took place in June and July 2016 for the Canadian Malartic pit extension and the BAPE issued their report in October 2016, with a recommendation to the Minister that the project be accepted with certain conditions. As mentioned above, the Québec government issued the decrees authorizing both the pit extension and deviation of highway 117 on April 12, 2017.

An annual hydrological site balance is maintained to provide a yearly estimate of water volumes that must be managed in the different structures of the water management system of the Canadian Malartic mine during an average climatic year (in terms of precipitation). Results of this hydrological balance indicate that excess water from the Southeast Pond will eventually need to be released into the environment. A water treatment plant was commissioned in 2015 to ensure that the water to be released to the environment meets water quality requirements. This water treatment plant is reduces the risks associated with surface water management and adds flexibility to the system. Actually, water is discharge into the environment and meets all the water quality requirements, without any necessity for water treatment other than adjustment in pH.

Reclamation and closure costs have been estimated for rehabilitating the tailings facility and waste dump, vegetating the surrounding area, dismantling the plant and associated infrastructure, and performing environmental inspection and monitoring for a period of ten years. The asset retirement obligation is estimated at Cdn$76.7 million. Financial assurance has been provided based on the closure plan.

Capital and Operating Costs

The Canadian Malartic Extension Project is continuing according to plan and on budget. Expansionary expenditures for the mine extension in 2017 were $17.0 million (on a 50% basis. Another approximately $36.5 million (on a 50% basis) of expansionary capital is expected to be spent in 2018 on the extension project. Since the beginning of the fourth quarter of 2017, the following activities were completed: (i) in acoustic screen (noise barrier) for the road deviation was put in place; (ii) a temporary bridge was being constructed (became operational in January 2018); and (iii) (new road bed foundation) preparation. Tree cutting has been completed over the Barnat deposit and overburden stripping is ongoing. Production activities at Barnat are scheduled to begin in late 2019.

Exploration, Development and Production

Development activities in 2017 consisted primarily of stripping activities. Permitting activities are on going and on track for development and production of the Canadian Malartic Expansion Project. See also above under “ –Exploration”.

Since the June 16, 2014 acquisition of Osisko, Agnico Eagle and Yamana have each held a 50% interest in the Canadian Malartic mine. During 2017, Yamana’s share of the Canadian Malartic mine’s payable production was 316,731 ounces of gold and 341,084 ounces of silver from 10,178,803 tonnes of ore grading 1.09 gram of gold per tonne and 1.5 grams of silver per tonne. The Canadian Malartic processing facility averaged 55,774 tonnes per day and operated approximately 95.2% of available time. Gold and silver recovery averaged 88.6% and 72.0%, respectively. The production costs per tonne at Canadian Malartic were Cdn$24 and the minesite costs per tonne were Cdn$20.45 in 2017.

EXHIBIT 99.1

The following table sets out the metal recoveries at the Canadian Malartic mine on a 100% basis in 2017.

Other Producing Mines

Jacobina Mining Complex

The Jacobina property is located in the state of Bahia in northeastern Brazil approximately 340 kilometres northwest of the city of Salvador. Salvador, the state capital of Bahia, has a population of 2.9 million. The Jacobina Mining Complex (“JMC”) forms a contiguous elongated rectangle extending 155 kilometres in a north-south direction, and varying from 5.0 to 25 kilometres in width. This shape of the claim package is a reflection of the underlying geology with the gold-mineralized host rocks trending along the north-south axis of the property. The property is comprised of 5,996 hectares of mining concessions, a mining claim covering 650 hectares, and 113,546 hectares of exploration permits and claims. The exploration concessions are renewable on a three year basis and have annual fees ranging from $1.00 to $1.55 per hectare. A significant portion of three of the Jacobina mine concessions are located within the boundary of Parque Sete Passagens or the park buffer zone. Mining is not permitted within the park but the JMC has valid mining concessions issued by the DNPM and the JMC is currently negotiating for access into the park with state government and park officials. On April 5, 2006, Yamana acquired the JMC and exploration projects in the Bahia gold belt through its acquisition of all of the outstanding shares of Desert Sun Mining Corp. The project is owned through Yamana’s wholly-owned subsidiary, Jacobina Mineração e Comércio Ltda. Jacobina does not pay royalties (other than a 1.5% royalty on gold revenues and sales payable to the Brazilian government agency, Departamento Nacional de Produção Mineral). Access to the property from Salvador is via paved secondary highway to the town of Jacobina approximately 330 kilometres north-northwest. Well-maintained paved roads from the town provide access to the JMC as well as the Pindobaçu deposit.

In terms of property geology, the Bahia Gold belt occupies most of the Jacobina range, where quartzites, metaconglomerates and schists of the Paleoproterozoic Jacobina group constitute a series of north-south, elongated, mountain ranges that rise up to 1,200 metres above sea-level. The deep and longitudinal valleys, bordering the mountains, correspond to deeply weathered ultramafic sills and dikes. The east-west oriented valleys represent weathered mafic to intermediate dikes. Archean tonalitic, trondhjemitic and granodioritic gneiss-dominated basement and related remnants of supracrustal rocks, grouped as the Mairi complex, are found on both flat to slightly hilly areas east of the Jacobina range. At its eastern border and also in a flat landscape, there are the fine-grained biotite gneisses of the Archean Saúde complex. The transition between the hilly and the scarped domains of the eastern border corresponds to the exposures of the Archean Mundo Novo Greenstone Belt (“MNGB”). The Pindobaçu geology is composed by two main tectonic domains: the MNGB, which is the host envelope; and the Jacobina group. The Archean MNGB is composed, from east to west, by an association of metabasalts, graphite-rich schist with hydrothermal pyrite, banded iron formation, meta-chert and meta-greywacke intercalated with conglomerates. The Jacobina group is represented by the Serra da Paciência formation. This formation is characterized, from east to west, by fine to very coarse, grey to green quartzite; laminated fuchsite-sericite-rich quartzite, pyrite-hematite-fuchsite silicified quartzite with tourmaline; and association between sericite meta-conglomerate and recrystallized fuchsite quartzite.

The Jacobina group hosts four different major types of gold deposits: (i) conglomerate-hosted; (ii) quartzite, andalusite schist and metaconglomerate-hosted; (iii) ultramafic-hosted; and (iv) mafic/intermediate dike hosted.

The Company has all of the necessary environmental permits to operate the JMC. The environmental liabilities include rehabilitation of the old João Belo open pit mine, the old stockpile areas and the tailings facility. Rehabilitation costs are included on an annual basis in the LOM Plan and total approximately $35 million by the time of mine closure. The JMC and associated companies are involved in 18 environmental infractions with the federal and municipal governments. These minor infractions generally involved small tailings spills or leaks, dust and noise complaints from nearby residents, and compliance with environmental standards in the operations. The JMC is actively working to resolve these issues.

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Gold production at Jacobina was 135,806 ounces in 2017 compared to 120,478 ounces in 2016.

In 2017, Jacobina replaced mineral reserve depletion and added an additional 7,000 ounces from infill drilling at the João Belo mine, which offset the losses at Canavieiras Sul. The losses at Canavieras Sul were the result of a revised geological interpretation that also reduced the average mineral reserve grade from 2.85 to 2.28 g/t. Moreover, the average mineral reserve grades in Canavieiras Sul and Canavieiras Central were negatively impacted by updated modeling of internal waste. The average mineral reserve grade now better aligns with feed grades. The infill drilling and changes to geological interpretation fine-tunes the solid block model that has underpinned operational performance and has increased confidence in the mine plan and future outlook for Jacobina.

Following the completion of a geotechnical and ground stability studies, the current mining method was optimized in 2017. The optimization consists of repositioning vertical pillars to a staggered design which decreases the number of sill pillars with the result of increased mining recovery while maintaining ground stability. In addition, the new design increases productivity since access to the same amount of ore will require less waste development. These improvements are also expected to support cost containment initiatives that are currently underway.

The recent operational performance at Jacobina is the result of a disciplined approach to pursuing production growth toward the strategic production target of 150,000 ounces per year. Jacobina is well positioned to achieve this production rate by 2020. The life of mine is estimated at 13 years based on current targeted production rates.

The focus of the exploration activities at Jacobina during 2017 was to explore for extensions of the known deposits and to conduct mineral resource upgrade and delineation programs at Canavieiras Norte, Central and Sul, Morro do Vento, Morro do Vento Leste, João Belo and João Belo Leste. The main goals of the program are to upgrade mineral resources that can support an increased production profile and life of mine plan, discover high-grade reefs, to better define local areas for production purposes and to replace production on a yearly basis.

Resource infill drilling concentrated on converting inferred mineral resources to indicated mineral resources at Canavieiras Norte, Central and Sul, João Belo. Exploration drilling focused on extending known mineral reefs at Canavieiras Central, Serra do Corrego and João Belo Leste. Both programs have returned positive results during the quarter and throughout 2017 ensuring the replacement of 2017 production and growing the resources in the indicated category. The Company will continue to focus on quality ounces rather than quantity as evidenced by its application of minimum width to remove low quality mineral resource. Exploration will explore, expand and define higher grade areas on the mine adjacent known infrastructure.

Minera Florida Mine

The Minera Florida Mine is located within the coastal range in the metropolitan region of central Chile, approximately 75 kilometres Southwest of Santiago, near Melipilla City. The property consists of 166 mineral licences, covering a total area of approximately 15,600 hectares. Thirty-six mineral licences cover the mine property including the mine, mill, and other infrastructure. The property is owned by Yamana, and the Pedro Valencia mine is also located within the property boundaries. Mining licences in and around the Pedro Valencia mine area are contained within a rectangular block (2.5 kilometres x 1.5 kilometres) comprising 33 licences. The property also includes some 133 mineral concessions in a large area around the mining licences. The access to the property is by paved road. The total distance from Santiago is approximately 175 kilometres. Electric power is available from the Chilean grid and mining services and suppliers are available locally and in the region.

The area of the Minera Florida Mine is underlain by upper cretaceous volcanic and intrusive rocks. The volcanic rocks comprise porphyritic andesite, brecciated andesite, lithic and crystal tuff, and brecciated tuff. The bulk of these rocks are also affected by a sequence of hydrothermal alteration. The intrusive rocks comprise mainly granodiorites and monzodiorites. Gold mineralization in the Minera Florida Mine area occurs as native gold and electrum associated with sulphide minerals, such as pyrite, chalcopyrite, sphalerite and galena, as well as magnetite. Mineralization is commonly associated with hydrothermal alteration including quartz, adularia, epidote, chlorite, and actinolite. Quartz occurs in four types; as grey siliceous zones, green quartz, translucent quartz, and white quartz. Some veins exhibit metal zoning, with a zinc-rich silver-rich zone in the upper part of the vein, a gold-rich zone in the central part, and a zinc-rich zone in the lower part of the vein. In general, mineralized structures include an inner quartz vein (core) consisting of material exhibiting quartz flooding or massive quartz, surrounded by stockwork of quartz veinlets and/or hydrothermal breccia, both of which are mineralized. Gold mineralization in the Minera Florida Mine area has been identified in four types of rocks, in places adjacent to each other, as follows: (1) silicified crystal tuff; (2) lithic to crystal tuff; (3) brecciated tuff; and (4) porphyritic andesite. There are at least nineteen mineralized veins discovered and partially developed in the Minera Florida Mine area. These veins range from 0.8 metres to 30 metres in thickness, and the average grade ranges from 1.5 grams per tonne of gold to 12 grams per tonne of gold, 6 grams per tonne of silver to 100 grams per tonne of

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silver, and 0.1% Zn to 1.81% Zn. Many of the mineralized veins at the Minera Florida Mine area do not have a surface expression, but are associated with structures identified by underground diamond drilling.

The Minera Florida Mine currently operates at a rate of approximately 2,450 tpd (894,000 tonnes per year). The underground workings are developed by adits driven from surface. An internal ramp system provides access to the stopes. Sublevel are driven in the veins and mining sequence advances from the top down, with pillars left at regular intervals. Underground mining operations are mechanized, utilizing: articulated haul trucks; electronic hydraulic development and production jumbos; load-haul dumpers; and a number of ground support and service equipment. Ore is hauled using 25-tonne trucks from the mine to a transfer point and 40-tonne trucks haul the ore from the transfer point to the process plant. Waste is transported by 25-tonne trucks.

In addition to the ore processing facility, the Minera Florida Mine has an historic tailings reprocessing facility which can operate at a rate of near 2,500 tpd and consists of repulping stations, grinding, leaching, carbon and zinc flotation circuits. Since the second quarter of 2017, when the first stage of historic tailings was finalized, the company refocused its effort on mining higher grade ore from the mine and increasing the feed grade and recovery of the ore, and has integrated part of this tailings facility with the ore facility increasing overall recoveries for gold to 90% approximately.

For 2017, production at the Minera Florida Mine totaled 90,366 ounces of gold and 469,674 ounces of silver, compared to 104,312 ounces of gold and 429,048 ounces of silver produced in 2016.

Production for the year was lower than the comparative period of 2016, despite significantly higher feed grades and recoveries, as the mill was impacted by lower processing rates largely due to the termination of the first phase of retreatment of tailings earlier in 2017. These results are aligned with the transformational strategy for Minera Florida that is focused on improving productivity, dilution, grades, recoveries and operating costs while developing the exploration potential in the recently discovered veins systems located south of the core mine. The Company will spread expansionary mine development and process facility expansion capital and exploration expenditures across a number of years to establish a growth platform for the future with the strategic target of 120,000 ounces of gold per year by 2021. The Company continues to target a longer term strategic production objective of 130,000 ounces of gold per year at Minera Florida.

The district exploration program focused on mapping and sampling during the fourth quarter. Results generated during the fourth quarter coupled with results previously reported support reserve replacement exceeding expectations. New additional measured and indicated mineral resources defined in 2017 have a high probability of generating new mineral reserves during 2018. Many areas within the newly acquired ground and existing mine complex are contributing to the mineral reserve replacement, including Las Pataguas, Peumo, Rubi, HTML1, and the PVS complex. Improvements in mine design parameters, including using split blasting extraction techniques leading to lower mining costs and less dilution, had a positive impact on mineral reserves in the core mine areas.

In September 2016, the Company signed an agreement to purchase the outstanding Aqua Fria shares covering the historic core exploitation areas including the Mila 1-36, the Cisnes concessions located south of the core mine, and other associated properties for $30 million to be paid in three instalments. Exploration of these new areas led to the discovery of the Las Pataguas mineral body that is currently defined 350 meters along strike, 250 metres vertically and is 3 to 5 metre in width and other mineralized structures located in the same corridor. The deposits remains open along strike and to the surface. The depth extent may be limited by a hole drilled 200 meters beneath the know mineral body. Exploration will continue to focus on expanding reserves and resources, largely within the under-explpored Agua Fria block by combining surface exploration, underground and surface drilling.

In December 2015, the Superintendencia del Medio Ambiente (SMA) in Chile informed the mine of 14 non-compliances resulting from their inspection in 2014. The site has presented a Compliance Plan to the SMA to resolve these largely technical non-compliances, plan that was approved by the SMA on December 29, 2017 and are expected to be completely fulfilled by the end of 2018.

Gualcamayo Mine

The Gualcamayo Mine is located in northern San Juan Province, Argentina, approximately 270 kilometres north of the provincial capital of San Juan. The main Gualcamayo block consists of one Cateo and 57 Minas and covers 7,128 hectares. A Cateo is an exploration concession which allows the holder the exclusive right to explore the area subject to certain rights of owners of pre-existing mines within the Cateo area. Once an application for a Cateo is submitted, all rights to any mineral discovery on the Cateo belong to the applicant. A Mina is a real property interest which allows the holder the right to explore and exploit manifestations of discovery on a permanent basis after completion of an official survey for as long as the right is diligently utilized and property taxes are paid. Fifty-five (55) of the Minas are contiguous and lie wholly within the Cateo. One Mina (Chani) lies

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partially outside the Cateo and one Mina (Perico) lies wholly outside the Cateo. Six (6) contiguous Minas, collectively known as the Virgen de Lourdes property, in which the Company does not hold an interest and which cover a 50 hectare area, lie within the main Gualcamayo property block. The project area is easily accessible from the city of San Juan by driving three hours north on paved Highway 40 and then 20 kilometre gravel road to the main camp. The site is accessible by driving from the nearby towns of Guandacol, Huaco and Jachal within 40 minutes to 90 minutes. In 2004, Minas Argentinas S.A. (“MASA”) purchased the surface rights to a contiguous land package totaling 26,218 hectares, which partially covers the Gualcamayo Mine and wholly covers access routes to the area of interest from Highway 40. Exploration drilling on the property is subject to the application and acceptance of a water use permit from the Hydrological Department of San Juan, which MASA has received.

The Gualcamayo Mine includes three known deposits, Quebrada del Diablo (“QDD”), Amelia Inés and Magdalena. The use of the term “AIM” herein refers to the latter two deposits. The QDD deposit includes the QDD Upper zone which is being developed using open pit mining, and the QDD Lower West (“QDDLW”) zone. Other targets on the property are at an early prospective stage of exploration.

The Gualcamayo Mine is owned 100% by MASA, a wholly-owned subsidiary of Yamana which it acquired through its purchase of Viceroy Exploration Ltd. Royalties on the property are as follows: (i) a 1% net smelter return royalty on production from the Gualcamayo Mine is payable on certain concessions to Inversiones Mineras Argentinas Inc., who assigned their rights and obligations to Golden Arrow Resource Corporation by assignment agreement dated July 4, 2004; (ii) a 3% provincial royalty on income or the value obtained in the commercialization of minerals without deduction of direct mining and the other deductibles costs established by law; and (iii) ) a 1,5% on gross selling invoices on mine production, after the first two producing years and during the mine life, according to the Commitment Deed signed with the Province of San Juan on August 15th, 2007 and addressed to form a Public Trusteeship.

In terms of regional geology, the Gualcamayo Mine is located along the eastern margin of the Precordillera of west central Argentina. The Precordillera is a narrow N-S trending belt of tectonically deformed clastic and carbonate rocks of lower to mid Paleozoic age, overlain by Carboniferous and Permian marine and continental sediments, Triassic volcanics and continental redbeds and Tertiary continental redbeds. In terms of local and property geology, the Gualcamayo Mine is located primarily within a package of lower Paleozoic stratigraphy characterized by thick carbonate sequences of upper-Cambrian Los Sapitos and Ordovician San Juan Formations, which are overlain by marine clastics of Upper Ordovician Trapiche Formation. The entire stratigraphic section exceeds 1,000 metres in thickness. The immediate project area is intruded by a quartz diorite stock, dated at 16-5.6 MA that produced relatively thin skarn halos and a metasomatic areole that extends hundreds of metres outboard into the surrounding carbonates.

Four distinct mineralization types occur at the Gualcamayo Mine and three of these are of present economic interest. They are: (1) sediment-hosted distal-disseminated gold; (2) sulphide-bearing skarn deposits containing copper, zinc and molybdenum with late stage gold-arsenic mineralization; and (3) porphyry style molybdenum mineralization.

The final product of the Gualcamayo Mine is gold doré in the form of bullion, suitable for direct melting and sampling. Gualcamayo’s bullion contains approximately 80-90% of gold, the balance being base metals. 100% of the bullion production is exported from Argentina, shipped by ground transportation and air freight for final refining overseas. The doré will be shipped in the form of bars weighing 15-30 kilograms from San Juan, by airfreight departing from Mendoza International Airport.

Gold production was 154,052 ounces in 2017, compared to 164,265 ounces in 2016.

The Company is pursuing alternatives to maximize value at Gualcamayo. These include the rationalization of the mine’s production platform and cost structure, the extension of mine life from exploration efforts focused on oxide resource delineation and additions, and the advancement of the Deep Carbonate project. Similar to the strategy leading to the sale of the Mercedes mine in Mexico during 2016, the Company has also considered the continuum of options for value maximization. Such options weigh the prospect for internal advancement and management time and resources required against the opportunity for monetization, which would leave management and resources unencumbered for the pursuit of other internal projects. As such, the Company has decided to focus its efforts on assets that are better aligned with its strategic objectives, and consequently, Gualcamayo has been classified as an asset held for sale.

The Company has initiated efforts to right-size production at Gualcamayo to deliver a more sustainable production base, better cost structure and to generate a more significant contribution to free cash flows. This optimization plan is similar to the successful strategy that was executed at El Peñón during 2017 and underway at Minera Florida, leading initially to less ounces of production, although at a higher quality. A more optimal alignment between the current oxide mineral base and the production run-rate will result in an extended time frame to explore the prospective near-mine and regional oxide targets in order to extend mine life. Further testing and evaluation of the Deep Carbonate project and expansion of the sulphide mineral resources of the

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project will be pursued. A transition of uninterrupted production from the Gualcamayo mine to the longer-term Deep Carbonate project is currently dependent on the exploration of near mine targets at Gualcamayo and the addition of new oxide resources leading to the extension of the mine life at Gualcamayo.

A conceptual closure plan was developed for the Gualcamayo Mine, and was submitted as part of the EIA document. This plan considers both temporary (for example, in the case of depressed gold prices), and definitive closure scenarios. Once operations cease, closure activities, including demolition and dismantling, remediation, and leach pad chemical and physical stabilization are expected to be completed within two years. Environmental and geotechnical monitoring would continue on a reduced schedule for an additional four years until final closure. In the EIA, the Company has committed to refining and updating the closure plan throughout the project life, and to submitting a final closure plan to the mining authority two years prior to the anticipated definitive closure date.

The near mine exploration drill program continued during the last quarter of 2017 with modest results to date. The district exploration program continued to map and collect rock chip samples at Sierra Alaya, Target D and Quebrada Perdida areas. The shift in focus to district exploration will be carried forward into 2018 with drilling to continue in areas that can readily contribute to production. Modeling of near mine drilling program results during the second half of 2017, integrating geology and drill program assay results reveals that the orientation of the Cerro Condor mineralization dips back away from the pit wall. Exploration work is expected to expand and define resources in the Target D target and define new resources in the district targets. Portions of the Potenciales and Las Vacas deposits contributed to the mineral reserve and mineral resource inventory.

Development Projects

Cerro Moro Project

The Project contains a number of high-grade epithermal gold and silver deposits, covers 177 square kilometres and is located approximately 70 kilometres southwest of the coastal port city of Puerto Deseado in the Santa Cruz province of Argentina.

The Cerro Moro silver-gold low sulfidation deposit is located within the Deseado Massif, a tectonic block comprised of Upper Precambrian metamorphic rock, Jurassic to Cretaceous aerial and sub-aerial volcanic rock and capped by Tertiary marine sediments which is located in the central-portion of the Santa Cruz Province, covering an area of approximately 60,000 square kilometres.

Estelar Resources Ltd. completed a comprehensive preliminary economic assessment of the project before Yamana acquired Extorre and the project in 2012. In February 2013, after a brief pre-feasibility analysis to determine the optimum direction for the project, Yamana commissioned an update to the feasibility study. During 2014, a thorough and complete evaluation of the original feasibility study was completed and the level of engineering and confidence in the plant and mine design advanced.

The Company announced, in early 2015, the formal decision to proceed with the construction of the Cerro Moro project and provided updated project parameters with respect to timing and capital investment. During the course of 2015, detailed engineering for the 1,000 tonnes per day processing plant and mine was advanced to approximately 50% completion, in line with the published project execution schedule. Included in the 2015 work program was the upgrading and extension of the site access road, conclusion of the locked-cycle metallurgical test work program, the placement of orders on various long-lead time items such as the tailings thickeners, and the continuation of the first stage of the construction camp.

The 2016 work program included the ramp-up of site construction activities; the continuation of detailed engineering; and the advancement of underground mining in order to gain a better understanding of in-situ mining conditions. The expenditure for 2016 was approximately $55 million with the balance of approximately $235 million planned to be spent in 2017 and 2018. The bulk of this remaining expenditure was spent in 2017, supporting the previously reported execution schedule and budget. In addition to the above, a substantial infill drilling program was run in 2016 to confirm previously determined indicated mineral resources with tighter spaced drilling. The infill program was successful in confirming those mineral resources and has the impact of de-risking the project and the startup risk of the mine. The Company believes that the project offers significant opportunities for the conversion of mineral resources into mineral reserves and for further discoveries on the property, which will serve to materially improve the returns from this high-grade project.

As at the end of December 2017, construction progress at Cerro Moro remains on schedule for completion in the first quarter of 2018. Instrumentation, control and architectural contractors were mobilized during the fourth quarter of 2017 and are progressing according to schedule. Mechanical installation of all key process plant facilities was also completed by year end. For the next quarter (first quarter 2018) the focus will move from construction to commissioning and operational readiness, with remaining construction works on piping, electrical, instrumentation installation staged to suit the commissioning plan; and the

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recruitment, onboarding and training of the operational staff aligned to the start of operations in the second quarter of 2018. Underground development of 943 metres has been completed to the end of the fourth quarter, marginally below the total 992 metres planned for 2017. The General Manager and all other senior positions have now been filled and the process of recruiting the remaining operational workforce is progressing as planned. $172 million was spent in the current year leaving approximately $61 million of remaining construction expenditures.

Next milestones ahead of commercial production are:


•	Initiate Open Pit mining operation, to build the stockpile ahead of plant ramp-up


•	Recruit, onboard and train remaining operational staff


•	Complete commissioning activities by the end of the first quarter of 2018, with the ramp-up of operations to commence in the second quarter of 2018.

During 2017, 943 m of underground development were completed in the Escondida Far West Mine allowing for access to the ore in different levels in the first panel of production scheduled for 2018. This development was completed with owner mining, providing training in selective mining techniques and grade control, as well as confirmation of the design parameters of the mining method as well as the geological model. A total of 16,264 t of ore with grades of 27.1 gpt Au and 1,730 gpt gpt was stockpiled at the end of 2017 from the underground mine.

In December 2017, the Open Pit contractor mobilized to site, and started the initial earthmoving works and road construction leading to the start of mining in the beginning of 2018.

Cerro Moro management and supervision has been recruited according to plan during the course of 2017, and has been focused on achieving operational readiness for the mines and plant. Operations employees recruitment started in the third quarter of 2017, and it has been ramping up according to plan and will continue in 2018 in conjuction with operational and maintenance training.

As this is a development stage project, the production forecast in the first year can be affected both positively and negatively by grade, ramp-up, recovery and throughput among other matters.

The Cerro Moro project contains a number of high-grade epithermal gold and silver deposits, some of which will be mined via open pit and some via underground mining. During the last quarter of 2017, a new mine plan was completed which balanced the metal output for both gold and silver through the years and required lower development and stockpile levels in the first years of production which improved the average free cash flow from the mine in that period. The updated mine plan shows the gold production in 2018 at 85,000 ounces, and the silver production at 3,750,000 ounces. This production estimate reflects the impact of the 3-month ramp-up starting in the second quarter of 2018. The 2019 gold production is estimated to be at 125,000 ounces, and the silver production to be at 6,000,000 ounces while the 2020 gold production is expected at 130,000 ounces, and silver production to be at 8,300,000 ounces. The average AISC for the period from 2018-2019 is expected to be around $650 per ounce of gold produced and $9.15 per ounce of silver produced, with co-product cash costs expected at $510 per ounce of gold produced and $7.10 per ounce of silver produced.

The processing facility consists of a two-stage crushing circuit, grinding, gravity and flotation circuits, followed by agitated leaching of both concentrate and tailings of flotation, and a counter current decantation (CCD) circuit feeding rich solution to a Merrill Crowe process from which gold/silver precipitate is smelted to produce dore bars. The pulp from the CCD circuit feeds a cyanide destruction circuit from which tailings are pumped to the tailings storage facility.

The Cerro Moro exploration budget for 2017 included funding to discover new mineral deposits proximal to the Escondida mineral system and to conduct local infill and resource extension drill programs at Escondida Central, Far West and Zoe. The Company began the year conducting detailed mapping and sampling programs, identifying the presence of sulfide-rich black silica as key to the high-grade deposits while at the same time, executing the infill drill program. Late in the second quarter, drilling of the black silica targets between the Escondida and Esperanza structures led to the discovery of the near surface and close to the plant Veronica structure.

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during the quarter and year identified new exploration targets and extensions of existing targets that will be further delineated as part of the 2018 exploration program.

The strategy for Cerro Moro is to improve the long term production profile first by continue the exploration of the near mine high-grade targets like Veronica, and in parallel developing the district exploration potential which contains several structures identified on surface that will be tested in 2018. Exploration will focus on defining over four years of reserves and add to the resource inventory to increase planned mine life.

Agua Rica Project

Yamana currently owns 100% of the Agua Rica Project, a large porphyry-style copper-gold-molybdenum-silver deposit located in the northwestern province of Catamarca in Argentina. There is evidence to suggest that the ore body also contains significant amounts of rhenium which could be an important source of by-product credits.

In September 2011, the Company entered into an agreement granting Minera Alumbrera an option to acquire the Agua Rica Project, which included annual and other payments over the life of the agreement. In 2013, Minera Alumbrera requested, and the Company granted, an extension of the option payment due by one additional year. Subsequently, the Company decided not to grant any further extension for 2014 and the option agreement has terminated. Prior to the termination of the option agreement, the Company had received $50 million in option payments, all of which will be retained by the Company in addition to all technical and feasibility level work which has already transitioned back to the Company. The Company is now actively engaged in the consolidation of that information for Agua Rica and has begun working with the Catamarca Government to determine a development plan to establish a mining district within the region with Agua Rica as the cornerstone asset. The Company will consider several options for strategic alliances for the development of Agua Rica in conjunction with the efforts with the Catamarca Government.

In October 2014, the Company entered into an MOU with the Catamarca Government, represented by the provincial mining company CAMYEN, with respect to the creation of the Catamarca Mining District. The MOU established the groundwork for the Company and the Catamarca Government to work together to consolidate important mining projects and prospective properties in the province, currently consisting of the Agua Rica Project and the Cerro Atajo prospect. On February 27, 2015, a formal agreement was entered into among the parties to the MOU. This agreement forms the basis of a working relationship between the Catamarca Government through CAMYEN, other mining companies and the Company and is expected to help advance the Agua Rica Project and the Cerro Atajo prospect. The formal agreement also establishes a maximum ownership interest of up to 5% for CAMYEN of a combined entity, including the Agua Rica Project and Cerro Atajo prospect, and some exploration and infrastructure spending during the term of the agreement. The formal agreement does not restrict the Company’s ability to continue with Agua Rica, although it provides a framework of cooperation that would see Agua Rica advance to development more efficiently and on an expedited timeline. Presently, the Company is considering the development of Agua Rica in conjunction with other financial and mining industry participants.

In December 2014, the Company received a positive independent technical review relating to previous studies on Agua Rica and on the potential development options for Agua Rica. This update provides a basis for the Company to continue to pursue multiple options for this asset, including potential joint ventures with other financial and/or industry participants, the sale of a majority interest in the project or an outright sale. Technical work and analysis for project development options continue, as do the review and consideration of various strategic alternatives, all in an effort to maximize value. Based on Yamana’s own evaluation, and feedback from the strategic alternatives process, the Company believes that the previously disclosed underground scenario represents a viable alternative that should be advanced as soon as possible towards a pre-feasibility level, while concurrently pursuing various other strategic alternatives. As such, the Company has determined that it will undertake the work required to conduct a preliminary economic assessment during 2018, with a pre-feasibility study to follow in 2019. The study will consider three low throughput (circa. 25,000 tons per day) options viz. sub-level caving; combination of sub-level caving and small open pit, and small open pit. The study will focus on developing a mine plan which maximizes returns and limits the arsenic content in the concentrate to below penalty levels currently imposed by smelting operations.

Examination of the Cerro Atajo property by Yamana’s Exploration Division following the signing of the MOU included mapping, sampling and trenching areas of interest in order to expose and collect rock chip samples. This program generated over 500 samples which were sent for geochemical analysis. Access to the property was limited during the first half of the year 2016 due to surface land holder issues. Once access was established, additional mapping and geochemical sampling continues, identifying several targets. Then the Company entered into an engagement with local community, land holders and government (including indigenous group) to obtain authorized consent to work in the area, that was provided in November 2016. Yamana submitted an EIA for approval of Government of Catamarca, following the public consultation procedure, and was approved in April 2017, commencing our drilling program in second semester. A new EIA to drill in other sector of properties at Cerro Atajo area, was submitted in the third quarter of 2017 and was approved in February 2018.

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Suyai Project

The Suyai Project is an advanced stage exploration gold project comprising 36,702.30 hectares of land located in the Cordon de Esquel, Chabut Province, in southern Argentina. The various properties comprising the Suyai Project are classified as either “permits”, “claims” or “mines” and are either owned outright by Suyai del Sur S.A. (“Suyai del Sur”) or through option contracts between Suyai del Sur and the direct owners.

On July 3, 2002, Meridian completed an unconditional share purchase offer for Brancote Holdings PLC, owner of the Suyai Project. Permitting for the project and a feasibility study began in the third quarter of 2002. In March 2003, with the feasibility study substantially complete, the project was put on hold after local opposition to the mine led to a non-binding referendum wherein a majority of Esquel’s citizens voted against the mine. The Company continues to monitor mining developments in the province of Chubut.

An application for an environmental impact study (an “EIS”) for exploration and development work is continuing which will be followed by permitting for an operational EIS within the current mining and environmental laws of the Chubut Province.

Monument Bay

In June 2015, as part of the Mega Precious acquisition, the Company acquired the Monument Bay property, which is located in Manitoba, approximately 570 kilometres northeast of Winnipeg, and consists of 136 contiguous claims totalling 31,250 hectares. The 2017 exploration program with a budget of Cdn$4.3 million has focused on improving the drill density within the high-grade mineralized shoots on the eastern portion of the Twin Lakes deposit. The drill programs at Monument Bay are executed in the first 3 to 4 months of the year and following a 2 to 3 month camp shutdown due to the change from winter to summer conditions, further drilling is completed. The summer drill program began mid-August and continued into late October during 2017. The drill program focused on the central portions of the Twin Lakes deposit with the objective of defining and extending the high-grade mineral bodies and conversion of uncategorized mineral bodies. The program completed 8,553 metres distributed in 25 holes during 2017. Assay results for both objectives are in line with expectations, establishing continuity to the high-grade mineral shoots and providing important data to model the bulk lower grade zones that envelop the high-grade shoots.The results of the 2017 program are being processed and added to the mineral model for the property. Exploration will focus on adding inferred mineral resources and mineral resources adjacent to the defined mineralized area to try to expand the potentially economic mineralized zone and explore new targets on the large concession package.

The Monument Bay mineral resource inventory is 1.8 million ounces of gold, contained in 36.6 million tonnes of ore at a grade of 1.52 g/t in indicated mineral resources and 1.8 million ounces of gold, at 41.9 million tonnes of ore at a grade of 1.32 g/t in inferred mineral resources.

ITEM 5

DIVIDENDS

The Company has a dividend policy providing for a dividend yield that is consistent with the yield of comparable companies’ dividend rates and such policy is reviewed on a periodic basis and assessed in relation to the current and expected future operating cash flows of the Company and the conservation and reinvestment of capital.

The following table sets forth the quarterly dividends paid by Yamana on its common shares during each of the three most recently completed financial years:



2018	2017	2016	2015
Q1 - $ 0.005	Q1 - $ 0.005	Q1 - $ 0.005	Q1 - $0.015
	Q2 - $ 0.005	Q2 - $ 0.005	Q2 - $0.015
	Q3 - $ 0.005	Q3 - $ 0.005	Q3 - $0.015
	Q4 - $ 0.005	Q4 - $ 0.005	Q4 - $0.015

EXHIBIT 99.1

ITEM 6

DESCRIPTION OF CAPITAL STRUCTURE

Authorized Capital

The Company is authorized to issue an unlimited number of common shares and 8,000,000 first preference shares, Series 1 (the “Preference Shares”) of which there were 948,858,214 common shares and no Preference Shares issued and outstanding as of March 27, 2018.

Common Shares

Holders of common shares are entitled to receive notice of any meetings of shareholders of the Company, to attend and to cast one vote per common share at all such meetings. Holders of common shares do not have cumulative voting rights with respect to the election of directors and, accordingly, holders of a majority of the common shares entitled to vote in any election of directors may elect all directors standing for election. Holders of common shares are entitled to receive on a pro-rata basis such dividends, if any, as and when declared by the Company’s board of directors at its discretion from funds legally available therefor and upon the liquidation, dissolution or winding up of the Company are entitled to receive on a pro-rata basis the net assets of the Company after payment of debts and other liabilities, in each case subject to the rights, privileges, restrictions and conditions attaching to any other series or class of shares ranking senior in priority to or on a pro-rata basis with the holders of common shares with respect to dividends or liquidation. The common shares do not carry any pre-emptive, subscription, redemption or conversion rights, nor do they contain any sinking or purchase fund provisions.

Preference Shares

Upon a consolidation, merger, or amalgamation of the Company with or into any other corporation, holders of Preference Shares who have not exercised their right of conversion at the date of the consolidation, merger, or amalgamation are entitled to receive upon the exercise of their conversion right, after the effective date of the consolidation, merger, or amalgamation, the aggregate number of shares or securities or property of the Company resulting from the consolidation, merger, or amalgamation, the holder would have been entitled to receive if they had at the effective date of the consolidation, been the registered holder of such number of common shares. Holders of Preference Shares are also entitled to receive, in the event of liquidation, dissolution or winding up of the Company, an amount equal to $0.125 in respect of each of Preference Share held and all unpaid cumulative dividends before any distribution of the assets of the Company among holders of the common shares or any other class of shares. Holders of Preference Shares are not entitled to receive notice of or to attend meetings of the shareholders of the Corporation nor do they have any voting rights for the election of directors or for any other purpose (except where the holders of a specified class are entitled to vote separately as a class).

ITEM 7

MARKET FOR SECURITIES

Price Range and Trading Volume

The common shares are listed and posted for trading on the TSX under the symbol “YRI” and the NYSE under the symbol “AUY”. The following table sets forth information relating to the monthly trading of the common shares on the TSX for the fiscal year ended December 31, 2017.

EXHIBIT 99.1



Period	High (Cdn$)	Low (Cdn$)	Volume
January 2017	4.385	3.81	112,303,414
February 2017	4.80	3.63	117,280,596
March 2017	3.90	3.35	128,785,524
April 2017	4.24	3.57	88,206,365
May 2017	3.89	3.30	92,268,531
June 2017	3.75	3.09	143,511,027
July 2017	3.31	2.84	58,282,356
August 2017	3.76	3.09	50,219,082
September 2017	3.92	3.25	54,366,491
October 2017	3.44	3.15	40,087,988
November 2017	3.46	3.34	113,076,763
December 2017	3.96	3.09	48,550,893

ITEM 8

DIRECTORS AND OFFICERS

The following table sets forth the name, province or state and country of residence, position held with the Company and period(s) during which each director of the Company has served as a director, the principal occupation of each director and executive officer of the Company, as of the date hereof. All directors of the Company hold office until the next annual meeting of shareholders of the Company or until their successors are elected or appointed.

EXHIBIT 99.1



Name and Residence	Position with the Company and Period(s) Served as a Director	Principal Occupation

John Begeman ⁽¹⁾⁽³⁾ South Dakota, United States	Director since May 2, 2007	Company Director
Christiane Bergevin ⁽³⁾⁽⁴⁾ Québec, Canada	Director since September 1, 2014	Company Director
Andrea Bertone ⁽¹⁾ Texas, United States	Director since July 27, 2017	Company Director
Alexander J. Davidson ⁽²⁾⁽³⁾ Ontario, Canada	Director since August 31, 2009	Company Director
Robert Gallagher British Columbia, Canada	Director since August 28, 2017	Company Director
Richard Graff ⁽¹⁾ Colorado, United States	Director since October 16, 2007, Lead Director since September 30, 2017	Company Director
Kimberly Keating Newfoundland, Canada	Director since February 15, 2017	Vice President Fabrication, Technical Construction Central and Western Canada, of the Cahill Group
Nigel Lees ⁽²⁾ Ontario, Canada	Director since June 16, 2005	President and Chief Executive Officer of Sage Gold Inc
Peter Marrone Ontario, Canada	Chairman, Chief Executive Officer and a Director (director since July 31, 2003)	Chairman and Chief Executive Officer of the Company
Jane Sadowsky ⁽¹⁾⁽⁴⁾ New York, United States	Director since September 1, 2014	Managing Partner of Gardener Advisory LLC
Dino Titaro ^(2)(3)(4) Ontario, Canada	Director since August 5, 2005	Company Director
Daniel Racine Ontario, Canada	Executive Vice President and Chief Operating Officer	Executive Vice President and Chief Operating Officer of the Company
Greg McKnight Ontario, Canada	Executive Vice President, Business Development	Executive Vice President, Business Development of the Company

EXHIBIT 99.1



Name and Residence	Position with the Company and Period(s) Served as a Director	Principal Occupation

Jason LeBlanc Ontario Canada	Senior Vice President, Finance and Chief Financial Officer	Senior Vice President, Finance, and Chief Financial Officer of the Company
Yohann Bouchard Ontario, Canada	Senior Vice President, Operations	Senior Vice President, Operations, of the Company
Richard C. Campbell Ontario, Canada	Senior Vice President, Human Resources	Senior Vice President, Human Resources of the Company
Anthony Cina Ontario, Canada	Senior Vice President, Business Administration	Senior Vice President, Business Administration of the Company
Gerardo Fernandez Ontario, Canada	Senior Vice President, Operations	Senior Vice President, Operations of the Company
Ross Gallinger Ontario, Canada	Senior Vice President, Health, Safety and Sustainable Development	Senior Vice President, Health, Safety and Sustainable Development of the Company
Henry Marsden Ontario, Canada	Senior Vice President, Exploration	Senior Vice President, Exploration of the Company
Barry Murphy Ontario, Canada	Senior Vice President, Technical Services	Senior Vice President, Technical Services of the Company
Steve Parsons Ontario, Canada	Senior Vice President, Investor Relations and Corporate Communications	Senior Vice President, Investor Relations and Corproate Communications of the Company
Sofia Tsakos Ontario, Canada	Senior Vice President, General Counsel and Corporate Secretary	Senior Vice President, General Counsel and Corporate Secretary of the Company

1. Member of the Audit Committee.

2. Member of the Compensation Committee.

3. Member of the Sustainability Committee.

4. Member of the Corporate Governance and Nominating Committee .

The principal occupations, businesses or employments of each of the Company’s directors and executive officers within the past five years are disclosed in the brief biographies set out below.

John Begeman – Director. John Begeman is a Professional Mining Engineer with over 35 years of mining experience. His extensive experience in the mining industry, combined with his background in precious metals operations, executive and project development management, provide valuable industry insight and perspective to both the Company’s board of directors and management. He currently sits on the board of directors of African Gold Group Inc. and Premier Gold Mines Limited. He has been the Executive Chairman of the board of Premier Gold Mines Limited since 2015. Mr. Begeman previously served as a director of Aberdeen International Inc., the President and Chief Executive Officer of Avion Gold Corporation, as the Chief Operating Officer of Zinifex Canada Inc. and as Vice President, Western Operations of Goldcorp Inc. Prior to his employment at Goldcorp, Mr. Begeman held various and progressive engineering and management positions with Morrison Knudsen Company's mining

EXHIBIT 99.1

operations group throughout the Western United States. His experience in executive leadership in international mining operations, permitting and community involvement assists the board and management with its ongoing business endeavors. His past environmental and social licence analysis along with project risk assessment also form a broad base from which the board and management can draw upon. Mr. Begeman holds a B.S. in Mining Engineering, an M.S. in Engineering Management and an MBA.

Christiane Bergevin – Director . Christiane Bergevin is the President of Bergevin Capital, advising infrastructure and energy sector clients. She brings more than 30 years of experience in strategy, project and risk structuring, and financing of resource, transport and infrastructure projects on all continents in addition to experience in the financial sector. She is highly skilled in sustainability and community engagement aspects from an operational and governance standpoint, and served on the health, safety and corporate social responsibility committee of the board of a major oil and gas producer. As Executive Vice-President, Desjardins Group (Canadian financial cooperative institution) between 2009 and 2015, she led mergers and acquisitions, strategic partnerships and business development. She was also a member of Desjardins Group's finance and risk management committee. For the 19 years prior to that, Ms. Bergevin held executive positions with SNC-Lavalin Group, a global engineering and construction firm, including managing executive and subsequently President of SNC-Lavalin Capital Inc., its project finance advisory arm. She was involved in several transport and mining developments, and also served as Senior Vice-President and General Manager, Corporate Projects. Ms. Bergevin is a Director of RATP Dev, an international public transport operator and she chairs the audit committee of the board of AGF Group, a reinforcing steel and scaffolding supplier. For the 2017-2018 year, she is the Chair of the Canadian Chamber of Commerce. Ms. Bergevin holds a Bachelor of Commerce (with Distinction) from McGill University and graduated from the Wharton School's Business Advanced Management Program. In 2013, she was awarded the ICD.D designation by the Institute of Corporate Directors.

Andrea Bertone – Director. Ms. Bertone has nearly 20 years of senior management experience in the energy industry in the Americas and most recently held the position of President of Duke Energy International LLC ("DEI"), a subsidiary of Duke Energy, the largest utility in the United States, where she reported directly to the Chief Executive Officer of Duke Energy. During her seven years in this role, she was responsible for operations across South and Central America. Prior to her role as President of DEI, Ms. Bertone spent nearly 10 years in increasingly senior management roles with Duke Energy and its subsidiary companies, including the role of General Counsel of DEI. Ms. Bertone brings significant strategic and operational expertise acquired while operating large infrastructure assets throughout Latin America. Ms. Bertone completed her JD at the University of São Paulo, Brazil and received her LLM from Chicago-Kent College of Law in 1995. She also completed a finance program for senior executives at Harvard Business School in 2010. She is a member of the Brazilian Bar Association. In 2013, she received the Alumni of Distinction Award from Chicago-Kent College of Law and in 2016, she was recognized by the National Safety Council through their annual “CEOs Who Get It” program, as a leader who demonstrates personal commitment to worker safety and health.

Alexander J. Davidson – Director. Alexander Davidson was Barrick Gold Corporation’s Executive Vice President, Exploration and Corporate Development with responsibility for international exploration programs and corporate development activities. Mr. Davidson was instrumental in Barrick’s acquisition of Lac Minerals, Sutton Resources, Arequipa Resources, Pangea Goldfields, Homestake Mining and Placer Dome Inc. Mr. Davidson joined Barrick in October 1993 as Vice President, Exploration with responsibility for the company's expanding exploration program. He initiated Barrick’s expansion out of North America and into Latin America and beyond. Prior to joining Barrick, Mr. Davidson was Vice President, Exploration for Metall Mining Corporation. Mr. Davidson has over 40 years of experience in designing, implementing and managing gold and base metal exploration and acquisition programs throughout the world. In April 2005, Mr. Davidson was presented the 2005 A.O. Dufresne Award by the Canadian Institute of Mining, Metallurgy and Petroleum to recognize exceptional achievement and distinguished contributions to mining exploration in Canada. In 2003, Mr. Davidson was named the Prospector of the Year by the Prospectors & Developers Association of Canada in recognition of his team's discovery of the Lagunas Norte Project in the Alto Chicama District, Peru. Mr. Davidson received his B.Sc. and his M.Sc. in Economic Geology from McGill University. His extensive experience in the mining industry and his background in precious metal exploration and corporate development allows him to provide valuable industry insight and perspective to the Company’s board of directors and management. Mr. Davidson also has extensive board level experience and has sat on or has chaired a number of health, safety & environment, technical, sustainability, audit, and compensation committees.

Robert Gallagher – Director. Mr. Gallagher has more than 35 years of experience in the mining industry and is a Mineral Engineer with a specialty in mineral processing. Most recently, he held the position of President and Chief Executive Officer at New Gold. Previously, Mr. Gallagher held increasingly senior management roles at Newmont Mining Corporation over a seven-year period, including Vice President Operations, Asia Pacific; Vice President, Indonesian Operations; and General Manager, Batu Hijau. Earlier in his career, Mr. Gallagher worked at a number of operating mines located throughout the Americas and Asia in various plant engineer, metallurgical, and mine management roles, including most notably 15 years at Placer Dome Inc. Mr. Gallagher brings considerable project development and operational experience to the Company’s board of directors. He has been recognized by industry associations for his contributions throughout his career, most notably in 2013 he accepted the Prospector & Developer Association of Canada's Viola R. MacMillan Award for Company or Mine Development on behalf of New Gold and

EXHIBIT 99.1

in 2014 he was jointly recognized by the Association for Mineral Exploration British Columbia with the E.A. Scholz Award for excellence in mine development.

Richard Graff – Director. Mr. Graff has served on numerous public boards in the mining and oil and gas industries and has served as a board chairman, chairman of audit committees, governance and nominating committees, and special committees, as well as having compensation committee experience. His extensive experience in the metals and mining industry includes accounting and financial reporting, internal control, governance and compliance initiatives, and mergers. Mr. Graff has been an advisor to the mining industry and was a member of a Financial Accounting Standards Board task force, which resulted in the issuance of accounting and financial reporting guidance in the mining industry for US GAAP. He represents a consortium of international mining companies, and has met with and provided recommendations to the International Accounting Standards Board (IASB) on financial reporting issues in the mining industry. The IASB incorporated input from these meetings into its published rules. Mr. Graff continues to organize periodic meetings in London between global mining companies and the IASB to discuss financial reporting issues affecting the industry and shares that information with the management, boards and audit committees on which he serves. He also has had discussions with and provided input to the U.S. Securities and Exchange Commission on financial reporting issues in the industry. Mr. Graff has been a speaker at industry conferences and directors’ education programs on the topics of financial reporting in the mining industry, audit committee trends, board succession, investor engagement and enterprise risk management. He currently serves as the lead director and chairman of the audit committee and is a member of the compensation and corporate governance and nominating committees of Alacer Gold Corp. He also serves as chairman of the audit committee and is a member of the corporate governance and nominating committee of DMC Global, Inc. (formerly Dynamic Materials Corp.). Mr. Graff’s extensive international experience in the mining industry, coupled with his expertise summarized above, brings insight to the Company’s board of directors and management as to best practices with respect to accounting, corporate governance and other issues for an international public company in the mining industry. Mr. Graff is a retired partner from PricewaterhouseCoopers LLP where he served as the audit leader in the United States for the mining industry. He received his undergraduate degree in Economics from Boston College and his post-graduate degree in Accounting from Northeastern University.

Kimberly Keating - Director. Kimberly Keating is a Professional Engineer with over 20 years’ experience in the global offshore energy sector. In her current role as Vice President Fabrication, Technical Construction, Central and Western Canada of the Cahill Group, Kim oversaw the construction and delivery of topsides components for one of the world’s largest offshore oil platforms. Prior to joining the Cahill Group as Director of Projects in 2013, Ms. Keating held a variety of progressive leadership positions, from engineering design through to construction, commissioning, production operations and field development with Suncor Energy Inc. Throughout her career, Ms. Keating has made significant engineering and project management contributions to key projects in the Canadian, Norwegian and UK offshore oil and gas sectors, bringing a wealth of strategy, risk assessment, policy and technical expertise to the Yamana board of directors. Ms. Keating has also held numerous volunteer leadership roles, including serving as the current Vice Chair of Memorial University’s Board of Regents where she was also the Chair of the Governance & Pensions Committees, and a board director with the Dr. H. Bliss Murphy Cancer Care Foundation, Opera on the Avalon and the Oil and Gas Development Council of Newfoundland and Labrador; a government appointment to assess the long-term vision for the province’s oil and gas industry. She holds a Bachelor of Civil (Structural) Engineering, a Masters of Business Administration, is a registered member of the Professional Engineering & Geoscientists NL (PEGNL) and holds the Canadian Registered Safety Professional (CRSP) designation. In June 2016, she was named a Fellow of the Canadian Academy of Engineers, a national institution through which Canada’s most distinguished and experienced engineers provide strategic advice on matters of critical importance to Canada.

Nigel Lees – Director . Nigel Lees has over 25 years of experience in the investment banking industry. He has served as a member of the Listings Committee of the Toronto Stock Exchange and on the audit, compensation and special committees of several publicly listed companies. Mr. Lees has extensive experience in the mining industry particularly in North America and South America as a principal and financier. He was the founder and director of TVX Gold Inc., which merged with Kinross Gold Corporation in 2003. Mr. Lees is currently the President of C.N. Lees Investments Limited, a private investment and consulting company, and President and Chief Executive Officer of SAGE Gold Inc., a public precious metals exploration and development company.

Peter Marrone – Chairman and Chief Executive Officer . Peter Marrone founded Yamana in July 2003 and has been instrumental in the company’s strategic development and operational growth. Mr. Marrone currently serves as Chairman and Chief Executive Officer of Yamana. Mr. Marrone has more than 30 years of mining, business and capital markets experience, bringing an important range of extensive and diverse financial, legal and business experience to the Company. He has been on the boards of a number of public companies and advised companies with a strong South American and North American presence. Prior to Yamana, Peter Marrone was the head of investment banking at a major Canadian investment bank and before that, practised law in Toronto with a strong focus on corporate law, securities law and international transactions.

EXHIBIT 99.1

Jane Sadowsky – Director . Jane Sadowsky retired from Evercore Partners as a Senior Managing Director and Head of the Power & Utility Group in 2011, after more than 22 years as an investment banker. Prior to Evercore Partners, she was a Managing Director and Group Head at Citigroup’s Investment Bank and began her investment banking career at Donaldson, Lufkin & Jenrette. In addition to a broad and diverse range of finance and deal-related expertise, Ms. Sadowsky has sector expertise in power and utilities and the related fields of commodities, renewables, power technology, infrastructure, and energy. She brings depth of knowledge and experience in mergers and acquisitions, public and private debt and equity, corporate restructurings and cross border transactions. While at Evercore and Citigroup, she was responsible for strategy and resultant P&L, for managing people and for internal and external collaboration. She participated in or led global committees including: Compensation, Fairness & Valuation, Diversity, Mentoring and Recruiting. Ms. Sadowsky has provided expert testimony in numerous US jurisdictions and the World Court. Since retiring, Ms. Sadowsky has served as the Managing Partner for Gardener Advisory LLC, which provides consulting and advisory services predominantly in the electricity power sector to public and private sector clients in the United States and abroad. Ms. Sadowsky earned her MBA from the Wharton School and her BA in Political Science and International Relations from the University of Pennsylvania. Ms. Sadowsky is a National Association of Corporate Directors (NACD) Board Leadership Fellow.

Dino Titaro – Director. Dino Titaro has over 30 years of international experience having been involved in project management, feasibility studies, reserve estimation, due diligence studies, valuation studies, social and environmental permitting processes for mine construction and development and related risk management, as well as operational experience in the gold sector. He is the founder of Carpathian Gold Inc. (now Euro Sun Mining Inc.), a public mineral exploration company listed on the TSX, and was the President and Chief Executive Officer from January 2003 to January 2014 and a director from January 2003 to August 2014. From 1986 to 2003, Mr. Titaro was the principal owner and President and Chief Executive Officer of A.C.A. Howe International Limited, a geological and mining consulting firm. From 1980 to 1986, Mr. Titaro was employed by Getty Mines Limited, in various supervisory roles as a geologist, working on base and precious metal projects as well as uranium, principally in resource definition stages. Mr. Titaro currently serves as President of Avidian Gold Corp, and has been a director and officer of several publicly traded companies in the mining, industrial and health care technology fields. Mr. Titaro holds a Master of Science degree in Geology from the University of Western Ontario. He is also a qualified person as defined by National Instrument 43-101 and is a registered P.Geo in Ontario.

Daniel Racine – Executive Vice President and Chief Operating Officer . Mr. Racine joined Yamana in May 2014. From August 2012 until March 2014, Mr. Racine was President and Chief Operating Officer of Brigus Gold Corp. (“Brigus”). Prior to joining Brigus, Mr. Racine was Senior Vice President, Mining of Agnico Eagle, where he was responsible for Agnico Eagle’s global mining operations. Mr. Racine joined Agnico Eagle as a junior Mining Engineer in 1987, taking on progressively senior roles throughout his tenure, including LaRonde Mine Manager, Vice-President Operations Manager, and Senior Vice President Operations. Mr. Racine holds a Bachelor of Mining Engineering from Laval University. He is a registered engineer with L’Ordre des Ingenieurs du Québec, a professional engineer with Professional Engineers Ontario and a member of the Ontario Society of Professional Engineers.

Greg McKnight – Executive Vice President, Business Development. Mr. McKnight joined Yamana as Vice President, Business Development in February 2004. Mr. McKnight has over 20 years of mining focussed investment banking and corporate experience. Prior to joining Yamana, Mr. McKnight was a director in the investment banking division of Canaccord Capital Corporation (“Canaccord”), a position he held since December 2001. Prior to his tenure at Canaccord, he held various mining related positions including senior roles within other Canadian investment banks and being the President of a publicly traded Canadian junior mining company. During the year prior to joining Yamana, Mr. McKnight was instrumental in his capacity as an investment banker in structuring the reverse takeover transaction and raising the equity for Yamana that enabled the Company to re-capitalize and re-position itself as a gold production company. Mr. McKnight holds a Bachelor of Commerce from the University of Toronto and a Master of Business Administration from the Ivey School of Business at the University of Western Ontario.

Jason LeBlanc – Senior Vice President, Finance, and Chief Financial Officer. Mr. LeBlanc joined the Company in January 2006 and has over 15 years of research-based and financial experience in the mining industry. During his time at Yamana, Mr. LeBlanc has held increasingly senior positions including most recently the position of Vice President, Finance since 2009. He was appointed Chief Financial Officer in February 2017. Mr. LeBlanc has a Master of Finance from the University of Toronto, a Bachelor of Commerce from the University of Windsor and holds a Chartered Financial Analyst designation.

Yohann Bouchard, Senior Vice President, Operations. Mr. Bouchard joined Yamana in October 2014. Mr. Bouchard has a progressive technical and operating experience with a solid background of more than 20 years of mining in underground and open pit operations. Prior to joining Yamana, Mr. Bouchard occupied key operating and technical positions with Primero Mining Corporation, IAMGOLD Corporation, Breakwater Resources Ltd. and Cambior Inc. Mr. Bouchard oversaw precious and base metal operations in both the Americas and in Africa. Mr. Bouchard holds a Bachelor of Mining Engineering degree from École Polytechnique of Montréal. He is registered as a professional engineer with Professional Engineers Ontario.

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Richard C. Campbell – Senior Vice President, Human Resources. Mr. Campbell joined Yamana as Senior Vice President, Human Resources in May 2011. Prior to joining Yamana, Mr. Campbell enjoyed progressively senior roles during his 21 years at TD Bank Financial Group (“TD”). During his tenure at TD, Mr. Campbell worked in executive roles in the business as well as Human Resources, encompassing retail, wealth management, and wholesale/corporate banking. From April 1998 to February 2002, Richard completed international secondments in Hong Kong and London, UK with TD Waterhouse. In his role as SVP Human Resources, TD Canada Trust, Richard led a multi-functional team of HR professionals to develop, implement and execute all aspects of HR services supporting a 36,000 employee workforce across Canada. More recently, Richard’s experience as SVP Human Resources with the Ontario Lottery Group has provided him with valuable and practical executive experience in the public service sector. Mr. Campbell holds an Honours Bachelor of Arts in Geography and Economics, and a Master of Arts in Economic Geography from Wilfrid Laurier University.

Anthony Cina – Senior Vice President, Business Administration. Mr. Cina joined Yamana Gold in 2014 as Senior Director, Special Projects and was appointed Vice President, Business Administration in February 2016 and as Senior Vice President Business Administration in July 2017. Mr. Cina has over 25 years’ experience in accounting, finance and tax-related matters. He has extensive experience in doing business in South America, particularly in Brazil, aligning in-country efforts and resources with corporate strategy and optimizing organizational structures and behaviours to support and complement operational efforts. Mr. Cina is Chartered Accountant and Chartered Professional Accountant and was recently awarded the ICD.D designation from the Institute of Corporate Directors. He holds a Bachelor of Commerce from the University of Toronto.

Gerardo Fernandez – Senior Vice President, Operations. Mr. Fernandez has been with the Company since 2000, having worked in several positions in mine operations, mine planning and project development. Most recently, Mr. Fernandez played a pivotal role in leading Mercedes into production as its Project Manager/General Manager. Mr. Fernandez holds a Master of Business Administration from Morrison University in Reno, Nevada and a degree in Civil Mining Engineering from the University of Chile.

Ross Gallinger – Senior Vice President, Health, Safety and Sustainable Development. Mr. Gallinger joined Yamana as Senior Vice President, Health, Safety and Sustainable Development in May 2015. Prior to joining Yamana, Mr. Gallinger held the position of Executive Director for Prospectors & Developers Association of Canada from 2011 until 2014. From 2006 until 2011, Mr. Gallinger was Senior Vice President, Health, Safety and Sustainability at IAMGOLD Corporation. Mr. Gallinger has over 25 years of experience in managerial and operational roles in the mining industry in Canada and the Americas with extensive experience in health, safety, environment and community relations portfolios. Mr. Gallinger holds a Bachelor of Science degree in Agriculture from the University of British Columbia, and is a Professional Agrologist.

Henry Marsden – Senior Vice President, Exploration Mr. Marsden has over 30 years of exploration experience, including over 20 years as a consulting geologist working with a variety of clients and focusing on field exploration work. He also played a key role in the discovery and advancement of several deposits including Rio Blanco and Pico Machay in Peru, and the Timmins West gold deposit in Timmins, Ontario where he was responsible for the first mineral resource estimate which ultimately lead to mine construction. Mr. Marsden holds a Master of Science in Earth Sciences from Carleton University, a Bachelor of Science in Geology from the University of British Columbia, and is a Professional Geoscientist.

Barry Murphy – Senior Vice President, Technical Services . Mr. Murphy joined Yamana as Senior Vice President, Technical Services in September 2014. Prior to joining Yamana, Mr. Murphy held the position of Vice President Projects, Copper Division at Anglo American Corporation (“Anglo American”), a position he held since 2010. Mr. Murphy first joined Anglo American in 1987 as a junior engineer and he progressed through increasingly senior positions across various divisions in numerous operational and technical capacities on both open pit and underground mines throughout the organization. From 2000 until 2002, Mr. Murphy held management positions at engineering and construction services firms Hatch and Murray & Roberts – Cementation Limited. Mr. Murphy holds a Bachelor of Science in Mechanical Engineering from the University of Witwatersrand, Johannesburg and a Bachelor of Commerce from the University of South Africa. He is a certified Professional Engineer with the Engineering Council of South Africa and a Project Management Professional with the Project Management Institute.

Steve Parsons – Senior Vice President, Investor Relations and Corporate Communications. Mr. Parsons joined Yamana in May 2017 as Senior Vice President, Investor Relations and Corporate Communications. Prior to joiningYamana, Mr. Parsons spent 13 years in the investment industry with the majority of that time as a senior mining analyst covering gold and base metal companies, most recently for National Bank Financial Inc., and prior to that, for Wellington West Capital Markets. Prior to that, Mr. Parsons worked in the mining industry for eight years, principally as a mineral processing engineer for Placer Dome Inc. and a leading consulting firm based in Toronto. Mr. Parsons holds a Bachelor of Science in Mining Engineering from Queen’s University and is a Registered Professional Engineer in Ontario.

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Sofia Tsakos – Senior Vice President, General Counsel and Corporate Secretary. Ms. Tsakos joined Yamana as Vice President, Corporate Counsel in December 2007, was appointed Corporate Secretary in November 2009 and Senior Vice President, General Counsel in June 2010. Prior to joining Yamana, Ms. Tsakos was a partner practicing securities law at Cassels Brock & Blackwell LLP. From 2001 to 2006, Ms. Tsakos was an associate at Goodman and Carr LLP. Ms. Tsakos holds an Honours Bachelor of Arts in Economics and Political Science from the University of Toronto, a Master in Business Administration with a focus in Finance from the University of Windsor and a Bachelor of Laws also from the University of Windsor.

Based on the disclosure available on the System for Electronic Disclosure by Insiders (SEDI), as of March 27, 2018, the directors and executive officers of the Company, as a group, beneficially owned, directly or indirectly, or exercised control or direction over approximately 2,126,825, representing approximately 0.22% of the total number of common shares outstanding.

Corporate Cease Trade Orders, Bankruptcies, Penalties or Sanctions

No director or executive officer of the Company is, as at the date hereof, or has been, within the 10 years before the date hereof, a director, chief executive officer or chief financial officer of any company (including Yamana) that:


a.	was subject to a cease trade or similar order, or an order that denied the company access to any exemption under securities legislation, that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer, or

was subject to a cease trade or similar order, or an order that denied the company access to any exemption under securities legislation, that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as a director, chief executive officer or chief financial officer,

that was in effect for a period of more than 30 consecutive days, other than Mr. Dino Titaro. On April 16, 2014, the Ontario Securities Commission (the “OSC”) issued a management cease trade order against the Interim Chief Executive Officer and the Chief Financial Officer of Carpathian Gold Inc. (“Carpathian”) in connection with Carpathian’s failure to file its audited annual financial statements (and related management’s discussion and analysis and certifications) for the period ended December 31, 2013. The management cease trade order was lifted on June 19, 2014 following the filing by Carpathian of the required documents. Mr. Titaro is a former director of Carpathian (he did not stand for re-election and was no longer a director on August 12, 2014) but was a director of Carpathian during the period of the management cease trade order. In addition, Mr. Titaro resigned as director of Royal Coal Corp. (“Royal Coal”) on May 9, 2012. On May 17, 2012, Royal Coal announced that it received notice from the TSX Venture Exchange that trading in Royal Coal’s securities was suspended as a result of a cease trade order by the OSC for the failure to file financial statements. This cease trade order remains in effect.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially control of the Company,

is as of the date hereof, or has been within the 10 years before the date hereof, a director or executive officer of any company (including Yamana) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to the bankruptcy or insolvency, or became subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director, executive officer or shareholder,

other than Mr. Anthony Cina who was a director of MBAC Fertilizer Corp (“MBAC”) when MBAC commenced proposed restructuring under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”) on April 5, 2016. In connection with the CCAA proceeding, shares of MBAC were suspended from trading on the Toronto Stock Exchange. On October 28, 2016, MBAC announced the completion of the Canadian portion of its recapitalization transaction pursuant to an amended and restated plan of compromise and arrangement under the CCAA. Trading of shares of MBAC commenced on the TSX Venture Exchange on November 7, 2016.

No director or executive officer of the Company, or a shareholder holding a sufficient number of securities of the Company to affect materially the control of the Company, has been subject to:


a.	any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities regulatory authority; or

EXHIBIT 99.1


b.	any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable investor in making an investment decision.

Conflicts of Interest

To the best of the Company’s knowledge, and other than as disclosed herein, there are no known existing or potential material conflicts of interest between the Company or a subsidiary of the Company and any directors or officers of the Company or of a subsidiary of the Company, except that certain of the directors and officers serve as directors, officers, promoters and members of management of other public or private companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director, officer, promoter or member of management of such other companies.

The directors and officers of the Company are aware of the existence of laws governing accountability of directors and officers for corporate opportunity and requiring disclosures by directors of conflicts of interest and the Company will rely upon such laws in respect of any directors’ and officers’ conflicts of interest or in respect of any breaches of duty by any of its directors or officers. All such conflicts will be disclosed by such directors or officers in accordance with the Canada Business Corporations Act and they will govern themselves in respect thereof to the best of their ability in accordance with the obligations imposed upon them by law.

ITEM 9

PROMOTER

No person or company has within the two most recently completed financial years, or is during the current financial year, been a promoter of Yamana or a subsidiary thereof.

ITEM 10

LEGAL PROCEEDINGS AND REGULATORY ACTIONS

Other than as set forth below, the Company was not during fiscal 2017, and is not currently, a party to, nor was/is any of its property the subject of, any legal proceedings, or any known to be contemplated, which involve a material claim for damages within the meaning of applicable securities legislation.

In 2004, a former director of Northern Orion commenced proceedings in Argentina against Northern Orion claiming damages in the amount of $177.0 million for alleged breaches of agreements entered into with the plaintiff. The plaintiff alleged that the agreements entitled him to a pre-emptive right to participate in acquisitions by Northern Orion in Argentina and claimed damages in connection with the acquisition by Northern Orion of its 12.5% equity interest in Alumbrera. On August 22, 2008, the National Commercial Court No. 13 of the City of Buenos Aires issued a first-instance judgment rejecting the claim. The plaintiff appealed this judgment to the National Commercial Appeals Court. On May 22, 2013, the appellate court overturned the first-instance decision. The appellate court determined that the plaintiff was entitled to make 50% of Northern Orion’s investment in the Alumbrera acquisition, although weighted the chance of the plaintiff’s 50% participation at 15%. The matter was remanded to the first-instance court to determine the value. The parties have undergone two valuations over the last several years, both of which have been subsequently annulled. The most recent annulled award suggested a valuation of $54.2 million, well in excess of the amount Northern Orion considered reflective of the claim. In August, 2017, Northern Orion entered into a confidential settlement agreement pursuant to which this matter was definitively and finally settled in consideration of an amount to be paid in installments over a number of years. The total amount payable pursuant to the settlement is substantially below the amount awarded in the last valuation proceeding which, under Argentinean law, the Company successfully sought to annul. At the option of the Company, all or any portion of the amount can be paid in shares of the Company.

In December 2012, the Company received assessments from the Brazilian federal tax authorities disallowing certain deductions relating to financial instruments used to finance Brazilian operations for the years 2007 to 2012. In the third quarter of 2017, the Company elected to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Chapada Mine. On October 25, 2017, the program was formally enacted into law and the Company paid $76.7 million in the year ended December 31, 2017. The final program created an option to either pay one lump sum of approximately $68 million in the first quarter of 2018, or a total of approximately $100 million plus interest in installments over twelve years. The Company elected to proceed with the lump sum payment option, and on January 30, 2018 made the payment.

EXHIBIT 99.1

involving the Canadian Malartic mine. The complaint is in respect of "neighbourhood annoyances" arising from dust, noise, vibrations and blasts at the mine. The plaintiffs are seeking damages in an unspecified amount as well as punitive damages in the amount of $20 million. The class action was certified in May 2017. In November 2017, a declaratory judgment was issued allowing the Partnership to settle individually with class members for 2017. The plaintiffs have since announced that they intend to file an application for leave to appeal this declaratory judgment. On December 11, 2017, hearings were completed in respect of certain preliminary matters, including the Partnership's application for partial dismissal of the class action. The Company and the Partnership will take all necessary steps to defend themselves from this lawsuit.

There have been no penalties or sanctions imposed against the Company by a court relating to securities legislation or by a securities regulatory authority during fiscal 2017, or any other time that would likely be considered important to a reasonable investor making an investment decision in the Company, and the Company has not entered into any settlement agreements with a court relating to securities legislation or with a securities regulatory authority during fiscal 2017.

ITEM 11

INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Other than as described elsewhere herein, none of the directors, executive officers or persons or companies who beneficially own, or control or direct, directly or indirectly, more than 10 percent of any class of outstanding voting securities of the Company, nor any associate or affiliate of the foregoing persons, has or has had any material interest, direct or indirect, in any transaction within the past three financial years or during the current financial year, that has materially affected or is reasonably expected to materially affect the Company.

ITEM 12

TRANSFER AGENTS AND REGISTRAR

The transfer agent and registrar for the common shares of the Company is AST Trust Company, at its principal offices in Toronto, Ontario, and the co-transfer agent for the common shares in the United States is American Stock Transfer & Trust Company, LLC, at its principal offices in Brooklyn, New York.

ITEM 13

MATERIAL CONTRACTS

The Company has not entered into any material contracts outside of the ordinary course of business.

ITEM 14

AUDIT COMMITTEE

The Audit Committee is responsible for monitoring the Company’s systems and procedures for financial reporting and internal control, reviewing certain public disclosure documents and monitoring the performance and independence of the Company’s external auditors. The committee is also responsible for reviewing the Company’s annual audited financial statements, unaudited quarterly financial statements and management’s discussion and analysis of financial results of operations for both

EXHIBIT 99.1

annual and interim financial statements and review of related operations prior to their approval by the full board of directors of the Company.

The Audit Committee’s charter sets out its responsibilities and duties, qualifications for membership, procedures for committee member removal and appointment and reporting to the board of directors of the Company. A copy of the charter is attached hereto as Schedule “A”.

During the year ended December 31, 2017, the Audit Committee was comprised of five directors, all of whom were independent directors. As of the date hereof, the current members of the Audit Committee are: Richard Graff (Chair), John Begeman, Andrea Bertone, Patrick J. Mars, Carl Renzoni and Jane Sadowsky. Messrs. Mars and Renzoni retired on December 13, 2017, and Andrea Bertone was appointed to the Audit Committee on January 16, 2018. Accordingly, the Audit Committee is now comprised of four directors. In addition to being independent directors as described above, all members of the Company’s Audit Committee must meet an additional “independence” test under National Instrument 52-110 Audit Committees (“NI 52-110”) in that their directors’ fees are the only compensation they, or their firms, receive from the Company and that they are not affiliated with the Company. Each member of the Audit Committee is financially literate within the meaning of NI 52-110.

The Audit Committee met four times during the most recently completed financial year and all persons who were members of the committee at the time of holding such meetings were in attendance.

Relevant Educational Experience

Set out below is a description of the education and experience of each of the Company’s four current audit committee members, which is relevant to the performance of his responsibilities as an audit committee member.

Richard Graff – Richard Graff is a retired partner from PricewaterhouseCoopers LLP where he served as the audit leader in the United States for the mining industry. Since his retirement, Mr. Graff has been an advisor to the mining industry and was a member of a Financial Accounting Standards Board task force for establishing accounting and financial reporting guidance in the mining industry. He represents a consortium of international mining companies and has provided recommendations to the International Accounting Standards Board on mining industry issues and to regulators on industry disclosure requirements of securities legislation. He received his undergraduate degree in Economics from Boston College and his post-graduate degree in Accounting from Northeastern University. He serves as the lead director, chairman of the audit committee and a member of the compensation and corporate governance and nominating committees of Alacer Gold Corp. He also serves as chairman of the audit committee and is a member of the corporate governance and nominating committee of DMC Global Inc. (formerly Dynamic Materials Corp.).

John Begeman – John Begeman currently sits on the board of directors of Premier Gold Mines Limited and acts as the Executive Chairman, chairman of its audit committee and a member of its compensation committee, and was appointed to the board of Aberdeen International Inc. in January 2015 and is a member of its audit committee and compensation committee. He previously served as the President and Chief Executive Officer of Avion Gold Corporation, as the Chief Operating Officer of Zinifex Canada Inc. and as Vice President, Western Operations of Goldcorp Inc. Prior to his employment at Goldcorp, Mr. Begeman held various engineering and management positions with Morrison Knudsen Company in the contract mining operations group throughout the Western United States. Mr. Begeman holds a B.S. in Mining Engineering, an M.S. in Engineering Management and an MBA.

Andrea Bertone – Andrea Bertone has nearly 20 years of senior management experience in the energy industry in the Americas and most recently held the position of President of Duke Energy, where she reported directly to the Chief Executive Officer of the largest utility in the United States. Ms. Bertone completed her JD at the University of São Paulo, Brazil and received her LLM from Chicago-Kent College of Law in 1995. She also completed a finance program for senior executives at Harvard Business School in 2010.

Jane Sadowsky – Jane Sadowsky retired from Evercore Partners as a Senior Managing Director and Head of the Power & Utility Group in 2011, after more than 22 years as an investment banker. Prior to Evercore Partners, she was a Managing Director and Group Head at Citigroup’s Investment Bank and began her investment banking career at Donaldson, Lufkin & Jenrette. Ms. Sadowsky earned her MBA from the Wharton School.

Pre-Approval Policies and Procedures

The Audit Committee’s charter sets out responsibilities regarding the provision of non-audit services by the Company’s external auditors. This policy encourages consideration of whether the provision of services other than audit services is compatible

EXHIBIT 99.1

with maintaining the auditor’s independence and requires Audit Committee pre-approval of permitted audit and audit-related services.

External Auditor Service Fees

Audit Fees

The aggregate audit fees billed by the Company’s external auditors for the year ended December 31, 2017 were Cdn$178,000 (December 31, 2016 – Cdn$2,309,000). The audit fees relate to the audit of the annual consolidated financial statements of the Company, and certain statutory audits outside of Canada.

Audit-Related Fees

The aggregate audit-related fees billed by the Company’s external auditors for the year ended December 31, 2017 were Cdn$764,000 (December 31, 2016 – Cdn$1,759,000). This included services related to the rights offering, translations, review engagement, and statutory and regulatory filings.

T ax Fees

The aggregate tax fees billed by the Company’s external auditors for the year ended December 31, 2017 were Cdn$74,000 (December 31, 2016 – Cdn$74,000).

All Other Fees

The other fees billed by the Company’s external auditors for the year ended December 31, 2017 was Cdn$178,000 (December 31, 2016 – Cdn$179,000), which related primarily to assurance on the Company’s Conflict-Free Gold Report and assurance on ESTMA report.

ITEM 15

INTERESTS OF EXPERTS

The following are the technical reports prepared in accordance with NI 43-101 from which certain scientific and technical information relating to the Company’s material mineral projects contained in this annual information form has been derived, and in some instances extracted, as well as certain qualified persons involved in preparing such reports, and details of certain technical information relating to the Company’s material mineral projects contained in this annual information form which have been reviewed and approved by qualified persons.

Chapada Mine – “Technical Report on the Chapada Mine, Goiás State Brazil” dated March 21, 2018, prepared by or under the supervision of Chester Moore, P.Eng., Hugo Miranda, ChMC (RM) and Avakash Patel, P.Eng, of RPA, and and Luiz Pignatari, Registered Member of the Chilean Mining Commission, of Edem Engenharia de Minas, all of whom who are qualified persons pursuant to NI 43-101. The technical information set forth under the heading “Description of the Business – Material Producing Mines – Chapada Mine”, other than the technical information under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”, has been reviewed and approved by the Chapada Qualified Persons, each of whom is a qualified person pursuant to NI 43-101.

El Peñón Mine – “Technical Report on the El Peñón Mine, Antofagasta Region, Northern Chile” dated March 2, 2018 prepared by or under the supervision of Holger Krutzelmann, P.Eng., Normand Lecuyer, P.Eng. and Chester M. Moore, P. Eng., of RPA.who are qualified persons pursuant to NI 43-101. The technical information set forth under the heading “Description of the Business – Material Producing Mines – El Peñón Mine”, other than the technical information under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”, has been reviewed and approved by the El Peñón Qualified Persons, each of whom is a qualified person pursuant to NI 43-101.

Canadian Malartic Mine — “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 prepared by or under the supervision of Donald Gervais, P. Geo., Christian Roy, Eng., Alain Thibault, Eng., Carl Pednault, Eng. and Daniel Doucet, Eng.. The technical information set forth under the heading “Description of the Business – Material Producing Mines – Canadian Malartic Mine” has been reviewed and approved by Donald Gervais, P. Geo., of Canadian Malartic GP, who is a qualified person pursuant to NI 43-101.

EXHIBIT 99.1

Each of the technical reports noted above are available on the Company’s SEDAR profile at www.sedar.com, and a summary of each report is contained in this annual information form under “Description of the Business – Mineral Projects – Material Producing Mines”.

The following are the qualified persons responsible for the Mineral Resource and Mineral Reserve estimates for each of the Company’s material mineral projects set out in this annual information form under “Description of the Business – Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”.



Property	Qualified Persons for Mineral Reserves	Qualified Persons for Mineral Resources
Chapada	Luiz Pignatari, Registered Member of the Chilean Mining Commission, Edem Engenharia de Minas	Luiz Pignatari, Registered Member of the Chilean Mining Commission, Edem Engenharia de Minas Felipe Machado de Araújo, Registered Member of the Chilean Mining Commission, Yamana Gold Inc.
El Peñón	Sergio Castro, Registered Member of the Chilean Mining Commission, Yamana Gold Inc.	Jorge Camacho, Registered Member of the Chilean Mining Commission, Yamana Gold Inc. Yamana Gold Inc. . Marcos Valencia A., FAuIMM, Registered Member of Chilean Mining Commission, Corporate Manager R&R, Andes/Mexico, Yamana Gold Inc.ia de Minas
Canadian Malartic	Donald Gervais, P. Geo., Canadian Malartic General Partnership	Donald Gervais, P. Geo., Canadian Malartic General Partnership

The aforementioned firms or persons held either less than one percent or no securities of the Company or of any associate or affiliate of the Company when they prepared the reports or the Mineral Reserve estimates or the Mineral Resource estimates referred to, or following the preparation of such reports or data, and either did not receive any or received less than a one percent direct or indirect interest in any securities of the Company or of any associate or affiliate of the Company in connection with the preparation of such reports or data.

None of the aforementioned firms or persons, nor any directors, officers or employees of such firms, are currently, or are expected to be elected, appointed or employed as, a director, officer or employee of the Company or of any associate or affiliate of the Company other than Jorge Camacho, Marcos Valencia, Sergio Castro, who are employed by Yamana, and Donald Gervais, Christian Roy and Carl Pednault, who are employed by Canadian Malartic GP.

Deloitte LLP is the auditor of Yamana and is independent within the meaning of the Rules of Professional Conduct of the Chartered Professional Accountants of Ontario.

ITEM 16

ADDITIONAL INFORMATION

Additional information, including directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities and securities authorized for issuance under equity compensation plans, as applicable, will be contained in the Company’s management information circular to be filed in connection with its annual shareholders’ meeting for 2018. Additional financial information is provided in the Company’s financial statements and managements’ discussion and analysis for the fiscal year ended December 31, 2017. Additional financial information relating to the Company may also be found under the Company’s SEDAR profile at www.sedar.com.

EXHIBIT 99.1

SCHEDULE “A”

CHARTER OF THE AUDIT COMMITTEE

OF THE BOARD OF DIRECTORS

RATIFIED FEBRUARY 13, 2018

1. Purpose

The Audit Committee is a committee of the Board of Directors (the “Board”) of Yamana Gold Inc. (the “Company”). The purpose of the Audit Committee is to:


a.	assist the Board in its oversight responsibilities with respect to: (i) the integrity of the Company’s financial statements; (ii) the Company’s compliance with legal and regulatory requirements; (iii) the external auditors’ qualifications and independence; and (iv) the performance of the Company’s internal and external audit functions;


b.	serve as an independent and objective party to monitor the Company’s financial reporting processes and internal control systems;


c.	review and appraise the audit activities of the Company’s external auditors; and


d.	prepare Audit Committee report(s) as required by applicable regulators.

The Audit Committee shall have the authority to delegate to one or more of its members, responsibility for developing recommendations for consideration by the Audit Committee with respect to any of the matters referred to in this Charter.

2. Composition and Meetings

The Audit Committee shall be comprised of three or more directors as determined by the Board, each of whom shall be an “independent director” in accordance with applicable legal requirements, including the requirements of National Instrument 52-110 Audit Committees (“NI 52-110”) and the Corporate Governance Rules of the New York Stock Exchange, as such rules are revised, updated or replaced from time to time, subject to any waivers or exceptions granted by such stock exchange.

All members shall, to the satisfaction of the Board, be "financially literate", and at least one member shall have accounting or related financial management expertise to qualify as a "financial expert" in accordance with applicable legal requirements, including the requirements of NI 52-110 and the rules adopted by the United States Securities and Exchange Commission (the ‘SEC”), as revised, updated or replaced from time to time.

The members of the Audit Committee and its chairman shall be elected by the Board at the annual organizational meeting of the Board, and shall serve until: the next annual meeting of shareholders; they resign; their successors are duly appointed; or such member is removed from the Audit Committee by the Board. If the Board fails to designate one member as the chairman of the Audit Committee (the “Chairman”), the members of the Audit Committee shall appoint the Chairman from among its members.

The Audit Committee shall meet as frequently as the Audit Committee considers necessary, but not less than once each quarter, to review the financial results of the Company. The Audit Committee shall have the resources and authority appropriate to discharge its duties and responsibilities, including the authority to select, retain, terminate, and approve the fees and other retention terms of special or independent counsel, accountants or other experts or advisors, as it deems necessary or appropriate, without seeking approval of the Board or management.

The Audit Committee shall have the authority to meet with the Chief Executive Officer and the Chief Financial Officer, along with internal auditors and the external auditor, and have such other direct and independent interaction with such persons from time to time as the members of the Audit Committee deem appropriate. The Audit Committee may request the CEO to have such officers or employees of the Company or the Company’s outside counsel or external auditor to attend a meeting of the Audit Committee or to meet with any members of, or consultants to, the Audit Committee.

The external auditors will have direct access and report directly to the Audit Committee at their own initiative.

Quorum for the transaction of business at any meeting of the Audit Committee shall be a majority of the number of members of the Audit Committee or such greater number as the Audit Committee shall by resolution determine.

Meetings of the Audit Committee shall be held from time to time as the Audit Committee or the Chairman shall determine upon notice to each of its members in compliance with the Company’s by-laws. The notice period may be waived by a quorum of the Audit Committee.

EXHIBIT 99.1

3. Responsibilities and Powers

Responsibilities and powers of the Audit Committee include:

General


1.	review and assess the adequacy of this Charter at least annually and, where necessary or desirable, recommend changes to the Board provided that this Charter may be amended and restated from time to time without the approval of the Board to ensure that the composition of the Audit Committee and the responsibilities and powers of the Audit Committee comply with applicable laws and stock exchanges;


2.	evaluate the functioning and effectiveness of the Audit Committee and its members on an annual basis;

Documents/Reports Review

prior to the recommendation to the Board for approval of release of the annual and quarterly financial statements, review and discuss with management and the independent public accountants, upon completion of their audit or review, the financial results for the year or quarter and the results of the audit or review, including (i) the Company's annual or quarterly financial statements and related footnotes; (ii) management’s discussion and analysis of the financial condition and results of operations; (iii) annual and quarterly earnings press releases; (iv) the results of the audit or review, including the nature and amount of unrecorded adjustments resulting from the audit or review; (v) review with the independent public accountants and management the Company's policies and procedures relative to the adequacy of internal accounting and financial reporting controls (including any significant deficiencies and significant changes in internal control over financial reporting), including controls over quarterly and annual financial reporting, computerized information systems and security (vi) the independent public accountants’ management recommendations; (vii) any significant transactions which occurred during the year or quarter; (viii) any significant adjustments; critical accounting policies and practices (ix) management judgments and accounting estimates; (x) new accounting policies; (xi) all alternative treatments of financial information within generally accepted accounting principles, ramifications of the use of alternative disclosures and treatments, and the treatment preferred by the independent public accountants; and (xii) any disagreements between management and the independent public accountants;


4.	ensure that adequate procedures are in place for the review of the issuer's disclosure of financial information extracted or derived from the issuer's financial statements and periodically assess the adequacy of such procedures;


5.	review the effects of regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the Company;

at least annually, (i) inquire of management and the independent public accountant about the significant business, political, regulatory and internal control issues or exposures to financial risk; (ii) oversee and monitor management’s documentation of the significant financial risks that the Company faces and update as events change and risks shift and (iii) assess the steps that management has taken to control identified financial and internal control risks to the Company;

Responsibilities of the Audit Committee Chairman


7.	the fundamental responsibility of the Audit Committee Chairman is to be responsible for the management and effective performance of the Audit Committee and provide leadership to the Audit Committee in fulfilling its mandate and any other matters delegated to it by the Board. To that end, the Audit Committee Chairman’s responsibilities shall include:


a.	working with the Chairman and Chief Executive Officer and the Corporate Secretary to establish the frequency of Audit Committee meetings and the agendas for meetings;


b.	providing leadership to the Audit Committee and presiding over Audit Committee meetings;


c.	facilitating the flow of information to and from the Audit Committee and fostering an environment in which Audit Committee members may ask questions and express their viewpoints;


d.	reporting to the Board with respect to the significant activities of the Audit Committee and any recommendations of the Audit Committee; and

EXHIBIT 99.1


e.	leading the Audit Committee in annually reviewing and assessing the adequacy of its mandate and evaluating its effectiveness in fulfilling its mandate; and taking such other steps as are reasonably required to ensure that the Audit Committee carries out its mandate;

External Auditors


8.	recommend external auditors nominations to the Board to be put before the shareholders for appointment and, as necessary, the removal of any external auditor in office from time to time;


9.	approve the fees and other compensation to be paid to the external auditors and the funding for payment of the external auditors’ compensation and any advisors retained by the Audit Committee;


10.	pre-approve all audit services, internal control related services and any permissible non-audit engagements of the external auditors, in accordance with applicable legislation;


11.	meet with external auditors and financial management of the Company to review the scope of the proposed audit of the current year, and the audit procedures to be used;


12.	meet quarterly with external auditors “in camera” to discuss reasonableness of the financial reporting processes, systems of internal control, significant comments and recommendations, and management performance;


13.	advise the external auditors of their ultimate accountability to the Board and the Audit Committee;


14.	oversee the work of the external auditors engaged for the purpose of preparing an audit report or performing other audit, review and attest services for the issuer;

15.

evaluate the qualifications, performance and independence of the external auditors which are to report directly to the Audit Committee, including: (i) reviewing and evaluating the lead partner on the external auditors' engagement with the Company, (ii) considering whether the auditors' quality controls are adequate and the provision of permitted non-audit services is compatible with maintaining the auditors' independence, (iii) determine the rotation of the lead audit partner and the audit firm, and (iv) take into account the opinions of management and the internal audit function in assessing the external auditors’ qualifications, independence and performance;


16.	present the Audit Committee’s conclusions with respect to its evaluation of external auditors to the Board and take such additional action to satisfy itself of the qualifications, performance and independence of external auditors and make further recommendations to the Board as it considers necessary;

17.

obtain and review a report from the external auditors at least annually regarding: (i) the external auditors' internal quality-control procedures; (ii) material issues raised by the most recent internal quality-control review, or peer review, of the firm, or by any inquiry or investigation by governmental or professional authorities within the preceding five years respecting one or more external audits carried out by the firm; (iii) any steps taken to deal with any such issues; and (iv) all relationships between the external auditors and the Company;


18.	discuss with the external auditors any relationships that might affect the external auditors’ objectivity and independence;


19.	recommend to the Board any action required to ensure the independence of the external auditors;


20.	review and approve policies for the Company's hiring of employees or former employees of the present and former external auditors;

Internal Audit


21.	receive reports from the Company's Chief Financial Officer on the scope and material results of its internal SOX audit activities;


22.	establish procedures for: (i) the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters; and (ii) the confidential, anonymous submission of concerns regarding questionable accounting, internal control and auditing matters;

EXHIBIT 99.1


23.	the Audit Committee will ensure that the internal audit function is adequately funded and resourced;

Financial Reporting Process


24.	periodically discuss the integrity, completeness and accuracy of the Company’s internal controls and the financial statements with the external auditors in the absence of the Company's management;


25.	in consultation with the external auditors, review the integrity of the Company's financial internal and external reporting processes;


26.	consider the external auditors' assessment of the appropriateness of the Company's auditing standards and accounting principles as applied in its financial reporting;


27.	review and discuss with management and the external auditors at least annually and approve, if appropriate, any material changes to the Company's internal auditing and accounting principles and practices suggested by the external auditors or management;

28.

review disclosures made by the CEO and CFO during their certification process for the annual and interim filings with applicable securities regulatory authorities about any significant deficiencies in the design or operation of internal controls which could adversely affect the Company's ability to record, process, summarize and report financial data or any material weaknesses in the internal controls, and any fraud involving management or other employees who have a significant role in the Company's internal controls;


29.	establish regular and separate systems of reporting to the Audit Committee by management and the external auditors of any significant decision made in management's preparation of the financial statements, including the reporting of the view of management and the external auditors as to the appropriateness of such decisions;


30.	discuss during the annual audit, and review separately with each of management and the external auditors, any significant matters arising from the course of any audit, including any restrictions on the scope of work or access to required information; whether raised by management or the external auditors;


31.	resolve any disagreements between management and the external auditors regarding financial reporting;


32.	review with the external auditors and management the extent to which changes or improvements in financial or accounting practices, as approved by the Audit Committee, have been implemented at an appropriate time subsequent to the implementation of such changes or improvements;


33.	retain and determine the compensation of any independent counsel, accountants or other advisors to assist in its oversight responsibilities (the Audit Committee shall not be required to obtain the approval of the Board for such purposes);


34.	discuss any management or internal control letters or proposals to be issued by the external auditors of the Company;

Legal Compliance


35.	review with the Company's legal counsel any legal matter that the Audit Committee understands could have a significant impact on the Company's financial statements;


36.	conduct or authorize investigations into matters within the Audit Committee's scope of responsibilities;


37.	perform any other activities, in accordance with the Charter, the Company's by-laws and governing laws, that the Audit Committee or the Board deems necessary or appropriate;

Reporting and Powers


38.	record minutes of its meetings and report periodically to the Board on all matters and recommendations made by the Audit Committee and at such other times as the Board may consider appropriate; and

EXHIBIT 99.1


39.	exercise such other powers and perform such other duties and responsibilities as are incidental to the purposes, duties and responsibilities specified herein and as may from time to time be delegated to the Audit Committee by the Board.

4. Limitation of Responsibility

While the Audit Committee has the responsibilities and powers provided by this Charter, it is not the duty of the Audit Committee to plan or conduct audits or to determine that the Company's financial statements are complete and accurate and are in accordance with applicable accounting principles and standards. This is the responsibility of management (with respect to whom the Audit Committee performs an oversight function) and the external auditors.

EXHIBIT 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

OPERATIONS AND FINANCIAL CONDITION

FOR THE YEAR ENDED DECEMBER 31, 2017

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TABLE OF CONTENTS



			Page
1.	Core Business		1
2.	Highlights and Relevant Updates		2
3.	Outlook and Strategy		7
4.	Summary of Financial and Operating Statistics		12
	4.1:	Financial Statistics	13
	4.2:	Operating Statistics	16
5.	Overview of Results		18
	5.1:	Overview of Financial Results	18
	5.2:	Overview of Operating Results	24
6.	Operating Mines		28
7.	Construction, Development and Exploration		35
8.	Mineral Reserve and Mineral Resource Estimates		37
9.	Liquidity, Capital Resources and Contractual Commitments		40
10.	Income Taxes		43
11.	Economic Trends, Business Risks and Uncertainties		45
12.	Contingencies		49
13.	Critical Accounting Policies and Estimates		49
14.	Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements		50
15.	Selected Quarterly Financial and Operating Summary		61
16.	Disclosure Controls and Procedures		63

MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION

This Management’s Discussion and Analysis of Operations and Financial Condition ("MD&A") should be read in conjunction with Yamana Gold Inc.'s (the "Company" or "Yamana") most recently issued annual Consolidated Financial Statements for the year ended December 31, 2017 ("Consolidated Financial Statements"). (All figures are in United States Dollars ("US Dollars") unless otherwise specified and are in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”).

The Company has included certain non-GAAP financial measures, which the Company believes, that together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The non-GAAP financial measures included in this MD&A include:


•	Cash costs per ounce of gold produced on a co-product and by-product basis;


•	Cash costs per ounce of silver produced on a co-product and by-product basis;


•	Co-product cash costs per pound of copper produced;


•	All-in sustaining costs per ounce of gold produced on a co-product and by-product basis;


•	All-in sustaining costs per ounce of silver produced on a co-product and by-product basis;


•	All-in sustaining co-product costs per pound of copper produced;


•	Net debt;


•	Net free cash flow;


•	Average realized price per ounce of gold sold;


•	Average realized price per ounce of silver sold; and


•	Average realized price per pound of copper sold.

Definitions and reconciliations associated with the above metrics can be found in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A .

Cautionary statements regarding forward-looking information and mineral reserves and mineral resources are included in this MD&A.

1. CORE BUSINESS

Yamana is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including in Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions and optimization initiatives, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas. The Company is listed on the Toronto Stock Exchange (trading symbol "YRI") and the New York Stock Exchange (trading symbol "AUY").

The significant subsidiaries over which the Company exercises control or joint control are listed in Note 3(a): Significant Accounting Policies: Basis of Consolidation to the Company's Consolidated Financial Statements.

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2. HIGHLIGHTS AND RELEVANT UPDATES

For the year ended December 31, 2017 ( unless otherwise noted )

Production and Sales

The Company exceeded production expectations, and achieved this at production costs for gold, silver, and copper that were either within or better than guided ranges for the full year. Relative to guidance for the Company's six mines ("Yamana mines"), production performance was as follows:



Production	2017 Actual	2017 Guidance (i)	%
Total gold production (ounces)	977,316	960,000	2	%
Total silver production (ounces)	5,004,761	5,000,000	—	%
Total copper production (pounds) - Chapada	127,333,872	125,000,000	2	%


(i)	2017 guidance for gold, silver, and copper production reflects the increases that were applied in October with the Company's third quarter results. For gold, this was the second increase applied to the original guidance of 920,000 ounces.



For the years ended December 31,	2017		2016		%
Gold
Sales - Yamana mines (ounces)	971,148		997,380		(3	)%
Sales - consolidated (ounces)	1,147,204		1,188,267		(3	)%
Production - Yamana mines (ounces)	977,316		1,009,079		(3	)%
Production - attributable (ounces) (i)	1,096,327		1,197,844		(8	)%
Revenue per ounce	$	1,250	$	1,240	1	%
Average realized price per ounce (ii)	$	1,264	$	1,251	1	%
Silver
Sales (ounces)	5,125,689		6,604,212		(22	)%
Production (ounces)	5,004,761		6,709,250		(25	)%
Revenue per ounce	$	16.80	$	17.06	(2	)%
Average realized price per ounce (ii)	$	16.83	$	17.04	(1	)%
Copper
Sales (millions of pounds)	120.1		104.9		14	%
Production (millions of pounds)	127.3		115.5		10	%
Revenue per pound	$	2.36	$	1.92	23	%
Average realized price per pound (ii)	$	2.78	$	2.24	24	%


(i)	Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold Inc. ("Brio Gold") common shares during the period, which for 2017 was a weighted average of 65.5% (2016 - 100%).


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Costs

•

For Yamana mines co-product cash costs and all-in sustaining costs ("AISC") were within or below the guided ranges for the all metals in 2017. Strong production and cost management initiatives were partly offset by the appreciation of local currencies. Co-product AISC for all metals were better than expected due mostly to lower sustaining capital expenditures during the year. As previously disclosed, cost of sales per ounce sold were higher than those guided at the beginning of the year, as depreciation, depletion and amortization at certain mines were above plan.


•	By-product costs for gold for the year benefited from the performance of the Chapada mine, which exceeded expectations resulting in higher sales of by-product copper at higher copper prices relative to 2016.


•	Underpinned by several cost containment initiatives, cash costs for gold and silver were at the lowest level in the fourth quarter of 2017.

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For the years ended December 31,	2017		2016		%
Gold
Total cost of sales per ounce sold - Yamana mines (i)	$	1,023	$	991	3	%
Total cost of sales per ounce sold - consolidated (i)	$	1,038	$	1,008	3	%
Co-product cash costs per ounce produced - Yamana mines (ii)	$	672	$	650	3	%
Co-product cash costs per ounce produced - attributable (ii)	$	692	$	665	4	%
Co-product AISC per ounce produced - Yamana mines (ii)	$	888	$	897	(1	)%
AISC per ounce produced - attributable (ii)	$	916	$	911	1	%
Silver
Total cost of sales per ounce sold (i)	$	13.63	$	13.79	(1	)%
Co-product cash costs per ounce produced (ii)	$	10.01	$	8.96	12	%
Co-product AISC per ounce produced (ii)	$	13.48	$	12.65	7	%
Copper
Total cost of sales per pound sold at Chapada (i)	$	1.73	$	1.92	(10	)%
Chapada co-product cash costs per pound produced (ii)	$	1.54	$	1.58	(3	)%
Chapada AISC per pound produced (ii)	$	1.74	$	2.03	(14	)%



For the years ended December 31,	2017		2016		%
By-product cash costs per gold ounce produced - Yamana mines (ii)	$	561	$	611	(8	)%
By-product AISC per gold ounce produced - Yamana mines (ii)	$	820	$	925	(11	)%
By-product cash costs per silver ounce produced (ii)	$	8.58	$	8.45	2	%
By-product AISC per silver ounce produced (ii)	$	12.65	$	12.93	(2	)%


(i)	Total cost of sales consists of the sum of cost of sales excluding Depletion, Depreciation and Amortization ("DDA") plus DDA.


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Financial Results

•

Net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, for the year ended December 31, 2017 was $194.4 million or $0.21 per share basic and diluted, compared to a net loss of $307.9 million or $0.31 per share basic and diluted for the year ended December 31, 2016 . The net loss was attributable to the non-cash impairment losses recognized on the re-measurement of Gualcamayo and related Argentinian exploration in association with their reclassification as assets held for sale totalling $356.5 million ($ 273.5 million net of tax), partially offset by the income tax recovery in Argentina related to a tax rate change of $ 216.8 million .


•	Net loss and net loss per share for 2017 were affected by, among other things, the following non-cash or other items that management believes are not reflective of the performance of the underlying operations, which may be used to adjust or reconcile input models in consensus estimates:



For the years ended December 31,	2017				2016
(In millions of US Dollars; unless otherwise noted)	$		Per share		$		Per share
Non-cash unrealized foreign exchange losses	15.0		0.02		33.7		0.04
Share-based payments/mark-to-market of deferred share units	12.8		0.01		14.2		0.01
Mark-to-market on derivative contracts	15.3		0.02		—		—
Mark-to-market on investment and other assets	2.5		—		15.6		0.02
Revision in estimates and liabilities including contingencies	(26.6	)	(0.03	)	17.3		0.02
Impairment of mining and non-operational mineral properties	356.5		0.38		615.1		0.65
Other provisions, write-downs and adjustments (i)	33.9		0.04		(8.9	)	(0.01	)
Non-cash tax unrealized foreign exchange losses/(gains)	9.9		0.01		(20.0	)	(0.02	)
Income tax effect of adjustments and other tax adjustments	(143.4	)	(0.15	)	(332.9	)	(0.35	)
Total adjustments - increase to earnings and earnings per share (ii)	275.9		0.29		334.1		0.35


(i)	The balance includes, among other things, the reversal of certain provisions such as tax credits and legal contingencies.


(ii)	Net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, would be adjusted by an increase of $264.0 million ( 2016 - $334.1 million), while an increase of $11.9 million ( 2016 - $nil) would adjust the earnings attributable to non-controlling interests.

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For the years ended December 31,
(In millions of US Dollars; unless otherwise noted)	2017			2016			%
Financial Results
Revenue from continuing operations	$	1,803.8		$	1,787.7		1	%
Cost of sales excluding DDA	(1,042.4		)	(1,029.0		)	1	%
DDA	(426.8		)	(462.3		)	(8	)%
Impairment of mining properties	(256.9		)	(711.3		)	(64	)%
Mine operating earnings/(loss)	$	77.7		$	(414.9	)


•	Revenue for the year ended December 31, 2017 , increased from the prior-year comparative period as a result of 24% higher copper prices and higher copper sales quantities.


•	Cost of sales excluding DDA was marginally higher than 2016 as a result of the appreciation of the Brazilian Real and Chilean Peso, higher copper sales quantities partly offset by lower planned sales quantities for gold and silver.


•	DDA expense was lower than the prior year due to lower planned gold and silver sales volumes. This was partially offset by higher copper sales volumes.

Balance Sheet and Liquidity (i)


•	As at December 31, 2017 , excluding Brio Gold, the Company had cash and cash equivalents of $129.6 million and available credit of $970.0 million , for total liquidity of approximately $1.1 billion .


•	Cash flows from operating activities and Net Free Cash Flow (a non-GAAP financial measure, see Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A) are presented below.



For the years ended December 31,
(In millions of US Dollars)	2017			2016
Cash flows from operating activities before income taxes paid and net change in working capital (ii)	$	593.7		$	690.5
Income taxes paid	(19.0		)	(63.9		)
Payments made related to the Brazilian tax matters	(76.7		)	—
Cash flows from operating activities before net change in working capital (ii)	$	498.0		$	626.6
Net change in working capital	(14.0		)	25.3
Cash flows from operating activities	$	484.0		$	651.9
Less: Advance payments received on metal purchase agreement and unearned revenue	(6.6		)	(64.0		)
Add: Payments made related to the Brazilian tax matters (iii)	76.7			—
Add: Other cash payments	6.0			—
Less: Non-discretionary items related to the current period
Sustaining capital expenditures	(204.7		)	(280.5		)
Interest and other finance expenses paid	(103.8		)	(96.2		)
Net free cash flow (i) (ii)	$	251.6		$	211.2


(i)	For further information on the Company's liquidity and cash flow position, refer to Section 9: Liquidity, Capital Resources and Contractual Commitments of this MD&A.


(ii)	A cautionary note regarding non-GAAP financial measures and additional line items or subtotals in financial statements is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(iii)	For further information, refer to Section 10: Income Taxes of this MD&A.

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Additional liquidity and capital information is as follows:



For the years ended December 31,
(In millions of US Dollars; unless otherwise noted)	2017		2016		%
Dividends paid and declared
Dividend paid (per share)	0.0200		0.0300		(33	)%
Dividend declared in respect of the year (per share)	0.0200		0.0200		—	%
Weighted average number of shares outstanding
Basic (in thousands)	948,187		947,443		—	%
Diluted (in thousands)	948,187		947,443		—	%
Capital expenditures
Sustaining	$	204.7	$	280.5	(27	)%
Expansionary	320.3		134.5		138	%
Exploration	82.5		80.4		3	%
Total capital expenditures	$	607.5	$	495.4	23	%

Construction and Development, Strategic Developments and Optimization Initiatives


•	Cerro Moro, Argentina - As at the end of December 2017, construction progress at Cerro Moro is outlined as follows:


•	Construction remains on schedule for completion at the end of the first quarter of 2018. During the fourth quarter of 2017, structural steel erection and mechanical installation of the main process plant areas were completed with piping, electrical and instrumentation installation progressing according to plan.


•	Commissioning of the primary and secondary crushing and conveying circuits as well as the reverse osmosis water treatment facility commenced in December, 2017.


•	For the first quarter of 2018, the focus will move from construction to commissioning and operational readiness, with remaining construction works on piping, electrical, instrumentation installation staged to suit the commissioning plan, and the recruitment, onboarding and training of the operational staff aligned to the ramp-up of operations in the second quarter of 2018.


•	Underground and open pit mine development is now being managed by Operations having transitioned from Technical Services in the fourth quarter of 2017.


◦	Underground development in 2017 progressed according to plan and produced a high-grade stockpile of approximately 16,265 tonnes grading 27 grams per tonne ("g/t") gold and 1,725 g/t silver.


◦	Open pit operations have commenced with mobilization beginning in December and development activities now underway at the high-grade Escondida Central pit, where the ore zone is exposed at surface. Presently, open pit ore is being directed to the high-grade stockpile in preparation for the production start.


•	Expenditures for 2017 totaled approximately $172 million. The Company expects the balance of planned construction expenditures of approximately $61 million to be spent in the first half of 2018.

•

Agua Rica, Argentina - The Company continues to advance its alternatives for the development of the Agua Rica project. These alternatives include technical work and analysis for project development options for Agua Rica, as well as the review and consideration of various strategic alternatives all in an effort to maximize value. In terms of the technical reviews, considerable effort has been undertaken to advance the two development scenarios, one a large-scale open pit and the other a smaller scale underground mine. The large-scale open pit scenario contemplates an integration with the neighboring Alumbrera mine in which the Company holds a 12.5% interest. Under this scenario, the Company projects a mine life in excess of 22 years at average annual production levels of approximately 440 million pounds of copper, 109 thousand ounces of gold, 14 million pounds of molybdenum and 1.6 million ounces of silver for the first 10 years post ramp up. The smaller scale underground scenario employs the application of sub-level caving. For this scenario, based on conceptual level studies, the Company currently projects a mine life in excess of 28 years at average annual production levels of approximately 149 million pounds of copper, 43.4 thousand ounces of gold, 3.9 million pounds of molybdenum and 363 thousand ounces of silver for the first 10 years post ramp up. A feasibility study update was completed for the open pit scenario in 2016 and, as such, this scenario is technically advanced and development ready. Technical work continue to advance the more recently studied underground scenario, as it presents a compelling development opportunity, notably with a marked decrease in development capital while still maintaining the longer term optionality for a large-scale open pit operation in due course.

Based on its own evaluation, and feedback from the strategic alternatives process, the Company believes that the underground scenario represents a viable alternative that should be advanced as soon as possible towards a pre-feasibility level, while concurrently pursuing various strategic alternatives. As such, the Company has determined that it will undertake the work required to conduct a preliminary economic assessment during 2018, with a pre-feasibility study to follow in 2019.

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•

Gualcamayo, Argentina - The Company is pursuing alternatives to maximize value at Gualcamayo. These include the rationalization of the mine’s production platform and cost structure, the extension of mine life from exploration efforts focused on oxide resource delineation and additions, and the advancement of the Deep Carbonate project. Similar to the strategy leading to the sale of the Mercedes mine in Mexico during 2016, the Company has also considered the continuum of options for value maximization. Such options weigh the prospect for internal advancement and management time and resources required against the opportunity for monetization, which would leave management and resources unencumbered for the pursuit of other internal projects. As the Company has decided to focus its efforts on assets that are better aligned with its strategic objectives, Gualcamayo has been classified as an asset held for sale.

The Company has initiated efforts to right-size production at Gualcamayo to deliver a more sustainable production base, better cost structure and to generate a more significant contribution to free cash flows. This optimization plan is similar to the successful strategy that was executed at El Peñón during 2017 and that is currently underway at Minera Florida, leading initially to less ounces of production, although at a higher quality. A more optimal alignment between the current oxide mineral base and the production run-rate will result in an extended time frame to explore the prospective near-mine and regional oxide targets in order to extend mine life. Further testing and evaluation of the Deep Carbonate project and expansion of the sulphide mineral resources of the project will also be pursued. A transition of uninterrupted production from the Gualcamayo mine to the longer-term Deep Carbonate project is currently dependent on the exploration of near mine targets at Gualcamayo and the addition of new oxide resources leading to the extension of the mine life.

•

Kirkland Lake, Canada - On December 21, 2017, the Company announced an agreement to sell certain jointly owned exploration properties of the Canadian Malartic Corporation (“CMC”) including the Kirkland Lake and Hammond Reef properties (the “Transaction”). The Transaction is structured as a sale of assets by CMC (in which Yamana holds a 50% indirect interest) pursuant to which Agnico Eagle Mines Limited will acquire all of the Company’s indirect 50% interest in the Canadian exploration assets of CMC in consideration of cash proceeds to Yamana of $162.5 million. The Transaction, which is scheduled to close in the first quarter of 2018, does not affect the Canadian Malartic mine and related assets including Odyssey, East Malartic, Midway, and East Amphi. The Transaction is consistent with the Company’s stated objective to improve its financial position. The assets have been reclassified to assets held for sale in the Company's Consolidated Financial Statements as at December 31, 2017.

•

Suruca, Brazil - The Company continues to advance development efforts at the Suruca oxides project including the additional consideration of recent drill results at Suruca Southwest and Suruca Sulphide (located beneath the oxide deposit). Suruca Oxides is a gold-only standalone project with synergies with the existing Chapada infrastructure. The Company is assessing a broader Suruca complex to maximize value, and expects to provide an update on the preliminary plans for the Suruca oxides and the underlying sulphides in the second quarter of 2018.

•

Chapada, Brazil - Opportunities for a plant expansion at Chapada are being studied for the treatment of Sucupira mineralization and low-grade ore stockpiles. These studies are being undertaken in parallel to the Suruca assessments. In 2017 for Sucupira, mineral reserves of 46 million tonnes at 0.27 g/t gold and 0.31% copper grades were reclassified from mineral resources. While prioritizing among the several opportunities at Chapada, mine management is assessing the impact of bringing forward production from the Sucupira deposit into the mine plan.


•	Canadian Malartic, Canada - The Canadian Malartic Extension Project is continuing according to plan and on budget. Expansionary expenditures for the mine extension in 2017 were $17.0 million (on a 50% basis). Another, approximately $36.5 million (on a 50% basis) is expected to be spent in 2018.

Mineral Reserves and Mineral Resources

The Company's exploration programs continue with the focus of mineral resource discovery and mineral reserve replacement and growth at all mines. For additional details, refer to Section 6: Operating Mines and Section 8: Mineral Reserve and Mineral Resources of this MD&A.

Subsequent Events

Shareholder Supported Take-over Bid for Brio Gold Inc.

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0.922 of a share of Leagold for each Brio Share held. Based on the share exchange ratio to be provided under the Offer, the Company would receive 58,115,953 shares of Leagold, representing approximately 22% ownership in the combined entity. The Company entered into a support agreement endorsing a transaction with Leagold. Pursuant to the agreement, the Company agreed to tender all of its Brio Shares and to hold the Leagold shares it receives pursuant to the Offer for a minimum period of 12 months, subject to certain exceptions. The Offer provides the Company the opportunity to derive value from Brio and the underlying Brio assets as the combined entity has considerable present value and upside potential.

Copper Advanced Sales Program

The Company entered into a copper advanced sales program pursuant to which the Company received $125.0 million on January 12, 2018 in exchange for approximately 40.3 million pounds of copper to be delivered in the second half of 2018 and first half of 2019. This production represents approximately one third of planned production in the period of the program or approximately 16 per cent of the total production for 2018 and 2019. Copper is expected to be delivered against these prepaid volumes coincident with planned shipments of concentrate from the Chapada mine. The cash consideration will be treated as deferred revenue to be amortized, and the revenue recognized, over the second half of 2018 and first half of 2019 when the physical deliveries of copper occur under the prepaid sales. The cash consideration will be included in operating cash flow for the first quarter of 2018.

Refinancing of Debt - Redemption of 2019 Notes

During the fourth quarter of 2017, the Company completed an offering of $300 million of 4.625% senior notes due December 2027. With these funds, on January 29, 2018, the Company redeemed $181.5 million of 6.97% senior notes due December 2019 at a make-whole price of 108.12. These items have extended the tenor of the Company’s fixed term debt profile at lower average interest rates and improved financial flexibility. During the first and second quarter of 2018, the Company has senior notes maturities of $73.6 million and $35.0 million, respectively, that will be retired as they come due. Following the 2018 maturities, the Company’s next scheduled maturity of fixed rate debt of $84 million is not until March 2020.

3. OUTLOOK AND STRATEGY

Over the years, the Company has grown through phases of strategic acquisitions to upgrade its portfolio and by pursuing organic growth to increase production and cash flow. The Company is currently focusing on numerous internal value generating opportunities and the Company’s current key objectives include:


•	Delivering operational results and execution, and advancing near-term and ongoing optimizations at Yamana’s five remaining mines, soon to be six producing mines


•	Maximization of cash return on invested capital, first on producing and then non-producing assets.


•	Within its producing portfolio, the Company’s focus remains on the growth of mineral reserves and mineral resources resulting in mine life extensions. Similarly, throughput increases, grade and recovery improvements and cost reductions which are expected to improve returns on invested capital.

•

For those assets in the non-producing category, value and return maximization and the ultimate generation of a more than commensurate return on that capital base will be dependent on the advancement of development opportunities. Such opportunities will be supported by technical/financial reviews, development through construction and operational efforts. The Company will also consider alternative options for generating returns on the non-producing portion of its portfolio from the monetization of those assets, for example, as in the case of the Kirkland Lake transaction.


•	Advancing Cerro Moro to construction completion in the first quarter of 2018, with the production ramp-up to commence thereafter;


•	Advancing the Company’s organic pipeline through exploration targeted on the most prospective properties, including:


◦	Chapada, Minera Florida, Canadian Malartic (Odyssey) and Cerro Moro as a result of new discoveries at each site,


◦	Minera Florida, El Peñón, Chapada, and Jacobina with the objective to increase mine life and to deliver potential for production increases through further delineation and infill drilling; and


•	Maximizing value from the long-life Chapada mine and vast exploration opportunities by pursuing expansion initiatives.


•	Continuing balance sheet and financial performance improvements. The Company continues to target a leverage ratio of 1.5 or better;


•	Improving the efficiency of all operations with a focus on optimizing free cash flow from mine plans that can deliver consistent and predictable results and, in the case of Canadian Malartic, Jacobina, and Minera Florida, a focus on production growth opportunities; and


•	Increasing overall mineral reserves and mineral resources.

The Company made significant progress against all of these objectives through the end of the fourth quarter.

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Consistent with the above objectives, the Company continues to evaluate its medium-term development opportunities. The Company foresees that after the completion of Cerro Moro, and the Canadian Malartic Extension, there will be a significant reduction in expansionary capital. With Cerro Moro, coupled with an increase in production as existing projects are completed, the Company expects to deliver significant increases in cash flow and net free cash flow beginning in 2018. This would also increase the Company's cash return on invested capital.

The Company remains committed to maintaining financial flexibility and strengthening its balance sheet. Recent and current initiatives, which have or will further advance this commitment, include the following:

•

First and foremost are planned cash flow increases which are expected as the Company continues to deliver operational improvements and advance its development stage projects, most notably Cerro Moro which remains on budget and on schedule for start-up in early 2018. With Cerro Moro contributing to production in 2018 and with its projected low cost profile, the Company expects meaningful increases to EBITDA and cash flow for 2018 and beyond.

•

Secondly, the recent offering of senior notes, and copper advanced sale program provide further financial flexibility over the medium term with a focus on repaying outstanding indebtedness. Additionally, the Company expects to use this enhanced flexibility to replace and upgrade mine cash flows and to target further optimization and other opportunities. Yamana is committed to advancing its project pipeline with the sequencing established to manage balance sheet strength while also ensuring the pipeline is well positioned in those countries and jurisdictions where the Company has the most familiarity.

•

Thirdly, the Company is advancing on several monetization initiatives as part of ongoing strategic and technical reviews of its asset portfolio. Following such a review, the Company entered into a transaction for the sale of certain exploration assets including the Kirkland Lake and Hammond Reef properties. Another previously announced and similar strategic review relates to the alternatives for development of Agua Rica which is a feasibility stage copper-gold asset wholly owned by Yamana. In the case of other assets, the Company considers the contribution to cash flows from those assets and whether or not the possible monetization of or other strategic alternatives for those assets may deliver more value than the immediate cash flows that they generate. In 2016, the Company sold its Mercedes mine on this basis and after such a review. Following a similar review of Gualcamayo, the Company has initiated a plan of sale for its Gualcamayo mine in Argentina.

The Company is committed to delivering production from quality mines/projects thereby maximizing returns, improving its cash balances and cash return on invested capital, reducing its net debt, and properly managing its balance sheet and overall financial position. Monetization initiatives, the recent issue of the senior notes, and the recently entered into copper advanced sale program considerably advance these goals. Continued operational and financial performance from the Company’s continuing five mines along with the contribution to be provided by Cerro Moro, beginning in 2018, will further advance these goals.

2018 - 2020 Production Guidance

The following table presents the Company's total production expectations for its mines for 2018, 2019 and 2020.



	2017 Actual	2018 E	2019 E	2020 E
Total Gold Production (ounces) (i)	823,264	900,000	940,000	970,000
Total Silver Production (ounces)	5,004,761	8,150,000	10,400,000	12,950,000
Total Copper Production (millions of pounds) - Chapada	127.3	120.0	120.0	120.0


(i)	Excluding any attribution from Yamana’s interest in Brio Gold and Gualcamayo which is an asset held for sale. For 2017, total gold production including Gualcamayo is 977,316 ounces. Gualcamayo is expected to produce 110,000 ounces in 2018, additional details are provided below.

The following table presents per unit cost expectations for 2018:

| 8



2017 Actuals, excluding Brio (ii)	Gold		Silver		Copper (Chapada)
Total cost of sales per ounce or pound sold	$	1,023	$	13.63	$	1.73
Co-product cash costs per ounce or pound produced (i)	$	672	$	10.01	$	1.54
Co-product AISC per ounce or pound produced (i)	$	888	$	13.48	$	1.74
By-product cash costs per ounce or pound produced (i)	$	561	$	8.58	—
By-product AISC per ounce or pound produced (i)	$	820	$	12.65	—

2018 Guidance, excluding Brio (ii)
Total cost of sales per ounce or pound sold	$1,010 - $1,030		$15.00 - $15.25		$1.80 - $1.85
Co-product cash costs per ounce or pound produced (i)	$630 - $650		$9.00 - $9.25		$1.60 - $1.65
Co-product AISC costs per ounce or pound produced (i)	$850 - $870		$12.25 -$12.50		$1.80 - $1.85
By-product cash costs per ounce or pound produced (i)	$460 - $480		$6.75 - $7.00		—
By-product AISC costs per ounce or pound produced (i)	$725 - $745		$10.50 - $10.80		—


(i)	A cautionary note regarding non-GAAP financial measures and additional line items or subtotals in financial statements is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(ii)	2017 actuals include Gualcamayo, while 2018 guidance excludes Gualcamayo as it is an asset held for sale.

Gold production is expected to increase in the guidance period in each of 2019 and 2020 mostly as a result of increases in production at Canadian Malartic, Jacobina, Minera Florida, and with new production from Cerro Moro. Silver production is expected to increase more significantly, in percentage terms, than gold production almost entirely as a result of the ramp up of Cerro Moro. Copper production, all of which is from Chapada, is expected to remain constant throughout the guidance period.

The Company is now concentrating its efforts on five producing mines, which, beginning in early 2018, will increase to six with the planned start of production from Cerro Moro in the second quarter. The Company’s Gualcamayo mine has been classified as an asset held for sale and, as such, is not included in total production and cost expectations for the guidance period. See “Gualcamayo” section below for additional details.

The following table presents mine-by-mine production expectations for 2018.



	Gold		Silver
Production Expectation by Mine (i)	2017 Actual	2018 E	2017 Actual	2018 E
Chapada	119,852	110,000	—	—
El Peñón	160,509	145,000	4,282,339	4,400,000
Canadian Malartic (50%)	316,731	325,000	—	—
Jacobina	135,806	135,000	—	—
Minera Florida	90,366	90,000	—	—
Cerro Moro	—	85,000	—	3,750,000


(i)	Excluding Gualcamayo production which is an asset held for sale.

The Company’s 2018 total gold production guidance of 900,000 ounces implies a bias to the upside over the sum of mine production expectations presented above. This takes into consideration that certain mines, based on historical performance and potential benefits of planned optimizations, are expected to achieve higher levels of gold production in 2018 while not attributing those production ounces to specific mines at this time.

At Cerro Moro, the Company has undertaken studies to optimize mine sequencing and the mix of gold and silver production, balancing efforts to front-end load gold and silver production in the early years while taking into account the underground and open-pit sequencing to execute on the plan. With the planned changes and new sequencing, the consequence is a higher proportion of gold dominant stopes over the guidance period. While this provides more flexibility in the mine plan to maximize gold production above current guidance levels, a consequence is that silver grades are lower and silver production is slower to ramp up as compared to prior guidance. With the new sequencing, the Company forecasts silver production over 8 million ounces in 2020.

For its existing mines, Yamana expects to continue its established trend of delivering stronger production in the second half of the year compared to the first half of the year. In 2018, the Company expects approximately 47 per cent of total gold production and 46 per cent of total copper production to be delivered in the first half, excluding Cerro Moro. For Cerro Moro, the Company expects approximately 25 to 30 per cent of the mine’s gold and silver production to be produced in the first half.

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Cost Outlook

With the contribution from Cerro Moro, the Company’s all-in sustaining costs (“AISC”) are expected to decrease from 2017 levels into 2018 and 2019.

The following table presents cost of sales, cash costs and AISC guidance by mine for gold and silver for 2018:



	Total cost of sales per ounce sold (ii)				Co-product cash costs per ounce produced (i) (ii)				Co-product AISC per ounce produced (i) (ii)
	2017 Actual		2018 E		2017 Actual		2018 E		2017 Actual		2018 E
Gold
Chapada	$	384	$	450	$	334	$	385	$	384	$	430
El Peñón	$	1,089	$	1,065	$	751	$	790	$	928	$	965
Canadian Malartic (50%)	$	1,000	$	1,000	$	576	$	590	$	742	$	760
Jacobina	$	1,057	$	1,100	$	701	$	730	$	867	$	910
Minera Florida	$	1,248	$	1,275	$	812	$	750	$	1,090	$	930
Cerro Moro	$	—	$	1,100	$	—	$	510	$	—	$	650

Silver
El Peñón	$	14.57	$	14.75	$	10.30	$	10.75	$	12.77	$	13.25
Cerro Moro	$	—	$	15.25	$	—	$	7.10	$	—	$	9.15


(i)	A cautionary note regarding non-GAAP financial measures and additional line items or subtotals in financial statements is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(ii)	Excluding any attribution from Yamana’s interest in Brio Gold and Gualcamayo which is an asset held for sale.

With respect to Cerro Moro, the Company is expecting average 2018 to 2019 co-product cash costs of $500 per ounce gold and $6.70 per ounce silver, and co-product AISC of $650 per ounce gold and $8.85 per ounce silver.

The following table presents sustaining capital and exploration spend expectations by mine for 2018, excluding any attribution from Brio Gold:



	Sustaining capital				Total exploration
(In millions of US Dollars)	2017 Actual		2018 E		2017 Actual		2018 E
Chapada	$	27.9	$	25.0	$	8.2	$	8.0
El Peñón	$	38.5	$	35.0	$	17.8	$	12.0
Canadian Malartic (50%)	$	48.2	$	50.0	$	10.2	$	5.0
Minera Florida	$	24.6	$	16.0	$	12.4	$	10.0
Jacobina	$	21.7	$	20.0	$	5.9	$	6.0
Cerro Moro	$	—	$	21.0	$	7.7	$	9.0
Monument Bay	$	—	$	—	$	3.3	$	6.0
Discretionary	$	—	$	—	$	—	$	16.0
Other sustaining	$	2.1	$	3.0	$	—	$	—
Generative exploration and overhead	$	—	$	—	$	18.3	$	17.0
Total	$	163.0	$	170.0	$	83.8	$	89.0

The Company expects approximately 75% of exploration spending will be capitalized in 2017.

In 2017, the Company provided guidance that approximately $21 million dollars of exploration spending was considered discretionary and would be allocated on a success basis. Yamana expects to use a similar approach in 2018 to allocate $16 million dollars of discretionary exploration spending based on results at the Company’s various mines and assets. The potential for a portion of the 2018 discretionary spending offsets some of the change in expected exploration spending compared to 2017 actuals seen at certain mines, such as El Peñón, in the table above.

At Minera Florida, the Company is projecting lower sustaining capital and exploration expenditures in 2018 as previously planned expenditures are expected to be spread across a number of years. This approach is consistent with the transformational strategy implemented in 2017, which

| 10

is expected to result in lower production in the immediate term while the Company expects production to increase to 120,000 ounces of gold per year by 2021. The Company continues to target a longer-term strategic production objective of 130,000 ounces of gold per year at Minera Florida.

The following table presents other expenditure expectations for 2018, excluding Gualcamayo and any attribution from Brio Gold:



(In millions of US Dollars, unless otherwise noted)	2017 Actual (i)		2018 E (i)
Total expansionary capital	$	279.9	$	192.3
Total DDA	$	384.3	$	450.0
Total general and administrative expenses ("G&A")	$	90.6	$	94.0
Cash based G&A	$	82.9	$	85.0
Stock-based G&A	$	7.7	$	9.0


(i)	2017 actuals include Gualcamayo, while 2018 guidance excludes Gualcamayo as it is an asset held for sale.

A significant portion of the expansionary capital budget for 2018 relates to Cerro Moro, which, as previously noted, will begin planned operations in 2018, and to the Canadian Malartic Extension Project (formerly the Barnat extension).

At Chapada, the Company has various development, optimization and expansion opportunities under consideration that are not included in the current 2018 expansionary capital expenditures. These opportunities include plant throughput increases, and the broader Suruca complex. Sucupira and Baru are immediately adjacent to the existing pit, and the potential to bring forward production from these deposits is currently being evaluated. Opportunities to expand the mill capacity to treat Sucupira/Baru mineralization, and potentially low-grade ore stockpiles, which are expected to grow further in 2018 by approximately 15 million tonnes, are also being evaluated. The Company is also advancing development efforts at the Suruca oxide project while considering recent drill results from Suruca Southwest and Suruca sulphide (located beneath the oxide deposit). The Company is now assessing a broader Suruca complex and expects to complete studies of a comprehensive scenario in 2018. Additional detail on the range of development opportunities and related plans for Chapada is expected to be provided in the second quarter of 2018.

At Cerro Moro, the Company expects to spend approximately $61 million in remaining construction costs in 2018. The planned expenditures at Cerro Moro include previously planned 2018 spending of approximately $55 million plus $6 million carried forward from 2017.

At Canadian Malartic, the Company expects to spend approximately $52 million (50%-basis) in expansionary capital in 2018. The majority, or approximately $37 million, relates to the Canadian Malartic Extension Project. The remainder predominantly includes capital expenditures for studies relating to the Odyssey and East Malartic projects.

At Minera Florida, the Company expects to spend approximately $28 million in expansionary capital in 2018. This includes approximately $10 million for the last payment relating to the land concessions acquired in 2016 with the majority of the remainder allocated to expansionary mine development in the Hornitos and Pataguas tunnels. The Company will spread expansionary mine development capital and exploration expenditures across a number of years.

The Company expects higher DDA in 2018 compared to 2017 mainly due to the start-up of production at Cerro Moro. DDA at Cerro Moro is expected to decrease to lower levels as the exploration program advances toward its target of adding 1.0 million ounces of mineral resources by 2021. Cerro Moro DDA reflects both the costs of construction as well as the historical acquisition costs.

Gualcamayo

As aforementioned, Gualcamayo is an asset held for sale and the efforts to right-size production at Gualcamayo are reflected in the 2018 guidance as follows:



	2017 Actual		2018 E
Gold production (ounces)	154,052		110,000
Total cost of sales per gold ounce sold	$	1,293	$	1,050
Co-product cash costs per gold ounce produced (i)	$	942	$	1,080
Co-product AISC per gold ounce produced (i)	$	990	$	1,145
Sustaining capital (in millions of US Dollars)	$	6.6	$	6.8
Exploration (in millions of US Dollars)	$	10.7	$	8.0

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(i)	A cautionary note regarding non-GAAP financial measures and additional line items or subtotals in financial statements is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Based on mineral reserves and reasonable conversion of mineral resources, the Company expects Gualcamayo’s production platform to be in excess of 100,000 ounces of gold for the next several years following 2018. The production outlook for Gualcamayo excludes the sizeable district exploration potential and the Deep Carbonates project.

Assumptions

Key assumptions, in relation to the above guidance, are presented in the table below.



	2017 Actual (i)		2018 Assumptions
Gold (USD per ounce)	$	1,264	$	1,300
Silver (USD per ounce)	$	16.83	$	18.00
Copper (USD per pound)	$	2.78	$	3.25
Canadian Dollar/US Dollar	1.30		1.28
Brazilian Real/US Dollar	3.19		3.25
Argentine Peso/US Dollar	16.56		21.00
Chilean Peso/US Dollar	649.01		615.00


(i)	2017 exchange rates are the average realized exchange rates for the 12 months ended December 31, 2017.

4. SUMMARY OF FINANCIAL AND OPERATING STATISTICS

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4.1 Financial Statistics



	For the three months ended December 31,						For the years ended December 31,
(In millions of US Dollars; unless otherwise noted)	2017			2016			2017			2016			2015
Revenue	$	478.8		$	484.4		$	1,803.8		$	1,787.7		$	1,720.6
Cost of sales excluding DDA	(264.7		)	(284.1		)	(1,042.4		)	(1,029.0		)	(1,015.1		)
Gross margin excluding DDA	$	214.1		$	200.3		$	761.4		$	758.7		$	705.5
Depletion, depreciation and amortization	(100.9		)	(128.3		)	(426.8		)	(462.3		)	(503.9		)
Impairment of mining properties	(256.9		)	(711.3		)	(256.9		)	(711.3		)	(1,469.0		)
Mine operating (loss)/earnings	$	(143.7	)	$	(639.3	)	$	77.7		$	(414.9	)	$	(1,267.4	)
General and administrative	(34.0		)	(29.9		)	(113.6		)	(100.2		)	(110.1		)
Exploration and evaluation	(7.0		)	(3.0		)	(21.2		)	(14.9		)	(18.7		)
Equity loss from associate	—			—			—			—			(17.5		)
Other expenses	(16.4		)	(19.0		)	(23.6		)	(39.7		)	(69.6		)
(Impairment)/reversal of non-operating mining properties	(99.6		)	96.2			(99.6		)	96.2			(567.1		)
Net finance expense	(37.5		)	(29.6		)	(137.7		)	(142.2		)	(112.6		)
Net loss before income taxes	$	(338.2	)	$	(624.6	)	$	(318.0	)	$	(615.7	)	$	(2,163.0	)
Income tax recovery, net	138.5			269.2			113.9			324.9			476.3
Net loss from continuing operations	$	(199.7	)	$	(355.4	)	$	(204.1	)	$	(290.8	)	$	(1,686.7	)
Net loss from discontinued operations	—			(12.6		)	—			(17.5		)	(428.1		)
Net loss	$	(199.7	)	$	(368.0	)	$	(204.1	)	$	(308.3	)	$	(2,114.8	)

Attributable to:
Yamana Gold Inc. equityholders	$	(191.0	)	$	(367.6	)	$	(194.4	)	$	(307.9	)	$	(2,114.8	)
Non-controlling interests	$	(8.7	)	$	(0.4	)	$	(9.7	)	$	(0.4	)	$	—
	$	(199.7	)	$	(368.0	)	$	(204.1	)	$	(308.3	)	$	(2,114.8	)

Loss per share - basic and diluted (i)	$	(0.20	)	$	(0.39	)	$	(0.21	)	$	(0.32	)	$	(2.26	)
Loss per share from continuing operations - basic and diluted (i)	$	(0.20	)	$	(0.37	)	$	(0.21	)	$	(0.31	)	$	(1.80	)
Dividends declared per share	$	0.005		$	0.005		$	0.020		$	0.020		$	0.060
Dividends paid per share	$	0.005		$	0.005		$	0.020		$	0.030		$	0.060
Weighted average number of common shares outstanding - basic (in thousands)	948,468			947,590			948,187			947,443			936,606
Weighted average number of common shares outstanding - diluted (in thousands)	948,468			947,590			948,187			947,443			936,606


(i)	Attributable to Yamana Gold Inc. equityholders.

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Net earnings/(loss) and net earnings/(loss) per share were affected by, among other things, the following non-cash and certain items that may not be reflective of current and ongoing operations. The Company refers to the following items, which may be used to adjust or reconcile input models in consensus estimates:



	For the three months ended December 31,						For the years ended December 31,
(In millions of US Dollars; unless otherwise noted)	2017			2016			2017			2016
Non-cash unrealized foreign exchange (gains)/losses	$	(1.2	)	$	8.8		$	15.0		$	33.7
Share-based payments/mark-to-market of deferred share units	3.7			(2.3		)	12.8			14.2
Mark-to-market on derivative contracts	14.2			—			15.3			—
Mark-to-market on investment and other assets	(0.5		)	4.2			2.5			15.6
Revision in estimates and liabilities including contingencies	1.9			8.2			(26.6		)	17.3
Impairment of mining and non-operational mineral properties	356.4			615.1			356.5			615.1
Other provisions, write-downs and adjustments (i)	5.9			2.3			33.9			(8.9		)
Non-cash tax unrealized foreign exchange losses/(gains)	11.6			50.8			9.9			(20.0		)
Income tax effect of adjustments	(141.3		)	(325.0		)	(143.4		)	(332.9		)
Total adjustments - increase to earnings (ii)	$	250.7		$	362.1		$	275.9		$	334.1
Total adjustments - increase to earnings per share	$	0.26		$	0.38		$	0.29		$	0.35


(i)	The balance includes, among other things, the reversal of certain provisions such as tax credits and legal contingencies.

(ii)

For the three months ended December 31, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, were impacted by an increase of $244.2 million (2016- $362.1 million ), while an increase of $6.5 million (2016- $nil) relates to non-controlling interests. For the twelve months ended December 31, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, were impacted by an increase of $264.0 million (2016- $334.1 million ), while an increase of $11.9 million (2016- $nil) relates to non-controlling interests.

The following table lists revenue per ounce or pound sold, average realized prices and average market prices:



	For the three months ended December 31,						For the years ended December 31,
	2017		2016		%		2017		2016		%
Gold
Revenue per ounce of gold	$	1,269	$	1,196	6	%	$	1,250	$	1,240	1	%
Average realized gold price per ounce (i)(ii)	$	1,286	$	1,210	6	%	$	1,264	$	1,251	1	%
Average market gold price per ounce (iii)	$	1,277	$	1,222	5	%	$	1,259	$	1,251	1	%
Silver
Revenue per ounce of silver	$	16.46	$	17.11	(4	)%	$	16.80	$	17.06	(2	)%
Average realized silver price per ounce (i)(ii)	$	16.49	$	17.17	(4	)%	$	16.83	$	17.04	(1	)%
Average market silver price per ounce (iii)	$	16.71	$	17.19	(3	)%	$	17.08	$	17.14	—	%
Copper
Revenue per pound of copper	$	2.36	$	2.02	17	%	$	2.36	$	1.92	23	%
Average realized copper price per pound (i)(ii)	$	3.02	$	2.48	22	%	$	2.78	$	2.24	24	%
Average market copper price per pound (iii)	$	3.09	$	2.39	29	%	$	2.80	$	2.21	27	%


(i)	A cautionary note regarding non-GAAP financial measures and their respective reconciliations, as well as additional line items or subtotals in financial statements are included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(ii)	Realized prices based on gross sales compared to market prices for metals may vary due to the timing of the sales.


(iii)	Source of information: Bloomberg.

Cash flows from operating activities and Net Free Cash Flow (a non-GAAP financial measure, see Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A) are presented below:



	For the three months ended December 31,						For the years ended December 31,
(In millions of US Dollars)	2017			2016			2017			2016			2015
Cash flows from operating activities of continuing operations (i)	$	158.5		$	163.0		$	484.0		$	651.9		$	514.0
Cash flows from operating activities before net change in working capital (i), (ii)	$	122.3		$	147.7		$	498.0		$	626.6		$	654.8
Cash flows used in investing activities of continuing operations	$	(196.9	)	$	(160.2	)	$	(644.2	)	$	(407.7	)	$	(367.2	)
Cash flows from/(used in) financing activities of continuing operations	$	68.3		$	(147.0	)	$	217.9		$	(267.5	)	$	(204.6	)

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(i)

Cash flows from operating activities were higher in 2016 due to the receipt of advanced consideration in relation to the Company's metal purchase agreements. Cash flows from operating activities in 2017 were affected by payments of $ 76.7 million made in relation to the Brazilian Tax Matters. Refer to Section 10: Income Taxes of this MD&A for further discussion relating to the Brazilian Tax Matters.


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.



	For the three months ended December 31,						For the years ended December 31,
(In millions of US Dollars)	2017			2016			2017			2016
Cash flows from operating activities before income taxes paid and net change in working capital (ii)	$	170.3		$	161.2		$	593.7		$	690.5
Income taxes paid	(1.4		)	(13.5		)	(19.0		)	(63.9		)
Payments made related to the Brazilian tax matters	(46.6		)	—			(76.7		)	—
Cash flows from operating activities before net change in working capital (ii)	$	122.3		$	147.7		$	498.0		$	626.6
Net change in working capital	36.2			15.3			(14.0		)	25.3
Cash flows from operating activities	$	158.5		$	163.0		$	484.0		$	651.9
Less: Advance payments received on metal purchase agreement and unearned revenue	(6.6		)	—			(6.6		)	(64.0		)
Add: Payments made related to the Brazilian tax matters	46.6			—			76.7			—
Add: Other cash payments	—			—			6.0			—
Less: Non-discretionary items related to the current period
Sustaining capital expenditures	(57.0		)	(77.7		)	(204.7		)	(280.5		)
Interest and other finance expenses paid	(34.3		)	(30.1		)	(103.8		)	(96.2		)
Net free cash flow (i)	$	107.2		$	55.2		$	251.6		$	211.2


(i)	For further information on the Company's liquidity and cash flow position, refer to Section 9: Liquidity, Capital Resources and Contractual Commitments of this MD&A.


(ii)	A cautionary note regarding non-GAAP financial measures and additional line items or subtotals in financial statements is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Balance sheet highlights



As at December 31, (In millions of US Dollars)	2017		2016		2015
Total assets	$	8,763.3	$	8,801.7	$	9,518.1
Total long-term liabilities	$	3,535.3	$	3,746.6	$	4,111.4
Total equity	$	4,447.3	$	4,580.0	$	4,864.6
Working capital (i)	$	58.7	$	77.3	$	106.9

(i)

Working capital is defined as the excess of current assets over current liabilities, which includes the current portion of long-term debt. Notable movements in working capital from the prior year include decreases of $91.4 million resulting from the increase in the current portion of long-term debt and $87.0 million resulting from the increase of income taxes payable mainly related to the Brazilian Tax Matters and timing of payments.

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4.2 Operating Statistics



Ounces of production	Gold						Silver
For the years ended December 31,	2017		2016		%		2017		2016		%
Chapada	119,852		107,301		12	%	252,748		259,444		(3	)%
El Peñón	160,509		220,209		(27	)%	4,282,339		6,020,758		(29	)%
Canadian Malartic (i)	316,731		292,514		8	%	—		—		—	%
Jacobina	135,806		120,478		13	%	—		—		—	%
Minera Florida	90,366		104,312		(13	)%	469,674		429,048		9	%
Gualcamayo	154,052		164,265		(6	)%	—		—		—	%
Total production, Yamana mines	977,316		1,009,079		(3	)%	5,004,761		6,709,250		(25	)%
Brio Gold (attributable to the Company) (iii)	119,011		188,765		(37	)%	—		—		—	%
Total production, attributable to the Company	1,096,327		1,197,844		(8	)%	5,004,761		6,709,250		(25	)%
Brio Gold (attributable to non-controlling interest)	59,014		897		n/a		—		—		n/a
Total production (v), (vi)	1,155,341		1,198,741		(4	)%	5,004,761		6,709,250		(25	)%
Cost of sales excluding DDA per ounce sold, Yamana mines	$	682	$	664	3	%	$	10.00	$	9.07	10	%
Cost of sales excluding DDA per ounce sold	$	712	$	677	5	%	$	10.00	$	9.07	10	%
DDA per ounce sold, Yamana mines	$	341	$	327	4	%	$	4.35	$	4.72	(8	)%
DDA per ounce sold	$	326	$	331	(2	)%	$	4.35	$	4.72	(8	)%
Total cost of sales per ounce sold (vii)
Chapada	$	384	$	489	(21	)%	$	7.11	$	7.05	1	%
El Peñón	$	1,089	$	1,019	7	%	$	14.57	$	13.84	5	%
Canadian Malartic (i)	$	1,000	$	1,025	(2	)%	$	—	$	—	—	%
Jacobina	$	1,057	$	1,072	(1	)%	$	—	$	—	—	%
Minera Florida	$	1,248	$	1,046	19	%	$	13.72	$	13.81	(1	)%
Gualcamayo	$	1,293	$	1,038	25	%	$	—	$	—	—	%
Total cost of sales per ounce sold, Yamana mines (vii)	$	1,023	$	991	3	%	$	13.63	$	13.79	(1	)%
Brio Gold (iii)	$	1,117	$	1,098	2	%	$	—	$	—	—	%
Total cost of sales per ounce sold (vii)	$	1,038	$	1,008	3	%	$	13.63	$	13.79	(1	)%
Co-product cash costs per ounce produced (iv)
Chapada	$	334	$	359	(7	)%	$	3.38	$	3.20	6	%
El Peñón	$	751	$	678	11	%	$	10.30	$	9.14	13	%
Canadian Malartic (i)	$	576	$	606	(5	)%	$	—	$	—	—	%
Jacobina	$	701	$	692	1	%	$	—	$	—	—	%
Minera Florida	$	812	$	735	10	%	$	10.95	$	9.90	11	%
Gualcamayo	$	942	$	796	18	%	$	—	$	—	—	%
Co-product cash costs per ounce produced, Yamana mines (iv)	$	672	$	650	3	%	$	10.01	$	8.96	12	%
Brio Gold (iii)	$	846	$	746	13	%	$	—	$	—	—	%
Co-product cash costs per ounce produced, attributable (iv)	$	692	$	665	4	%	$	10.01	$	8.96	12	%
By-product cash costs per ounce produced, Yamana mines (iv)	$	561	$	611	(8	)%	$	8.58	$	8.45	2	%
Co-product AISC per ounce produced, Yamana mines (iv)	$	888	$	905	(2	)%	$	13.48	$	12.65	7	%
By-product AISC per ounce produced, Yamana mines (iv)	$	820	$	925	(11	)%	$	12.65	$	12.93	(2	)%
AISC per ounce produced, attributable (iv)	$	916	$	911	1	%	$	13.48	$	12.65	7	%
Concentrate production							2017		2016
Chapada concentrate production (tonnes)							242,126		216,332		12	%
Chapada copper contained in concentrate production (millions of pounds)							127.3		115.5		10	%
Cost of sales excluding DDA per copper pound sold							$	1.47	$	1.57	(6	)%
DDA per copper pound sold							$	0.25	$	0.36	(31	)%
Total cost of sales per copper pound sold							$	1.73	$	1.93	(10	)%
Chapada co-product cash costs per pound of copper produced (iv)							$	1.54	$	1.58	(3	)%
Chapada AISC per pound of copper produced (iv)							$	1.74	$	2.03	(14	)%
Sales included in revenue							2017		2016
Gold (ounces)							1,147,204		1,188,267		(3	)%
Silver (ounces)							5,125,689		6,604,212		(22	)%
Chapada concentrate (tonnes)							242,536		217,180		12	%
Chapada payable copper contained in concentrate (millions of pounds)							120.1		104.9		14	%

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Ounces of production	Gold						Silver
For the three months ended December 31,	2017		2016		%		2017		2016		%
Chapada	36,578		40,358		(9	)%	71,520		78,020		(8	)%
El Peñón	39,401		55,764		(29	)%	1,052,423		1,454,293		(28	)%
Canadian Malartic (i)	80,743		69,971		15	%	—		—		—	%
Jacobina	34,566		32,180		7	%	—		—		—	%
Minera Florida	23,540		25,675		(8	)%	47,099		94,738		(50	)%
Gualcamayo	44,778		44,840		—	%	—		—		—	%
Total production, Yamana mines	259,606		268,788		(3	)%	1,171,042		1,627,051		(28	)%
Brio Gold (attributable to the Company) (ii)	22,435		49,580		(55	)%	—		—		—	%
Total production, attributable to the Company	282,041		318,368		(11	)%	1,171,042		1,627,051		(28	)%
Brio Gold (attributable to non-controlling interest)	17,915		897		n/a		—		—		n/a
Total production (v)	299,956		319,265		(6	)%	1,171,042		1,627,051		(28	)%
Cost of sales excluding DDA per ounce sold, Yamana mines	$	661	$	634	4	%	$	9.42	$	10.41	(10	)%
Cost of sales excluding DDA per ounce sold	$	694	$	668	4	%	$	9.42	$	10.41	(10	)%
DDA per ounce sold, Yamana mines	$	305	$	301	1	%	$	4.72	$	5.17	(9	)%
DDA per ounce sold	$	286	$	336	(15	)%	$	4.72	$	5.17	(9	)%
Total cost of sales per ounce sold (vii)
Chapada	$	326	$	335	(3	)%	$	5.14	$	4.79	7	%
El Peñón	$	1,069	$	1,075	(1	)%	$	14.58	$	16.08	(9	)%
Canadian Malartic (i)	$	995	$	1,056	(6	)%	$	—	$	—	—	%
Jacobina	$	1,027	$	1,123	(9	)%	$	—	$	—	—	%
Minera Florida	$	1,198	$	924	30	%	$	13.28	$	13.37	(1	)%
Gualcamayo	$	1,149	$	953	21	%	$	—	$	—	—	%
Total cost of sales per ounce sold, Yamana mines (vii)	$	966	$	935	3	%	$	13.26	$	15.58	(15	)%
Brio Gold (ii)	$	1,072	$	1,384	(23	)%	$	—	$	—	—	%
Total cost of sales per ounce sold (vii)	$	980	$	1,004	(2	)%	$	13.26	$	15.58	(15	)%
Co-product cash costs per ounce produced (iv)
Chapada	$	291	$	275	6	%	$	3.25	$	3.17	3	%
El Peñón	$	707	$	714	(1	)%	$	9.19	$	10.40	(12	)%
Canadian Malartic (i)	$	628	$	634	(1	)%	$	—	$	—	—	%
Jacobina	$	703	$	742	(5	)%	$	—	$	—	—	%
Minera Florida	$	765	$	730	5	%	$	9.96	$	10.63	(6	)%
Gualcamayo	$	891	$	734	21	%	$	—	$	—	—	%
Co-product cash costs per ounce produced, Yamana mines (iv)	$	660	$	635	4	%	$	8.86	$	10.07	(12	)%
Brio Gold (ii)	$	806	$	832	(3	)%	$	—	$	—	—	%
Co-product cash costs per ounce produced, attributable (iv)	$	672	$	667	1	%	$	8.86	$	10.07	(12	)%
By-product cash costs per ounce produced, Yamana mines (iv)	$	548	$	553	(1	)%	$	7.44	$	8.90	(16	)%
Co-product AISC per ounce produced, Yamana mines (iv)	$	899	$	900	—	%	$	11.90	$	14.48	(18	)%
By-product AISC per ounce produced, Yamana mines (iv)	$	829	$	870	(5	)%	$	11.05	$	14.18	(22	)%
AISC per ounce produced, attributable (iv)	$	925	$	928	—	%	$	11.90	$	14.48	(18	)%
Concentrate production							2017		2016
Chapada concentrate production (tonnes)							66,104		68,375		(3	)%
Chapada copper contained in concentrate production (millions of pounds)							34.7		36.9		(6	)%
Cost of sales excluding DDA per copper pound sold							$	1.39	$	1.48	(6	)%
DDA per copper pound sold							$	0.28	$	0.32	(13	)%
Total cost of sales per copper pound sold							$	1.67	$	1.80	(7	)%
Chapada co-product cash costs per pound of copper produced (iv)							$	1.51	$	1.44	5	%
Chapada AISC per pound of copper produced (iv)							$	1.67	$	1.80	(7	)%
Sales included in revenue							2017		2016
Gold (ounces)							301,513		324,197		(7	)%
Silver (ounces)							1,081,731		1,619,208		(33	)%
Chapada concentrate (tonnes)							64,873		68,477		(5	)%
Chapada payable copper contained in concentrate (millions of pounds)							33.2		34.2		(3	)%


(i)	The Company holds a 50% interest in Canadian Malartic.

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(ii)

Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for the quarter ended December 31, 2017 was a weighted average of 55.1% (2016 - 100%). Pilar, Fazenda Brasileiro, RDM and C1 Santa Luz are held within Brio Gold. Currently, C1 Santa Luz is on care and maintenance. Gold production for the three months ended December 31, 2017 : Pilar 14,115 ounces (2016 - 22,170 ounces), Fazenda Brasileiro 16,100 ounces (2016 - 18,279 ounces), RDM 10,135 ounces (2016 - 10,028 ounces).

(iii)

Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for 2017 was a weighted average of 65.5% (2016 - 100%). Pilar, Fazenda Brasileiro, RDM and C1 Santa Luz are held within Brio Gold. Gold production for the year ended December 31, 2017 : Pilar 73,931 ounces (2016 - 87,061 ounces), Fazenda Brasileiro 60,978 ounces (2016 - 70,887 ounces), RDM 43,116 ounces (2016 - 31,714 ounces). RDM was acquired on April 29, 2016.


(iv)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(v)	Excludes the Company's 12.5% equity interest in Alumbrera. Gold production at Alumbrera was 3,266 ounces (2016 - 8,911 ounces) for the fourth quarter and 21,958 ounces (2016 - 32,022 ounces) for the year.


(vi)	Total production for the year ended December 31, 2016 excludes gold production of 70,274 ounces and silver production of 326,876 ounces from the Mercedes mine, which was divested in September 2016.


(vii)	Total cost of sales consists of cost of sales excluding DDA plus DDA.

5. OVERVIEW OF RESULTS

5.1 Overview of Financial Results

Impairment of Assets

During the year ended December 31, 2017, as a result of the classification of certain assets as held for sale, the Company recorded impairment charges on non-current assets totalling $356.5 million with the details, as follows:



	2017					2016
	Total Impairment			Net Book Value of Mineral Property - as at Dec. 31, 2017 (i)		Total Impairment			Net Book Value of Mineral Property - as at Dec. 31, 2016
Gualcamayo	$	(256.9	)	$	130.8	$	—		$	—
Gualcamayo related Argentinian exploration	$	(99.6	)	$	—	$	—		$	—
El Peñón	$	—		$	—	$	(600.4	)	$	763.6
Brio Gold	—			—		(14.7		)	419.7
Total mineral property impairments	$	(356.5	)			$	(615.1	)
Total mineral property impairments for operating mines	$	(256.9	)			$	(711.3	)
Total mineral property (impairment)/reversal for non-operating mines	$	(99.6	)			$	96.2


(i)	The total Net Book Value for Gualcamayo as a whole is $150.0 million. Net Book Values are for mineral properties and are after the impairment recorded during the period.

During the fourth quarter, the Company performed its annual assessment of indications of impairment, compiling details from external and internal sources of information. The decision to classify Gualcamayo and related Argentinian exploration properties as held for sale due to the formal approval for disposition and meeting the other relevant criteria for such classification resulted in an impairment of those assets as they were written-down to the lower of their carrying amount or fair value less costs of disposal immediately prior to their reclassification. Gualcamayo and related Argentinian exploration properties were impaired by $256.9 million and $99.6 million respectively, ($196.0 million and $77.5 million after tax). Brio Gold considered indicators of impairment as at year-end, and concluded that Brio Gold's operations support the carrying value as at December 31, 2017. No other indicators of impairment or impairment reversal were noted as of December 31, 2017. Additional details are disclosed in Note 11: Impairments to the Company's Consolidated Financial Statements for the year ended December 31, 2017.

For the year ended December 31, 2017

Net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, for the year ended December 31, 2017 was $194.4 million or $0.21 per share basic and diluted, compared to a net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, of $290.4 million or $0.31 per share basic and diluted for the year ended December 31, 2016 .

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Revenue for the year ended December 31, 2017 was $1.80 billion , compared to $1.79 billion for the year ended December 31, 2016. Realized prices for the year were higher by 24% for copper, offset by a 2% decrease in silver prices. Gold realized price remained relatively flat compared to prior year. Sales quantities were higher by 14% for copper, offset by 3% and 22% decreases in gold and silver quantities, respectively, compared to 2016.

Revenue for the period was comprised of the following:



For the years ended December 31,	2017						2016
	Quantity sold		Revenue per ounce/pound		Revenue (In millions of US Dollars)		Revenue (In millions of US Dollars)
Gold (i)	1,147,204	oz	$	1,250	$	1,433.9	$	1,473.5
Silver	5,125,689	oz	$	16.80	86.1		112.7
Copper (i)	120,066,492	lbs	$	2.36	283.8		201.5
Revenue					$	1,803.8	$	1,787.7



For the years ended December 31,	2017							2016
	Quantity sold		Average realized price		Revenue (In millions of US Dollars)			Revenue (In millions of US Dollars)
Gold (i)	1,147,204	oz	$	1,264	$	1,450.1		$	1,486.2

Silver	4,874,809	oz	$	17.03	83.0			110.6
Silver subject to metal sales agreement (ii)	250,880	oz	$	12.87	3.2			2.0
	5,125,689	oz	$	16.83

Copper (i)	111,560,701	lbs	$	2.84	317.0			227.1
Copper subject to metal sales agreement (ii)	8,505,791	lbs	$	1.98	16.9			8.2
	120,066,492	lbs	$	2.78
Gross revenue					$	1,870.2		$	1,834.1
(Deduct)/add:
- Treatment and refining charges of gold and copper concentrate					(38.2		)	(32.9		)
- Sales taxes					(18.6		)	(16.5		)
- Metal price adjustments related to concentrate revenue					(10.1		)	3.0
- Other adjustments					0.5			—
Revenue					$	1,803.8		$	1,787.7


(i)	Includes payable copper and gold contained in concentrate.


(ii)	Balances represent the metals sold under the metal sales agreement with Sandstorm Gold Inc. and Altius Minerals Corp.

Cost of sales excluding DDA for the year ended December 31, 2017 was $1.04 billion , compared to $1.03 billion in 2016. Cost of sales excluding DDA for the period was marginally higher than 2016 as a result of a stronger Brazilian Real and Chilean Peso, higher copper sales quantities, offset by lower gold and silver sales quantities. The following table provides a reconciliation of the cost of sales per ounce of gold/ silver, pound of copper sold to the total cost of sales for the period:

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For the years ended December 31,	2017						2016
	Quantity sold		Cost of sales per gold/silver ounce, pound of copper sold		Total (In millions of US Dollars)		Total (In millions of US Dollars)
Chapada — Gold	117,305	oz	$	384	$	45.0	$	48.0
Chapada — Silver	129,452	oz	$	7.11	$	0.9	$	0.9
Chapada — Copper	120,066,492	lbs	$	1.73	$	207.7	$	198.3
El Peñón — Gold	159,149	oz	$	1,089	$	173.3	$	225.0
El Peñón — Silver	4,264,501	oz	$	14.57	$	62.1	$	84.7
Canadian Malartic — Gold (50% interest)	315,517	oz	$	1,000	$	315.5	$	300.3
Jacobina — Gold	135,620	oz	$	1,057	$	143.4	$	126.6
Minera Florida — Gold	90,876	oz	$	1,248	$	113.4	$	106.8
Minera Florida — Silver	480,856	oz	$	13.72	$	6.6	$	6.0
Gualcamayo — Gold	152,679	oz	$	1,293	$	197.4	$	175.8
Brio Gold - Gold	176,056	oz	$	1,117	$	196.7	$	209.6
Corporate office & other					$	7.2	$	9.3
Total cost of sales					$	1,469.2	$	1,491.3
Cost of sales excluding DDA					$	1,042.4	$	1,029.0
DDA					$	426.8	$	462.3
Total cost of sales					$	1,469.2	$	1,491.3

The following table provides a reconciliation of the co-product cash cost (a non-GAAP financial measure, see Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A) to the total cost of sales excluding DDA for the year:



For the years ended December 31,	2017							2016
	Quantity produced		Co-product cash costs per unit produced		Total (In millions of US Dollars)			Total (In millions of US Dollars)
Chapada — Gold	119,852	oz	$	334	$	40.0		$	38.5
Chapada — Silver	252,748	oz	$	3.38	$	0.9		$	0.8
Chapada — Copper	127,333,872	lbs	$	1.54	$	196.0		$	182.6
El Peñón — Gold	160,509	oz	$	751	$	120.5		$	149.3
El Peñón — Silver	4,282,339	oz	$	10.30	$	44.0		$	55.0
Canadian Malartic — Gold (50% interest)	316,731	oz	$	576	$	182.4		$	177.3
Jacobina — Gold	135,806	oz	$	701	$	95.2		$	83.4
Minera Florida — Gold	90,366	oz	$	812	$	73.3		$	76.7
Minera Florida — Silver	469,674	oz	$	10.95	$	5.1		$	4.2
Gualcamayo — Gold	154,052	oz	$	942	$	145.1		$	130.8
Brio Gold - Gold	178,025	oz	$	846	$	150.6		$	141.5
Co-product cash cost of metal produced (i)					$	1,053.1		$	1,040.1
Add (deduct):
- Inventory movements and adjustments					14.4			5.8
- Treatment and refining charges of gold and copper concentrate					(38.2		)	(32.9		)
- Commercial and other costs					1.6			6.9
- Overseas freight for Chapada concentrate					11.5			9.1
Cost of sales excluding DDA					$	1,042.4		$	1,029.0
DDA					$	426.8		$	462.3
Total cost of sales					$	1,469.2		$	1,491.3


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

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Gross margin excluding DDA for the year ended December 31, 2017 was $761.4 million , compared to $758.7 million in 2016, which resulted from an increase in revenue by $16.1 million , partially offset by cost of sales excluding DDA increasing by $13.4 million , for the aforementioned reasons.

DDA expense for the year ended December 31, 2017 was $426.8 million , compared to $462.3 million in 2016. DDA expense was lower than prior year due to lower gold and silver sales volumes. This was partially offset by higher copper sales volume.

Other expenses and income include general and administrative, exploration and evaluation, other expenses and net finance expense totalling $296.2 million for the year ended December 31, 2017 , compared to $297.0 million in 2016:


•	General and administrative expenses were $113.6 million , compared to $100.2 million in 2016. Excluding Brio Gold and share-based expenses, general and administrative expenses were $82.9 million, compared to $82.7 million in 2016. This was in line with previously provided guidance .


•	Exploration and evaluation expenses were $21.2 million , compared to $14.9 million in 2016. Higher exploration expense in the year was due to an increase in greenfield exploration for certain exploration projects as well as additional generative exploration.

•

Other expenses were $23.6 million , compared to $39.7 million for the same period of 2016. The change was driven by the reversal of certain provisions such as tax credits and legal contingencies, and mark-to-market gains on deferred share units, partially offset by standby costs related to El Peñón's suspension of operations at the beginning of the year and prior period realized gains on AFS securities and warrants sales with no comparative in the current period.


•	Net finance expense was $137.7 million , compared to $142.2 million in 2016. The movement in net finance expense is due predominantly to:


◦	A decrease related to lower interest expense on Yamana's long-term debt and higher interest capitalized during the year, partially offset by higher Brio Gold's interest expense.


◦	A decrease in non-cash unrealized foreign exchange loss in the period. Non-cash unrealized foreign exchange loss in the period was $15.0 million , compared to $33.7 million in 2016;


◦	An increase related to unrealized losses on derivatives for the current year of $15.3 million , with no comparatives in 2016.


◦	An increase related to decommissioning liability accretion of $5.0 million .

Income tax recovery for the twelve months ended December 31, 2017 was $113.9 million , compared to $324.9 million in 2016. Income tax recovery for the year includes $9.9 million in unrealized foreign exchange losses in tax, compared to $20.0 million in unrealized foreign exchange gains in 2016. The current year income tax recovery includes deferred income tax liability reversals of $ 83.0 million in Argentina related the non-cash impairment loss recognized on the re-measurement of Gualcamayo and related Argentinian exploration in association with their reclassification as a disposal group and assets held for sale, respectively, and the impact of a tax rate change in the fourth quarter of $216.8 million .

For the three months ended December 31, 2017

Net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, for the three months ended December 31, 2017 was $191.0 million or $0.20 per share basic and diluted, compared to net loss from continuing operations, attributable to Yamana Gold Inc. equityholders, of $355.0 million or $0.37 per share basic and diluted for the three months ended December 31, 2016 .

Revenue for the three months ended December 31, 2017 was $478.8 million , compared to $484.4 million in the same period in 2016, as a result of lower metal sales quantities offset by a higher gold and copper realized price. Gold, silver and copper sales were lower compared to the same period of 2016 by 7% , 33% and 3% , respectively. Gold and copper realized price was 6% and 22% higher, partially offset by a 4% decrease in silver realized price.

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Revenue for the quarter was comprised of the following:



For the three months ended December 31,	2017						2016
	Quantity sold		Revenue per ounce/pound		Revenue (In millions of US Dollars)		Revenue (In millions of US Dollars)
Gold (i)	301,513	oz	$	1,269	$	382.6	$	387.7
Silver	1,081,731	oz	$	16.46	17.8		27.7
Copper (i)	33,186,234	lbs	$	2.36	78.4		69.0
Revenue					$	478.8	$	484.4



For the three months ended December 31,	2017							2016
	Quantity sold		Average realized price		Revenue (In millions of US Dollars)			Revenue (In millions of US Dollars)
Gold (i)	301,513	oz	$	1,286	$	387.8		$	392.4

Silver	1,012,898	oz	$	16.73	16.9			27.1
Silver subject to metal sales agreement (ii)	68,833	oz	$	12.96	0.9			0.7
	1,081,731	oz	$	16.49

Copper (i)	30,773,000	lbs	$	3.10	95.4			81.0
Copper subject to metal sales agreement (ii)	2,413,234	lbs	$	2.00	4.8			3.7
	33,186,234	lbs	$	3.02
Gross revenue					$	505.8		$	504.9
(Deduct)/add:
- Treatment and refining charges of gold and copper concentrate					(10.9		)	(11.0		)
- Sales taxes					(5.5		)	(4.9		)
- Metal price adjustments related to concentrate revenue					(10.7		)	(4.6		)
- Other adjustments					0.1			—
Revenue					$	478.8		$	484.4


(i)	Includes payable copper and gold contained in concentrate.


(ii)	Balances represent the metals sold under the metal sales agreements with Sandstorm Gold Inc. and Altius Minerals Corp.

Cost of sales excluding DDA for the three months ended December 31, 2017 was $264.7 million , compared to $284.1 million for the same period in 2016. Cost of sales excluding DDA for the quarter was lower than that of the same period in 2016 as a result of lower sales quantities, offset by stronger Brazilian Real, Chilean Peso and Canadian Dollar exchange rates relative to the US Dollar.

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The following table provides a reconciliation of the cost of sales per ounce of gold/ silver, pound of copper sold to the total cost of sales for the quarter:



For the three months ended December 31,	2017						2016
	Quantity sold		Cost of sales per gold/silver ounce, pound of copper sold		Total (In millions of US Dollars)		Total (In millions of US Dollars)
Chapada — Gold	36,789	oz	$	326	$	12.0	$	13.8
Chapada — Silver	47,534	oz	$	5.14	0.2		0.3
Chapada — Copper	33,186,233	lbs	$	1.67	55.4		61.2
El Peñón — Gold	34,955	oz	$	1,069	37.4		61.4
El Peñón — Silver	909,205	oz	$	14.58	13.3		23.6
Canadian Malartic — Gold (50% interest)	88,812	oz	$	995	88.4		77.1
Jacobina — Gold	33,695	oz	$	1,027	34.6		33.8
Minera Florida — Gold	23,503	oz	$	1,198	28.2		23.4
Minera Florida — Silver	56,159	oz	$	13.28	0.7		1.3
Gualcamayo — Gold	43,303	oz	$	1,149	49.8		45.4
Brio Gold - Gold	40,456	oz	$	1,071	43.3		69.2
Corporate office & other					2.2		1.9
Total cost of sales					$	365.5	$	412.4
Cost of sales excluding DDA					$	264.7	$	284.1
DDA					100.9		128.3
Total cost of sales					$	365.6	$	412.4



For the three months ended December 31,	2017							2016
	Quantity produced		Co-product cash costs per unit produced		Total (In millions of US Dollars)			Total (In millions of US Dollars)
Chapada — Gold	36,578	oz	$	291	$	10.6		$	11.1
Chapada — Silver	71,520	oz	$	3.25	$	0.2		$	0.2
Chapada — Copper	34,667,040	lbs	$	1.51	$	52.3		$	53.5
El Peñón — Gold	39,401	oz	$	707	$	27.9		$	39.8
El Peñón — Silver	1,052,423	oz	$	9.19	$	9.7		$	15.1
Canadian Malartic — Gold (50% interest)	80,743	oz	$	628	$	50.7		$	44.4
Jacobina — Gold	34,566	oz	$	703	$	24.3		$	23.9
Minera Florida — Gold	23,540	oz	$	765	$	18.0		$	18.7
Minera Florida — Silver	47,099	oz	$	9.96	$	0.5		$	1.0
Gualcamayo — Gold	44,778	oz	$	891	$	39.9		$	32.9
Brio Gold — Gold	40,350	oz	$	806	$	32.5		$	42.0
Co-product cash cost of metal produced (i)					$	266.6		$	282.6
Add (deduct):
- Inventory movements and adjustments					5.4			5.9
- Treatment and refining charges of gold and copper concentrate					(10.9		)	(11.0		)
- Commercial and other costs					0.5			3.5
- Overseas freight for Chapada concentrate					3.1			3.1
Cost of sales excluding DDA					$	264.7		$	284.1
DDA					$	100.9		$	128.3
Total cost of sales					$	365.6		$	412.4


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

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Gross margin excluding DDA for the three months ended December 31, 2017 was $214.1 million , compared to $200.3 million in the same period of 2016, which resulted from a decrease in revenue of $5.6 million and a decrease in cost of sales excluding DDA of $19.4 million , for the aforementioned reasons.

DDA expense for the three months ended December 31, 2017 was $100.9 million , compared to $128.3 million for the same period of 2016. DDA expense was lower than the comparative period mainly due to lower sales quantities in the current period compared to prior period.

Other expenses and income include general and administrative, exploration and evaluation, other expenses and net finance expense totalling $94.9 million for the three months ended December 31, 2017 , compared to $81.5 million for the same period in 2016:


•	General and administrative expenses were $34.0 million , compared to $29.9 million for the same period in 2016. Excluding Brio Gold and stockbased expenses, general and administrative expenses were $24.5 million, compared to $24.4 million for the same period in 2016.


•	Exploration and evaluation expenses were $7.0 million , compared to $3.0 million for the same period in 2016. Higher exploration expense for the period was due to an increase in greenfield exploration for certain exploration projects with no comparatives in the prior period.


•	Other expenses were $16.4 million , compared to an expense of $19.0 million for the same period of 2016. The change is attributable to lower provisions on tax credits and legal contingencies, offset by lower mark-to-market gains on deferred share units.


•	Net finance expense was $37.5 million , compared to $29.6 million for the same period in 2016. Higher net finance expense is mainly due to the offsetting impact of:


◦	An increase of $17.2 million related to an unrealized loss on derivatives in the current period of $10.7 million, compared to a $6.5 million unrealized gain in the prior period; and


◦	A decrease of $10.0 million in non-cash unrealized foreign exchange loss in the period.

Income tax recovery for the three months ended December 31, 2017 was $138.5 million , compared to a $269.2 million recovery for the same period in 2016. The current year income tax recovery includes deferred income tax liability reversals of $ 83.0 million in Argentina related the non-cash impairment loss recognized on the re-measurement of Gualcamayo and related Argentinian exploration in association with their reclassification as a disposal group and assets held for sale, respectively, and the impact of a tax rate change in the fourth quarter of $216.8 million .

5.2 Overview of Operating Results

For the year ended December 31, 2017

Annual production of gold, silver and copper for Yamana mines in 2017 exceeded plan. Production of gold and silver was lower than the year ended 2016, as anticipated, while copper production was higher.

Attributable production was lower than in 2016 as only production commensurate to the Company's interest in Brio Gold is included, which as for 2017 was a weighted average of 65.5%, compared to 100% for 2016.

Gold

Gold production for the year ended December 31, 2017 for Yamana mines was 977,316 ounces of gold, compared to 1,009,079 ounces in 2016. Gold production attributable to the Company was 1,096,327 ounces of gold, compared to 1,197,844 ounces of gold produced in 2016. Individual mine results in 2017, compared to 2016, included decreases of 27% at El Peñón, 13% at Minera Florida and 6% at Gualcamayo. These decreases were partly offset by increases of 12% at Chapada, 13% at Jacobina and 8% at Canadian Malartic.

Increased processing rates contributed to the production increases at Chapada, Canadian Malartic and Jacobina. Gold production at El Peñón exceeded its new plan as the result of the right-sizing and optimization effort, amid improvements in recovery rates. Lower year-over-year production, at Gualcamayo, was mainly due to lower feed grades and recovery rates, anticipated by the mining sequencing. At Minera Florida, lower processing rates contributed to the lower production relative to 2016, partly due to the decision to cease the processing of tailings, as announced earlier in 2017. In 2017, the Company began transformational plans at Minera Florida with a focus on improving dilution control, directing development and exploration efforts toward establishing a growth platform and optimizing the cost structure of the operation.

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The following summarizes the total ounces of gold production by mine for each period in 2017, relative to 2016:

Total Gold Production by Mine


(i)	Represents attributable production determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for 2017 was a weighted average of 65.5% (2016 - 100%).

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The following chart summarizes total cost of sales and the respective components of co-product AISC and cash costs per ounce of gold produced, by mine for 2017, compared to 2016:

Total Cost of Sales, AISC and Co-Product Cash Costs

Silver

Silver production for 2017 was 5,004,761 ounces, compared to 6,709,250 ounces in the same period of 2016 and exceeded plan for silver. Mine sequencing at certain locations continues to extract ore from areas with lower silver grades.

Most silver cost metrics on a per ounce basis were lower than plan, despite the appreciation of the Chilean Peso and lower ounces produced. Higher costs in 2017 compared to 2016 were due to lower production. Silver cost metrics on a per ounce basis were lower the previously guided ranges for El Peñón.

Copper

Total copper production from Chapada for 2017 was 127.3 million pounds, compared to 115.5 million pounds for the same period of 2016, representing an increase of 10% and higher than plan.

All copper cost metrics on a per pound basis were lower than 2016, mainly due to higher production. Additionally, co-product AISC decreased, in part due to lower sustaining capital expenditures and mine development during the year.

For the three months ended December 31, 2017

The Company delivered another strong quarter contributing to a higher second half of the year as anticipated and consistent with previous years.

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Gold

Gold production from Yamana's mines was 259,606 ounces, compared to 268,788 ounces for the same period of 2016 and 257,455 ounces for the third quarter of 2017. Gold production attributable to the Company was 282,041 ounces, compared to 319,265 ounces produced in the fourth quarter of 2016, mainly due to reduced attributable production from Brio Gold. Individual mine quarterly results over the fourth quarter of 2016 included increases of 15% at Canadian Malartic and 7% at Jacobina, and decreases of 29% at El Peñón, 9% at Chapada, and 8% at Minera Florida. At Gualcamayo, production was comparable to the same period of 2016 and significantly higher than the previous quarter at 31% more ounces of gold.

Higher production at Canadian Malartic and Jacobina contributed to lower co-product cash costs and AISC compared to the fourth quarter of 2016 and despite the foreign exchange effect of the appreciation of the Canadian Dollar and Brazilian Real, respectively. At Minera Florida, El Peñón, Gualcamayo and Chapada all per unit costs for gold were impacted by the lower production compared to 2016, as fixed costs and DDA were allocated over a smaller number of ounces. AISC were below guidance and lower than 2016 due to lower sustaining capital expenditures while the corresponding by-product metric also benefited from higher copper sales.

Silver

Fourth quarter silver production was 1,171,042 ounces, compared to the 1,627,051 ounces in the same quarter of 2016.

All silver cost metrics on a per ounce basis were lower than the comparative period of 2016. Costs during the quarter were at the lowest level for the year following several cost containment initiatives. These initiatives were offset by the appreciation of the Chilean Peso against the US Dollar compared to the third quarter and by the cost allocation methodology that considers quantities and prevalent market prices for gold and silver.

Copper

Total copper production from Chapada was 34.7 million pounds, exceeding plan for the fourth quarter of 2017. This compares to 36.9 million pounds for the same period of 2016, representing a decrease of 6% .

All copper cost metrics on a per pound basis were lower than plan. Lower production and the appreciation of the Brazilian Real against the US Dollar impacted co-product cash costs compared to the fourth quarter of 2016. Additionally, co-product AISC decreased, in part due to lower sustaining capital expenditures and mine development during the quarter.

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6. OPERATING MINES

CHAPADA, BRAZIL



	For the three months ended December 31,								For the years ended December 31,
Operating Statistics	2017			2016			%		2017			2016			%
Production
Concentrate (tonnes)	66,104			68,375			(3	)%	242,126			216,332			12	%
Gold contained in concentrate (ounces)	36,578			40,358			(9	)%	119,852			107,301			12	%
Silver contained in concentrate (ounces)	71,520			78,020			(8	)%	252,748			259,444			(3	)%
Copper contained in concentrate (millions of pounds)	34.7			36.9			(6	)%	127.3			115.5			10	%
Total cost of sales per gold ounce sold (ii)	$	326		$	335		(3	)%	$	384		$	489		(21	)%
Total cost of sales per silver ounce sold (ii)	$	5.14		$	4.79		7	%	$	7.11		$	7.05		1	%
Total cost of sales per pound of copper sold (ii)	$	1.67		$	1.79		(7	)%	$	1.73		$	1.92		(10	)%
Co-product cash costs per gold ounce produced (i)	$	291		$	275		6	%	$	334		$	359		(7	)%
Co-product cash costs per silver ounce produced (i)	$	3.25		$	3.17		3	%	$	3.38		$	3.20		6	%
Co-product cash costs per pound of copper produced (i)	$	1.51		$	1.44		5	%	$	1.54		$	1.58		(3	)%
All-in sustaining co-product costs per gold ounce produced (i)	$	327		$	354		(8	)%	$	385		$	478		(19	)%
All-in sustaining co-product costs per silver ounce produced (i)	$	3.63		$	3.99		(9	)%	$	3.88		$	4.20		(8	)%
All-in sustaining co-product costs per pound of copper produced (i)	$	1.67		$	1.80		(7	)%	$	1.74		$	2.03		(14	)%
Ore mined (tonnes)	9,320,161			6,161,717			51	%	34,163,445			17,223,764			98	%
Waste mined (tonnes)	7,306,962			12,132,644			(40	)%	32,832,383			27,751,926			18	%
Ore processed (tonnes)	6,080,611			5,740,743			6	%	23,000,557			19,779,013			16	%
Gold feed grade (g/t)	0.30			0.36			(17	)%	0.28			0.30			(7	)%
Copper feed grade (%)	0.31			0.36			(14	)%	0.31			0.34			(9	)%
Concentrate grade - gold (g/t)	17.21			18.43			(7	)%	15.40			15.45			—	%
Concentrate grade - copper (%)	23.79			24.55			(3	)%	23.85			24.26			(2	)%
Gold recovery rate (%)	61.8			60.4			2	%	57.0			56.9			—	%
Copper recovery rate (%)	83.5			81.0			3	%	79.8			77.2			3	%

Sales (ii)
Concentrate (tonnes)	64,873			68,477			(5	)%	242,536			217,180			12	%
Payable ounces contained in concentrate
Payable gold contained in concentrate (ounces)	36,789			41,048			(10	)%	117,305			92,807			26	%
Payable silver contained in concentrate (ounces)	47,534			58,688			(19	)%	129,452			131,339			(1	)%
Payable copper contained in concentrate (millions of pounds)	33.2			34.2			(3	)%	120.1			104.9			14	%
Treatment and refining charges of gold and copper concentrate (millions of $)	$	(10.9	)	$	(11.0	)	(1	)%	$	(38.2	)	$	(32.9	)	16	%
Metal price adjustments related to concentrate revenue (millions of $)	$	(10.7	)	$	(4.6	)	133	%	$	(10.1	)	$	3.0		(437	)%

Depletion, depreciation and amortization
Per gold ounces sold	$	62		$	63		(2	)%	$	64		$	97		(34	)%
Per silver ounces sold	$	0.98		$	1.70		(42	)%	$	1.18		$	1.40		(16	)%
Per copper pound sold at Chapada	$	0.28		$	0.31		(10	)%	$	0.25		$	0.35		(29	)%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(ii)	Quantities sold include quantity adjustment on provisional and final invoice settlements.

Chapada exceeded expectations for both gold and copper in 2017, and with increases in production of gold and copper of 12% and 10% , respectively, over the prior year.

Production for the fourth quarter exceeded expectations, driven by an increase in ore processed compared to the previous quarter and the same period of last year. The increase in ore processed during the fourth quarter reached a record average processing rate of 66,000 tonnes per day leading to an annual record for tonnes processed. Additionally, mining rates were elevated in 2017 compared to 2016 as placement in the mine

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plan necessitated the stockpiling of low-grade ore to access higher gold grades in Corpo Sul. Given the established and growing mine-site and near-mine exploration potential at Chapada, including the comprehensive Suruca opportunity and the low-grade ore stockpile, an evaluation of the opportunities to increase plant throughput are being considered. The Company is assessing a broader Suruca complex to maximize value, and expects to provide an update on the preliminary plans for the Suruca oxides and the underlying sulphides in the second quarter of 2018. In parallel to these assessments, the opportunity for plant throughput increase at Chapada is being considered, as is the Sucupira deposit. While prioritizing among the several opportunities at Chapada, mine management is assessing the impact of bringing forward production from the Sucupira deposit into the mine plan.

As planned, the cleaner circuit expansion was commissioned in the fourth quarter of 2017. In addition to providing the flexibility to more efficiently process different ore types, the expansion has demonstrated improvements to both gold and copper recovery rates at the observed higher processing rates. Importantly, the higher mill recoveries have also materialized while processing lower grade ores. Other optimization initiatives continue to be considered in order to further improve recoveries.

All per unit costs for gold and copper benefited from higher metal production compared to 2016 and were below guidance. Cost control initiatives implemented offset the appreciation of the Brazilian Real against the US Dollar for the year and compared to the previous quarter. Additionally, co-product AISC decreased, in part due to lower sustaining capital expenditures during the quarter and the year.

The focus of the 2017 exploration program at Chapada was:


•	to complete delineation drill programs at Sucupira and Corpo Sul concentrating on development of high-grade gold and copper lenses;


•	delineation drilling at the Suruca and Hidrotermalito targets to develop and expand near surface gold oxide deposits; and


•	to conduct exploration drilling at Formiga, Suruca SW, SW Mina and other district targets which have a high potential to grow the mineral resource base.

The focus of the fourth quarter near mine exploration program was to explore and define zones of higher grade gold and copper at Corpo Sul, SW Mina and at Cava Norte. The focus of the district exploration during the fourth quarter was to develop drill targets using soil sampling and existing geophysical surveys at the Lambari, Dourado, Viúva, Jataí, Bambuzal, Tamanduá, Solidão, SW Mina, Bandeira and other prospects. Drill testing of the Corrego Fundo, Suruca SW, Cava Norte and Formiga targets throughout 2017 generated positive results and added new measured and indicated mineral resources along with providing new mineral reserves to replace 2017 production.

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EL PEÑÓN, CHILE



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Gold production (ounces)	39,401		55,764		(29	)%	160,509		220,209		(27	)%
Silver production (ounces)	1,052,423		1,454,293		(28	)%	4,282,339		6,020,758		(29	)%
Total cost of sales per gold ounce sold	$	1,069	$	1,075	(1	)%	$	1,089	$	1,019	7	%
Total cost of sales per silver ounce sold	$	14.58	$	16.08	(9	)%	$	14.57	$	13.84	5	%
Co-product cash costs per gold ounce produced (i)	$	707	$	714	(1	)%	$	751	$	678	11	%
Co-product cash costs per silver ounce produced (i)	$	9.19	$	10.40	(12	)%	$	10.30	$	9.14	13	%
All-in sustaining co-product costs per gold ounce produced (i)	$	864	$	952	(9	)%	$	928	$	893	4	%
All-in sustaining co-product costs per silver ounce produced (i)	$	11.23	$	13.84	(19	)%	$	12.77	$	12.04	6	%
Ore mined (tonnes)	280,007		332,394		(16	)%	1,018,007		1,302,998		(22	)%
Ore processed (tonnes)	255,727		358,833		(29	)%	1,041,200		1,421,241		(27	)%
Gold feed grade (g/t)	5.11		5.12		—	%	5.05		5.11		(1	)%
Silver feed grade (g/t)	151.71		149.66		1	%	148.34		153.99		(4	)%
Gold recovery rate (%)	94.3		94.3		—	%	95.1		94.3		1	%
Silver recovery rate (%)	85.4		84.5		1	%	86.4		85.7		1	%

Sales
Gold sales (ounces)	34,955		57,144		(39	)%	159,149		221,908		(28	)%
Silver sales (ounces)	909,205		1,466,650		(38	)%	4,264,501		6,043,380		(29	)%

Depletion, depreciation and amortization
Per gold ounce sold	$	354	$	355	—	%	$	325	$	347	(6	)%
Per silver ounce sold	$	4.84	$	5.39	(10	)%	$	4.34	$	4.75	(9	)%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

El Peñón exceeded production expectations for both gold and silver in 2017 at unit costs in line with expectations, despite the negative impact from the appreciation of the Chilean Peso against the US Dollar.

Gold and silver production was above plan for the year due to higher grades with the planned mining stopes and as the mine successfully completed delineation and discovery of new veins which were mined during the year. Additionally, production during the fourth quarter and the full year continued to reflect the successful right-sizing of the operation and optimization efforts. El Peñón continued to build a stockpile during the fourth quarter, ensuring mine flexibility. Development activities have now returned to normal levels as development in the second half of 2017 was increased to be aligned with the higher production rates and to support production into 2018. The success of the new mining approach during 2017, along with the development efforts during the year, position El Peñón to deliver on expectations for 2018.

Costs during the quarter were at the lowest level for the year and lower than the fourth quarter of 2016, following several cost containment initiatives, which included the internalization of development operations. The successful execution of the plan to right-size the operation mitigated the impact of an increase in per unit costs that would have resulted from lower production in comparison to 2016.

Exploration efforts at El Peñón during the fourth quarter included completion of the infill drill program and resumption of the near-mine drilling focused on mineral resource expansion utilizing a portion of the remaining surface exploration program funding. As part of the right sizing and optimization plan, a thorough review of the resource modelling and including estimation techniques and mine design parameters was completed. The revision better reflects the geological behaviour of the narrow veins as well as the enhanced ability to efficiently mine narrower veins. The result of this detailed review will be covered by a new technical report that is being prepared for release in 2018. The net additions in mineral resources are sourced from numerous secondary vein structures in the east mine area including El Valle Este, Dorada Sur, Bonanza, Aleste, La Paloma and Discovery Wash in the core mine area. Most of the additions are contiguous to existing mine infrastructure.

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CANADIAN MALARTIC ( 50% interest ), CANADA



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Gold production (ounces)	80,743		69,971		15	%	316,731		292,514		8	%
Total cost of sales per gold ounce sold	$	995	$	1,056	(6	)%	$	1,000	$	1,025	(2	)%
Co-product cash costs per gold ounce produced (i)	$	628	$	634	(1	)%	$	576	$	606	(5	)%
All-in sustaining co-product costs per gold ounce produced (i)	$	835	$	849	(2	)%	$	742	$	795	(7	)%
Ore mined (tonnes)	2,997,727		2,878,234		4	%	11,771,047		10,419,482		13	%
Waste mined (tonnes)	5,066,884		5,297,978		(4	)%	21,075,681		21,098,850		—	%
Ore processed (tonnes)	2,614,712		2,432,542		7	%	10,178,803		9,820,696		4	%
Gold feed grade (g/t)	1.09		1.01		8	%	1.09		1.04		5	%
Gold recovery rate (%)	87.8		88.9		(1	)%	88.6		89.3		(1	)%

Sales
Gold Sales (ounces)	88,812		73,007		22	%	315,517		292,972		8	%

Depletion, depreciation and amortization
Per gold ounce sold	$	364	$	425	(14	)%	$	410	$	414	(1	)%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Canadian Malartic delivered record annual production and exceeded its production expectations in 2017 at 8% higher production and lower costs compared to 2016.

Production was higher for the full year of 2017 when compared to the prior-year period as a result of record annual mill throughput and higher grades. Fourth quarter production was higher than the comparative period of 2016 also benefiting from record quarterly mill throughput and higher grades.

All per unit costs benefited from higher metal production compared to 2016. The impact of higher year-over-year production was partly offset by the appreciation of the Canadian Dollar against the US Dollar.

During the fourth quarter, drilling continued to focus on the East Malartic, Odyssey Internal and Odyssey South zones, with the goal of providing sufficient drill spacing to declare inferred and indicated mineral resources. Much of the mineral resource accretion comes from the East Malartic and Odyssey Internal zones. Further drilling during 2018 is planned to provide sufficient drill spacing and geologic knowledge to establish indicated mineral resources and possibly mineral reserves at East Malartic and Odyssey South by the end of 2018. Scout drilling will be conducted elsewhere on the property in 2018 to test for mineralization along the Piche-Cadillac contact, following up on the promising drill results identified in 2017.

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JACOBINA, BRAZIL



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Gold production (ounces)	34,566		32,180		7	%	135,806		120,478		13	%
Total cost of sales per gold ounce sold	$	1,027	$	1,123	(9	)%	$	1,057	$	1,072	(1	)%
Co-product cash costs per gold ounce produced (i)	$	703	$	742	(5	)%	$	701	$	692	1	%
All-in sustaining co-product costs per gold ounce produced (i)	$	906	$	984	(8	)%	$	867	$	988	(12	)%
Ore mined (tonnes)	531,034		479,045		11	%	2,007,572		1,803,064		11	%
Ore processed (tonnes)	509,672		474,000		8	%	1,978,409		1,802,914		10	%
Gold feed grade (g/t)	2.09		2.21		(5	)%	2.20		2.17		1	%
Gold recovery rate (%)	97.2		95.5		2	%	96.3		95.7		1	%

Sales
Gold sales (ounces)	33,695		30,058		12	%	135,620		118,142		15	%
Depletion, depreciation and amortization
Per gold ounce sold	$	257	$	399	(36	)%	$	330	$	338	(2	)%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Jacobina exceeded its production expectations in 2017 at 13% higher production compared to 2016.

Production exceeded 32,000 ounces of gold for the fifth consecutive quarter, continuing to demonstrate the sustainability of the improved results. The processing rate and feed grade were consistent with the mine plan while higher mill recovery rates were maintained even with higher processing rates which increased by 8% and 10% on a quarterly and annual basis, respectively. Development efforts continue to be well advanced with approximately 8 to 10 months of inventory developed underground and a surface stockpile of approximately 50,000 tonnes.

The improved operating efficiency, higher production, and cost containment initiatives are positively impacting costs, although the appreciation of the Brazilian Real against the US Dollar in 2017 offset some of the improvement compared to 2016.

Resource infill drilling concentrated on converting inferred mineral resources to indicated mineral resources at Canavieiras Norte, Central and Sul, João Belo. Exploration drilling focused on extending known mineral reefs at Canavieiras Central, Serra do Corrego and João Belo Leste. Both programs have returned positive results during the quarter and throughout 2017 ensuring the replacement of 2017 production and growing the resources in the indicated category. The Company continues its focus on quality ounces rather than quantity as evidenced by its application of minimum width to remove low quality mineral resource.

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MINERA FLORIDA, CHILE



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Gold production (ounces)	23,540		25,675		(8	)%	90,366		104,312		(13	)%
Silver production (ounces)	47,099		94,738		(50	)%	469,674		429,048		9	%
Total cost of sales per gold ounce sold	$	1,198	$	924	30	%	$	1,248	$	1,046	19	%
Total cost of sales per silver ounce sold	$	13.28	$	13.37	(1	)%	$	13.72	$	13.81	(1	)%
Co-product cash costs per gold ounce produced (i)	$	765	$	730	5	%	$	812	$	735	10	%
Co-product cash costs per silver ounce produced (i)	$	9.96	$	10.63	(6	)%	$	10.95	$	9.90	11	%
All-in sustaining co-product costs per gold ounce produced (i)	$	1,011	$	1,002	1	%	$	1,090	$	955	14	%
All-in sustaining co-product costs per silver ounce produced (i)	$	13.18	$	14.55	(9	)%	$	14.88	$	12.73	17	%
Ore mined (tonnes)	220,168		190,236		16	%	801,250		862,132		(7	)%
Ore processed (tonnes)	228,850		387,671		(41	)%	1,033,295		1,662,161		(38	)%
Gold feed grade (g/t)	3.49		2.46		42	%	3.05		2.34		30	%
Silver feed grade (g/t)	13.39		14.53		(8	)%	23.61		14.45		63	%
Gold recovery rate (%)	89.9		83.7		7	%	88.6		82.4		8	%
Silver recovery rate (%)	44.6		52.3		(15	)%	59.5		54.0		10	%

Sales
Gold sales (ounces)	23,503		25,325		(7	)%	90,876		102,204		(11	)%
Silver sales (ounces)	56,159		93,870		(40	)%	480,856		429,494		12	%

Depletion, depreciation and amortization
Per gold ounce sold	$	412	$	193	113	%	$	422	$	312	35	%
Per silver ounce sold	$	4.60	$	3.20	44	%	$	4.58	$	4.14	11	%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Minera Florida gold production met revised expectations for the year as previously disclosed.

During the quarter, gold production increased compared to the previous quarter, driven by an increase in grade and recoveries. Production for the year and the quarter was lower than the comparative period of 2016, despite significantly higher feed grades and recoveries, as the mill was impacted by lower processing rates largely due to the termination of the retreatment of tailings earlier in 2017. These results are aligned with the transformational strategy for Minera Florida that is focused on improving productivity, dilution, grades, recoveries and operating costs. The Company will spread expansionary mine development capital and exploration expenditures across a number of years to establish a growth platform for the future with the strategic target of 120,000 ounces of gold per year by 2021. The Company continues to target a longer term strategic production objective of 130,000 ounces of gold per year at Minera Florida.

All per unit costs for gold were the lowest for the year during the fourth quarter, following several cost reduction initiatives implemented late in 2017. Compared to 2016, all per unit costs for gold were impacted by the lower production as fixed costs and DDA were allocated over a smaller number of ounces and reflected the impact of the appreciation of the Chilean Peso.

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GUALCAMAYO, ARGENTINA



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Gold production (ounces)	44,778		44,840		—	%	154,052		164,265		(6	)%
Total cost of sales per gold ounce sold	$	1,149	$	953	21	%	$	1,293	$	1,038	25	%
Co-product cash costs per gold ounce produced (i)	$	891	$	734	21	%	$	942	$	796	18	%
All-in sustaining co-product costs per gold ounce produced (i)	$	972	$	805	21	%	$	990	$	847	17	%
Ore mined (tonnes)	2,077,903		1,809,432		15	%	6,692,600		8,387,882		(20	)%
Waste mined (tonnes)	2,212,530		3,052,304		(28	)%	11,909,041		10,650,620		12	%
Ore processed (tonnes)	1,992,333		1,628,742		22	%	7,433,725		7,570,007		(2	)%
Gold feed grade (g/t)	1.22		1.26		(3	)%	1.04		1.07		(3	)%
Gold recovery rate (%)	59.7		51.8		15	%	57.0		59.6		(4	)%

Sales
Gold sales (ounces)	43,303		47,615		(9	)%	152,679		169,347		(10	)%

Depletion, depreciation and amortization
Per gold ounce sold	$	291	$	216	35	%	$	351	$	234	50	%


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

Gualcamayo met its production target in 2017 at costs below expectations.

Fourth quarter production resulted in 31% more ounces of gold compared to the third quarter and was the highest for the year as access to higher grade ore and increased recoveries were re-established at the end of the previous quarter.

The Company has initiated efforts to right-size production at Gualcamayo to deliver a more sustainable production base, better cost structure and to generate a more significant contribution to free cash flows, as previously discussed in Section 2: Highlights and Relevant Updates of this MD&A. This optimization plan is similar to the successful strategy that was executed at El Peñón during 2017 and that is currently underway at Minera Florida, leading initially to less ounces of production, although at a higher quality. The aforementioned efforts to right-size production at Gualcamayo are reflected in the 2018 guidance, notably with a decline in the production run-rate to 110,000 ounces from 154,052 ounces produced in 2017.

As the Company has decided to focus its efforts on assets that are better aligned with its strategic objectives, Gualcamayo has been classified as an asset held for sale.

The near mine exploration drill program continued during the quarter with modest results to date. The district exploration program continued to map and collect rock chip samples at Sierra Alaya, Target D and Quebrada Perdida areas. The shift in focus to district exploration will be carried forward into 2018 with drilling to continue in areas that can readily contribute to production.

Modeling of near mine drill program results during the second half of 2017, integrating geology and drill program assay results reveals that the orientation of the Cerro Condor mineralization dips back away from the pit wall. Additional work is expected to be completed during 2018. Portions of the Potenciales and Las Vacas deposits contributed to the mineral reserve and mineral resource inventory.

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BRIO GOLD, BRAZIL



	For the three months ended December 31,						For the years ended December 31,
Operating Statistics	2017		2016		%		2017		2016		%
Production
Total gold production from Brio Gold mines (ounces)	40,350		50,477		(20	)%	178,025		189,662		(6	)%
Attributable to Yamana (ounces) (i)	22,435		49,580		(55	)%	119,011		188,765		(37	)%
Attributable to non-controlling interest (ounces)	17,915		897		n/a		59,014		897		n/a

Brio mines total cost of sales per gold ounce sold	$	1,071	$	1,384	(23	)%	$	1,117	$	1,098	2	%
Brio mines co-product cash costs per gold ounce produced (ii)	$	806	$	832	(3	)%	$	846	$	746	13	%
Brio mines all-in sustaining co-product costs per gold ounce produced (ii)(iii)	$	1,024	$	1,073	(5	)%	$	1,035	$	947	9	%

Sales
Gold sales (ounces)	$	40,456	50,000		(19	)%	$	176,056	$	190,887	(8	)%


(i)	Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for 2017 was a weighted average of 65.5% (2016 - 100%). Attributable production for the quarter ended December 31, 2017 was a weighted average of 55.1% (2016 - 100%)


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(iii)	Excludes Brio Gold head-office G&A.

The Company owned 63.0 million common shares of Brio Gold as at year-end, representing in the aggregate approximately 53.6% of the issued and outstanding Brio Gold common shares or approximately 52.8% on a fully diluted basis (refer to Note 6: Acquisition and Disposition of Mineral Interests and Corporate Transactions , to the Consolidated Financial Statements). Brio Gold operates independently. The Company believes that Brio Gold continues to offer substantial investment value. In January 2018, Leagold Mining Corporation provided an indication to make an offer to acquire all of the issued and outstanding shares of Brio Gold on or before February 28, 2018 (the "Offer"). The Company entered into a support agreement endorsing a transaction with Leagold. The Offer provides the Company the opportunity to derive value from Brio and the underlying Brio assets as the combined entity has considerable present value and upside potential.

Brio Gold production in the fourth quarter of 2017 was lower than the comparative period of 2016, primarily as a result of lower grades and mining rates as Brio Gold restructured operations at the Pilar mine in the quarter. Total cash costs and mine-site AISC improved when compared to the comparative quarter of 2016, mostly as a result of lower costs at RDM.

Brio Gold continued to advance Santa Luz in the fourth quarter of 2017. The relining of the tailings pond and detailed engineering is expected to be completed in the first quarter of 2018, while full detailed engineering is expected to be 100% complete by the end of February. Brio Gold is also planning on taking delivery of the ball mill in the first quarter of 2018 and the process tanks and agitators are on schedule to be delivered in the second quarter of 2018.

7. CONSTRUCTION, DEVELOPMENT AND EXPLORATION

CONSTRUCTION AND DEVELOPMENT

The following highlights key updates during the fourth quarter of 2017, in respect to certain of the Company's development projects.

Cerro Moro, Argentina

Cerro Moro is a high-grade gold and silver deposit currently in construction and development with production expected to commence in early 2018. The Cerro Moro ore body contains a number of high-grade epithermal gold and silver deposits, some of which will be mined via open-pit and some via underground mining. The feasibility study is based on an initial 6.5-year mine life at a processing rate of 1,000 tonnes per day. The concentrator will consist of a standard crushing, grinding and flotation circuit with a counter current decantation and a Merrill Crowe circuit included. On the exploration front, the Company believes that the project offers significant opportunities for the conversion of mineral resources into mineral reserves and for further discoveries on the property, which will serve to materially improve the returns from this high-grade project.

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Cerro Morro is on time and on budget. Commissioning activities are expected to be completed by the end of the first quarter of 2018, with the ramp-up of operations to commence in the second quarter of 2018. Total production in 2018 (including pre-commercial ounces) is expected to be 85,000 ounces of gold and 3.75 million ounces of silver. Please refer to Section 2: Highlights and Relevant Updates of this MD&A, for additional details.

The combined drill programs completed 6,372 metres distributed in 33 holes during the quarter and 32,109 metres distributed in 184 holes during 2017. The Zoe infill program was completed in early October and one reverse circulation rig continued to test the Veronica, Henriette Fault and Gabriela-Moro gap targets through mid-December. Drilling results received during the quarter and year identified new exploration targets and extensions of existing targets that will be further delineated as part of the 2018 exploration program.

Suruca, Brazil

As aforementioned in the Section 2: Highlights and Relevant Updates of this MD&A, the Company is assessing a broader Suruca complex to maximize value, and expects to provide an update on the preliminary plans for the Suruca oxides and the underlying sulphides in the second quarter of 2018.

Canadian Malartic, Canada

The Canadian Malartic Extension Project is continuing according to plan and on budget. Expansionary expenditures for the mine extension in 2017 were $17.0 million (on a 50% basis). Another, approximately $36.5 million (on a 50% basis) is expected to be spent in 2018. Since the beginning of the fourth quarter of 2017, the following activities were completed:


•	An acoustic screen (noise barrier) for the road deviation was put in place.


•	A temporary bridge was being constructed (became operational in January 2018).


•	Overload (new road bed foundation) preparation.

Tree cutting has been completed over the Barnat deposit and overburden stripping is ongoing. Production activities at Barnat are scheduled to begin in late 2019.

OTHER OPTIMIZATION AND MONETIZATION INITIATIVES

During the year, the Company initiated a number of project re-evaluations with a goal of surfacing value from non-strategic or non-producing assets including Kirkland Lake, Agua Rica, Suyai, La Pepa and Don Sixto, all of which have well-defined delineated mineral reserves and/or mineral resources. Notable progress relating to some of these initiatives in the fourth quarter include, but are not limited to the following:

Kirkland Lake, Canada

The Company announced in December of 2017 its agreement to sell certain jointly owned exploration properties of CMC, including the Kirkland Lake and Hammond Reef properties, to Agnico Eagle Mines Limited in consideration of cash proceeds to Yamana of $162.5 million, consistent with the Company’s stated objective to improve its financial position. Please refer to Section 2: Highlights and Relevant Updates of this MD&A, for additional details.

Agua Rica, Argentina

The Company continues to advance its alternatives for the development of the Agua Rica project. Refer to Section 2: Highlights and Relevant Updates of this MD&A for a description of these alternatives. Based on its own evaluation, and feedback from the strategic alternatives process, the Company believes that the underground scenario represents a viable alternative that should be advanced as soon as possible towards a pre-feasibility level, while concurrently pursuing various strategic alternatives. As such, the Company has determined that it will undertake the work required to conduct a preliminary economic assessment during 2018, with a pre-feasibility study to follow in 2019.

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Suyai, Argentina

The Company continues to consider the alternatives of a development plan and other strategic options for its Suyai project. The Suyai project is one of the highest gold grade development-ready projects in the Americas. While a financial adviser has not been retained at this time, the Company continues to evaluate strategic alternatives in addition to planning a path to advance the development of the project.

Agua De La Falda, Chile ( 56.7% )

The Company continues to pursue strategic and monetization initiatives for the 56.7% held Agua De La Falda joint venture with Codelco, located in northern Chile. The historical Jeronimo Feasibility Study focused on maximizing production from the sulfide deposits. The Company completed the study of a low capital start-up project based on the remaining oxide inventory with positive results, and is evaluating exploration plans on the highly prospective claims surrounding the mine. Agua De La Falda has installed processing capacity and infrastructure.

EXPLORATION

The Company continues to consider exploration to be a key to unlocking and creating value for shareholders. The 2017 exploration program focused on finding higher quality ounces, being those ounces with the greatest potential to most quickly generate cash flow, and on infill drilling to do the work necessary to upgrade the existing inferred mineral resources.

The following is a summary of the exploration and evaluation expenditures for the current and comparative periods.



	For the three months ended December 31,				For the years ended December 31,
(In millions of US Dollars)	2017		2016		2017		2016
Exploration and evaluation capitalized (i)	$	17.9	$	20.3	$	82.5	$	80.4
Exploration and evaluation expensed (ii)	7.0		3.0		21.2		14.9
Total exploration and evaluation expenditures	$	24.9	$	23.3	$	103.7	$	95.3


(i)	Capitalized exploration and evaluation costs are reflected in the Consolidated Balance Sheet's property, plant and equipment as part of the additions to mining property costs not subject to depreciation for near-mine exploration and tangible exploration and evaluation assets with probable future economic benefits.


(ii)	Expensed exploration and evaluation costs are reported in the Consolidated Statements of Operations.

For exploration updates relating to operating mines during the year, refer to Section 6: Operating Mines of this MD&A and for all other exploration updates, refer to Section 8: Mineral Reserve and Mineral Resource Estimates of this MD&A.

8. MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

Mineral reserves and mineral resources are determined in accordance with National Instrument 43-101, issued by the Canadian Securities Administrators. This National Instrument lays out the standards of disclosure for mineral projects including rules relating to the determination of mineral reserves and mineral resources. This includes a requirement that a “qualified person” (as defined under the NI 43-101) supervises the preparation of the mineral reserves and mineral resources reports. The Company's mineral reserve and mineral resource reports are reviewed by William Wulftange, exploration consultant, who is a qualified person.

Assumptions for metal prices used in the estimates of mineral reserves and mineral resources for the Company's operating mines and development projects are below. For details, refer to the mineral reserve and mineral resource tables contained in the Company's 2017 annual report.



	Gold		Silver		Copper
Chapada	$	1,250	n/a		$	3.00
El Peñón	$	1,250	$	18.00	n/a
Canadian Malartic (50%)	$	1,200	n/a		n/a
Gualcamayo	$	1,250	n/a		n/a
Minera Florida	$	1,250	$	18.00	n/a
Jacobina	$	1,250	n/a		n/a
Cerro Moro	$	950	$	18.00	n/a

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The Company's mineral reserves and mineral resources as at December 31, 2017 are summarized in the following tables. Complete information relating to mineral reserves and mineral resources indicating a complete listing of metal-price assumptions, tonnage, grade and recoveries is contained in a complete mineral resource and mineral reserve table accompanying the 2017 annual report available on the Company's website, www.yamana.com .



Mineral Reserves & Mineral Resources Estimates (ii)	Contained Gold		Contained Silver		Contained Copper
	(in 000's ounces)		(in 000's ounces)		(in million pounds)
Proven & probable mineral reserves	2017	2016	2017	2016	2017	2016
Chapada	4,287	4,081	—	—	3,471	3,248
El Peñón	764	1,053	23,578	36,109	—	—
Canadian Malartic (50%)	3,189	3,548	—	—	—	—
Jacobina	1,892	1,885	—	—	—	—
Minera Florida	492	468	3,553	3,458	—	—
Gualcamayo	491	754	—	—	—	—
Cerro Moro	715	715	40,723	40,723	—	—
Jeronimo (57%)	1,082	1,082	—	—	—	—
Total proven & probable mineral reserves	12,912	13,586	67,854	80,290	3,471	3,248
Measured & indicated mineral resources
Chapada	2,804	1,889	—	3,775	1,313	660
El Peñón	318	628	9,962	21,484	—	—
Canadian Malartic (50%)	653	644	—	—	—	—
Jacobina	3,258	2,637	—	—	—	—
Minera Florida	832	909	4,916	5,510	—	—
Gualcamayo	2,277	2,815	—	—	—	—
Cerro Moro	238	238	20,313	20,313	—	—
Jeronimo (57%)	139	139	—	—	—	—
La Pepa	2,760	2,760	—	—	—	—
Suyai	2,286	2,286	3,523	3,523	—	—
Monument Bay	1,787	1,787	—	—	—	—
Total measured & indicated mineral resources	17,352	16,732	38,714	54,605	1,313	660
Inferred mineral resources
Chapada	609	870	—	982	252	514
El Peñón	960	1,413	33,506	54,025	—	—
Canadian Malartic (50%)	2,306	929	—	—	—	—
Jacobina	115	1,549	—	—	—	—
Minera Florida	1,231	1,012	6,661	5,704	—	—
Gualcamayo	1,430	1,656	—	—	—	—
Cerro Moro	279	279	14,415	14,415	—	—
Jeronimo (57%)	161	161	—	—	—	—
La Pepa	620	620	—	—	—	—
Lavra Velha	543	543	—	—	—	—
Arco Sul	646	646	—	—	—	—
Suyai	274	274	575	575	—	—
Monument Bay	1,781	1,781	—	—	—	—
Total inferred mineral resources	10,955	11,733	55,157	75,701	252	514

Further information by mine is detailed below.

Chapada, Brazil

As the result of the successful definition and expansion of the Sucupira mineral reserve, immediately adjacent to the main Chapada pit, gold and copper mineral reserves increased by 5% and 7%, respectively, over prior year, representing a significant overall improvement over depletion in 2017. Sucupira mineral reserves are 46 million tonnes grading 0.27 g/t gold and 0.31% copper. Gold measured and indicated mineral resources increased by 48%, while copper increased by 99% compared to the prior year following the drilling for extensions of the mineral envelopes at

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Suruca, in addition to Sucupira and Baru. Gold and copper inferred mineral resources decreased by 30% and 51%, respectively, as these were converted to indicated mineral resources.

El Peñón, Chile

Declines in gold and silver mineral reserves reflect production depletion in 2017 as well as adjustments to the mineral resource estimation methodology and updates to the cost structure for local currency appreciation, offset by the additions to reserves via exploration and infill drilling. As part of the new plan for El Peñón that started in 2017, a thorough review of the mineral resource modelling, including estimation techniques and mine design parameters was completed, and validated with actual results during last year of production. The revision better reflects both the geological behaviour of the narrow veins and the Company’s enhanced ability to efficiently mine narrower veins, as evidenced by production results in 2017 that exceeded guidance expectations taking advantage of mineral resources found outside the mineral reserves blocks. The result of this detailed review will be covered by a new technical report that is being prepared for release in 2018. The net additions in mineral resources are sourced from numerous secondary vein structures in the east mine area including El Valle Este, Dorada Sur, Bonanza, Aleste, La Paloma and Discovery Wash in the core mine area. Most of the additions are contiguous to existing mine infrastructure.

The higher proportion of narrower veins, the impetus for the right sizing of El Peñón in 2017, prompted a review of mineral resource estimation and reporting methodologies. The new methodology uses a stope optimizer routine over the entire inventory of mineral resources, using economical parameters and mine design constrains, mainly minimum mining width and dilution. The approach results in an overall smaller inventory, but with a higher prospectivity for transformation into mineral reserves in the future, through infill drilling and design optimizations.

Canadian Malartic including Odyssey, Canada (50%)

Gold mineral reserves reflect depletion associated with 2017 production. Much of the mineral resource accretion in 2017 is associated with the East Malartic underground, which is being reported for the first time, and the South deposit at Odyssey. The East Malartic deposit, which lies on the Canadian Malartic mine property close to the Odyssey Zone, has inferred mineral resources of 1.2 million ounces of gold (19.0 million tonnes; grading 2.02 g/t gold) at underground depths above the 1,000-metre elevation. Additional drilling is required at Odyssey and East Malartic to convert inferred mineral resources to indicated. Conversion drilling for East Malartic and Odyssey South can be undertaken from surface and this work is expected to commence in 2018. However, the Odyssey internal zone is presenting a higher level of complexity and thus requires underground drilling access. Preparation works to establish an exploration from surface is budgeted to commence in 2018.

Jacobina, Brazil

The Company successfully maintained gold mineral reserves, in line with 2016 despite production depletion in 2017. In 2017 the Company completed drill testing of the Canavieiras Sul and Central deposits and the planned update to the block models and mineral reserve shapes. With a reinterpretation of the Canavieiras mines, including a more conservative dilution assumption, the higher-grade Canavieiras mines now make up a smaller proportion of the total Jacobina mineral reserve, which, at year-end 2017 totaled 26 million tonnes grading 2.28 g/t gold, compared to 21 million tonnes grading 2.85 g/t gold in 2016. The resultant dilution and mineral reserve grades are consistent with actual results achieved in 2017. Gold measured and indicated mineral resources increased by 24% due to the reclassification from inferred mineral resources resulting from the infill drilling in 2017, while inferred mineral resources declined by 93% due to both the upgrading and the application of minimum mining widths to remove mineral resources contained in veins less than 1.5 metres in width. Overall, the mineral inventory at Jacobina remains significant with mineral reserves of 1.9 million ounces supporting an approximate 13-year mine life with another 3.3 million ounces of measured and indicated mineral resources.

Minera Florida, Chile

Gold mineral reserves increased by 5% compared to 2016, despite production depletion in 2017. Areas within the newly acquired ground and existing mine complex are contributing to the mineral reserve replacement. These new areas include Las Pataguas, PVS, among others. Improvements in mine design parameters, including mining costs and dilution as a result of using split blasting extraction techniques, have had a positive impact on mineral reserves in the core mine areas. Significant additions to the inferred mineral resources positions Minera Florida to convert these new discoveries into measured and indicated mineral resources and mineral reserves during 2018.

Gualcamayo, Argentina

Gold and silver mineral reserves reflect depletion associated with 2017 production. The near-mine exploration drill program continued in the fourth quarter with modest results to date, mainly in Cerro Condor. The district exploration program continued to map and collect rock chip samples, and based on positive results from the prospection, drilling was started at Sierra Alaya and Target D. The shift in focus to district exploration will be carried forward into 2018 with drilling to continue in areas that can readily contribute to production.

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Modeling of near mine drill program results during the second half of 2017, integrating geology and drill program assay results reveals that the orientation of the Potenciales mineralization dips back away from the pit wall and consequently has not added to mineral resources. Additional work is expected to be completed during 2018 in order to evaluate the conversion of existing mineral resources to mineral reserves.

As a result of an updated methodology to define remaining mineral resources, measured and indicated mineral resources, and inferred mineral resources within the pit shell area, QDD and AIM zones were reduced compared to last year.

Cerro Moro, Argentina

Gold and silver mineral reserves were unchanged for the current year as the majority of 2017 drilling focused on delineation work at Zoe, Escondida Far West and Nini - areas that will be the focus of mining in 2018. On completion of infill drilling, the Company began conducting detailed mapping and sampling programs, identifying the presence of sulfide-rich black silica as key to the high-grade deposits in several of the targets on the property. This effort led to the discovery of Veronica, a new high grade near surface structure. Veronica is expected to add significant new inferred mineral resources in the short term.

In addition to Veronica, drilling has identified other exploration targets in the near-mine area that will be targeted as part of the 2018 exploration program. District exploration included surface work and target delineation in the La Henriette and on the newly acquired Mosquito project, covering the extension of the Escondida structure.

9. LIQUIDITY, CAPITAL RESOURCES AND CONTRACTUAL COMMITMENTS

LIQUIDITY

Management is of the view that planned growth, development activities, expenditures and commitments will be sufficiently funded by working capital, recent monetization and financing transactions, future operating cash flows and available credit facilities. As at December 31, 2017 , the Company's financial resources available to meet its financial obligations including its undrawn revolving facility, excluding Brio Gold's undrawn revolving facility, was $970.0 million .

For the year ended December 31, 2017 , cash flows from operating activities of continuing operations were $484.0 million and is expected to remain positive in the foreseeable future, following several initiatives expected to be completed in 2018. The Company’s obligations in 2018 include a repayment obligation of long-term debt of $110.0 million , which will be settled with the proceeds from the recent bond offering as discussed below; construction and service contract commitments and operating leases of $ 521.2 million , the Brazilian Tax Matters payments (refer to Note 12: Income Taxes to the Company's Consolidated Financial Statements for additional details) and sustaining capital expenditures of approximately $170.0 million (excluding Brio Gold). The Company’s expansionary and exploration capital expenditures are discretionary, which allow management a reasonable degree of flexibility in managing its financial resources. Further information with regards to ongoing sustaining capital expenditures, and commitments by year can be found in the discussions below.

The Company's continuous commitment to balance sheet and cost improvement will further strengthen its financial position, and is highlighted by the following initiatives completed during 2017 or expected in 2018:


•	Two secondary offerings by private placement of Brio Gold shares in 2017, generating cash proceeds of $71.5 million.


•	Issuance of unsecured senior notes for proceeds of $300.0 million, the net proceeds of which were used to repay outstanding indebtedness resulting in more favourable terms.


•	Disposal of certain investments and other assets for proceeds of $17.5 million .


•	Mitigation of the appreciation of the Brazilian Real and Canadian Dollar on costs through additional forward contracts, consistent with the Company's hedging strategy.


•	Monetization of certain jointly owned exploration properties of the Canadian Malartic Corporation early in 2018 for cash proceeds of $162.5 million.


•	The entering into of a copper advanced sales program pursuant to which the Company received $125.0 million in cash proceeds on January 12, 2018.


•	Pursuing alternatives to maximize value at Gualcamayo, in parallel of advancing monetization efforts.

Additionally, through the planned completion of the Cerro Moro mine and expected step-change in cash flow beginning in 2018, the Company is well-positioned to drive reduction in net debt and manage its debt repayments.

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The following is a summary of liquidity and capital resources balances:



As at December 31,
(In millions of US Dollars)	2017		2016
Cash	$	148.9	$	97.4
Trade and other receivables	$	38.6	$	36.6
Long-term debt (excluding current portion)	$	1,747.7	$	1,573.8
Working capital (i)	$	58.7	$	77.3


(i)	Working capital is defined as the excess of current assets over current liabilities, which includes the current portion of long-term debt .

Cash and cash equivalents were $148.9 million as at December 31, 2017 , compared to $97.4 million as at December 31, 2016 . The sources and uses of cash during the year are explained below. Working capital was $58.7 million as at December 31, 2017 , compared to $77.3 million as at December 31, 2016 . Notable movements in working capital from the prior year include decreases of $91.4 million resulting from the increase in the current portion of long-term debt and $87.0 million resulting from the increase of income taxes payable mainly related to the Brazilian Tax Matters and timing of tax payments. Additionally, the Company has $106.5 million in stockpile inventory, currently classified as Property, Plant and Equipment, as it is not expected to be processed within one year, but is readily available for processing. As aforementioned, the Company expects its net cash position and working capital to increase in 2018.

Cash flows from operating activities are expected to increase during the year. Consistent with previous years, cash flows and working capital in the first quarter are the lowest due to cyclical factors, such as the seasonal impact on production during the rainy season early in the year, incremental production ramp-up and settlement of year-end accruals and payables. Given its discretion and ability to reduce expansionary capital and exploration spend, the Company's capacity to meets its financial obligations remains strong.

The following table summarizes cash inflows and outflows of continuing operations:



For the years ended December 31,
(In millions of US Dollars)	2017			2016
Cash flows from operating activities	$	484.0		$	651.9
Cash flows from operating activities before net change in working capital (i)	$	498.0		$	626.6
Cash flows from/(used in) financing activities	$	217.9		$	(267.5	)
Cash flows used in investing activities	$	(644.2	)	$	(407.7	)


(i)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.

CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows from operating activities before net change in working capital for the year ended December 31, 2017 were $498.0 million , compared to $626.6 million for the year ended December 31, 2016 . The decrease was largely driven by higher income taxes paid in the year, associated with the initial payments related to the tax amnesty settlement with the Brazilian tax authorities of $ 76.7 million and the lower advanced payments received on metal purchase agreements compared to the prior year.

The Company's cash flows from operating activities are expected to remain positive at the prices of gold, silver and copper observed as at December 31, 2017 , and the Company expects its cash flows from operations will increase organically, subject to prevailing metal prices, in the following quarters. Refer to Section 11: Economic Trends, Business Risks and Uncertainties of this MD&A for a detailed discussion of market price risk.

CASH FLOWS FROM FINANCING ACTIVITIES

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Cash flows from financing activities were inflows of $217.9 million for year ended December 31, 2017 , compared to outflows of $267.5 million for year ended December 31, 2016 . Higher cash flows from financing activities were mainly due to the issuance of Senior Notes for proceeds of $300.0 million during the year, and cash proceeds of $71.5 million from the sale of Brio Gold shares during the year.

Total debt was $ 1.86 billion as at December 31, 2017 , compared to $ 1.59 billion as at December 31, 2016 . Net debt (a non-GAAP financial measure, see Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A) as at December 31, 2017 was $1.71 billion compared to $1.50 billion as at December 31, 2016 . The Company's debt maturity profile remains very manageable and well-positioned, especially in the short- to medium-term.

The principal repayment schedule of senior debt notes to be repaid in the next five years is as follows:



(In millions of US Dollars)	2018	2019	2020	2021	2022
Senior debt notes	108.6	181.5	84.1	—	192.7

The balance of senior debt notes of $1.2 billion is due in or after 2023.

The Company has a revolving credit facility with a balance of $30.0 million ($ 27.0 million net of transaction costs) as at December 31, 2017 and a maturity date in 2021. The Company will, from time to time, repay balances outstanding on its revolving credit with operating cash flow and cash flow from other sources. Additionally, the Company intends to renew the credit facility either before or upon maturity.

CASH FLOWS USED IN INVESTING ACTIVITIES

Cash flows used in investing activities were $644.2 million for the year ended December 31, 2017 , compared to $407.7 million for the year ended December 31, 2016 . Net cash outflows in the current year were primarily attributable to capital expenditures on the continued development of Cerro Moro, Canadian Malartic and Brio Gold among others. The increase in net cash outflows in 2017 over 2016 was mainly due to cash proceeds in the prior year of $124.0 million on the sale of Mexican operations, with no comparative inflow in current period.

Capital expenditures including sustaining, expansionary and capitalized exploration and evaluation for the year ended December 31, 2017 , were $607.5 million , compared to capital expenditures of $495.4 million , for the year ended December 31, 2016 . These expenditures were incurred as follows:



For the years ended December 31,	2017								2016
(In millions of US Dollars)	Sustaining & other		Expansionary		Exploration		Total		Total
Chapada (i)	$	27.9	$	13.4	$	5.4	$	46.7	$	82.6
El Peñón	38.5		—		17.8		$	56.3	$	88.4
Canadian Malartic	48.2		31.0		10.2		$	89.4	$	60.7
Jacobina	21.7		17.6		5.8		$	45.1	$	46.1
Minera Florida	24.6		17.8		10.2		$	52.6	$	45.3
Gualcamayo	6.6		6.4		10.6		$	23.6	$	21.8
Cerro Moro	—		172.0		7.7		$	179.7	$	63.9
Brio Gold	35.1		40.4		8.7		$	84.2	$	67.2
Other (ii)	2.1		21.7		6.1		$	29.9	$	19.4
Total capital expenditures (iii)	$	204.7	$	320.3	$	82.5	$	607.5	$	495.4


(i)	Capital expenditures for Chapada do not include $36.3 million in long-term stockpile additions which are presented as Investing Activities in the Consolidated Statement of Cash Flows.


(ii)	Included in Other is $11.3 million (2016 - $6.5 million ) of capitalized interest for the period.


(iii)	Net of movement in accounts payable as applicable for projects under construction and including applicable borrowing costs.

CAPITAL RESOURCES

In order to maintain or adjust its capital structure, the Company may issue shares or debt securities, pay dividends, or undertake other activities as deemed appropriate under the specific circumstances.

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The Company is authorized to issue an unlimited number of common shares at no par value and a maximum of eight million first preference shares. There are no first preference shares issued or outstanding. As of February 9, 2018, the total number of shares outstanding was 948.6 million, the total number of share options outstanding was 1.8 million, the total number of Deferred Share Units ("DSU") outstanding was 4.3 million, the total number of Restricted Share Units ("RSU") outstanding was 1.7 million, and the total number of Performance Share Units ("PSU") outstanding was 2.5 million.

For 2017 , the Company declared quarterly dividends totalling $0.0200 per share.

The following table summarizes the weighted average common shares and equity instruments outstanding as at December 31, 2017 :



	Equity instruments outstanding as at	Weighted average dilutive equity instruments, three months ended	Weighted average dilutive equity instruments, year ended
(In thousands)	December 31, 2017	December 31, 2017	December 31, 2017
Common shares (i)	948,525	948,468	948,187
Share options (iv)	1,831	—	—
RSUs (ii), (iv)	1,474	—	—
DSUs (iii)	4,288	—	—
PSUs (iii)	2,521	—	—
		948,468	948,187

(i)

The Company has a dividend reinvestment plan to provide holders of common shares a simple and convenient method to purchase additional common shares by electing to automatically reinvest all or any portion of cash dividends paid on common shares held by the plan participant without paying any brokerage commissions, administrative costs or other service charges. As at December 31, 2017 , a total of 18,918,052 shares have subscribed to the plan.


(ii)	Excludes RSUs granted to Brio Gold employees that are redeemable in Brio Gold common shares.


(iii)	DSUs and PSUs are settled in cash and, as such, excluded from the calculation of the weighted average number of shares outstanding.


(iv)	Effect of dilutive securities - the potential shares attributable to stock options and RSUs were anti-dilutive for the period ended December 31, 2017.

CONTRACTUAL COMMITMENTS

Day-to-day mining, sustaining and expansionary capital expenditures as well as administrative operations give rise to contracts requiring agreed upon future minimum payments.

As at December 31, 2017 , the Company is contractually committed to the following:



(In millions of US Dollars)	Within 1 year		Years 2 and 3		Years 4 and 5		After 5 years		Total
Mine operating/construction and service contracts and other	$	515.3	$	501.7	$	150.0	$	—	$	1,167.0
Long-term debt principal repayments (i)	110.0		342.4		222.7		1,196.9		1,872.0
Decommissioning, restoration and similar liabilities (undiscounted)	12.1		35.7		75.8		451.5		575.1
	$	637.4	$	879.8	$	448.5	$	1,648.4	$	3,614.1


(i)	Excludes interest expense.

10. INCOME TAXES

The Company recorded an income tax recovery of $113.9 million for the year ended December 31, 2017 (2016 - $324.9 million recovery). The income tax provision reflects a current income tax expense of $239.2 million and a deferred income tax recovery of $353.1 million , compared to a current income tax expense of $21.8 million and a deferred income tax recovery of $346.7 million for the year-ended December 31, 2016. The balance sheet includes a deferred tax asset of $97.8 million and a deferred tax liability of $1.1 billion .

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The Company’s unadjusted effective tax rate for the year ended December 31, 2017 was 35.83% (2016 - 52.8%), compared to the Canadian statutory tax rate of 26.5%. Differences between the Canadian statutory tax rate to the effective tax rate are due to a number of factors, including the fact that the Company operates in multiple foreign tax jurisdictions with tax rates different than the Canadian statutory rate, the recognition or non-recognition of deferred tax assets, the fact that deferred tax balances are subject to re-measurement for changes in currency exchange rates each period, changes in tax laws and interpretations thereof, changes in income tax related contingent liabilities, and the impact of transactions undertaken by the Company. The Company calculates its current and deferred tax expense on an entity by entity basis, as a result, it is possible to have a current tax expense, even in periods when the Company has an overall loss, as the current tax expense on profitable mines often cannot be offset by the deferred tax assets for mines located in other tax jurisdictions. The Company is also able to claim certain allowances and tax deductions particular to extractive industries that can result in a lower effective tax rate compared to the statutory tax rate.

The following items have the most significant impact on the difference between the Company’s Canadian statutory tax rate of 26.5% and our effective rate for the years ended December 31, 2017 and 2016 :


•	Each period the Company evaluates its ability to recognize tax losses and other deductible temporary difference based on projected future taxable profits. In 2017 and 2016 , an expense of $53.0 million and recovery of $46.7 million, respectively, was recognized due to uncertainty of future loss utilization.

•

Within a number of the Company's foreign subsidiaries, foreign currency exchange gains or losses that arise as US Dollar balances are translated to local currency are taxable or deductible locally, whereas foreign currency exchange gains or losses that arise as local balances are translated to US Dollars are not taxable or deductible. As at December 31, 2017, a net recovery of $9.2 million was recognized due to the weakening of the Brazilian Real and the Argentine Peso against the US Dollar. In 2016, an expense of $ 42.8 million was recognized on the strengthening of the Brazilian Real and weakening of the Argentine Peso against the US Dollar.

•

Income tax accounts are required to be re-measured at each balance sheet date for changes in the foreign exchange rate. Within a number of our foreign subsidiaries, the tax basis of non-monetary assets is converted from local currency to US Dollars at the period end spot rate for the purposes of calculating deferred taxes. In 2017 and 2016 an expense of $9.9 million and a recovery of $20.0 million, respectively, was recorded on currency fluctuations as described above.


•	On December 29, 2017, the Argentinian Government enacted tax reform legislation which reduces the corporate rate from 35% to 30% starting in 2018 and a further reduction to 25% starting in 2020. The impact of the change in tax rate resulted in a reduction of deferred tax liabilities in the amount of $ 216.8 million in 2017.

•

In the third quarter of 2017, the Company elected to participate in a program to settle all significant outstanding income tax assessments in Brazil ("Brazilian Tax Matters") and all income tax assessments relating to the Company’s Chapada mine. On October 25, 2017, the program was formally enacted into law and the Company paid $76.7 million in the year ended December 31, 2017. The final program created an option to either pay one lump sum of approximately $68 million in the first quarter of 2018, or a total of approximately $100 million plus interest in installments over twelve years. The Company elected to proceed with the lump sum payment option, and on January 30, 2018 made the payment. The income tax expense associated with the tax matters has been recorded in the Consolidated Statement of Operations for the year ended December 31, 2017, and is the most significant component of the $150.7 million true-up of tax provisions in respect of prior years in the rate reconciliation.

The following items may not be reflective of current operations. The Company refers to the following items, which may be used to adjust or reconcile input models in consensus estimates:



For the years ended December 31, (In millions of US Dollars)	2017			2016
Non-cash tax expense/(recovery) related to unrealized foreign exchange	9.9			(20.0		)
Non-cash tax recovery related to impairments	(83.0		)	(218.8		)
Change in tax rates	(216.8		)	(18.7		)
Income tax effect of total adjustments	156.4			(95.4		)
Increase (decrease) to income tax (expense) recovery	$	(133.5	)	$	(352.9	)

The Company has elected, under IFRS, to record foreign exchange related to deferred income tax assets and liabilities in the income tax expense, therefore, due to foreign exchange differences, the tax rate will fluctuate during the year with the change in the Brazilian Real, Argentine Peso and Canadian Dollar.

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The deferred tax liabilities relating to the operating mines will reverse in the future as the assets are depreciated or depleted. The deferred tax liabilities relating to exploration will not reverse until the property becomes a mine subject to depletion, is written off or sold. The deferred income taxes would only be paid on a direct disposition of the asset that may never occur.

The Company operates in the following tax jurisdictions: Brazil, where the statutory tax rate is 34%; Argentina, where the statutory tax rate is 35% in 2017, decreasing to 30% in 2018 and further decreasing to 25% in 2020; Chile, where the statutory tax rate is 25.5% in 2017 and increasing to 27% in 2018; and Canada, where the federal statutory tax rate is 15% with varying provincial tax rates. The Company does not anticipate the statutory tax rates to change in the foreseeable future, hence, there should be no impact on the calculation of the current or deferred tax expense in the period.

The largest components of the deferred tax liabilities relate to:



(In millions of US Dollars)	2017		2016
Canadian Malartic	$	333.9	$	384.9
Jacobina	$	102.2	$	91.8
Chapada	$	62.0	$	55.8
El Peñón	$	56.5	$	47.4
Agua Rica	$	266.5	$	396.1
Gualcamayo	$	—	$	104.6
Exploration Potential	$	296.7	$	367.3

See Note 12: Income Taxes to the Company's Consolidated Financial Statements for the year ended December 31, 2017 for a breakdown of the foreign exchange charged to the income tax expense. Readers are also encouraged to read and consider the tax related risk factors and uncertainties in the Company’s Annual Information Form.

11. ECONOMIC TRENDS, BUSINESS RISKS AND UNCERTAINTIES

Exploration, development and mining of precious metals involve numerous risks as a result of the inherent nature of the business, global economic trends and the influences of local social, political, environmental and economic conditions in the various geographical areas of operation. As such, the Company is subject to several financial and operational risks that could have a significant impact on its profitability and levels of operating cash flows.

The Company assesses and minimizes these risks by adhering to its internal risk management protocols, which include the application of high operating standards, empowering individuals and establishing processes to be able to identify, assess, report and monitor risk at all levels of the organization. Through careful management and planning of its facilities, hiring qualified personnel and developing a skilled workforce through training and development programs, the Company is able to generate shareholder value in a safe, resilient and responsible manner.

Below is a summary of the principal financial risks and related uncertainties facing the Company. Readers are also encouraged to read and consider the risk factors more particularly described in the latest available Company’s Annual Information Form. Such risk factors could materially affect the future operating results of the Company and could cause actual events to differ materially from those described in forward-looking statements relating to the Company.

Metal Price Risk

The Company's profitability and long-term viability depend, in large part, upon the market price of metals that may be produced from the Company's properties, primarily gold, copper and silver. Market price fluctuations of these commodities could adversely affect profitability of operations and lead to impairments of mineral properties. Metal prices fluctuate widely and are affected by numerous factors beyond the Company's control including but not limited to supply and demand, consumption patterns, macroeconomic factors (interest, exchange, inflation), banking and political conditions, and mining specific factors.

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There can be no assurance that metal prices will remain at current levels or that such prices will improve. A decrease in the market prices could adversely affect the profitability of the Company's existing mines and projects as well as the Company's ability to finance the exploration and development of additional properties, which would have a material adverse effect on the Company's results of operations, cash flows and financial position. A decline in metal prices may require us to write-down the Company's mineral reserve and mineral resource estimates by removing ores from mineral reserves that would not be economically processed at lower metal prices and revise the Company's life-of-mine plans, which could result in material impairments of the Company's investments in mining properties. Any of these factors could result in a material adverse effect on the Company's results of operations, cash flows and financial position. Further, if revenue from metal sales decline significantly, the Company may experience liquidity difficulties.

The Company's cash flow from mining operations may be insufficient to meet operating needs, and as a result the Company could be forced to discontinue production and could lose the Company's interest in, or be forced to sell, some or all of the Company's properties. In addition to adversely affecting mineral reserve and mineral resource estimates and results of operations, cash flows and financial position, declining metal prices can impact operations by requiring a reassessment of the feasibility of a particular project. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays and/or may interrupt operations until the reassessment can be completed, which may have a material adverse effect on results of operations, cash flows and financial position. In addition, lower metal prices may require the Company to reduce funds available for exploration with the result that the depleted mineral reserves may not be replaced.

Gold Price Two-Year Trend ( LBMA p.m. price: USD per ounce of gold) Copper Price Two-Year Trend ( LME Cash: USD per pound of copper)

Gold Price - Market Update

For the year ended December 31, 2017, spot gold prices averaged $1,259 per ounce, comparable to $1,251 per ounce in 2016. Prices ranged between $1,151 and $1,346 per ounce and ended the year at $1,291 per ounce.

For the quarter ended December 31, 2017, spot gold prices averaged $1,277 per ounce, or representing an increase of 5% , compared to $1,222 per ounce in the fourth quarter of 2016. Prices ranged between $1,241 and $1,303 per ounce during the fourth quarter of 2017.

Gold prices were steady during the fourth quarter, before declining somewhat in anticipation of Federal Open Market Committee (“FOMC”) meeting and ramping up towards the end of the quarter. The US Federal Reserve (“US Fed”) increased the US Federal Reserve Funds ("Fed Funds") rate by 0.25% in December, as expected, and indicated three potential increases in 2018. In the short-term, gold prices will likely be driven by the changing sentiment as to the monetary policy path of the US Fed and geopolitical events. Continuing geopolitical tensions should be supportive of price as investors may look to buy into price weakness in order to use gold as a hedge against geopolitical risk.

Other central banks have also begun to tighten monetary policy and while higher interest rates and inflationary pressures may weigh on gold, the prospect of other central banks increasing rates should temper US Dollar strength. The amount of global debt added over the past several years is significant and the prospect of rising global interest rates may pose refinancing challenges and this may prove to be supportive for gold. Physical demand for gold from India and China continues to rebound after a soft 2016, global ETF holdings are gradually rising and other central banks continue to be net buyers with Russia and Kazakhstan being the most notable.

The Company has entered into option contracts relating to 131,900 ounces of gold, to be produced in the first quarter of 2018. These provide a minimum price of $1,300 per ounce and a maximum price of $1,414 per ounce. This production represents approximately sixty per cent of planned gold production in the period of the gold option contracts.

Copper Price - Market Update

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For the year ended December 31, 2017, spot copper prices averaged $2.80 per pound, representing an increase of 27% compared to $2.21 per pound in 2016. Prices ranged between $2.48 and $3.29 per pound and ended the year at $3.27 per pound.

For the quarter ended December 31, 2017, spot copper prices averaged $3.09 per pound, representing an increase of 29% , compared to $2.39 per pound in the fourth quarter of 2016 . Prices ranged between $2.92 and $3.29 per pound in the fourth quarter of 2017.

Copper prices moved higher in the fourth quarter. Higher prices have been driven by Chinese economic data, generally strong global industrial activity and speculative investors. The direction of the Chinese economy will continue to be a primary driver of copper prices going forward. Copper prices should be increasingly supported as the market is moving towards balance with supply growth slowing as fewer new mines are expected to begin operations over the medium term.

The Company currently uses forward and option contracts to economically hedge against the risk of declining copper prices for a portion of its forecast copper concentrate sales. As at December 31, 2017, the Company had 23.1 million pounds of copper forward contracts in place to April 2018 at an average sales price of $3.07 per pound. The Company also had 45 million pounds of copper option contracts, cumulatively to be produced in the first and second quarters of 2018, which provide a minimum price of $2.85 per pound and a maximum price of $3.33 per pound. This production represents approximately seventy-five per cent of planned copper production in the period of the copper option contracts.

Currency Risk

Currency fluctuations may affect the Company’s capital costs and the costs that the Company incurs at its operations. Gold is sold throughout the world based principally on a US Dollar price, but a portion of the Company’s operating and capital expenses are incurred in Brazilian Reais, Argentine Pesos, Chilean Pesos and Canadian Dollars. The appreciation of these foreign currencies against the US Dollar would increase the costs of production at such mining operations, which could materially and adversely affect the Company’s earnings and financial condition. The Company may enter into forward contracts or other risk management strategies, from time to time, to hedge against the risk of an increase in the value of foreign currencies in the jurisdictions in which the Company operates.

US Dollar - Market Update

The following summarizes the movement in key currencies vis-à-vis the US Dollar (source: Bloomberg ):

The Canadian Dollar, Chilean Peso and the Brazilian Real strengthened against the US Dollar during the year ended December 31, 2017, while the Argentine Peso weakened. The US Fed increased the Fed Funds rate by 0.25% in December and indicated that they expect three increases during 2018. However, this will be dependent on economic growth and with other central banks beginning to increase rates this could lead to a weaker US Dollar.

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For the three months ended December 31,	2017	2016	% (i)
Average exchange rate
USD-CAD	1.2709	1.3344	-4.8	%
USD-BRL	3.2504	3.2920	-1.3	%
USD-ARG	17.5464	15.4669	13.4	%
USD-CLP	633.42	665.01	-4.8	%



For the year ended December 31,	2017	2016	% (i)
Average exchange rate
USD-CAD	1.2981	1.3239	-1.9	%
USD-BRL	3.1917	3.4807	-8.3	%
USD-ARG	16.5607	14.7745	12.1	%
USD-CLP	649.01	675.95	-4.0	%



As at December 31,	2017	2016	% (i)
Period-end exchange rate
USD-CAD	1.2571	1.3441	-6.5	%
USD-BRL	3.3085	3.2552	1.6	%
USD-ARG	18.6232	15.8800	17.3	%
USD-CLP	615.44	670.40	-8.2	%


(i)	Positive variance represents the US Dollar increase in value relative to the foreign currency.

As at December 31, 2017, the Company had zero-cost collar contracts totalling R$540 million (R$ = Brazilian Reais) evenly split by month from January 2018 to June 2019 with Brazilian Real to US Dollar average call and put strike prices of R$3.15 and R$3.47 per US Dollar, respectively, allowing the Company to participate in exchange rate movements between those two strikes. The Company also had forward contracts totalling C$60 million (C$ = Canadian Dollars) evenly split by month from January 2018 to January 2019 with Canadian Dollar to US Dollar forward rates of C$1.25 per US Dollar.

Counterparty, Credit and Interest Rate Risk

The Company is exposed to various counterparty risks including, but not limited to: (i) financial institutions that hold the Company’s cash and short-term investments; (ii) companies that have payables to the Company, including concentrate and bullion customers; (iii) providers of its risk management services (including hedging arrangements); (iv) shipping service providers that move the Company’s material; (v) the Company’s insurance providers; and (vi) the Company’s lenders. The Company seeks to limit counterparty risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of counterparties. For cash, cash equivalents and accounts receivable, credit risk is represented by the carrying amount on the balance sheet. The Company is exposed to interest rate risk on its variable rate debt and may enter into interest rate swap agreements to hedge this risk. These factors may impact the ability of the Company to obtain loans and other credit facilities and refinance existing facilities in the future and, if obtained, on terms favourable to the Company. Such failures to obtain loans and other credit facilities could require us to take measures to conserve cash and could adversely affect the Company's access to the liquidity needed for the business in the longer term.

Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Under the terms of the Company's trading agreements, counterparties cannot require the Company to immediately settle outstanding derivatives except upon the occurrence of customary events of default. The Company mitigates liquidity risk through the implementation of its Capital Management Policy by managing its capital expenditures, forecast and operational cash flows, and by maintaining adequate lines of credit. The Company manages its capital structure and makes adjustments to it in light of general economic conditions, the risk characteristics of the underlying assets and the Company’s working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may issue shares, pay dividends, or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions out of the ordinary course of business, including proposals on acquisitions or other major investments or divestitures, as well as capital and operating budgets.

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12. CONTINGENCIES

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Certain conditions may exist as of the date the Consolidated Financial Statements are issued that may result in a loss to the Company, but which will be resolved only when one or more future events occur or fail to occur. The impact of any resulting loss from such matters affecting the Consolidated Financial Statements of the Company may be material.

Canadian Malartic

For additional information refer to the latest available Company's Annual Information Form.

13. CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company's Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). The significant accounting policies applied and recent accounting pronouncements are described in Note 3: Significant Accounting Policies and Note 5: Recent Accounting Pronouncements, respectively, to the Company's Consolidated Financial Statements for the year ended December 31, 2017.

In preparing the Consolidated Financial Statements in accordance with IFRS, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the Company's Consolidated Financial Statements. Actual future outcomes may differ from present estimates. Management reviews its estimates and assumptions on an ongoing basis using the most current information available.

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The critical judgements and key sources of estimation uncertainties in the application of accounting policies during the year ended December 31, 2017 are disclosed in Note 4: Critical Judgements and Estimation Uncertainties to the Company's Consolidated Financial Statements for the year ended December 31, 2017.

14. NON-GAAP FINANCIAL MEASURES AND ADDITIONAL LINE ITEMS OR SUBTOTALS IN FINANCIAL STATEMENTS

The Company has included certain non-GAAP financial measures to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:


•	Cash costs per ounce of gold produced on a co-product and by-product basis;


•	Cash costs per ounce of silver produced on a co-product and by-product basis;


•	Co-product cash costs per pound of copper produced;


•	All-in sustaining costs per ounce of gold produced on a co-product and by-product basis;


•	All-in sustaining costs per ounce of silver produced on a co-product and by-product basis;


•	All-in sustaining co-product costs per pound of copper produced;


•	Net debt;


•	Net free cash flow;


•	Average realized price per ounce of gold sold;


•	Average realized price per ounce of silver sold; and


•	Average realized price per pound of copper sold.

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes to the measures are duly noted and retrospectively applied as applicable.

CASH COSTS AND ALL-IN SUSTAINING COSTS

The measure of cash costs, along with revenue from sales, is considered to be a key indicator of a company’s ability to generate operating earnings and cash flows from its mining operations. This data is furnished to provide additional information and is a non-GAAP financial measure. The terms co-product and by-product cash costs per ounce of gold or silver produced, co-product cash costs per pound of copper produced, co-product and by-product AISC per ounce of gold or silver produced and co-product AISC per pound of copper produce d do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

By-Product and Co-Product Cash Costs

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believes that such measure provides useful information about the Company’s underlying cash costs of operations. Cash costs are computed on a weighted average basis, net of by-product sales and on a co-product basis as follows:


•	Cash costs of gold and silver on a by-product basis - shown on a per ounce basis.


◦	The attributable cost for each metal is calculated net of by-products by applying copper and zinc net revenues, which are incidental to the production of precious metals, as a credit to gold and silver ounces produced, thereby allowing the Company’s management and stakeholders to assess net costs of precious metal production. These costs are then divided by gold and silver ounces produced.


•	Cash costs of gold and silver on a co-product basis - shown on a per ounce basis.


◦	Costs directly attributed to gold and silver will be allocated to each metal. Costs not directly attributed to each metal will be allocated based on the relative value of revenues which will be determined annually.


◦	The attributable cost for each metal will then be divided by the production of each metal in calculating cash costs per ounce on a co-product basis for the period.


•	Cash costs of copper on a co-product basis - shown on a per pound basis.


◦	Costs attributable to copper production are divided by commercial copper pounds produced.

By-Product and Co-Product AISC

All-in sustaining costs per ounce of gold and silver produced seeks to represent total sustaining expenditures of producing gold and silver ounces from current operations, based on co-product costs or by-product costs, including cost components of mine sustaining capital expenditures, corporate general and administrative expense excluding stock-based compensation, and exploration and evaluation expense. All-in sustaining costs do not include capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, income tax payments, financing costs and dividend payments. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depletion, depreciation and amortization expense as it does not reflect the impact of expenditures incurred in prior periods.

All-in sustaining co-product costs reflect allocations of the aforementioned cost components on the basis that is consistent with the nature of each of the cost component to the gold, silver or copper production activities. Similarly, all-in sustaining by-product costs reflect allocations of the aforementioned cost components on the basis that is consistent with the nature of each of the cost component to the gold and silver production activities but net of by-product revenue credits from sales of copper and zinc.

The following tables provide a reconciliation of total cost of sales of gold, silver and copper sold (cost of sales excluding depreciation, depletion and amortization, plus depreciation, depletion and amortization) per the Consolidated Financial Statements to co-product cash costs of gold produced, co-product cash costs of silver produced, co-product cash costs of copper produced, co-product AISC of gold produced, co-product AISC of silver produced, co-product AISC of copper produced, by-product cash costs of gold produced, by-product cash costs of silver produced, by-product AISC of gold produced and by-product AISC of silver produced. The tables also present total cost of sales on a per ounce or pound sold, co-product and by-product cash costs and AISC on a per ounce or pound produced basis, as deemed appropriate.

Total cost of sales in the following reconciliations to co-product and by-product cash costs and co-product and by-product AISC agree to the Consolidated Financial Statement of operations that reflects continuing operations excluding Mercedes, which is classified as discontinued operations in the comparative period. All production costs are classified in inventory together with treatment and refining charges, commercial costs, overseas freight and other selling costs. The amount of inventories recognized as cost of sales for the reporting period corresponds to the units of products sold during that period.

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i)	Reconciliation of Cost of Sales per the Consolidated Financial Statements to Co-Product Cash Costs and Co-Product AISC, and By-Product Cash Costs and By-Product AISC:



Co-product Cash Cost & AISC	For the three months ended December 31, 2017												For the three months ended December 31, 2016												For the twelve months ended December 31, 2017												For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi)			Total Copper			Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi)			Total Copper			Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi)			Total Copper			Total (incl. Brio Gold)			Total Gold (incl. Brio Gold)			Total Silver (vi)			Total Copper
Cost of sales excluding DDA (i)	$	264.7		$	209.2		$	9.5		$	46.0		$	284.1		$	216.5		$	16.9		$	50.7		$	1,042.4		$	816.7		$	48.8		$	176.9		$	1,029.0		$	804.8		$	59.9		$	164.4
DDA	100.9			86.3			4.8			9.7			128.3			109.0			8.4			10.9			426.8			373.7			21.2			31.9			462.3			393.2			31.2			37.9
Total cost of sales	$	365.6		$	295.5		$	14.3		$	55.7		$	412.4		$	325.5		$	25.3		$	61.6		$	1,469.2		$	1,190.4		$	70.0		$	208.8		$	1,491.3		$	1,198.0		$	91.1		$	202.3
DDA	(100.9		)	(86.3		)	(4.8		)	(9.7		)	(128.4		)	(109.1		)	(8.4		)	(10.9		)	(426.8		)	(373.7		)	(21.2		)	(31.9		)	(462.3		)	(393.2		)	(31.2		)	(37.9		)
Inventory movement	(5.2		)	(6.1		)	0.8			0.1			(6.0		)	(4.0		)	(0.5		)	(1.5		)	(14.1		)	(12.6		)	1.2			(2.7		)	(6.4		)	(9.1		)	0.1			2.6
Treatment and refining charges (ii)	10.9			1.6			0.1			9.2			11.0			1.6			0.1			9.3			38.2			5.6			0.2			32.4			32.8			4.7			0.1			28.0
Commercial and other costs	(0.5		)	(0.1		)	—			(0.4		)	(3.5		)	(0.7		)	—			(2.8		)	(1.6		)	(0.3		)	—			(1.3		)	(6.9		)	(1.4		)	—			(5.5		)
Overseas freight for Chapada Conc.	(3.1		)	(0.6		)	—			(2.5		)	(3.1		)	(0.6		)	—			(2.5		)	(11.5		)	(2.2		)	—			(9.2		)	(9.1		)	(1.8		)	—			(7.3		)
Total co-product cash cost	$	266.8		$	204.0		$	10.4		$	52.4		$	282.4		$	212.7		$	16.5		$	53.2		$	1,053.4		$	807.2		$	50.2		$	196.1		$	1,039.4		$	797.2		$	60.1		$	182.2
G&A, excl., shared-based compensation (iii)	29.5			23.3			1.0			5.2			28.0			22.0			1.6			4.4			99.4			78.8			4.1			16.6			89.1			72.1			5.1			11.9
Sustaining capital expenditures (iv)	57.9			50.9			2.3			4.7			77.4			60.1			5.5			11.8			205.6			170.5			12.3			22.8			280.2			212.5			18.0			49.7
Exploration and evaluation expense (iii)	6.9			4.6			0.2			2.0			3.0			1.3			0.2			1.5			21.2			14.8			1.0			5.4			15.5			10.6			1.7			3.2
Total co-product AISC	$	361.1		$	282.8		$	13.9		$	64.3		$	390.8		$	296.1		$	23.8		$	70.9		$	1,379.6		$	1,071.3		$	67.6		$	240.9		$	1,424.2		$	1,092.4		$	84.9		$	247.0
Commercial oz and lb produced				299,956			1,171,042			34,667,040						319,264			1,627,051			36,869,469						1,155,340			5,004,760			127,333,872						1,198,740			6,709,251			115,548,437
Commercial oz and lb sold				301,513			1,012,898			33,186,233						324,197			1,619,208			34,182,827						1,147,204			4,874,809			120,066,492						1,188,267			6,604,212			104,923,875
Cost of sales excl. DDA per oz and lb sold				$	694		$	9.42		$	1.39					$	668		$	10.41		$	1.48					$	712		$	10.00		$	1.47					$	677		$	9.07		$	1.57
DDA per oz and lb sold				$	286		$	4.72		$	0.29					$	336		$	5.17		$	0.32					$	326		$	4.35		$	0.27					$	331		$	4.72		$	0.36
Total cost of sales per oz and lb sold				$	980		$	13.26		$	1.68					$	1,004		$	15.58		$	1.80					$	1,038		$	13.63		$	1.74					$	1,008		$	13.79		$	1.93
Co-product cash cost per oz and lb produced				$	680		$	8.86		$	1.51					$	667		$	10.07		$	1.44					$	699		$	10.01		$	1.54					$	665		$	8.96		$	1.58
Co-product AISC per oz and lb produced				$	943		$	11.90		$	1.85					$	928		$	14.48		$	1.92					$	927		$	13.48		$	1.89					$	911		$	12.65		$	2.14



Co-product Cash Cost & AISC	For the three months ended December 31, 2017											For the three months ended December 31, 2016												For the twelve months ended December 31, 2017												For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Chapada Total			Chapada Gold			Chapada Silver		Chapada Copper			Chapada Total			Chapada Gold			Chapada Silver			Chapada Copper			Chapada Total			Chapada Gold			Chapada Silver			Chapada Copper			Chapada Total			Chapada Gold			Chapada Silver			Chapada Copper
Cost of sales excluding DDA (i)	$	55.9		$	9.7		$	0.2	$	46.0		$	62.1		$	11.2		$	0.2		$	50.7		$	215.3		$	37.6		$	0.8		$	176.9		$	201.4		$	36.3		$	0.7		$	164.4
DDA	11.6			2.3			—		9.3			13.3			2.6			0.1			10.6			38.2			7.5			0.2			30.5			45.9			9.0			0.2			36.7
Total cost of sales	$	67.5		$	12.0		$	0.2	$	55.3		$	75.4		$	13.8		$	0.3		$	61.3		$	253.5		$	45.1		$	1.0		$	207.4		$	247.3		$	45.3		$	0.9		$	201.1
DDA	(11.6		)	(2.3		)	—		(9.3		)	(13.3		)	(2.6		)	(0.1		)	(10.6		)	(38.2		)	(7.5		)	(0.2		)	(30.5		)	(45.9		)	(9.0		)	(0.2		)	(36.7		)
Inventory movement	0.1			—			—		0.1			(1.9		)	(0.4		)	—			(1.5		)	(3.4		)	(0.7		)	—			(2.7		)	3.2			0.6			—			2.6
Treatment and refining charges (ii)	10.9			1.6			—		9.3			11.0			1.6			0.1			9.3			38.2			5.6			0.2			32.4			32.9			4.7			0.1			28.1
Commercial and other costs	(0.5		)	(0.1		)	—		(0.4		)	(3.5		)	(0.7		)	—			(2.8		)	(1.6		)	(0.3		)	—			(1.3		)	(6.9		)	(1.4		)	—			(5.5		)
Overseas freight for Chapada Conc.	(3.1		)	(0.6		)	—		(2.5		)	(3.1		)	(0.6		)	—			(2.5		)	(11.4		)	(2.2		)	—			(9.2		)	(9.1		)	(1.8		)	—			(7.3		)
Total co-product cash cost	$	63.3		$	10.6		$	0.2	$	52.5		$	64.6		$	11.1		$	0.3		$	53.2		$	237.1		$	40.0		$	1.0		$	196.1		$	221.5		$	38.4		$	0.8		$	182.3
G&A, excl., shared-based compensation (iii)	—			—			—		—			0.2			—			—			0.2			0.7			0.1			—			0.6			0.9			0.2			—			0.7
Sustaining capital expenditures (iv)	5.6			1.1			—		4.5			14.1			2.8			0.1			11.2			27.9			5.5			0.1			22.3			61.1			12.0			0.2			48.9
Exploration and evaluation expense (iii)	1.1			0.2			—		0.9			1.9			0.4			—			1.5			2.9			0.6			—			2.3			3.0			0.6			—			2.4
Total co-product AISC	$	70.0		$	11.9		$	0.2	$	57.9		$	80.8		$	14.3		$	0.4		$	66.1		$	268.6		$	46.2		$	1.1		$	221.3		$	286.5		$	51.2		$	1.0		$	234.3
Commercial oz and lb produced				36,578			71,520		34,667,040						40,358			78,020			36,869,469						119,852			252,748			127,333,872						107,301			259,444			115,548,437
Commercial oz and lb sold				36,789			47,534		33,186,233						41,048			58,688			34,182,827						117,305			129,452			120,066,492						92,807			131,339			104,923,875
Cost of sales excl. DDA per oz and lb sold				$	264		$	4.16	$	1.39					$	273		$	3.41		$	1.48					$	321		$	5.93		$	1.47					$	391		$	5.33		$	1.57
DDA per oz and lb sold				$	62		$	0.98	$	0.28					$	63		$	1.70		$	0.31					$	64		$	1.18		$	0.25					$	97		$	1.40		$	0.35
Total cost of sales per oz and lb sold				$	326		$	5.14	$	1.67					$	335		$	4.79		$	1.79					$	384		$	7.11		$	1.73					$	489		$	7.05		$	1.92
Co-product cash cost per oz and lb produced				$	291		$	3.25	$	1.51					$	275		$	3.17		$	1.44					$	334		$	3.38		$	1.54					$	359		$	3.20		$	1.58
Co-product AISC per oz and lb produced				$	327		$	3.63	$	1.67					$	354		$	3.99		$	1.80					$	385		$	3.88		$	1.74					$	478		$	4.20		$	2.03

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Co-product Cash Cost & AISC	For the three months ended December 31, 2017												For the three months ended December 31, 2016												For the twelve months ended December 31, 2017												For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold			El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold			El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold			El Peñón Total			El Peñón Gold			El Peñón Silver			Malartic Gold
Cost of sales excluding DDA (i)	$	33.9		$	25.0		$	8.9		$	56.3		$	56.8		$	41.2		$	15.6		$	46.1		$	165.2		$	121.6		$	43.6		$	186.0		$	204.1		$	149.1		$	55.0		$	179.0
DDA	16.8			12.4			4.4			32.4			28.2			20.3			7.9			31.0			70.2			51.7			18.5			129.4			105.7			77.0			28.7			121.3
Total cost of sales	$	50.7		$	37.4		$	13.3		$	88.7		$	85.0		$	61.5		$	23.5		$	77.1		$	235.4		$	173.3		$	62.1		$	315.4		$	309.8		$	226.1		$	83.7		$	300.3
DDA	$	(16.8	)	(12.4		)	(4.4		)	(32.4		)	$	(28.2	)	(20.3		)	(7.9		)	(31.0		)	$	(70.2	)	(51.7		)	(18.5		)	(129.4		)	$	(105.7	)	(77.0		)	(28.7		)	(121.3		)
Inventory movement	3.6			2.8			0.8			(5.6		)	(1.9		)	(1.4		)	(0.5		)	(1.8		)	(0.5		)	(1.0		)	0.5			(3.7		)	0.1			0.1			—			(1.8		)
Total co-product cash cost	$	37.5		$	27.8		$	9.7		$	50.7		$	54.9		$	39.8		$	15.1		$	44.3		$	164.7		$	120.6		$	44.1		$	182.3		$	204.2		$	149.2		$	55.0		$	177.2
G&A, excl., shared-based compensation (iii)	0.3			0.2			0.1			1.1			—			—			—			1.2			0.5			0.4			0.1			4.0			—			—			—			3.9
Sustaining capital expenditures (iv)	8.1			6.0			2.1			15.6			17.8			12.9			4.9			13.8			38.5			28.1			10.4			48.3			60.4			44.1			16.3			51.0
Exploration and evaluation expense (iii)	—			—			—			0.1			0.4			0.3			0.1			0.1			—			(0.1		)	0.1			0.3			4.5			3.3			1.2			0.4
Total co-product AISC	$	45.9		$	34.0		$	11.9		$	67.5		$	73.1		$	53.0		$	20.1		$	59.4		$	203.7		$	149.0		$	54.7		$	234.9		$	269.1		$	196.6		$	72.5		$	232.5
Commercial oz produced				39,401			1,052,423			80,743						55,764			1,454,293			69,971						160,509			4,282,339			316,731						220,209			6,020,758			292,514
Commercial oz sold				34,955			909,205			88,812						57,144			1,466,650			73,007						159,149			4,264,501			315,517						221,908			6,043,380			292,972
Cost of sales excl. DDA per oz sold				$	715		$	9.74		$	634					$	721		$	10.64		$	631					$	764		$	10.22		$	590					$	672		$	9.10		$	611
DDA per oz sold				$	354		$	4.84		$	364					$	355		$	5.39		$	425					$	325		$	4.34		$	410					$	347		$	4.75		$	414
Total cost of sales per oz sold				$	1,069		$	14.58		$	995					$	1,075		$	16.08		$	1,056					$	1,089		$	14.57		$	1,000					$	1,019		$	13.84		$	1,025
Co-product cash cost per oz produced				$	707		$	9.19		$	628					$	714		$	10.40		$	634					$	751		$	10.30		$	576					$	678		$	9.14		$	606
Co-product AISC per oz produced				$	864		$	11.23		$	835					$	952		$	13.84		$	849					$	928		$	12.77		$	742					$	893		$	12.04		$	795



Co-product Cash Cost & AISC	For the three months ended December 31, 2017												For the three months ended December 31, 2016												For the twelve months ended December 31, 2017												For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Gualcamayo Gold			Minera Florida Total			Minera Florida Gold			Minera Florida Silver			Gualcamayo Gold			Minera Florida Total			Minera Florida Gold			Minera Florida Silver			Gualcamayo Gold			Minera Florida Total			Minera Florida Gold			Minera Florida Silver			Gualcamayo Gold			Minera Florida Total			Minera Florida Gold			Minera Florida Silver
Cost of sales excluding DDA (i)	$	37.1		$	19.0		$	18.5		$	0.5		$	35.1		$	19.5		$	18.5		$	1.0		$	143.8		$	79.5		$	75.1		$	4.4		$	136.1		$	79.2		$	75.0		$	4.2
DDA	12.6			10.0			9.7			0.3			10.3			5.2			4.9			0.3			53.7			40.5			38.3			2.2			39.6			33.7			31.9			1.8
Total cost of sales	$	49.7		$	29.0		$	28.2		$	0.8		$	45.4		$	24.7		$	23.4		$	1.3		$	197.5		$	120.0		$	113.4		$	6.6		$	175.7		$	112.9		$	106.9		$	6.0
DDA	$	(12.6	)	(10.0		)	(9.7		)	(0.3		)	$	(10.3	)	(5.2		)	(4.9		)	(0.3		)	$	(53.7	)	(40.5		)	(38.3		)	(2.2		)	$	(39.6	)	(33.7		)	(31.9		)	(1.8		)
Inventory movement	2.8			(0.4		)	(0.4		)	—			(2.2		)	0.3			0.3			—			1.3			(1.1		)	(1.8		)	0.7			(5.3		)	1.8			1.7			0.1
Total co-product cash cost	$	39.9		$	18.6		$	18.1		$	0.5		$	32.9		$	19.8		$	18.8		$	1.0		$	145.1		$	78.4		$	73.3		$	5.1		$	130.8		$	81.0		$	76.7		$	4.3
G&A, excl., shared-based compensation (iii)	0.3			0.1			0.1			—			0.9			—			—			—			0.8			0.3			0.3			—			1.6			—			—			—
Sustaining capital expenditures (iv)	3.3			5.4			5.3			0.1			2.3			6.8			6.5			0.3			6.6			24.6			22.9			1.7			6.7			23.2			22.0			1.2
Exploration and evaluation expense (iii)	—			0.4			0.4			—			—			0.5			0.5			—			—			2.2			2.0			0.2			—			1.1			1.0			0.1
Total co-product AISC	$	43.5		$	24.5		$	23.9		$	0.6		$	36.1		$	27.1		$	25.8		$	1.3		$	152.5		$	105.5		$	98.5		$	7.0		$	139.1		$	105.3		$	99.7		$	5.6
Commercial oz produced	44,778						23,540			47,099			44,840						25,675			94,738			154,052						90,366			469,674			164,265						104,312			429,048
Commercial oz sold	43,303						23,503			56,159			47,615						25,325			93,870			152,679						90,876			480,856			169,347						102,204			429,494
Cost of sales excl. DDA per oz sold	$	858					$	786		$	8.68		$	737					$	731		$	10.65		$	942					$	826		$	9.14		$	804					$	734		$	9.67
DDA per oz sold	$	291					$	412		$	4.60		$	216					$	193		$	3.20		$	351					$	422		$	4.58		$	234					$	312		$	4.14
Total cost of sales per oz sold	$	1,149					$	1,198		$	13.28		$	953					$	924		$	13.37		$	1,293					$	1,248		$	13.72		$	1,038					$	1,046		$	13.81
Co-product cash cost per oz produced	$	891					$	765		$	9.96		$	734					$	730		$	10.63		$	942					$	812		$	10.95		$	796					$	735		$	9.90
Co-product AISC per oz produced	$	972					$	1,011		$	13.18		$	805					$	1,002		$	14.55		$	990					$	1,090		$	14.88		$	847					$	955		$	12.73

| 53



Co-product Cash Cost & AISC	For the three months ended December 31, 2017												For the three months ended December 31, 2016												For the twelve months ended December 31, 2017												For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold			Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold			Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold			Jacobina Gold			Brio Total			Corp. Office & Other Total			Corp. Office & Other Gold
Cost of sales excluding DDA (i)	$	25.9		$	36.6		$	—		$	—		$	21.8		$	42.6		$	—		$	—		$	98.6		$	154.1		$	—		$	—		$	86.8		$	142.4		$	—		$	—
DDA	8.7			6.7			2.1			1.6			12.0			26.6			1.9			1.5			44.8			42.6			7.6			5.9			39.9			67.1			9.0			7.3
Total cost of sales	$	34.6		$	43.3		$	2.1		$	1.6		$	33.8		$	69.2		$	1.9		$	1.5		$	143.4		$	196.7		$	7.6		$	5.9		$	126.7		$	209.5		$	9.0		$	7.3
DDA	(8.7		)	(6.7		)	(2.1		)	(1.6		)	(12.0		)	(26.6		)	(1.9		)	(1.5		)	(44.8		)	(42.6		)	(7.6		)	(5.9		)	(39.9		)	(67.1		)	(9.0		)	(7.3		)
Inventory movement	(1.6		)	(4.1		)	—			—			2.1			(0.6		)	—			—			(3.3		)	(3.4		)	—			—			(3.4		)	(1.0		)	—			—
Total co-product cash cost	$	24.3		$	32.5		$	—		$	—		$	23.9		$	42.0		$	—		$	—		$	95.3		$	150.7		$	—		$	—		$	83.4		$	141.4		$	—		$	—
G&A, excl., shared-based compensation (iii)	—			0.4			23.0			16.9			0.2			0.2			25.2			19.5			0.8			4.3			76.1			56.2			0.6			0.5			81.6			65.3
Sustaining capital expenditures (iv)	6.9			8.4			0.8			0.6			7.6			12.0			2.9			2.2			21.7			29.3			2.1			1.5			35.0			37.7			5.1			3.9
Exploration and evaluation expense (iii)	0.1			—			5.1			3.7			—			—			0.1			0.1			0.1			0.1			15.1			11.1			—			0.1			6.6			5.3
Total co-product AISC	$	31.3		$	41.3		$	28.9		$	21.2		$	31.7		$	54.2		$	28.2		$	21.8		$	117.9		$	184.4		$	93.3		$	68.8		$	119.0		$	179.7		$	93.3		$	74.5
Commercial oz and lb produced	34,566			40,350									32,180			50,477									135,806			178,025									120,478			189,661
Commercial oz and lb sold	33,695			40,456									30,058			50,000									135,620			176,056									118,142			190,887
Cost of sales excl. DDA per oz and lb sold	$	769		$	904								$	725		$	852								$	727		$	875								$	735		$	746
DDA per oz and lb sold	$	257		$	166								$	399		$	532								$	330		$	242								$	338		$	352
Total cost of sales per oz and lb sold	$	1,027		$	1,071								$	1,123		$	1,384								$	1,057		$	1,117								$	1,072		$	1,098
Co-product cash cost per oz and lb produced	$	703		$	806								$	742		$	832								$	701		$	846								$	692		$	746
Co-product AISC per oz and lb produced	$	906		$	1,024								$	984		$	1,073								$	867		$	1,035								$	988		$	947



Co-product Cash Cost & AISC	For the three months ended December 31, 2017						For the three months ended December 31, 2016						For the twelve months ended December 31, 2017						For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Corporate Office & Other Silver			Corporate Office & Other Copper			Corporate Office & Other Silver			Corporate Office & Other Copper			Corporate Office & Other Silver			Corporate Office & Other Copper			Corporate Office & Other Silver			Corporate Office & Other Copper
Cost of sales excluding DDA (i)	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
DDA	0.1			0.4			0.1			0.3			0.4			1.4			0.6			1.2
Total cost of sales	$	0.1		$	0.4		$	0.1		$	0.3		$	0.4		$	1.4		$	0.6		$	1.2
DDA	(0.1		)	(0.4		)	(0.1		)	(0.3		)	(0.4		)	(1.4		)	(0.6		)	(1.2		)
Total co-product cash cost	—			—			—			—			—			—			—			—
G&A, excl., shared-based compensation (iii)	1.0			5.1			1.6			4.2			3.9			16.0			5.1			11.2
Sustaining capital expenditures (iv)	—			0.2			0.2			0.5			0.1			0.5			0.3			0.8
Exploration and evaluation expense (iii)	0.2			1.1			—			—			0.8			3.2			0.4			0.8
Total co-product AISC	$	1.2		$	6.4		$	1.8		$	4.7		$	4.8		$	19.7		$	5.8		$	12.8

| 54



Co-product Cash Cost & AISC	For the three months ended December 31, 2017									For the three months ended December 31, 2016								For the twelve months ended December 31, 2017									For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)			Total Gold (attributable to Yamana Gold equityholders)			Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)		Total Gold (attributable to Yamana Gold equityholders)			Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)			Total Gold (attributable to Yamana Gold equityholders)			Total Gold (including Brio Gold)			Brio Gold (Attributable to Non-controlling Interests)		Total Gold (attributable to Yamana Gold equityholders)
Cost of sales excluding DDA (i)	$	209.2		$	16.3		$	192.9		$	216.5		$	—	$	216.5		$	816.7		$	50.2		$	766.5		$	804.8		$	—	$	804.8
DDA	86.3			3.0			83.3			109.0			—		109.0			373.7			13.4			360.3			393.2			—		393.2
Total cost of sales	$	295.5		$	19.3		$	276.2		$	325.5		$	—	$	325.5		$	1,190.4		$	63.6		$	1,126.8		$	1,198.0		$	—	$	1,198.0
DDA	(86.3		)	(3.0		)	(83.3		)	(109.1		)	—		(109.1		)	(373.7		)	(13.4		)	(360.3		)	(393.2		)	—		(393.2		)
Inventory movement	(6.1		)	(1.8		)	(4.3		)	(4.0		)	—		(4.0		)	(12.6		)	(1.2		)	(11.4		)	(9.1		)	—		(9.1		)
Treatment and refining charges (ii)	1.6			—			1.6			1.6			—		1.6			5.6			—			5.6			4.7			—		4.7
Commercial and other costs	(0.1		)	—			(0.1		)	(0.7		)	—		(0.7		)	(0.3		)	—			(0.3		)	(1.4		)	—		(1.4		)
Overseas freight for Chapada Conc.	(0.6		)	—			(0.6		)	(0.6		)	—		(0.6		)	(2.2		)	0.1			(2.3		)	(1.8		)	—		(1.8		)
Total co-product cash cost	$	204.0		$	14.5		$	189.5		$	212.7		$	—	$	212.7		$	807.2		$	49.1		$	758.1		$	797.2		$	—	$	797.2
G&A, excl., shared-based compensation (iii)	23.3			2.1			21.2			22.0			—		22.0			78.8			5.6			73.2			72.1			—		72.1
Sustaining capital expenditures (iv)	50.9			5.3			45.6			60.1			—		60.1			170.5			12.4			158.1			212.5			—		212.5
Exploration and evaluation expense (iii)	4.6			—			4.6			1.3			—		1.3			14.8			0.3			14.5			10.6			—		10.6
Total co-product AISC	$	282.8		$	21.9		$	260.9		$	296.1		$	—	$	296.1		$	1,071.3		$	67.4		$	1,003.9		$	1,092.4		$	—	$	1,092.4
Commercial oz and lb produced	299,956						282,040			319,264					319,264			1,155,340						1,096,327			1,198,740					1,198,740
Commercial oz and lb sold	301,513						283,551			324,197					324,197			1,147,204						1,086,464			1,188,267					1,188,267
Cost of sales excl. DDA per oz and lb sold	$	694					$	680		$	668				$	668		$	712					$	706		$	677				$	677
DDA per oz and lb sold	$	286					$	294		$	336				$	336		$	326					$	332		$	331				$	331
Total cost of sales per oz and lb sold	$	980					$	974		$	1,004				$	1,004		$	1,038					$	1,037		$	1,008				$	1,008
Co-product cash cost per oz and lb produced	$	680					$	672		$	667				$	667		$	699					$	692		$	665				$	665
Co-product AISC per oz and lb produced	$	943					$	925		$	928				$	928		$	927					$	916		$	911				$	911



Co-product Cash Cost & AISC	For the three months ended December 31, 2017									For the three months ended December 31, 2016									For the twelve months ended December 31, 2017									For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (v)			Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (v)			Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (v)			Total Gold (incl. Brio Gold)			Brio Gold			Total Gold - Yamana Mines (v)
Cost of sales excluding DDA (i)	$	209.2		$	36.6		$	172.6		$	216.5		$	42.6		$	173.9		$	816.7		$	154.0		$	662.7		$	804.8		$	142.5		$	662.3
DDA	86.3			6.8			79.5			109.0			26.6			82.4			373.7			42.7			331.0			393.2			67.1			326.1
Total cost of sales	$	295.5		$	43.4		$	252.1		$	325.5		$	69.2		$	256.3		$	1,190.4		$	196.7		$	993.7		$	1,198.0		$	209.6		$	988.4
DDA	(86.3		)	(6.8		)	(79.5		)	(109.1		)	(26.6		)	(82.5		)	(373.7		)	(42.7		)	(331.0		)	(393.2		)	(67.1		)	(326.1		)
Inventory movement	(6.1		)	(4.0		)	(2.1		)	(4.0		)	(0.6		)	(3.4		)	(12.6		)	(3.5		)	(9.1		)	(9.1		)	(1.0		)	(8.1		)
Treatment and refining charges (ii)	1.6			—			1.6			1.6			—			1.6			5.6			—			5.6			4.7			—			4.7
Commercial and other costs	(0.1		)	—			(0.1		)	(0.7		)	—			(0.7		)	(0.3		)	—			(0.3		)	(1.4		)	—			(1.4		)
Overseas freight for Chapada Conc.	(0.6		)	—			(0.6		)	(0.6		)	—			(0.6		)	(2.2		)	—			(2.2		)	(1.8		)	—			(1.8		)
Total co-product cash cost	$	204.0		$	32.6		$	171.4		$	212.7		$	42.0		$	170.7		$	807.2		$	150.5		$	656.7		$	797.2		$	141.5		$	655.7
G&A, excl., shared-based compensation (iii)	23.3			4.7			18.6			22.0			0.2			21.8			78.8			16.1			62.7			72.1			0.5			71.6
Sustaining capital expenditures (iv)	50.9			12.0			38.9			60.1			12.0			48.1			170.5			36.0			134.5			212.5			37.7			174.8
Exploration and evaluation expense (iii)	4.6			0.1			4.5			1.3			—			1.3			14.8			0.8			14.0			10.6			0.1			10.5
Total co-product AISC	$	282.8		$	49.4		$	233.4		$	296.1		$	54.2		$	241.9		$	1,071.3		$	203.4		$	867.9		$	1,092.4		$	179.8		$	912.6
Commercial oz and lb produced	299,956						259,606			319,264						268,787			1,155,340						977,315			1,198,740						1,009,079
Commercial oz and lb sold	301,513						261,057			324,197						274,197			1,147,204						971,148			1,188,267						997,380
Cost of sales excl. DDA per oz and lb sold	$	694					$	661		$	668					$	634		$	712					$	682		$	677					$	664
DDA per oz and lb sold	$	286					$	305		$	336					$	301		$	326					$	341		$	331					$	327
Total cost of sales per oz and lb sold	$	980					$	966		$	1,004					$	935		$	1,038					$	1,023		$	1,008					$	991
Co-product cash cost per oz and lb produced	$	680					$	660		$	667					$	635		$	699					$	672		$	665					$	650
Co-product AISC per oz and lb produced	$	943					$	899		$	928					$	900		$	927					$	888		$	911					$	905

| 55



By-product Cash Cost & AISC	For the three months ended December 31, 2017									For the three months ended December 31, 2016									For the twelve months ended December 31, 2017									For the twelve months ended December 31, 2016
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper
Cost of sales excluding DDA (i)	$	172.6		$	9.5		$	46.0		$	173.9		$	16.9		$	50.7		$	662.7		$	48.8		$	176.9		$	662.3		$	59.9		$	164.4
DDA	79.5			4.8			9.7			82.5			8.4			10.9			331.0			21.2			31.9			326.1			31.2			37.9
Total cost of sales	$	252.1		$	14.3		$	55.7		$	256.4		$	25.3		$	61.6		$	993.7		$	70.0		$	208.8		$	988.4		$	91.1		$	202.3
DDA	(79.5		)	(4.8		)	(9.7		)	(82.5		)	(8.4		)	(10.9		)	(331.0		)	(21.2		)	(31.9		)	(326.1		)	(31.2		)	(37.9		)
Inventory movement	(2.1		)	0.8			0.1			(3.4		)	(0.5		)	(1.4		)	(9.1		)	1.2			(2.7		)	(8.1		)	0.1			2.6
Treatment and refining charges (ii)	1.6			—			9.2			1.6			0.1			9.3			5.6			0.2			32.4			4.7			0.1			28.0
Commercial and other costs	(0.1		)	—			(0.4		)	(0.7		)	—			(2.8		)	(0.3		)	—			(1.3		)	(1.4		)	—			(5.5		)
Overseas freight for Chapada Conc.	(0.6		)	—			(2.5		)	(0.6		)	—			(2.5		)	(2.2		)	—			(9.2		)	(1.8		)	—			(7.3		)
By-product credits from Chapada copper revenue	(78.7		)	(4.6		)	—			(71.2		)	(6.2		)	—			(291.4		)	(19.9		)	—			(206.8		)	(18.0		)	—
Chapada copper co-product cash cost	49.5			2.9			(52.4		)	49.0			4.3			(53.3		)	183.4			12.8			(196.2		)	167.5			14.7			(182.1		)
Total by-product cash cost	$	142.2		$	8.6		$	—		$	148.6		$	14.6		$	—		$	548.7		$	43.1		$	(0.1	)	$	616.4		$	56.8		$	0.1
G&A, excl., shared-based compensation (iii)	23.4			1.3			—			25.2			1.9			—			78.2			5.1			—			82.6			6.0			—
Sustaining capital expenditures (iv)	43.3			2.6			—			57.5			6.4			—			155.8			13.9			—			220.5			22.1			—
Exploration and evaluation expense (iii)	6.4			0.3			—			2.6			0.3			—			19.1			1.4			—			13.4			1.9			—
Total by-product AISC	$	215.3		$	12.8		$	—		$	233.9		$	23.2		$	—		$	801.8		$	63.5		$	(0.1	)	$	932.9		$	86.8		$	—
Commercial oz and lb produced	259,606			1,171,042						268,787			1,627,051						977,315			5,004,760						1,009,079			6,709,251
Commercial oz and lb sold	261,057			1,012,898						274,197			1,619,208						971,148			4,874,809						997,380			6,604,212
Cost of sales excl. DDA per oz and lb sold	$	661		$	9.42					$	634		$	10.42					$	682		$	10.00					$	664		$	9.07
DDA per oz and lb sold	$	305		$	4.72					$	301		$	5.16					$	341		$	4.35					$	327		$	4.72
Total cost of sales per oz and lb sold	$	966		$	13.26					$	935		$	15.58					$	1,023		$	13.63					$	991		$	13.79
By-product cash cost per oz and lb produced	$	548		$	7.44					$	553		$	8.90					$	561		$	8.58					$	611		$	8.45
By-product AISC per oz and lb produced	$	829		$	11.05					$	870		$	14.18					$	820		$	12.65					$	925		$	12.93

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By-product Cash Cost & AISC	For the three months ended Jun 30, 2017									For the three months ended Mar 31, 2017									For the three months ended Dec 31, 2016									For the three months ended June 30, 2016									For the three months ended Mar 31, 2016									For the three months ended Dec 31, 2015
(In millions of US Dollars except ounces/pounds and per once/pound amounts)	Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper			Total Gold - Yamana Mines (v)			Total Silver (vi)			Total Copper
Cost of sales excluding DDA (i)	$	170.7		$	12.2		$	41.0		$	145.8		$	11.6		$	39.9		$	173.9		$	16.9		$	50.7		$	170.1		$	14.1		$	44.5		$	146.4		$	13.8		$	34.0		$	167.8		$	14.2		$	45.9
DDA	87.9			5.3			7.1			81.5			5.0			5.6			82.5			8.4			10.9			83.9			7.7			9.8			79.3			7.4			7.2			96.6			9.8			11.7
Total cost of sales	$	258.6		$	17.5		$	48.1		$	227.3		$	16.6		$	45.5		$	256.4		$	25.3		$	61.6		$	254.0		$	21.8		$	54.3		$	225.7		$	21.2		$	41.2		$	264.4		$	24.0		$	57.6
DDA	(87.9		)	(5.3		)	(7.1		)	(81.5		)	(5.0		)	(5.6		)	(82.5		)	(8.4		)	(10.9		)	(83.9		)	(7.7		)	(9.8		)	(79.3		)	(7.4		)	(7.2		)	(96.6		)	(9.8		)	(11.7		)
Inventory movement	(7.2		)	1.2			1.4			1.9			(0.4		)	3.9			(3.4		)	(0.5		)	(1.4		)	(6.6		)	0.1			(7.0		)	—			0.1			2.8			(0.2		)	—			(6.6		)
Treatment and refining charges (ii)	1.1			—			6.8			1.1			—			6.7			1.6			0.1			9.3			1.1			—			6.8			1.0			—			6.0			1.9			0.1			11.1
Commercial and other costs	—			—			(0.2		)	(0.4		)	—			(1.5		)	(0.7		)	—			(2.8		)	(0.2		)	—			(1.0		)	(0.1		)	—			(0.7		)	(0.3		)	—			(1.1		)
Overseas freight for Chapada Conc.	(0.6		)	—			(2.3		)	(0.4		)	—			(1.8		)	(0.6		)	—			(2.5		)	(0.3		)	—			(1.5		)	(0.5		)	—			(2.3		)	(0.4		)	—			(1.5		)
By-product credits from Chapada copper revenue	(60.4		)	(4.8		)	—			(60.7		)	(4.5		)	—			(71.2		)	(6.2		)	—			(49.7		)	(4.2		)	—			(40.7		)	(4.0		)	—			(68.3		)	(6.1		)	—
Chapada copper co-product cash cost	43.3			3.4			(46.7		)	44.1			3.1			(47.2		)	49.0			4.3			(53.3		)	38.5			3.3			(41.8		)	36.3			3.5			(39.8		)	43.9			3.9			(47.8		)
Total by-product cash cost	$	146.9		$	12.0		$	—		$	131.4		$	9.8		$	—		$	148.6		$	14.6		$	—		$	152.9		$	13.3		$	—		$	142.4		$	13.4		$	—		$	144.4		$	12.1		$	—
G&A, excl., shared-based compensation (iii)	17.0			1.3			—			17.2			1.1			—			25.2			1.9			—			18.2			1.3			—			17.0			1.3			—			17.7			1.1			—
Sustaining capital expenditures (iv)	36.8			4.2			—			40.2			3.7			—			57.5			6.4			—			59.4			5.4			—			36.1			4.2			—			35.8			3.5			—
Exploration and evaluation expense (iii)	4.8			0.4			—			3.6			0.3			—			2.6			0.3			—			4.5			0.8			—			2.6			0.4			—			3.6			0.6			—
Total by-product AISC	$	205.5		$	17.9		$	—		$	192.4		$	14.9		$	—		$	233.9		$	23.2		$	—		$	235.0		$	20.8		$	—		$	198.1		$	19.3		$	—		$	201.5		$	17.3		$	—
Commercial oz and lb produced	244,608			1,323,399						215,646			1,079,108						268,787			1,627,051						237,400			1,687,644						243,385			1,802,029						277,515			1,857,469
Commercial oz and lb sold	236,050			1,255,538						217,681			1,093,897						274,197			1,619,208						238,922			1,684,432						235,489			1,756,094						282,638			1,784,819
Cost of sales excl. DDA per oz and lb sold	$	723		$	9.73					$	670		$	10.57					$	634		$	10.42					$	712		$	8.38					$	621		$	7.85					$	594		$	7.97
DDA per oz and lb sold	$	372		$	4.19					$	375		$	4.57					$	301		$	5.16					$	351		$	4.56					$	337		$	4.21					$	342		$	5.47
Total cost of sales per oz and lb sold	$	1,096		$	13.92					$	1,044		$	15.14					$	935		$	15.58					$	1,063		$	12.94					$	958		$	12.06					$	935		$	13.44
By-product cash cost per oz and lb produced	$	601		$	9.18					$	610		$	9.00					$	553		$	8.90					$	644		$	7.92					$	585		$	7.39					$	521		$	6.48
By-product AISC per oz and lb produced	$	841		$	13.63					$	893		$	13.71					$	870		$	14.18					$	987		$	12.42					$	814		$	10.67					$	726		$	9.29


(i)	Cost of sales includes non-cash items including the impact of the movement in inventory. Beginning January 1, 2016, the Company revised the presentation of the reportable cash costs and comparative balances have been restated to conform to the change in presentation adopted in the current period.


(ii)	Costs directly attributed to a specific metal are allocated to that metal. Costs not directly attributed to a specific metal are allocated based on relative value. As a rule of thumb, the relative value is 80% copper, 20% gold and silver at Chapada (2016 - 80% copper and 20% gold and silver). TCRC’s are defined as treatment and refining charges.


(iii)	Chapada's general and administrative expense and exploration expense are allocated reflecting costs incurred on the related activities at Chapada. G&A and exploration expenses of all other operations are allocated based on the relative proportions of consolidated revenues from gold and silver sales.


(iv)	Chapada's sustaining capital expenditures are allocated reflecting costs incurred on the related activities at Chapada. Sustaining capital expenditures of all other operations are allocated based on the relative proportions of consolidated revenues from gold and silver sales.


(v)	Total Gold (from Yamana Mines) equals to "Total Gold" less Brio Gold Mines in this table. Information related to GAAP values of cost of sales excluding DDA, DDA and total cost of sales are derived from the Consolidated Statements of Operations and Note 32(b) Operating Segments, Information about Profit and Loss , to the Company's Consolidated Financial Statements.


(vi)	Quantities sold for the purpose of determining cost of sales per silver ounce sold exclude silver sales for Canadian Malartic, as silver is considered a by-product for the mine, and therefore all costs are allocated to gold production.

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NET DEBT

The Company uses the financial measure "Net Debt", which is a non-GAAP financial measure, to supplement information in its Consolidated Financial Statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance. The non-GAAP financial measure of net debt does not have any standardized meaning prescribed under IFRS, and therefore it may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Net Debt is calculated as the sum of the current and non-current portions of long-term debt net of the cash and cash equivalent balance as at the balance sheet date. A reconciliation of Net Debt is provided below:



As at December 31, (In millions of US Dollars)	2017		2016
Debt
Non-current portion	$	1,747.7	$	1,573.8
Current portion	110.0		18.6
Total debt	$	1,857.7	$	1,592.4
Less: Cash and cash equivalents	148.9		97.4
Net debt	$	1,708.8	$	1,495.0

NET FREE CASH FLOW

The Company uses the financial measure "Net Free Cash Flow", which is a non-GAAP financial measure, to supplement information in its Consolidated Financial Statements. Net Free Cash Flow does not have any standardized meaning prescribed under IFRS, and therefore it may not be comparable to similar measures employed by other companies. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance with respect to its operating cash flow capacity to meet non-discretionary outflows of cash. The presentation of Net Free Cash Flow is not meant to be a substitute for the cash flow information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Net Free Cash Flow is calculated as cash flows from operating activities of continuing operations adjusted for advance payments received pursuant to metal purchase agreements, non-discretionary expenditures from sustaining capital expenditures and interest and financing expenses paid related to the current period. A reconciliation of Net Free Cash Flow is provided below:



	For the three months ended December 31,						Twelve months ended December 31,
(In millions of US Dollars; unless otherwise noted)	2017			2016			2017			2016
Cash flows from operating activities before income taxes paid and net change in working capital	$	170.3		$	161.2		$	593.7		$	690.5
Income taxes paid	(1.4		)	(13.5		)	(19.0		)	(63.9		)
Payments made related to the Brazilian tax matters	(46.6		)	—			(76.7		)	—
Cash flows from operating activities before net change in working capital	$	122.3		$	147.7		$	498.0		$	626.6
Net change in working capital	36.2			15.3			(14.0		)	25.3
Cash flows from operating activities	$	158.5		$	163.0		$	484.0		$	651.9
Less: Advance payments received on metal purchase agreement and unearned revenue	(6.6		)	—			(6.6		)	(64.0		)
Add: Payments made related to the Brazilian tax matters	46.6			—			76.7			—
Add: Other cash payments	—			—			6.0			—
Less: Non-discretionary items related to the current period
Sustaining capital expenditures	(57.0		)	(77.7		)	(204.7		)	(280.5		)
Interest and finance expenses paid	(34.3		)	(30.1		)	(103.8		)	(96.2		)
Net free cash flow	$	107.2		$	55.2		$	251.6		$	211.2

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AVERAGE REALIZED METAL PRICES

The Company uses the financial measures "average realized gold price", "average realized silver price" and "average realized copper price", which are non-GAAP financial measures, to supplement in its Consolidated Financial Statements. Average realized price does not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The Company believes that in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors and analysts use this information to evaluate the Company’s performance vis-à-vis average market prices of metals for the period. The presentation of average realized metal prices is not meant to be a substitute for the revenue information presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measure.

Average realized metal price represents the sale price of the underlying metal before deducting sales taxes, treatment and refining charges, and other quotational and pricing adjustments. Average realized prices are calculated as the revenue related to each of the metals sold, i.e. gold, silver and copper, divided by the quantity of the respective units of metals sold, i.e. gold ounce, silver ounce and copper pound. Reconciliations of average realized metal prices to revenue are provided below:



For the three months ended December 31, 2017	2017										2016
(In millions of US Dollars; unless otherwise noted)	Total			Gold		Silver		Copper			Total		Gold		Silver		Copper
Revenue	$	478.8		$	382.6	$	17.8	$	78.4		$	484.4	$	387.7	$	27.7	$	69.0
Treatment and refining charges of gold and copper concentrate	10.9			1.7		—		9.2			11.0		1.6		0.1		9.3
Sales taxes	5.5			3.3		—		2.2			4.9		2.6		—		2.3
Metal price adjustments related to concentrate revenue	10.7			0.1		—		10.6			4.6		0.5		—		4.1
Other adjustments	(0.1		)	0.1		—		(0.2		)	—		—		—		—
Gross revenue	$	505.8		$	387.8	$	17.8	$	100.2		$	504.9	$	392.4	$	27.8	$	84.7

Commercial gold/silver ounces, million pounds of copper sold				301,513		1,081,731		33.2					324,197		1,619,208		34.2
Revenue per gold/silver ounce, pound of copper sold				$	1,269	$	16.46	$	2.36				$	1,196	$	17.11	$	2.02
Average realized price per gold/silver ounce, pound of copper sold				$	1,286	$	16.49	$	3.02				$	1,210	$	17.17	$	2.48



For the years ended December 31,	2017												2016
(In millions of US Dollars; unless otherwise noted)	Total			Gold			Silver			Copper			Total			Gold			Silver			Copper
Revenue	$	1,803.8		$	1,433.9		$	86.1		$	283.8		$	1,787.7		$	1,473.5		$	112.7		$	201.5
Treatment and refining charges of gold and copper concentrate	38.2			5.6			0.2			32.4			32.9			4.9			0.1			27.9
Sales taxes	18.6			11.5			—			7.1			16.5			8.7			0.3			7.5
Metal price adjustments related to concentrate revenue	10.1			(0.8		)	—			10.9			(3.0		)	(0.9		)	—			(2.1		)
Other adjustments	(0.5		)	(0.1		)	(0.1		)	(0.3		)	—			—			(0.5		)	0.5
Gross revenue	$	1,870.2		$	1,450.1		$	86.2		$	333.9		$	1,834.1		$	1,486.2		$	112.6		$	235.3

Commercial gold/silver ounces, million pounds of copper sold				1,147,204			5,125,689			120.1						1,188,267			6,604,212			104.9
Revenue per gold/silver ounce, pound of copper sold				$	1,250		$	16.80		$	2.36					$	1,240		$	17.06		$	1.92
Average realized price per gold/silver ounce, pound of copper sold				$	1,264		$	16.83		$	2.78					$	1,251		$	17.04		$	2.24

ADDITIONAL LINE ITEMS OR SUBTOTALS IN FINANCIAL STATEMENTS

The Company uses the following additional line items and subtotals in the Consolidated Financial Statements as contemplated in IAS 1: Presentation of Financial Statements :


•	Gross margin excluding depletion, depreciation and amortization — represents the amount of revenue in excess of cost of sales excluding depletion, depreciation and amortization. This additional measure represents the cash contribution from the sales of metals before all other operating expenses and DDA, in the reporting period.

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•	Mine operating earnings — represents the amount of revenue in excess of cost of sales excluding depletion, depreciation and amortization and depletion, depreciation and amortization.

•

Operating earnings — represents the amount of earnings before net finance income/expense and income tax recovery/expense. This measure represents the amount of financial contribution, net of all expenses directly attributable to mining operations and overheads. Finance income, finance expense and foreign exchange gains/losses are not classified as expenses directly attributable to mining operations.

•

Cash flows from operating activities before income taxes paid and net change in working capital — excludes the payments made during the period related to income taxes and tax related payments and the movement from period-to-period in working capital items including trade and other receivables, other assets, inventories, trade and other payables. Working capital and income taxes can be volatile due to numerous factors, such as the timing of payment and receipt. As the Company uses the indirect method prescribed by IFRS in preparing its statement of cash flows, this additional measure represents the cash flows generated by the mining business to complement the GAAP measure of cash flows from operating activities, which is adjusted for income taxes paid and tax related payments and the working capital change during the reporting period.

•

Cash flows from operating activities before net change in working capital — excludes the movement from period-to-period in working capital items including trade and other receivables, other assets, inventories, trade and other payables. Working capital can be volatile due to numerous factors, such as the timing of payment and receipt. As the Company uses the indirect method prescribed by IFRS in preparing its statement of cash flows, this additional measure represents the cash flows generated by the mining business to complement the GAAP measure of cash flows from operating activities, which is adjusted for the working capital change during the reporting period.

The Company’s management believes that their presentation provides useful information to investors because gross margin excluding depletion, depreciation and amortization excludes the non-cash operating cost item (i.e. depreciation, depletion and amortization), cash flows from operating activities before net change in working capital excludes the movement in working capital items, mine operating earnings excludes expenses not directly associate with commercial production and operating earnings excludes finance and tax related expenses and income/recoveries. These, in management’s view, provide useful information of the Company’s cash flows from operating activities and are considered to be meaningful in evaluating the Company’s past financial performance or the future prospects.

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15. SELECTED QUARTERLY FINANCIAL AND OPERATING SUMMARY



For the three months ended	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(In millions of US Dollars, unless otherwise noted)	2017			2017			2017			2017
Financial results
Revenue (i)	$	478.8		$	493.4		$	428.1		$	403.5
Mine operating earnings	$	(143.7	)	$	106.4		$	55.2		$	59.5
Net earnings/(loss) from continuing operations	$	(199.7	)	$	38.3		$	(36.8	)	$	(5.9	)
Net earnings/(loss)	$	(199.7	)	$	38.3		$	(36.8	)	$	(5.9	)
Cash flows from operating activities from continuing operations	$	158.5		$	149.8		$	124.6		$	51.3
Cash flows from operating activities before income taxes paid and net change in working capital (ii)	$	170.3		$	171.5		$	126.5		$	125.6
Cash flows from operating activities before net change in working capital (ii)	$	122.3		$	135.8		$	122.8		$	117.2
Cash flows to investing activities from continuing operations	$	(196.9	)	$	(179.8	)	$	(139.0	)	$	(128.8	)
Cash flows from/(to) financing activities operations from continuing operations	$	68.3		$	19.5		$	45.2		$	85.2
Per share financial results
Net earnings/(loss) per share from continuing operations attributable to Yamana equityholders
Basic and diluted	$	(0.20	)	$	0.05		$	(0.04	)	$	(0.01	)
Weighted average number of common shares outstanding - basic (in thousands)	948,468			948,254			948,116			947,901
Weighted average number of common shares outstanding - diluted (in thousands)	948,468			948,830			948,116			947,901
Financial position
Cash and cash equivalents	$	148.9		$	125.4		$	132.3		$	105.9
Total assets	$	8,763.3		$	8,993.3		$	8,868.7		$	8,850.4
Total non-current liabilities	$	3,535.3		$	3,679.2		$	3,713.4		$	3,707.8
Production - Gold
Gold ounces produced - attributable (iii)	282,041			281,315			275,437			257,533
Discontinued operations - gold ounces	—			—			—			—
Total gold ounces produced	282,041			281,315			275,437			257,533
Total cost of sales per gold ounce sold (ii)	$	980		$	1,022		$	1,105		$	1,038
Co-product cash costs per gold ounce produced - attributable (ii)(iii)	$	672		$	689		$	696		$	712
Co-product cash costs per gold ounce produced - Yamana mines (ii)(iii)	$	660		$	672		$	671		$	687
By-product cash costs per gold ounce produced - Yamana mines (ii)(iii)	$	548		$	496		$	601		$	610
Co-product AISC per gold ounce produced - attributable (ii)(iii)	$	925		$	905		$	899		$	936
Co-product AISC per gold ounce produced - Yamana mines (ii)(iii)	$	899		$	874		$	869		$	912
By-product AISC per gold ounce produced - Yamana mines (ii)(iii)	$	829		$	729		$	841		$	893
Production - Silver
Silver ounces produced (iii)	1,171,042			1,431,211			1,323,399			1,079,108
Total cost of sales per silver ounce sold (ii)	$	13.26		$	14.15		$	13.92		$	15.36
Co-product cash costs per silver ounce produced (ii)(iii)	$	8.86		$	10.53		$	10.19		$	10.36
By-product cash costs per silver ounce produced (ii)(iii)	$	7.44		$	8.64		$	9.18		$	9.00
Co-product AISC per silver ounce produced (ii)(iii)	$	11.90		$	13.70		$	14.04		$	14.24
By-product AISC per silver ounce produced (ii)(iii)	$	11.05		$	12.24		$	13.63		$	13.71
Production - Other
Chapada concentrate production (tonnes)	66,104			70,090			54,342			51,589
Chapada copper contained in concentrate (millions of pounds)	34.7			37.1			29.1			26.5
Total cost of sales per pound of copper sold (ii)	$	1.68		$	1.63		$	1.91		$	1.81
Chapada co-product cash costs per pound of copper produced	$	1.51		$	1.35		$	1.61		$	1.78
Chapada co-product AISC per pound of copper produced (ii)(iii)	$	1.67		$	1.44		$	1.84		$	2.13
Sales included in revenue
Gold (ounces)	301,513			299,588			278,187			267,916
Silver (ounces)	1,081,731			1,574,943			1,299,957			1,169,058
Chapada concentrate (tonnes)	64,873			74,394			52,643			50,626
Chapada payable copper contained in concentrate (millions of pounds)	33.2			36.5			25.2			25.2
Revenue per ounce / pound

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Gold - per ounce	$	1,269	$	1,264	$	1,255	$	1,209
Silver - per ounce	$	16.46	$	16.64	$	16.85	$	17.28
Copper - per pound	$	2.36	$	2.43	$	2.27	$	2.35
Average realized prices
Gold - per ounce (i)	$	1,286	$	1,278	$	1,268	$	1,220
Silver - per ounce (i)	$	16.49	$	16.66	$	16.89	$	17.29
Copper - per pound (i)	$	3.02	$	2.89	$	2.52	$	2.57



For the three months ended	Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(In millions of US Dollars, unless otherwise noted)	2016			2016			2016			2016
Financial results
Revenues (i)	$	484.4		$	464.3		$	438.0		$	400.9
Mine operating earnings	$	(639.3	)	$	91.0		$	54.3		$	79.0
Net (loss)/earnings from continuing operations	$	(355.4	)	$	(2.1	)	$	30.3		$	36.1
Net (loss)/earnings	$	(368.0	)	$	(11.8	)	$	34.8		$	36.4
Cash flows from operating activities from continuing operations	$	163.0		$	178.6		$	192.7		$	116.3
Cash flows from operating activities before income taxes paid and net change in working capital (ii)	$	161.2		$	176.2		$	200.2		$	151.6
Cash flows from operating activities before net change in working capital (ii)	$	147.7		$	173.0		$	189.5		$	115.2
Cash flows (to)/from investing activities from continuing operations	$	(160.2	)	$	12.9		$	(120.6	)	$	(139.7	)
Cash flows (to)/from financing activities operations from continuing operations	$	(147.0	)	$	(33.3	)	$	(108.7	)	$	22.0
Per share financial results
(Loss)/earnings per share from continuing operations attributable to Yamana equityholders
Basic and diluted	$	(0.37	)	$	(0.01	)	$	0.03		$	0.04
Weighted average number of common shares outstanding - basic (in thousands)	947,647			947,590			947,346			947,173
Weighted average number of common shares outstanding - diluted (in thousands)	947,647			947,590			948,096			947,670
Financial position
Cash and cash equivalents	$	97.4		$	243.6		$	93.4		$	124.6
Total assets	$	8,801.7		$	9,564.5		$	9,532.9		$	9,584.0
Total non-current liabilities	$	3,746.6		$	4,124.0		$	4,098.7		$	4,178.6
Production - Gold
Commercial gold ounces produced - attributable (iii)	319,265			305,581			290,137			283,757
Discontinued operations - gold ounces	—			23,023			22,948			24,304
Total gold ounces produced	319,265			328,604			313,085			308,061
Total cost of sales per gold ounce sold (ii)	$	1,004		$	1,038		$	1,056		$	939
Co-product cash costs per gold ounce produced - attributable (ii)(iii)	$	667		$	692		$	698		$	601
Co-product cash costs per gold ounce produced - Yamana mines (ii)(iii)	$	635		$	671		$	692		$	603
By-product cash costs per gold ounce produced - Yamana mines (ii)(iii)	$	553		$	665		$	644		$	585
Co-product AISC per gold ounce produced - attributable (ii)(iii)	$	928		$	965		$	958		$	785
Co-product AISC per gold ounce produced - Yamana mines (ii)(iii)	$	892		$	936		$	969		$	791
By-product AISC per gold ounce produced - Yamana mines (ii)(iii)	$	870		$	998		$	987		$	814
Production - Silver
Commissioning silver ounces produced from continuing operations (iii)	1,627,051			1,592,526			1,687,644			1,802,029
Discontinued operations - silver ounces	—			98,995			103,262			124,620
Total silver ounces produced	1,627,051			1,691,521			1,790,906			1,926,649
Total cost of sales per silver ounce sold (ii)	$	15.58		$	15.36		$	12.94		$	12.06
Co-product cash costs per silver ounce produced (ii)(iii)	$	10.07		$	9.79		$	8.47		$	7.68
By-product cash costs per silver ounce produced (ii)(iii)	$	8.90		$	9.78		$	7.92		$	7.39
Co-product AISC per silver ounce produced (ii)(iii)	$	14.48		$	13.79		$	12.18		$	10.44
By-product AISC per silver ounce produced (ii)(iii)	$	14.18		$	14.73		$	12.42		$	10.67
Production - Other
Chapada concentrate production (tonnes)	68,375			56,100			43,720			48,138
Chapada copper contained in concentrate production (millions of pounds)	36.9			29.6			23.2			25.9
Total cost of sales per pound of copper sold (ii)	$	1.80		$	1.91		$	2.09		$	1.81

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Chapada co-product cash costs per pound of copper produced	$	1.44	$	1.60	$	1.80	$	1.54
Chapada co-product AISC per pound of copper produced (ii)(iii)	$	1.80	$	2.15	$	2.43	$	1.85
Sales included in revenue
Gold (ounces)	324,197		296,330		291,152		276,589
Silver (ounces)	1,619,208		1,545,128		1,684,432		1,756,094
Chapada concentrate (tonnes)	68,477		47,604		52,735		48,364
Chapada payable copper contained in concentrate (millions of pounds)	34.2		22.1		26.0		22.7
Revenue per ounce / pound
Gold - per ounce	$	1,196	$	1,327	$	1,256	$	1,179
Silver - per ounce	$	17.11	$	19.47	$	16.72	$	14.92
Copper - per pound	$	2.02	$	1.86	$	1.7	$	2.14
Average realized prices
Gold - per ounce (i)	$	1,210	$	1,337	$	1,267	$	1,189
Silver - per ounce (i)	$	17.17	$	19.53	$	16.83	$	14.93
Copper - per pound (i)	$	2.48	$	2.14	$	2.12	$	2.12


(i)	Revenue consists of sales net of sales taxes. Revenue per ounce data is calculated based on gross sales. Realized prices reflect continuing operations.


(ii)	A cautionary note regarding non-GAAP financial measures is included in Section 14: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this MD&A.


(iii)	Balances are from continuing operations. Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the period, which for 2017 was a weighted average of 65.5% (2016 - 100%).

16. DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior management, including the Company’s Chairman and Chief Executive Officer and Senior Vice President, Finance and Chief Financial Officer, on a timely basis so that appropriate decisions can be made regarding public disclosure. The Company’s system of disclosure controls and procedures includes, but is not limited to, our Timely Disclosure and Confidentiality Policy, our Code of Conduct, our Insider Trading Policy, our Corporate Controls Policy, the effective functioning of our Audit Committee and procedures in place to systematically identify matters warranting consideration of disclosure by the Audit Committee.

As at the end of the period covered by this Management’s Discussion and Analysis, management of the Company, with the participation of the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as required by applicable rules of the Canadian Securities Administrators (or Canadian securities regulatory authorities) and the U.S. Securities and Exchange Commission (or the SEC). The evaluation included documentation review, inquiries and other procedures considered by management to be appropriate in the circumstances. Based on that evaluation, the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer have concluded that, as of the end of the period covered by this Management’s Discussion and Analysis, the disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) were effective to provide reasonable assurance that information required to be disclosed in the Company’s annual filings and interim filings and other reports filed or submitted under applicable securities laws, is recorded, processed, summarized and reported within time periods specified by those laws and that material information is accumulated and communicated to management of the Company, including the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of the Company is responsible for establishing and maintaining effective "internal control over financial reporting" as such term is defined in the rules of the Canadian Securities Administrators and the SEC. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting for external purposes in accordance with IFRS. The Company’s internal control over financial reporting includes:


•	Maintaining records, that in reasonable detail, accurately and fairly reflect our transactions and dispositions of the assets of the Company;


•	Providing reasonable assurance that transactions are recorded as necessary for preparation of our Consolidated Financial Statements in accordance with generally accepted accounting principles;


•	Providing reasonable assurance that receipts and expenditures are made in accordance with authorizations of management and the directors of the Company; and

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•	Providing reasonable assurance that unauthorized acquisition, use or disposition of Company assets that could have a material effect on the Company’s Consolidated Financial Statements would be prevented or detected on a timely basis.

The Company’s internal control over financial reporting may not prevent or detect all misstatements because of inherent limitations. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures.

Management assessed the effectiveness of the Company's internal control over financial reporting, as defined in Rules 13a - 15(f) and 15d - 15(f) of the Securities Exchange Act of 1934, based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission as of December 31, 2017. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management has concluded that the Company's internal control over financial reporting was effective as of December 31, 2017.

The Company's independent registered public accounting firm, Deloitte LLP, has audited the Consolidated Financial Statements included in the annual report and has issued an attestation report dated February 15, 2018 on the Company's internal control over financial reporting based on the criteria set forth in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

CHANGES IN INTERNAL CONTROLS

During the period ended December 31, 2017 , there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

LIMITATIONS OF CONTROLS AND PROCEDURES

The Company’s management, including the Chairman and Chief Executive Officer and the Senior Vice President, Finance and Chief Financial Officer, believe that any disclosure controls and procedures or internal controls over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgements in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any systems of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

This report provides a discussion and analysis of the financial condition and results of operations (“Management’s Discussion and Analysis”) to enable a reader to assess material changes in financial condition between December 31, 2017 and December 31, 2016 and results of operations for the periods ended December 31, 2017 and December 31, 2016 .

This Management’s Discussion and Analysis has been prepared as of February 15, 2018. The Consolidated Financial Statements prepared in accordance with IFRS as issued by IASB follow this Management’s Discussion and Analysis. This Management’s Discussion and Analysis is intended to supplement and complement the annual audited Consolidated Financial Statements and notes thereto as at and for the year ended December 31, 2017 (collectively the “Financial Statements”). You are encouraged to review the Financial Statements in conjunction with your review of this Management’s Discussion and Analysis. This Management’s Discussion and Analysis should be read in conjunction with both the Financial Statements and the most recent Annual Information Form for the year ended December 31, 2016 on file with the Securities Commissions of all of the provinces in Canada and which are included in the 2016 Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Certain notes to the Financial Statements are specifically referred to in this Management’s Discussion and Analysis. All Dollar amounts in the Management’s Discussion and Analysis are in US Dollars, unless otherwise specified.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This Management’s Discussion and Analysis contains or incorporates by reference “forward-looking statements” and “forward-looking information” under applicable Canadian securities legislation within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to information with respect to the Company’s strategy, plans or future financial or operating performance, the outcome of the legal matters involving the damages assessments and any related enforcement proceedings. Forward-looking statements are characterized by words such as “plan,” “expect”, “budget”, “target”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company’s expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met, the impact of proposed optimizations at the Company's projects, changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold, copper, silver and zinc), currency exchange rates (such as the Brazilian Real, the Chilean Peso and the Argentine Peso versus the US Dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company’s hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset disposition, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, final pricing for concentrate sales, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture operations, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein and in the Company's Annual Information Form filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and the Company’s Annual Report on Form 40-F filed with the United States Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company’s expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company’s plans and objectives and may not be appropriate for other purposes.

CAUTIONARY STATEMENT REGARDING MINERAL RESERVES AND MINERAL RESOURCES

Readers should refer to the Annual Information Form of the Company for the year ended December 31, 2016 and other continuous disclosure documents filed by the Company since January 1, 2017 available at www.sedar.com , for further information on mineral reserves and mineral resources, which is subject to the qualifications and notes set forth therein.

CAUTIONARY STATEMENT TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES

This Management’s Discussion and Analysis has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended. These definitions differ from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “Commission”) and contained in Industry Guide 7 (“Industry Guide 7”). Under Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report mineral reserves,

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the three-year historical average price is used in any mineral reserve or cash flow analysis to designate mineral reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority.

In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101. However, these terms are not defined terms under Industry Guide 7 and are not permitted to be used in reports and registration statements of United States companies filed with the Commission. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations. In contrast, the Commission only permits U.S. companies to report mineralization that does not constitute “mineral reserves” by Commission standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this Management’s Discussion and Analysis may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.

*************

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EXHIBIT 99.3

CONSOLIDATED FINANCIAL STATEMENTS

AS AT AND FOR THE YEARS ENDED

DECEMBER 31, 2017 AND 2016



TABLE OF CONTENTS
		Page
	Management's Responsibility for Financial Reporting	1
	Reports of Independent Registered Public Accounting Firm	2
	Consolidated Statements of Operations	4
	Consolidated Statements of Comprehensive Loss	5
	Consolidated Statements of Cash Flows	6
	Consolidated Balance Sheets	7
	Consolidated Statements of Changes in Equity	8

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS:
Note 1:	Nature of Operations	9
Note 2:	Basis of Preparation and Presentation	9
Note 3:	Significant Accounting Policies	9
Note 4:	Critical Judgements and Estimation Uncertainties	21
Note 5:	Recent Accounting Pronouncements	25
Note 6:	Acquisition and Disposition of Mineral Interests and Corporate Transactions	28
Note 7:	Cost of Sales Excluding Depletion, Depreciation and Amortization	31
Note 8:	Employee Compensation and Benefits Expenses	31
Note 9:	Other Expenses	32
Note 10:	Finance Income and Expense	32
Note 11:	Impairment and Reversal of Impairment	32
Note 12:	Income Taxes	34
Note 13:	Loss Per Share	37
Note 14:	Reserves	38
Note 15:	Supplementary Cash Flow Information	38
Note 16:	Financial Instruments	40
Note 17:	Trade and Other Receivables	47
Note 18:	Inventories	47
Note 19:	Other Financial Assets	48
Note 20:	Other Assets	48
Note 21:	Property, Plant and Equipment	48
Note 22:	Goodwill and Intangibles	50
Note 23:	Trade and Other Payables	50
Note 24:	Other Financial Liabilities	50
Note 25:	Other Provisions and Liabilities	51
Note 26:	Long-Term Debt	52
Note 27:	Decommissioning, Restoration and Similar Liabilities	53
Note 28:	Share Capital	54
Note 29:	Share-Based Payments	55
Note 30:	Non-Controlling Interest	55
Note 31:	Capital Management	56
Note 32:	Operating Segments	56
Note 33:	Contractual Commitments	59
Note 34:	Contingencies	59
Note 35:	Related Party Transactions	60
Note 36:	Subsequent Events	61
Note 37:	Guarantor Subsidiaries Annual Financial Statements	62

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying consolidated financial statements of Yamana Gold Inc. and subsidiaries ("Yamana Gold Inc." or "Company") and all the information in this annual report are the responsibility of management and have been approved by the Board of Directors.

The consolidated financial statements have been prepared by management on a going concern basis in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). When alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances. Financial statements are not exact since they include certain amounts based on estimates and judgements. Management has determined such amounts on a reasonable basis in order to ensure that the financial statements are presented fairly, in all material respects. Management has prepared the financial information presented elsewhere in the annual report and has ensured that it is consistent with that in the consolidated financial statements.

Yamana Gold Inc. maintains systems of internal accounting and administrative controls in order to provide, on a reasonable basis, assurance that the financial information is relevant, reliable and accurate and that the Company's assets are appropriately accounted for and adequately safeguarded. The Company's internal control over financial reporting as of December 31, 2017 , is based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the financial statements. The Board carries out this responsibility principally through its Audit Committee ("Committee").

The Audit Committee is appointed by the Board, and all of its members are independent directors. The Committee meets at least four times a year with management, as well as the external auditors, to discuss internal controls over the financial reporting process, auditing matters and financial reporting issues, to satisfy itself that each party is properly discharging its responsibilities, and to review the quarterly and the annual reports, the consolidated financial statements and the external auditors' reports. The Committee reports its findings to the Board for consideration when approving the consolidated financial statements for issuance to the shareholders. The Committee also considers, for review by the Board and approval by the shareholders, the engagement or reappointment of the external auditors. The consolidated financial statements have been audited by Deloitte LLP, Chartered Professional Accountants, in accordance with Canadian generally accepted auditing standards and standards of the Public Company Accounting Oversight Board (United States) on behalf of the shareholders. Deloitte LLP has full and free access to the Audit Committee.

“Peter Marrone” “Jason LeBlanc”

Chairman and Senior Vice President, Finance and

Chief Executive Officer Chief Financial Officer

February 15, 2018

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Yamana Gold Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Yamana Gold Inc. and subsidiaries (the “Company”), which comprise the consolidated balance sheets as at December 31, 2017 and December 31, 2016, the consolidated statements of operations, consolidated statements of comprehensive loss, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended, and the related notes, including a summary of significant accounting policies and other explanatory information (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2017 and December 31, 2016, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Report on Internal Control over Financial Reporting

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 15, 2018 expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error. Those standards also require that we comply with ethical requirements. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. Further, we are required to be independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada and to fulfill our other ethical responsibilities in accordance with these requirements.

An audit includes performing procedures to assess the risks of material misstatement of the financial statements, whether due to fraud or error, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies and principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a reasonable basis for our audit opinion.

"Deloitte LLP"

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

February 15, 2018

We have served as the Company's auditor since 1995.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Yamana Gold Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Yamana Gold Inc. and subsidiaries (the “Company”) as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB) and Canadian generally accepted auditing standards, the consolidated financial statements as of and for the year ended December 31, 2017, of the Company and our report dated February 15, 2018, expressed an unmodified/unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

"Deloitte LLP"

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

February 15, 2018

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YAMANA GOLD INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31,



(In millions of US Dollars except for shares and per share amounts)	2017			2016
Revenue	$	1,803.8		$	1,787.7
Cost of sales excluding depletion, depreciation and amortization ( Note 7 )	(1,042.4		)	(1,029.0		)
Gross margin excluding depletion, depreciation and amortization	$	761.4		$	758.7
Depletion, depreciation and amortization	(426.8		)	(462.3		)
Impairment of mining properties ( Note 11 )	(256.9		)	(711.3		)
Mine operating earnings/(loss)	$	77.7		$	(414.9	)

Expenses
General and administrative	(113.6		)	(100.2		)
Exploration and evaluation	(21.2		)	(14.9		)
Other expenses ( Note 9 )	(23.6		)	(39.7		)
Impairment /(reversal) of non-operating mining properties (Note 11)	(99.6		)	96.2
Operating loss	$	(180.3	)	$	(473.5	)
Finance income ( Note 10 )	3.4			1.6
Finance expense ( Note 10 )	(141.1		)	(143.8		)
Net finance expense	$	(137.7	)	$	(142.2	)
Loss before taxes	$	(318.0	)	$	(615.7	)
Current income tax expense ( Note 12 )	(239.2		)	(21.8		)
Deferred income tax recovery ( Note 12 )	353.1			346.7
Income tax recovery from continuing operations	$	113.9		$	324.9
Net loss from continuing operations	$	(204.1	)	$	(290.8	)
Net loss from discontinued operations ( Note 6 (c))	—			(17.5		)
Net loss	$	(204.1	)	$	(308.3	)

Attributable to:
Yamana Gold Inc. equityholders	$	(194.4	)	$	(307.9	)
Non-controlling interests	(9.7		)	(0.4		)
Net loss	$	(204.1	)	$	(308.3	)

Loss per share attributable to Yamana Gold Inc. equityholders ( Note 13 )
Loss per share from continuing and discontinued operations - basic and diluted	$	(0.21	)	$	(0.32	)
Loss per share from continuing operations - basic and diluted	$	(0.21	)	$	(0.31	)

Weighted average number of shares outstanding (in thousands) ( Note 13 )
Basic	948,187			947,443
Diluted	948,187			947,443

The accompanying notes are an integral part of the Consolidated Financial Statements.

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YAMANA GOLD INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

FOR THE YEARS ENDED DECEMBER 31,



(In millions of US Dollars)	2017			2016
Net loss	$	(204.1	)	$	(308.3	)

Other comprehensive income/(loss), net of taxes
Items that may be reclassified subsequently to profit or loss:
Available-for-sale financial assets
- Fair value loss on available-for-sale financial assets, net of income tax of nil	—			(3.1		)
- Reclassification adjustments related to available-for-sale financial assets	4.5			—
Cash-flow hedges
- Increase in fair value of hedging instruments	68.3			6.3
- Decrease in fair value of hedging instruments	(62.4		)	(7.9		)
- Reclassification of (gains)/losses recorded in earnings	(0.3		)	2.8
- Tax Impact on fair value of hedging instruments	1.3			(1.0		)
	$	11.4		$	(2.9	)
Items that will not be reclassified to profit or loss:
Re-measurement of employee benefit plan	1.3			(1.4		)
Total other comprehensive income/(loss)	$	12.7		$	(4.3	)
Total comprehensive loss	$	(191.4	)	$	(312.6	)

Attributable to :
Yamana Gold Inc. equityholders	$	(182.8	)	$	(312.2	)
Non-controlling interests	(8.6		)	(0.4		)
Total comprehensive loss	$	(191.4	)	$	(312.6	)

The accompanying notes are an integral part of the Consolidated Financial Statements.

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YAMANA GOLD INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31,



(In millions of US Dollars)	2017			2016
Operating activities
Loss before taxes	$	(318.0	)	$	(615.7	)
Adjustments to reconcile earnings before taxes to net operating cash flows:
Depletion, depreciation and amortization	426.8			462.3
Share-based payments ( Note 29 )	12.6			14.2
Finance income ( Note 10 )	(3.4		)	(1.6		)
Finance expense ( Note 10 )	141.1			143.8
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	(4.0		)	(9.1		)
Mark-to-market on investments and other assets	2.5			(4.3		)
Impairment of mineral properties ( Note 11 )	356.5			615.1
Amortization of deferred revenue on metal purchase agreements ( Note 25 )	(8.6		)	(6.8		)
Other non-cash (recoveries)/expenses ( Note 15 (d))	(7.8		)	36.7
Advanced payments received on metal purchase agreements	6.6			64.0
Decommissioning, restoration and similar liabilities paid ( Note 27 )	(4.6		)	(8.1		)
Other cash payments	(6.0		)	—
Cash flows from operating activities before income taxes paid and net change in working capital	593.7			690.5
Income taxes paid	(19.0		)	(63.9		)
Payments made related to the Brazilian tax matters ( Note 12(e))	(76.7		)	—
Cash flows from operating activities before net change in working capital	$	498.0		$	626.6
Net change in working capital ( Note 15 (b))	(14.0		)	25.3
Cash flows from operating activities of continuing operations	$	484.0		$	651.9
Cash flows from operating activities of discontinued operations ( Note 6 (c))	$	—		$	12.9
Investing activities
Acquisition of property, plant and equipment ( Note 21 )	$	(643.8	)	$	(495.4	)
Proceeds from sale of Mexican operations ( Note 6 (c))	—			124.0
Acquisition of Mineração Riacho dos Machados Ltda, net of cash acquired ( Note 6 (d))	—			(50.2		)
Proceeds on disposal of investments and other assets	17.5			33.6
Cash used in other investing activities	(17.9		)	(19.7		)
Cash flows used in investing activities of continuing operations	$	(644.2	)	$	(407.7	)
Cash flows used in investing activities of discontinued operations ( Note 6 (c))	$	—		$	(12.9	)
Financing activities
Dividends paid ( Note 28 (b))	$	(18.9	)	$	(28.0	)
Interest and other finance expenses paid	(103.8		)	(96.2		)
Proceeds from Brio Gold Inc. private placement and rights offering ( Note 6 (b))	71.5			40.7
Repayment of term loan and notes payable ( Note 26 )	(460.9		)	(484.5		)
Proceeds from term loan and notes payable ( Note 26 )	730.0			300.5
Cash flows from/(used in) financing activities of continuing operations	$	217.9		$	(267.5	)
Effect of foreign exchange of non-US Dollar denominated cash and cash equivalents	0.1			0.8
Increase/(Decrease) in cash and cash equivalents of continuing operations	$	57.8		$	(22.5	)
Cash and cash equivalents of continuing operations, beginning of year (Note 15(c))	$	97.4		$	119.9
Cash and cash equivalents reclassified as held for sale (Note 6(a))	$	(6.3	)	$	—
Cash and cash equivalents, end of year of continuing operations (Note 15(c))	$	148.9		$	97.4

Supplementary cash flow information ( Note 15 ).

The accompanying notes are an integral part of the Consolidated Financial Statements.

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YAMANA GOLD INC.

CONSOLIDATED BALANCE SHEETS

AS AT DECEMBER 31,



(In millions of US Dollars)	2017			2016
Assets
Current assets:
Cash and cash equivalents (Note 15(c))	$	148.9		$	97.4
Trade and other receivables ( Note 17 )	38.6			36.6
Inventories ( Note 18 )	163.5			254.1
Other financial assets ( Note 19 )	13.2			14.4
Other assets ( Note 20 )	119.4			149.9
Assets held for sale (Note 6(a))	355.8			—
	$	839.4		$	552.4
Non-current assets:
Property, plant and equipment ( Note 21 )	7,259.7			7,566.3
Other financial assets ( Note 19 )	26.1			36.1
Deferred tax assets ( Note 12 (b))	97.8			116.7
Goodwill and intangibles ( Note 22 )	449.5			481.0
Other assets ( Note 20 )	90.8			49.2
Total assets	$	8,763.3		$	8,801.7

Liabilities
Current liabilities:
Trade and other payables ( Note 23 )	$	345.4		$	340.0
Income taxes payable	91.8			4.8
Other financial liabilities ( Note 24 )	203.1			74.5
Other provisions and liabilities ( Note 25 )	56.7			55.8
Liabilities relating to assets held for sale (Note 6(a))	83.7			—
	$	780.7		$	475.1
Non-current liabilities:
Long-term debt ( Note 26 )	1,747.7			1,573.8
Decommissioning, restoration and similar liabilities ( Note 27 )	258.2			222.2
Deferred tax liabilities ( Note 12 (b))	1,147.1			1,511.4
Other financial liabilities ( Note 24 )	85.7			76.9
Other provisions and liabilities ( Note 25 )	296.6			362.3
Total liabilities	$	4,316.0		$	4,221.7

Equity
Share capital ( Note 28 )
Issued and outstanding 948,524,667 common shares (December 31, 2016 - 947,797,596 shares)	$	7,633.7		$	7,630.5
Reserves ( Note 14 )	23.8			12.0
Deficit	(3,344.1		)	(3,130.3		)
Attributable to Yamana Gold Inc. equityholders	$	4,313.4		$	4,512.2
Non-controlling interest ( Note 30 )	133.9			67.8
Total equity	$	4,447.3		$	4,580.0
Total liabilities and equity	$	8,763.3		$	8,801.7

Contractual commitments and contingencies (Notes 33 and 34 ) .

The accompanying notes are an integral part of the Consolidated Financial Statements.

Approved by the Board



“Peter Marrone”	“Richard Graff”
PETER MARRONE	RICHARD GRAFF
Director	Director

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YAMANA GOLD INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31,



(In millions of US Dollars)	Share capital		Reserves (Note 14)			Deficit			Equity attributable to Yamana shareholders			Non- controlling interest			Total equity
Balance as at January 1, 2016	$	7,625.4	$	18.6		$	(2,802.7	)	$	4,841.3		$	23.3		$	4,864.6
Total comprehensive loss
Net loss	—		—			(307.9		)	(307.9		)	(0.4		)	(308.3		)
Other comprehensive loss, net of income tax	—		(4.3		)	—			(4.3		)	—			(4.3		)
	—		(4.3		)	(307.9		)	$	(312.2	)	(0.4		)	(312.6		)
Transactions with owners
Exercise of share options and share appreciation rights (Note 28(a))	0.3		0.5			—			0.8			—			0.8
Offering of purchase rights of Brio Gold Inc. ( Note 6 (b))	—		—			—			—			37.9			37.9
Issued on vesting of restricted share units ( Note 28 (a))	4.5		(4.5		)	—			—			—			—
Vesting restricted share units ( Note 29)	—		1.7			—			1.7			7.0			8.7
Dividend reinvestment plan ( Note 28 (a))	0.3		—			—			0.3			—			0.3
Dividends (Note 28(b))	—		—			(19.7		)	(19.7		)	—			(19.7		)
Balance as at December 31, 2016	$	7,630.5	$	12.0		$	(3,130.3	)	$	4,512.2		$	67.8		$	4,580.0
Balance as at January 1, 2017	$	7,630.5	$	12.0		$	(3,130.3	)	$	4,512.2		$	67.8		$	4,580.0
Total comprehensive loss
Net loss	—		—			(194.4		)	(194.4		)	(9.7		)	(204.1		)
Other comprehensive income, net of income tax	—		11.6			—			11.6			1.1			12.7
	—		11.6			(194.4		)	(182.8		)	(8.6		)	(191.4		)
Transactions with owners
Offering of purchase rights of Brio Gold Inc. ( Note 6 (b))	—		—			—			—			70.9			70.9
Issued on vesting of restricted share units ( Note 28 (a))	2.9		(2.9		)	—			—			—			—
Vesting restricted share units ( Note 29 )	—		3.1			—			3.1			7.0			10.1
Restricted share units cancellation	—		—			—			—			(3.2		)	(3.2		)
Dividend reinvestment plan ( Note 28 (a))	0.3		—			—			0.3			—			0.3
Dividends (Note 28(b))	—		—			(19.4		)	(19.4		)	—			(19.4		)
Balance as at December 31, 2017	$	7,633.7	$	23.8		$	(3,344.1	)	$	4,313.4		$	133.9		$	4,447.3

The accompanying notes are an integral part of the Consolidated Financial Statements.

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YAMANA GOLD INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the Years Ended December 31, 2017 and December 31, 2016

(Tabular amounts in millions of US Dollars, unless otherwise noted)

1. NATURE OF OPERATIONS

Yamana Gold Inc. and subsidiaries (the “Company” or “Yamana”) is a Canadian-based gold producer with significant gold production, gold development stage properties, exploration properties, and land positions throughout the Americas including in Canada, Brazil, Chile and Argentina. Yamana plans to continue to build on this base through existing operating mine expansions and optimization initiatives, development of new mines, the advancement of its exploration properties and, at times, by targeting other gold consolidation opportunities with a primary focus in the Americas.

The address of the Company’s registered office is 200 Bay Street, Suite 2200, Royal Bank Plaza North Tower Toronto, Ontario, Canada, M5J 2J3. The Company is listed on the Toronto Stock Exchange (Symbol: YRI) and The New York Stock Exchange (Symbol: AUY).

The consolidated financial statements of the Company as at and for the years ended December 31, 2017 and December 31, 2016 are comprised of the Company, its subsidiaries and its joint operation of the Canadian Malartic mine ("Canadian Malartic") ("Consolidated Financial Statements").

2. BASIS OF PREPARATION AND PRESENTATION

These Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), effective as of December 31, 2017.

The Consolidated Financial Statements have been prepared on a going concern basis using historical cost except for those assets and liabilities that are measured at revalued amounts or fair values at the end of each reporting period as explained in Note 3: Significant Accounting Policies to the Company's Consolidated Financial Statements. Additionally, these Consolidated Financial Statements have been prepared using the accrual basis of accounting, except for cash flow information.

The functional and presentation currencies of the Company and all its subsidiaries is the United States Dollar ("US Dollars"), and all values herein are rounded to the nearest million except where otherwise indicated.

The Consolidated Financial Statements were authorized for issuance by the Board of Directors of the Company on February 14, 2018 .

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies summarized below have been applied consistently in all material respects in preparing the Consolidated Financial Statements.

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(a) Basis of Consolidation

The Consolidated Financial Statements include the accounts of Yamana Gold Inc. (parent and ultimate holding company) and the following significant entities as at December 31, 2017 and 2016 :



			Interest
Legal Entity	Mine	Country of incorporation	2017		2016
Mineração Maracá Industria e Comércio S.A.	Chapada	Brazil	100	%	100	%
Minera Meridian Ltda.	El Peñón	Chile	100	%	100	%
Canadian Malartic Corporation - a joint operation (Note 3(b))	Canadian Malartic	Canada	50	%	50	%
Minera Florida Ltda.	Minera Florida	Chile	100	%	100	%
Jacobina Mineração e Comércio Ltda.	Jacobina	Brazil	100	%	100	%
Minas Argentinas S.A.	Gualcamayo	Argentina	100	%	100	%

The Company's Consolidated Financial Statements also include the Company's 100% -owned development property, Cerro Moro in Argentina which is under construction, Yamana Gold Ontario in Canada, Agua Fria in Chile, the Company’s 56.7% interest in Agua De La Falda S.A. ("ADLF"), and the Company's 53.6% interest in Brio Gold Inc. ("Brio Gold").

The financial statements of entities which are controlled by the Company through voting equity interests, referred to as subsidiaries, are consolidated. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Control is determined to be achieved if, and only if, the Company has:


•	Power over the investee (i.e., existing rights providing the ability to direct the relevant activities of the investee);


•	Exposure, or rights, to variable returns from its involvement with the investee;


•	The ability to use its power over the investee to affect its returns.

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described above. Consolidation of an investee begins when the Company obtains control over the investee and ceases when the Company loses control of the investee. Assets, liabilities, income and expenses of an investee are included in the Consolidated Financial Statements from the date the Company gains control or joint control until the date the Company ceases to control the investee.

Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equityholders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to conform to the Company’s accounting policies.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill as applicable), liabilities, non-controlling interest and other components of equity while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.

All intercompany assets and liabilities, equity, income, expenses and cash flows between the Company and its subsidiaries are eliminated on consolidation.

The Company does not have any material off-balance sheet arrangements, except as noted in Note 33 : Contractual Commitments to the Company's Consolidated Financial Statements.

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(b)	Joint Arrangements

Joint arrangements are those entities over whose activities the Company has joint control, established by contractual agreement. The Consolidated Financial Statements include the Company’s share of its 50% interest in Canadian Malartic’s assets, liabilities, revenue and expenses with items of a similar nature on a line-by-line basis in accordance with its share in those entities and from the date that joint control commences until the date that control ceases. A jointly controlled operation is a joint arrangement carried on by each party in the joint arrangement using its own assets in pursuit of the joint operations. In assessing whether a joint arrangement is a joint operation or a joint venture, the rights and obligations arising from the joint arrangement are considered including:


•	The structure and legal form of the arrangement,


•	The terms agreed by the parties in the contractual arrangement and, when relevant,


•	Other facts and circumstances.

When accounting for the acquisition of interests in joint operations in which the activity constitutes a business, the Company applies IFRS 3 Business Combinations (“IFRS 3”) and the guidance on business combinations in other IFRSs except for those principles that conflict with the guidance in IFRS 11 Joint Arrangements . Identifiable assets and liabilities are measured, subject to the exceptions in IFRS 3, at fair value and the residual recognized as goodwill. Furthermore, transaction costs are expensed as incurred and deferred taxes are recognized on initial recognition of assets and liabilities.

For a joint operation, the Consolidated Financial Statements include the assets that the Company controls and the liabilities that it incurs in the course of pursuing the joint operation and the expenses that the Company incurs and its share of the income that it earns from the joint operation. For a joint venture, the Consolidated Financial Statements include the Company’s investment in the joint venture, which is accounted for using the equity method.


(c)	Foreign Currency Translation

The Company's mining operations operate primarily within an economic environment where the functional currency is the US Dollar. Transactions in foreign currencies are translated to functional currency at exchange rates in effect at the dates of the transactions. Monetary assets and liabilities of the Company's operations denominated in a currency other than the US Dollar are translated into US Dollars at the exchange rate prevailing as at the balance sheet date. Non-monetary assets and liabilities are translated at historical exchange rates prevailing at each transaction date. Revenue and expenses are translated at the average exchange rates prevailing during the year, with the exception of depletion, depreciation and amortization which is translated at historical exchange rates. Exchange gains and losses from translation are included in earnings. Foreign exchange gains and losses related to income taxes, if any, are reported within the income tax expense line in the Company's consolidated statement of operations.


(d)	Business Combinations

A business combination requires that the assets acquired and liabilities assumed constitute a business. A business consists of inputs and processes applied to those inputs that have the ability to create outputs. Although businesses usually have outputs, outputs are not required for an integrated set of activities and assets to qualify as a business as the Company considers other factors to determine whether the set of activities and assets is a business. A transaction does not qualify as a business combination when significant inputs, processes, and outputs that together constitute a business were not identified; the transaction is then accounted for as a purchase of assets and assumption of liabilities.

Business combinations are accounted for using the acquisition method whereby the identifiable assets acquired and the liabilities assumed are recorded at acquisition-date fair values; non-controlling interests in an acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation are measured at either fair value or at the non-controlling interests' proportionate share of the recognized amounts of the acquiree's net identifiable assets. The choice of measurement basis is made on a transaction by transaction basis.

The excess of (i) total consideration transferred by the Company, measured at fair value, including contingent consideration, and (ii) the non-controlling interests in the acquiree, over the acquisition-date fair value of the net of the assets acquired and liabilities assumed, is recorded as goodwill. If the fair value attributable to the Company's share of the identifiable net assets exceeds the cost of acquisition, the difference is recognized as a gain in the consolidated statement of operations.

| 11

Should the consideration be contingent on future events, the preliminary cost of the acquisition recorded includes management's best estimate of the fair value of the contingent amounts expected to be payable. Preliminary fair values of net assets are finalized within one year of the acquisition date with retrospective restatement to the acquisition date as required.

The information necessary to measure the fair values as at the acquisition date of assets acquired and liabilities assumed requires management to make certain judgements and estimates about future events, including but not limited to estimates of mineral reserves and mineral resources acquired, exploration potential, future operating costs and capital expenditures, future metal prices and future foreign exchange rates. Changes to the preliminary measurements of assets and liabilities acquired are retrospectively adjusted when new information is obtained until the final measurements are determined within one year of the acquisition date.


(e)	Impairment and Reversal of Impairment of Non-Current Assets and Goodwill

The Company assesses at the end of each reporting period whether there is any indication, from external and internal sources of information, that an asset or cash generating unit (“CGU”) may be impaired.

A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The Company defines a CGU as an area of interest. An area of interest is an area of similar geology; an area of interest includes exploration tenements/licenses, which are geographically close together, are managed by the same geological management group and have similar prospectivity. An area of interest may be categorized as project area of interest or exploration area of interest as defined by the geology/exploration team of the Company. A project area of interest represents an operating mine or a mine under construction and its nearby exploration properties, which are managed by the Company's operations group. An exploration area of interest represents a portfolio or pool of exploration properties which are not adjacent to an operating mine or a mine under construction; an exploration area of interest is managed by the Company's exploration group.

Information the Company considers as impairment indicators include changes in the market, economic and legal environment in which the Company operates that are not within its control and affect the recoverable amount of the asset or CGU. Internal sources of information include the manner in which property and plant and equipment are being used or are expected to be used and indications of economic performance of the assets, historical exploration and operating results. Estimates include but are not limited to estimates of the discounted future after-tax cash flows expected to be derived from the Company's mining properties, costs to sell the mining properties and the discount rate. Reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future capital costs, reductions in the amount of recoverable mineral reserves and mineral resources and/or adverse current economics can result in a write-down of the carrying amounts of the Company's mineral properties and/or goodwill.

If indication of impairment exists, the Company estimates the recoverable amount of the asset or CGU to determine the amount of impairment loss. For exploration and evaluation assets, indicators include but are not limited to, continuous downward trend in metal prices resulting in lower in-situ market values for exploration potential, expiration of the right to explore, substantive expenditure in the specific area is neither budgeted nor planned, and if the entity has decided to discontinue exploration activity in the specific area.

When an impairment review is undertaken, recoverable amount is assessed by reference to the higher of 1) value in use and 2) fair value less costs of disposal (“FVLCD”). The best evidence of FVLCD is the value obtained from an active market or binding sale agreement. Where neither exists, FVLCD is based on the best information available to reflect the amount the Company could receive for the CGU in an arm's length transaction. This is often estimated using discounted cash flow techniques. Where recoverable amount is assessed using discounted cash flow techniques, the resulting estimates are based on detailed mine and/or production plans and assumptions a market participant may take into account. For value in use, recent cost levels are considered, together with expected changes in costs that are compatible with the current condition of the business and which meet the requirements of IAS 36 Impairment of Assets . Assumptions underlying recoverable amount estimates are subject to significant risks and uncertainties. Where third-party pricing services are used, the valuation techniques and assumptions used by the pricing services are reviewed by the Company to ensure compliance with the accounting policies and internal control over financial reporting of the Company. The Company assesses at the end of each reporting period whether there is any indication that an impairment loss recognized in prior periods for an asset other than goodwill may no longer exist or may have decreased. If any such indication exists, the Company estimates the recoverable amount and considers the reversal of the impairment loss recognized in prior periods up to the carrying amount of the CGU (net of amortization or depreciation) as if no impairment had been recognized in the past.

The Company tests for impairment of goodwill and indefinite-life intangibles or intangible assets not yet available for use at least on an annual basis or upon the occurrence of a triggering event or circumstance that indicates impairment. For the purposes of impairment testing, goodwill

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is allocated to the CGUs that are expected to benefit from the synergies of the combination in which the goodwill arose. An impairment loss recognized for goodwill is not reversed in a subsequent period.


(f)	Operating Segments

The Company bases its operating segments on the way information is reported and used by the Chief Operating Decision Makers ("CODM"). The Company has seven core reportable operating segments as follows:


•	Chapada mine in Brazil,


•	El Peñón mine in Chile,


•	Canadian Malartic mine in Canada ( 50% interest),


•	Minera Florida mine in Chile,


•	Jacobina mine in Brazil,


•	Gualcamayo mine in Argentina, and


•	Brio Gold Inc.

In addition to the above reportable operating segments, the Company aggregates and discloses the financial results, under "Corporate and other", of other operating segments having similar economic characteristics as reviewed by the CODM and include, but are not limited to other exploration properties and corporate entities as these operating segments do not qualify as core reportable operating segments nor do any individually, based on their materiality, performance or prospects for future net cash flows, assist in more informed judgements about the entity as a whole.

The Company’s CODM, comprised of the senior management team, performs planning, reviews results of operations, assesses performance and makes resource allocation decisions based on the segment structure described above at an operational level on a number of measures, which include mine operating earnings, production levels and unit production costs. The Company's CODM also relies on a management team with its members positioned in the geographical regions where the Company's key mining operations are located. Segment results that are reported to the Company's CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Each segment derives its revenues mainly from the sales of precious metals through specific channels and processes as coordinated and managed by the corresponding divisional management group. General and administrative, exploration and evaluation, net finance income or expense, and other operating expenses such as impairment charges and reversals and investment write-down are managed mainly on a consolidated basis and are therefore, not reflected in detail in the measure of segment profit or loss for each reportable segment.


(g)	Non-Current Assets Held for Sale and Discontinued Operations

Non-current assets and disposal groups are classified as held for sale if their carrying value will be recovered principally through a sale transaction rather than through continuing use. The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset or disposal group and the sale expected to be completed within one year from the date of the classification.

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell ("FVLCTS"). If the FVLCTS is lower than the carrying amount, an impairment loss is recognized in the consolidated statement of operations. Costs to sell are the incremental costs directly attributable to the disposal of an asset or disposal group, excluding finance costs and income tax expense. Non-current assets are not depreciated or amortized once classified as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the Company's consolidated balance sheet.

A disposal group qualifies as a discontinued operation if it is a component of the Company that either has been disposed of, or is classified as held for sale, and: (i) represents a separate major line of business or geographical area of operations; (ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively with a view to resale. A component of the Company comprises an operation and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company.

Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the consolidated statement of operations.

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(h)	Revenue Recognition

Revenue from the sale of precious metals - gold and silver - is recognized at the fair value of the consideration received and when all significant risks and rewards of ownership pass to the purchaser including delivery of the product, there is a fixed or determinable selling price and collectability is reasonably assured. Revenue is net of treatment and refining charges if payment of these amounts can be enforced at the time of sale.

Gold and silver revenue is recorded at the time of physical delivery and transfer of title. Sale prices are fixed at the delivery date based on the terms of the contract or at spot prices.

Copper concentrate revenue from smelters and traders is recorded at the time the risks and rewards of ownership pass to the buyer. This revenue is provisionally priced at the date of sale, that is, the price is set in reference to the prevailing market prices at a specified future date after shipment. Revenue on provisionally priced sales is recognized based on estimates of the fair value of consideration receivable predicated on forward market prices. At each reporting date, the provisionally priced metal is fair valued based on forward selling price for the remaining quotational period stipulated in the contract. For this purpose, the selling price can be measured reliably for those products, such as copper, for which there is an active and freely traded commodity market such as London Metals Exchange and the value of product sold by the Company is directly linked to the form in which it is traded on that market. Variations between the prices set under the smelting contracts are caused by changes in market prices and result in an embedded derivative in the accounts receivable. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in the fair value classified in revenue. The provisional sales quantities are adjusted for changes in metal quantities upon receipt of new information and assay results.

Revenues arising from the use by others of the Company's assets yielding interest, royalties and dividends are recognized when it is probable that the economic benefits associated with the transaction will flow to the Company and the amount of the revenue can be measured reliably, on the following bases:


•	Interest is recognized using the effective interest method.


•	Royalties are recognized on an accrual basis in accordance with the substance of the agreement.


•	Dividends are recognized when the shareholder's right to receive payment is established.

The Company recognizes deferred revenue in the event it receives payments from customers in consideration for future commitments to deliver metals and before such sale meets the criteria for revenue recognition. The Company recognizes amounts in revenue as the metals are delivered to the customer. Specifically, for the metal agreements entered into with Sandstorm Gold Ltd. ("Sandstorm") and Altius Minerals Corporation ("Altius"), the Company determines the amortization of deferred revenue to the Consolidated Statements of Operations on a per unit basis using the estimated total quantity of metal expected to be delivered to Sandstorm and Altius over the terms of the contract. The Company estimates the current portion of deferred revenue based on quantities anticipated to be delivered over the next twelve months.


(i)	Financial Instruments

Financial assets and financial liabilities, including derivatives, are recognized when the Company becomes a party to the contractual provisions of the financial instrument. On initial recognition, all financial instruments are measured at fair value, net of attributable transaction costs, except for financial instruments classified as at fair value through profit or loss (“FVTPL”). Transaction costs of financial instruments classified as at FVTPL are expensed in the period in which they are incurred. Measurement in subsequent periods depends on the classification of financial instruments.

FVTPL

Financial assets and financial liabilities classified as at FVTPL are measured at fair value with changes in fair value recognized as finance income/expense.

Amortized Cost

Financial assets classified as loans & receivables are measured at amortized cost using the effective interest method. The effective interest method calculates the amortized cost of a financial asset or financial liability and allocates the effective interest income or interest expense over

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the term of the financial asset or financial liability, respectively. The interest rate is the rate that exactly discounts estimated future cash receipts or payments throughout the term of the financial instrument to the net carrying amount of the financial asset or financial liability, respectively, At the end of each reporting period, the Company determines if there is objective evidence that an impairment loss on financial assets measured at amortized cost has been incurred, and where objective evidence exists , the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate. The amount of the loss is recognized in the Consolidated Statements of Operations.

Available-For-Sale (“AFS”)

AFS financial assets, designated based on the criteria that management does not hold these for the purposes of trading, are presented as investments and measured at fair value with unrealized gains and losses recognized in OCI. Realized gains and losses are recorded in earnings when investments mature or are sold and are calculated using the cost of securities sold. AFS financial assets are reviewed quarterly for significant or prolonged decline in fair value requiring impairment and more frequently when economic or market concerns warrant such evaluation. The review includes an analysis of the facts and circumstances of the financial assets, the market price of actively traded securities, as well as the severity of loss, the financial position and near-term prospects of the investment, credit risk of the counterparties, the length of time the fair value has been below costs, both positive and negative evidence that the carrying amount is recoverable within a reasonable period of time, management's intent and ability to hold the financial assets for a period of time sufficient to allow for any anticipated recovery of fair value and management's market view and outlook. When a decline in the fair value of an available-for-sale investment has been recognized in OCI and there is objective evidence that the asset is impaired after management's review, any cumulative losses that had been recognized in OCI are reclassified as an impairment loss in the consolidated statement of operations. The reclassification adjustment is calculated as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized, if applicable. Impairment losses recognized in the consolidated statement of operations for an investment are subject to reversal, except for equity instruments classified as available-for-sale.

Derivative Instruments and Hedging

The Company's risk management policy objective is to manage certain risks against an adverse price movement, to make revenues more predictable. Hedges are established on a project specific basis where applicable, to protect cash flows in times when significant capital projects are being undertaken or where specific debt servicing requirements exist. In addition, hedges may also be implemented from time to time to safeguard the viability of higher cost operations.

Mainly, derivative instruments are used as hedging instruments to meet the Company's risk management policy objective. Derivative instruments are recorded at fair value, including those derivatives that are embedded in financial or non-financial contracts that are not closely related to the host contracts. Changes in the fair values of derivative instruments are recognized in finance income/expense with the exception of derivatives designated as effective cash flow hedges.

For cash flow hedges that qualify under the hedging requirements of IAS 39 Financial Instruments: Recognition and Measurement (“IAS 39”), the effective portion of any gain or loss on the hedging instrument is recognized in OCI and the ineffective portion is reported as an unrealized gain (loss) on derivatives contracts as finance income/expense in the Consolidated Statement of Operations.


i.	Commodity Derivatives

The Company may enter into commodity derivatives including forward contracts to manage exposure to fluctuations in metal prices such as copper. In the case of forwards, these contracts are intended to reduce the risk of declining prices on future sales. Purchased options are intended to allow the Company to benefit from higher market metal prices. In instances where the call option purchases offset the committed quantities of the corresponding forward, derivative assets/liabilities are presented net of amounts to counterparties. Some of the derivative transactions are effective in achieving the Company's risk management goals, however, they do not meet the hedging requirements of IAS 39, therefore the changes in fair value are recorded in earnings. Realized gains or losses are accounted for at trade date.

The Company has entered into non-hedge derivatives that include forward contracts intended to manage the risk of declining gold and copper prices. Other than those in Brio Gold, the Company does not hedge any of its gold and silver sales.

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ii.	Currency Derivatives

The Company, from time to time, may enter into currency forward contracts and "zero-cost collar" option trading strategy to manage the foreign exchange exposure of the operating and capital expenditures associated with its international operations. The Company tests the hedge effectiveness quarterly. Effective unrealized changes in fair value are recorded in OCI. Ineffective changes in fair value and changes in time value of options are recorded in earnings. At settlement, the realized changes are accounted for at trade date and recorded as follows:


•	Amount related to hedging of operating expenditures is included in cost of sales to offset the foreign exchange effect recorded by the mines.


•	Amount related to hedging of capital expenditures is included in capitalized purchases of goods or services to offset the foreign exchange recorded by the mines or development projects.


iii.	Termination of Hedge Accounting

Hedge accounting is discontinued prospectively when:


•	The hedge instrument is sold, terminated or exercised;


•	The hedge no longer meets the criteria for hedge accounting; and


•	The Company revokes the designation.

The Company considers de-recognition of a cash flow hedge when the related forecast transaction is no longer expected to occur. If the Company revokes the designation, the cumulative gain or loss on the hedging instrument that has been recognized in OCI from the period when the hedge was effective remains separately in equity until the forecast transaction occurs or is no longer expected to occur. Otherwise, the cumulative gain or loss on the hedge instrument that has been recognized in OCI from the period when the hedge was effective is reclassified from equity to profit or loss.


(j)	Share-Based Payments

The Company accounts for all share-based payments, including share options, restricted share units, deferred share units and performance share units, to employees and non-employees using the fair value based method of accounting and recognize compensation expense over the vesting period. For the deferred share units, the fair value method requires that a mark-to-market adjustment be recorded at the end of each reporting period with the recovery or expense for the period recorded in other operating expenses. The Company's share option plan includes a share appreciation feature. If and when the share options are ultimately exercised, the applicable amount in the equity reserve is transferred to share capital. For further details, including descriptions of the share-based compensation plans, refer to the Management Information Circular for 2017.

Equity instruments, including share-based payments, issued by subsidiaries that are not owned by the parent are non-controlling interests regardless of whether they are vested and of the exercise price (refer to Note 30 : Non-Controlling Interest to the Company's Consolidated Financial Statements for additional details).


(k)	Income Taxes

Income tax expense or recovery comprises of current and deferred tax. Income tax expense or recovery is recognized in the Consolidated Statements of Operations except to the extent it relates to items recognized directly in equity or in OCI, in which case the related taxes are recognized in equity or OCI.

Current income tax is the expected tax payable or receivable on the taxable income or loss for the year, which may differ from earnings reported in the Consolidated Statements of Operations due to items of income or expenses that are not currently taxable or deductible for tax purposes, using tax rates substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

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Deferred income tax is recognized based on the balance sheet method in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences:


•	Goodwill or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and


•	Investments in subsidiaries and jointly controlled entities to the extent they can be controlled and that it is probable that they will not reverse in the foreseeable future.

Deferred income tax is recognized on the movement in foreign exchange rates on non-monetary assets denominated in foreign currencies. Foreign exchange gains or losses relating to deferred income taxes are included in the deferred income tax expense in the Consolidated Statements of Operations.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.


(l)	Inventories

Inventories consisting of product inventories, work-in-process (metal-in-circuit, gold-in-process, heap leach ore) and ore stockpiles are measured at the lower of the cost of production and net realizable value. Net realizable value is calculated as the difference between estimated costs to complete production into a saleable form and the prevailing prices at end of the period.

Work-in-process represents inventories that are currently in the process of being converted to a saleable product. The cost of production includes an appropriate proportion of depreciation, depletion and amortization and overhead. The assumptions used in the valuation of work-in-process inventories include estimates of metal contained and recoverable in the ore stacked on leach pads, the amount of metal stacked in the mill circuits that is expected to be recovered from the leach pads, the amount of gold in these mill circuits and an assumption of the precious metal price expected to be realized when the precious metal is recovered. If the cost of inventories is not recoverable due to decline in selling prices or the costs of completion or the estimated costs to be incurred to make the sale have increased, the Company would be required to write-down the recorded value of its work-in-process inventories to net realizable value. Adjustments related to write-down of inventory are included in cost of sales.

Ore in stockpiles is comprised of ore extracted from the mine and available for further processing. Costs are added to ore in stockpiles at the current mining cost per tonne and removed at the accumulated average cost per tonne. Costs are added to ore on the heap leach pads based on current mining costs and removed from the heap leach pad as ounces are recovered in process at the plant based on the average cost per recoverable ounce on the heap leach pad. Although the quantities of recoverable gold placed on the heap leach pads are reconciled by comparing the grades of ore placed on the heap leach pads to the quantities of gold actually recovered, the nature of the leaching process inherently limits the ability to precisely monitor inventory levels. As such, engineering estimates are refined based on actual results over time. Variances between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. The ultimate recovery of gold from each heap leach pad will not be known until the leaching process is concluded. Ore in stockpiles not expected to be processed in the next twelve months is classified as long-term.

Inventories of materials and supplies expected to be used in production are valued at the lower of cost and net realizable value. When the circumstances that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of write-down is reversed up to the original write-down amount. Write-downs of inventory and reversals of write-downs are reported as a component of current period costs.

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(m)	Property, Plant and Equipment


i.	Land, Building, Plant and Equipment

Land, building, plant and equipment are recorded at cost, less accumulated depreciation and accumulated impairment losses. The cost is comprised of the asset's purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management and the estimated decommissioning and restoration costs associated with the asset.

The depreciable amount of building, plant and equipment is amortized on a straight-line basis to the residual value of the asset over the lesser of mine life or estimated useful life of the asset. Each part of an item of building, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately if its useful life differs. Useful lives of building, plant and equipment items range from two to thirty years, but do not exceed the related estimated mine life based on proven and probable mineral reserves and the portion of mineral resources that management expects to become mineral reserves in the future and be economically extracted.



	Depreciation Method	Useful Life
Building	Straight Line	4 to 30 years
Machinery and equipment	Straight Line	2 to 7 years
Vehicles	Straight Line	3 to 5 years
Furniture and office equipment	Straight Line	2 to 10 years
Computer equipment and software	Straight Line	3 to 5 years
Land	Not depreciated

The Company reviews the useful life, depreciation method, residual value and carrying value of its building, plant and equipment at least annually. Where the carrying value is estimated to exceed the estimated recoverable amount, which is the higher of the asset's fair value less costs to sell or value in use, a provision for impairment is measured and recorded.

Expenditures that extend the useful lives of existing facilities or equipment are capitalized and depreciated over the remaining useful lives of the assets or useful life of the component (e.g. major overhaul) of an asset. Repairs and maintenance expenditures are expensed as incurred.


ii.	Exploration, Evaluation Assets and Depletable Producing Properties

The Company's tangible exploration and evaluation assets are comprised of mineral resources and exploration potential. The value associated with mineral resources and exploration potential is the value beyond proven and probable mineral reserves.

Exploration and evaluation assets acquired as part of an asset acquisition or a business combination are recorded as tangible exploration and evaluation assets and are capitalized at cost, which represents the fair value of the assets at the time of acquisition determined by estimating the fair value of the property's mineral reserves, mineral resources and exploration potential at such time.

The value of such assets when acquired is primarily a function of the nature and amount of mineralized materials contained in such properties. Exploration and evaluation stage mineral interests represent interests in properties that potentially contain mineralized material consisting of measured, indicated and inferred mineral resources; other mine exploration potential such as inferred mineral resources not immediately adjacent to existing mineral reserves but located around and near mine or project areas; other mine-related exploration potential that is not part of measured, indicated and inferred mineral resources; and any acquired right to explore and develop a potential mineral deposit.

Exploration and evaluation expenditures incurred by the Company are capitalized at cost if management determines that it is probable future economic benefits will be generated as a result of the expenditures. Expenditures incurred before the Company has obtained legal rights to explore a specific area of interest are expensed. Costs incurred for general exploration that are either not-project-specific or do not result in the acquisition of mineral properties are considered greenfield expenditures and charged to expense. Brownfield expenditures, which typically occur in areas surrounding known deposits and/or re-exploring older mines using new technologies to determine if greater mineral reserves and mineral resources exist, are capitalized. Brownfield activities are focused on the discovery of mineral reserves and mineral resources close to existing operations, including around mine or near-mine, mineral reserve and mineral resource extension and infill drilling.

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Exploration expenditures include the costs incurred in either the initial exploration for mineral deposits with economic potential or in the process of obtaining more information about existing mineral deposits.

Evaluation expenditures include the costs incurred to establish the technical feasibility and commercial viability of developing mineral deposits identified through exploration activities or by acquisition. Evaluation expenditures include the cost of:


•	Acquiring the rights to explore;


•	Establishing the volume and grade of deposits through drilling of core samples, trenching and sampling activities in an ore body that is classified as either a mineral resource or a proven and probable mineral reserve;


•	Determining the optimal methods of extraction and metallurgical and treatment processes;


•	Studies related to surveying, transportation and infrastructure requirements;


•	Permitting activities; and


•	Economic evaluations to determine whether development of the mineralized material is commercially justified, including scoping, pre-feasibility and final feasibility studies.

The values assigned to the tangible exploration and evaluation assets are carried at acquired costs until such time as the technical feasibility and commercial viability of extracting mineral resource from the assets is demonstrated, which occurs when the activities are designated as a development project and advancement of the project is considered economically feasible. At that time, the property and the related costs are reclassified as part of the development costs of a producing property not yet subject to depletion, and remain capitalized. Assessment for impairment is conducted before reclassification.

Depletion or depreciation of those capitalized exploration and evaluation costs and development costs commences upon completion of commissioning of the associated project or component. Depletion of mining properties and amortization of preproduction and development costs are calculated and recorded on a unit-of-production basis over the estimate of recoverable ounces. The depletable costs for the reporting period are the total depletable costs related to the ore body or component of the ore body in production multiplied by the number of ounces produced in the reporting period divided by the estimated recoverable ounces, which includes proven and probable mineral reserves of the mine and the portion of mineral resources expected to be classified as mineral reserves and economically extracted. Management assesses the estimated recoverable ounces used in the calculation of depletion at least annually, or whenever facts and circumstances warrant that an assessment should be made. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to the Company's mine plans and changes in metal price forecasts can result in a change in future depletion rates.

The Company assesses and tests its exploration and evaluation assets and mining properties for impairment, and subsequent reversal of impairment, at least annually or when events or changes in circumstances indicate that the related carrying amounts may not be recoverable or that an impairment may be reversed. Costs related to areas of interest abandoned are written off when the decision of abandonment is made. Refer to (e) “Impairment and Reversal of Non-Current Assets and Goodwill” for detail of the policy. An impairment assessment of the exploration and evaluation assets is conducted before the reclassification or transfer of exploration and evaluation assets to depletable producing properties.


iii.	Stripping Costs

In open-pit mining operations, it is often necessary to remove overburden and other waste in order to access the ore body. When accounting for deferred stripping within a mining complex with multiple pits using a common infrastructure:


•	In circumstances where the new development is not closely located to a producing mine or is development of a new ore body, the Company accounts for the pre-stripping costs as if the development was related to a separately identified mine and reports it as "mines under construction".


•	In circumstances where the stripping costs are not separately identifiable for the pits, the costs are allocated to the pits on a relevant production measure.


•	In circumstances where the stripping costs incurred relate to improvement of access to ore body that benefit future period production, the Company capitalizes the stripping costs and amortizes the costs over the life of the component of the ore body from which future benefits are expected.

During the pre-production phase, stripping costs are deferred and classified as part of the mineral properties, if the costs relate to future benefits and meet the definition of an asset. Once mine production enters into an area where stripping costs have been capitalized, the capitalized

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stripping costs are depleted on a unit-of-production basis over the mineral reserves and the portion of the mineral resources expected to be classified as mineral reserves that directly benefit from the specific stripping activity.

During the production phase, regular waste removal that does not give rise to future benefits is accounted for as variable production costs and included in the cost of the inventory produced during the period that the stripping costs are incurred. Stripping costs during the production phase are recognized as an asset if, and only if, all of the following are met:


•	It is possible that the future benefit, i.e. improved access to the ore body, associated with the stripping activity will flow to the Company;


•	The Company can identify the component of the ore body for which access has been improved; and


•	The stripping activity costs associated with the component can be measured reliably.

When the costs of the stripping activity asset and the inventory produced are not separately identifiable, the Company uses a stripping ratio to allocate the production stripping costs between the inventory produced and the stripping activity asset. A stripping ratio, which represents a unit amount of overburden or waste anticipated to be removed to gain access to a unit amount of ore or mineral material, is developed as part of the initial mine plan and reviewed periodically for reasonableness. Changes in the estimated stripping ratio can result in a change to the future capitalization of stripping costs incurred. A stripping activity asset recognized during the production phase of an open pit mining operation is depleted on a unit-of-production basis over the mineral reserves and the portion of the mineral resources expected to be classified as mineral reserves of the ore body or the related component of the ore body from the date on which production commences.


iv.	Assets Under Construction

Assets under construction consist of expenditures for the construction of future mines, pre-production revenue credits and expenses prior to achieving completion of commissioning. Completion of commissioning is commonly used as a reference for determining the point in time at which a mine and plant have achieved operational results that are expected to remain at a sustainable operational level over a period of time. Upon completion of commissioning, production costs are no longer capitalized and are reported as operating costs. The determination of when completion of commissioning has been achieved is based on several qualitative and quantitative factors including but not limited to the following:


•	A significant portion of planned capacity, the planned production level, grades and recovery rates have been achieved in a sustainable manner.


•	Achievement of mechanical completion and operational effectiveness.


•	Significant milestones such as obtaining necessary permits and production inputs are achieved to allow continuous and sustainable operations.

Costs associated with commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalized. Borrowing costs, including interest, associated with projects that are actively being prepared for production are capitalized to assets under construction. These costs are elements of the historical cost of acquiring an asset when a period of time is required to bring it to the condition and location necessary for its intended use. The borrowing costs eligible for capitalization are determined by applying a capitalization rate, which is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, to the expenditures on the asset. Capitalized interest costs are amortized on the same basis as the related qualifying asset.

Once the mining project has been established as commercially feasible, all the related capitalized expenditures in the category “mining property costs not subject to depreciation and depletion”, which consists of “project with mineral reserves”, “exploration potential” and “assets under construction”, are transferred to the category “mining property costs subject to depreciation and depletion".


(n)	Decommissioning, Restoration and Similar Liabilities and Other Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Where the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the liability that have not been reflected in the estimate of the expenditure. The unwinding of the discount is recognized as a finance expense.

Decommissioning, restoration and similar liabilities are a type of provision associated with the retirement of a long-lived asset that the Company has acquired, constructed, developed and/or used in operations. Reclamation obligations on the Company's mineral properties are recorded as decommissioning, restoration and similar liabilities. These include the dismantling and demolition of infrastructure and the removal of residual

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materials and remediation of disturbed areas. These estimated obligations are provided for in the accounting period when the related disturbance occurs, whether during the mine development or production phases at the present value of estimated future costs to settle the obligations, or when a constructive obligation arises. The costs are estimated based on the Company’s mine closure plan. The cost estimates are updated annually during the life of the operation to reflect known developments, (e.g. revisions to cost estimates and to the estimated lives of operations, or changes in legal or regulatory requirements), and are subject to review at regular intervals.

Decommissioning, restoration and similar liabilities are initially recorded with a corresponding increase to the carrying amounts of property, plant and equipment, with any subsequent changes to the liability accounted for as changes in the carrying amounts of the related property, plant and equipment. The capitalized costs are amortized over the life of the mine on a unit-of-production basis.


(o)	Intangible Assets

Intangible assets acquired by way of an asset acquisition or business combination are recognized if the asset is separable or arises from contractual or legal rights and the fair value can be measured reliably on initial recognition. Intangible assets must be identifiable, controlled by the Company and with future economic benefits expected to flow from the assets. Intangible assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets with finite useful lives are amortized on a straight-line basis over the lesser of mine life or estimated useful life of the intangible asset. The Company reviews the useful life, amortization method and carrying value on a regular basis.

4. CRITICAL JUDGEMENTS AND ESTIMATION UNCERTAINTIES

The preparation of the Company’s consolidated financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and the accompanying disclosures. These assumptions, judgements and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the financial statements. Management reviews its estimates and underlying assumptions on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The most significant judgements and key sources of estimation uncertainty that management believes could have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:

Mineral Reserve and Mineral Resource Estimates

Key Sources of Estimation Uncertainty

The figures for mineral reserves and mineral resources are determined in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects , issued by the Canadian Securities Administrators. This National Instrument lays out the standards of disclosure for mineral projects including rules relating to the determination of mineral reserves and mineral resources. There are numerous uncertainties inherent in estimating mineral reserves and mineral resources, including many factors beyond the Company's control. Such estimation is a subjective process, and the accuracy of any mineral reserve or mineral resource estimate is a function of the quantity and quality of available data and of the assumptions made and judgements used in engineering and geological interpretation. Short-term operating factors relating to the mineral reserves, such as the need for orderly development of the ore bodies or the processing of new or different ore grades, may cause the mining operation to be unprofitable in any particular accounting period. Lower market prices, increased production costs, reduced recovery rates and other factors may result in a revision of its mineral reserve estimates from time to time or may render the Company’s mineral reserves uneconomic to exploit, which may materially and adversely affect the results of operations or financial condition. Mineral reserve data are not indicative of future results of operations. Evaluation of mineral resources is conducted from time to time and mineral resources may change depending on further geological interpretation, drilling results and metal prices. The Company regularly evaluates its mineral resources and it often determines the merits of increasing the reliability of its overall mineral resources.

Differences between management's assumptions, and actual events including economic assumptions such as metal prices and market conditions, could have a material effect in the future on the Company's financial position and results of operations.

Estimates of the quantities of proven and probable mineral reserves and mineral resources form the basis for the Company’s LOM plans, which are used for a number of important business and accounting purposes, including: determination of the useful life of property, plant and equipment and measurement of the depreciation expense, capitalization and amortization of stripping costs, exploration and evaluation of mineral resources and determination of technical feasibility and commercial viability, and forecasting the timing of the payments related to the environmental rehabilitation provision. In addition, the underlying life of mine ("LOM") plans are used in the impairment tests for goodwill and non-current assets.

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Estimated Recoverable Ounces

Key Sources of Estimation Uncertainty

The carrying amounts of the Company’s mining properties are depleted based on recoverable ounces contained in proven and probable mineral reserves plus a portion of mineral resources. The Company includes a portion of mineral resources where it is considered probable that those mineral resources will be economically extracted. Changes to estimates of recoverable ounces and depletable costs including changes resulting from revisions to the Company’s mine plans and changes in metal price forecasts can result in a change to future depletion rates.

Economic Recoverability and Probability of Future Economic Benefits of Exploration, Evaluation and Development Costs

Critical Judgements in Applying Accounting Policies

Management has determined that exploration and evaluation costs incurred during the year and costs associated with projects under construction have future economic benefits and are economically recoverable. In making this judgement, management has assessed various sources of information including but not limited to the geologic and metallurgic information, history of conversion of mineral deposits to proven and probable mineral reserves, scoping and feasibility studies, proximity of operating facilities, operating management expertise, existing permits and life of mine plans.

Impairment of Mineral Properties and Goodwill

Critical Judgements in Applying Accounting Policies

While assessing whether any indications of impairment exist for mineral properties and goodwill, consideration is given to both external and internal sources of information. Information the Company considers include changes in the market, economic and legal environment in which the Company operates that are not within its control and affect the recoverable amount of mineral properties and goodwill. Internal sources of information include the manner in which property and plant and equipment are being used or are expected to be used and indications of economic performance of the assets, historical exploration and operating results. Management concluded that there were no impairment or impairment reversal indicators as of December 31, 2017, except for the decision to sell Gualcamayo and related Argentinian exploration properties. Refer to Note 11: Impairment and Reversal of Impairment to the Company's Consolidated Financial Statements for further discussion.

In determining a CGU, management had to examine the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other assets or groups of assets. The Company has determined that each mine site and development project qualifies as an individual CGU. Each of these assets generates or will have the ability to generate cash inflows that are independent of the other assets and therefore qualifies as an individual asset for impairment testing purposes.

Key Sources of Estimation Uncertainty

In determining the recoverable amounts of the Company’s mining interests and goodwill, management makes estimates of the discounted future after-tax cash flows expected to be derived from the Company’s mining properties, costs to sell the mining properties and the appropriate discount rate. The projected cash flows are significantly affected by changes in assumptions related to metal selling prices, changes in the amount of recoverable reserves, resources, and exploration potential, production cost estimates, future capital expenditures, discount rates and exchange rates. Significant changes in metal price forecasts, estimated future costs of production, capital expenditures, the amount of recoverable reserves, resources, and exploration potential, and/or the impact of changes in current economic conditions may result in a write-down or reversal of impairment of the carrying amounts of the Company’s mining interests and/or goodwill.

During the year ended December 31, 2017, the Company recognized a non-cash impairment loss on certain mining properties reclassified as held for sale in the amount of $356.5 million and concluded that no reversals were required on previously recognized impairments. During the year ended December 31, 2016, the Company recognized an impairment loss of $711.3 million on certain mining properties arising from changes in the mining plans for those properties and an impairment reversal of $96.2 million due to the decision to recommission one of the Company's mines. Refer to Note 11: Impairment and Reversal of Impairment to the Company's Consolidated Financial Statements , for specific estimates and assumptions for impairments recorded during the year.

Deferral of Stripping Costs

Key Sources of Estimation Uncertainty

In determining whether stripping costs incurred during the production phase of a mining property relate to mineral reserves and mineral resources that will be mined in a future period and therefore should be capitalized, the Company determines whether it is probable that future economic benefit associated with the stripping activity over the life of the mineral property will flow to the Company. Changes in estimated strip ratios can result in a change to the future capitalization of stripping costs incurred. As at December 31, 2017, a cumulative total of $402.3 million ( 2016 - $285.3 million ) of stripping costs have been capitalized.

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Decommissioning, Restoration and Similar Liabilities

Key Sources of Estimation Uncertainty

Given the nature of its operations, the Company incurs obligations to close, restore and rehabilitate its sites. Closure and rehabilitation activities are governed by a combination of legislative requirements and Company policies. The Company’s provision for decommissioning, restoration and similar liabilities represents management’s best estimate of the present value of the future cash outflows required to settle the liabilities, which reflects estimates of future costs, inflation, movements in foreign exchange rates and assumptions of risks associated with the future cash outflows, and the applicable risk-free interest rates for discounting the future cash outflows. Changes in the above factors can result in a change to the provision recognized by the Company. The actual future expenditures may differ from the amounts currently provided if the estimates made are significantly different than actual results or if there are significant changes in environmental and/or regulatory requirements in the future.

Revenue Recognition

Key Sources of Estimation Uncertainty

Revenue from the sale of copper concentrate to independent smelters is recorded at the time the rights and rewards of ownership pass to the buyer using forward market prices on the expected date that final sales prices will be fixed. Variations between the prices set under the smelting contracts may be caused by changes in market prices and result in an embedded derivative in the trade receivables. The embedded derivative is recorded at fair value each period until final settlement occurs, with changes in the fair value classified in revenue. In a period of high price volatility, as experienced under current economic conditions, the effect of mark-to-market price adjustments related to the quantity of metal which remains to be settled with independent smelters could be significant. For changes in metal quantities upon receipt of new information and assay, the provisional sales quantities are adjusted.

Deferred Revenue

Critical Judgements in Applying Accounting Policies

Significant judgements are required in determining the appropriate accounting treatment for metal transactions entered into by the Company. With respect to the streaming arrangements the Company has entered into with Sandstorm and Altius, management has determined that based on the agreements, Sandstorm and Altius assume significant business risk and rewards associated with the timing and amount of metals being delivered. As such, the deposits received from Sandstorm and Altius have been recorded as deferred revenue in the consolidated balance sheets. Additionally, the Company has determined that the transaction is not a financial liability as; based on the specific rights and obligations set out in the agreement, under no circumstances will the delivery obligations be satisfied with cash. Refer to Note 25: Other Provisions and Liabilities to the Company's Consolidated Financial Statements for further discussion.

Determination of Assets Held for Sale and Discontinued Operations

Critical Judgements in Applying Accounting Policies

Management applies judgement in determining whether an asset or disposal group should be classified as held for sale. An asset or disposal group should be classified as held for sale when it is available for immediate sale in its present condition and its sale is highly probable. Conditions that support a highly probable sale include the following: an appropriate level of management is committed to a plan to sell the asset or disposal group, an active program to locate a buyer and complete the plan has been initiated, the asset or disposal group has been actively marketed for sale at a price that is reasonable in relation to its current fair value, and the sale of the asset or disposal group is expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale.

At December 31, 2017, the Company concluded that the assets and liabilities of Gualcamayo and related Argentinian exploration properties, and certain exploration properties in Northern Ontario (the “Canadian Exploration Properties”) met the criteria for classification as held for sale. Accordingly, the assets and liabilities of each property, as applicable, were presented separately in the Company's consolidated balance sheet under current assets and current liabilities, respectively. Immediately prior to the classification to assets and liabilities held for sale, the carrying amounts of Gualcamayo and related Argentinian exploration properties were re-measured to their recoverable amount, being their FVLCD. As a result the Company has recorded impairment losses on Gualcamayo and related Argentinian exploration properties of $256.9 million and $99.6 million respectively. Refer to Note 6: Acquisition and Disposition of Mineral Interests and Corporate Transactions for further discussion. Non-current assets ceased to be depreciated upon classification as held for sale.

Management also applies judgement to determine whether a component of the Company that either has been disposed of, or is classified as held for sale, meets the criteria of a discontinued operation. The key area that involves management judgement in this determination is whether the component represents a separate major line of business or geographical area of operation. This determination applied to Gualcamayo, as it is a component of the Company. Given that the Company will continue to operate in Argentina after the disposal of Gualcamayo and following the analysis of quantitative factors, the Company concluded that Gualcamayo is not a separate major line of business or geographical area of operation, thus it is not considered to be a discontinued operation. Mercedes, being the Company's sole mining operation in Mexico at the time

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of its classification to asset held for sale, was considered to be a major geographical area of operation. Therefore, Mercedes met the criteria for a discontinued operation and its results have been presented as net earnings and cash flows from discontinued operation for the year ended December 31, 2016.

Income Taxes

Critical Judgements in Applying Accounting Policies

Interest and penalties related to income taxes: The determination of whether interest and penalties relating to income taxes are classified with income taxes and accounted for under IAS 12 Income Taxes or classified and accounted for under IAS 37 Provisions, Contingent Liabilities and Contingent Assets requires management to make certain judgements as to the substance of the amounts incurred. If an amount was based on taxable profit and therefore meets the definition of an income tax, it should be classified with income taxes or if it was based on another measure, such as compensation for the time value of money, it should be classified outside of income taxes. Based on an assessment of the specific facts and circumstances in which interest and penalties relating to the Company’s Brazilian tax liabilities were incurred, management determined that such interest and penalties are within the scope of IAS 12 because they are in substance, part of a larger tax assessment rather than resulting from delayed payment. The amounts are therefore, included in the tax expense line item in the Company’s consolidated statement of operations. For the year ended December 31, 2017, such interest and penalties included in tax expense were $ 62.6 million (2016 - recovery of $ 0.2 million) . Refer to Note 12: Income Taxes to the Company's Consolidated Financial Statements for further discussion on the Brazilian tax matters.

Key Sources of Estimation Uncertainty

Income taxes and recoverability of deferred tax assets: In assessing the probability of realizing income tax assets recognized, management makes estimates related to expectations of future taxable income, applicable tax planning opportunities, expected timing of reversals of existing temporary differences and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. In making its assessments, management gives additional weight to positive and negative evidence that can be objectively verified. Estimates of future taxable income are based on forecasted cash flows from operating activities and the application of existing tax laws in each jurisdiction. The Company considers relevant tax planning opportunities that are within the Company's control, are feasible, and within management's ability to implement. Examination by applicable tax authorities is supported based on individual facts and circumstances of the relevant tax position examined in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets recognized. Also, future changes in tax laws could limit the Company from realizing the tax benefits from the deferred tax assets. The Company reassesses unrecognized income tax assets at each reporting period.

Contingencies

Key Sources of Estimation Uncertainty

Due to the size, nature and complexity of the Company’s operations, various legal and tax matters are outstanding from time to time. In the event that the Company’s estimates of the future resolution of these matters changes, the effects of the changes will be recognized in the Consolidated Financial Statements. Refer to Note 34: Contingencies to the Company's Consolidated Financial Statements for further discussion on contingencies.

Inventory Valuation

Key Sources of Estimation Uncertainty

Work-in-process, heap leach ore and stockpiled ore inventories are valued at the lower of the cost of production and net realizable value. The assumptions used in the valuation of these inventories include estimates of gold contained in the ore stacked on leach pads, assumptions of the amount of gold stacked that is expected to be recovered from the leach pads, the amount of gold in the mill circuits and assumption of the gold price expected to be realized when the gold is recovered. If these estimates or assumptions prove to be inaccurate, the Company could be required to write-down the recorded value of its work-in-process, heap leach and stockpiled ore inventories, which would reduce the Company's earnings and working capital. During the year, the Company recorded a write-down of $11.2 million , as a result of the carrying amount of certain inventory exceeding net realizable value (2016 - $0.4 million recovery), which was recorded in cost of sales.

Determination of Business Combinations and Asset Acquisitions

Critical Judgements in Applying Accounting Policies

The determination of whether a set of assets acquired and liabilities assumed constitute the acquisition of a business or asset may require management to make certain judgements as to whether or not the assets acquired and liabilities assumed include the inputs, processes and outputs necessary to constitute a business as defined in IFRS 3 Business Combinations . If an acquired set of assets and activities includes goodwill, in the absence of evidence to the contrary, the set is presumed to be a business. Based on an assessment of the relevant facts and

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circumstances, the Company concluded that the acquisition of Mineração Riacho dos Machados Ltda (“MRDM”), in February 2016 was the acquisition of a business, and the transaction was accounted for as a business combination in accordance with IFRS 3.

5. RECENT ACCOUNTING PRONOUNCEMENTS

(a) Application of New and Amended Standards and Interpretations

The Company applied for the first time certain amendments to the IFRSs, which are effective for annual periods beginning on or after January 1, 2017. The Company has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. The nature and the impact of amendments adopted in the current year that affected the Consolidated Financial Statements is described below:


(a)	Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative

The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). The Company has provided this information in Note 15: Supplementary Cash Flow Information to the Company's Consolidated Financial Statements . Consistent with the transition provisions of the amendments, the Company has not disclosed comparative information for the prior period. Apart from the additional disclosure in Note 15, the application of these amendments has had no impact on the Company's Consolidated Financial Statements.

The adoption of the other amendments to the IFRSs mandatorily effective for accounting periods beginning on or after January 1, 2017 did not affect the Consolidated Financial Statements.

(b) New and Amended Standards and Interpretations not yet Effective

Certain pronouncements have been issued by the IASB that are mandatory for accounting periods after December 31, 2017 . Pronouncements that are not applicable to the Company have been excluded from this note.

The following pronouncements have been issued but are not yet effective:


(a)	IFRS 9 Financial Instruments ("IFRS 9")

IFRS 9 provides a revised model for recognition and measurement of financial instruments and a single, forward-looking 'expected loss' impairment model. IFRS 9 also includes a substantially reformed approach to hedge accounting. The Standard is effective for annual reporting periods beginning on or after January 1, 2018. The Company has completed its assessment of the impact of adopting IFRS 9. Currently, the Company enters into commodity derivatives including forward contracts to manage exposure to fluctuations in metal prices, such as copper in concentrate, to achieve the Company's risk management goals. The impact assessment is summarized below:

Classification and Measurement

Designation of equity instruments as at fair value through other comprehensive income (“FVTOCI”) - Under IFRS 9, at initial recognition, entities may make an irrevocable election to present in OCI subsequent changes in the fair value of an investment in an equity instrument that is not held for trading. This election is available on an instrument-by-instrument basis. The gains or losses recognized in OCI remain permanently in equity, and are not subsequently reclassified to profit or loss, even upon derecognition. The Company considers its equity instruments that are currently classified as available-for-sale to be held for strategic purposes and will designate such instruments as at FVTOCI under IFRS 9. This classification will not have an impact on the Company’s Consolidated Financial Statements at the time of adoption of IFRS 9.

All other financial assets and financial liabilities will continue to be measured on the same bases as is currently adopted under IAS 39.

Hedge Accounting

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i) Hedging of Copper in Metal Concentrate

The copper contained in concentrate is not currently eligible for hedge accounting under IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"), therefore the changes in fair value of the copper derivative contracts are recorded immediately in earnings. Under IFRS 9, the application of hedge accounting is permitted for the hedging of components of a non-financial asset, as in the case of copper in concentrate, allowing the intended offset in cash flows related to changes in fair value of copper in concentrate and changes in fair value of copper derivatives. In September 2017, the Company entered into forward and option contracts relating to 45 million pounds of copper, cumulatively to be produced in the first and second quarters of 2018. The unrealized mark-to-market loss on copper forwards was $6.6 million and time value loss on copper options was $3.5 million for the year ended December 31, 2017, which would have been recorded in OCI had the Company elected to apply hedge accounting under IFRS 9.

ii) Hedge Designation of Time Value of Options

The Company enters into hedging transactions to reduce the impact of the variability of the US Dollar amount of Brazilian Reais ("BRL") denominated operating expenditures caused by changes in the currency exchange rates by using a zero-cost collar hedge strategy. The hedging instruments used to form the zero-cost collar hedge strategy are “bought BRL call” and “sold BRL put” options. Under IAS 39, the hedge designation is on the intrinsic value and not the time value of the call and put options. Any variability in the intrinsic value is taken to OCI and any variability in the time value is taken to profit or loss. Commencing in 2018, the Company will designate the entirety of an option (i.e. the intrinsic value and time value) in the zero-cost collar hedge strategy as the hedging instrument, as allowed under IFRS 9. The time value of currency options expensed through profit or loss for the year ended December 31, 2017 was $6.0 million .

Expected Credit Losses ("ECL") on Receivables

ECL is the probability-weighted estimate of credit losses (i.e., the present value of all cash shortfalls) over the expected life of the financial instrument. A cash shortfall is the difference between the cash flows that are due to an entity in accordance with the contract (scheduled or contractual cash flows) and the cash flows that the entity expects to receive (actual expected cash flows). Because expected credit losses consider the amount and timing of payments, a credit loss arises even if the entity expects to be paid in full but later than when contractually due. Based on historical data and the high credit rating of its customer base, the estimated impact on the Company’s retained earnings at January 1, 2018 arising from the effects of accounting for ECL on receivables is not material.


(b)	IFRS 15 Revenue from Contracts with Customers ("IFRS 15")

IFRS 15 introduces a five-step revenue recognition model under which an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Standard is effective for annual reporting periods beginning on or after January 1, 2018. The Company will adopt IFRS 15 using the modified retrospective transition approach, which means that the cumulative impact of the adoption will be recognized in retained earnings as of January 1, 2018, and that comparatives will not be restated.

The Company has completed its assessment of the impact of adopting IFRS 15 and has determined that the application of IFRS 15 will not result in a significant impact on its Consolidated Financial Statements, except as discussed under Metal streaming arrangements below.

The Company’s revenue is derived from bullion, doré and concentrate sales.

The Company has concluded that there will be no material changes to the timing of revenue recognized under IFRS 15 as the point of transfer of risk and rewards for goods and services under IAS 18 Revenue and point of transfer of control under IFRS 15 occur at the same time.

IFRS 15 introduces the concept of performance obligations that are defined as ‘distinct’ promised goods or services. Under the terms of doré and concentrate sales agreements, the Company is responsible for the cost of shipping and certain other services after the date on which control of the goods transfers to the customer at the loading port. Accordingly, under IFRS 15, these other services represent separate performance obligations, to which a portion of revenue earned under the contract must be allocated and recognized as these performance obligations are satisfied. Given the amounts associated with these services are insignificant compared to the total contract values and the fact that many contracts would be completed within a financial reporting period, the

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Company does not expect the impact of treating these services as separate performance obligations to have a material impact on the Company’s consolidated financial statements going forward.

The Company’s concentrate sales are subject to provisional pricing provisions; however, the Company has determined that the recognition of revenue related to these sales will not be significantly affected by IFRS 15. Separate presentation of the provisional pricing adjustments will be required in the revenue note disclosure.

Metal Streaming Arrangements

The Company has entered into metal streaming arrangements with Sandstorm and Altius, pursuant to which, the counterparty (customer) paid the Company advance payments upon execution of the agreement, with a right to receive deliveries of the specified metal referenced to production from certain of the Company’s mines based on a predetermined pricing formula during the future delivery period. The advance payments are recorded as deferred revenue, with amounts recognized in revenue as metals are delivered to the customer. Refer Note 25: Other Provisions and Liabilities to the Company's Consolidated Financial Statements for further discussion on the metal streaming arrangements.

The Company has determined that the adoption of IFRS 15 will have the following impacts on the accounting for metal streaming arrangements:

i) Significant Financing Component

Under IFRS 15, when payment is received significantly before the Company satisfies the performance obligation to transfer the promised goods to the customer, the Company is required to assess whether the advance payment gives rise to a significant financing component. Where a financing component is determined to be ‘significant’ to a contract, its effects are reflected in the estimate of the transaction price.

Based on its assessment, the Company has determined that a significant financing component exists in each of its metal streaming arrangements. As a result, the deferred revenue balance related to advance payments received from Sandstorm and Altius will be adjusted to reflect a significant financing component. The impact will be an increase to finance expenses with a corresponding increase to revenue over the life of the arrangements.

The estimated impact on the Company’s retained earnings at January 1, 2018 arising from the effects of accounting for the significant financing components in metal streaming arrangements is not material.

ii) Variable Consideration

The Company determines the amortization of deferred revenue to the Consolidated Statement of Operations on a per unit basis using the estimated total quantity of metal expected to be delivered to Sandstorm and Altius over the terms of the contract. A potential extension or downward revision of mineral reserves and resources ("mineral R&R") of the source mine could potentially affect the total quantity of goods deliverable under a metal streaming arrangement, hence causing variability of consideration per unit in each of the sales transactions covered by the metal streaming arrangement. The impact of adjustments to mineral R&R will be retroactively applied from the date of inception of the metal streaming arrangement and will be reflected in the Consolidated Financial Statements that include the date of the adjustment, by means of a cumulative catch up adjustment to revenue.

The Company's current metal streaming arrangements are in their infancy and changes to the LOMs attributable to the source mines (Chapada, Minera Florida) since inception of the agreements have been minimal. The Company estimates that these changes will not have a significant impact on the Company’s Consolidated Financial Statements upon adoption of IFRS 15.

The estimated impact of the adoption of IFRS 9 and IFRS 15 on the Company’s retained earnings as at January 1, 2018 is based on assessments undertaken to date. The actual impacts of adopting these standards at January 1, 2018 are subject to change should there be any changes in the Company’s circumstances until the Company presents its first Consolidated Financial Statements that include the date of initial application.


(c)	IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration ("IFRIC 22")

On December 8, 2016, the IASB issued IFRIC 22, which addresses the exchange rate to use in transactions that involve advance consideration paid or received in a foreign currency. The Standard provides guidance on how to determine the date of the transaction for the purpose of determining the spot exchange rate used to translate the asset, expense or income on initial recognition that

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relates to, and is recognized on the de-recognition of, a non-monetary prepayment asset or a non-monetary deferred income liability. It is effective January 1, 2018. The Company has completed its assessment and determined that adoption of this Interpretation will impact the Company in instances where the Company enters into foreign currency transactions for which consideration is paid or received in advance, and the necessary process changes have been implemented. The impact of adoption will not be significant to the Company’s Consolidated Financial Statements.


(d)	IFRS 16 Leases

The Standard requires lessees to recognize assets and liabilities for most leases. It is effective for annual reporting periods beginning January 1, 2019. Early application is permitted for companies that also apply IFRS 15. The Company does not anticipate early adoption and is assessing the impact on the adoption of this Standard. Project activities launched during the current fiscal year include the development of a project plan, project team structure, staff training, development of process tools for lease identification and roll-out of the data gathering phase, and the initiation of a search for a software solution for lease information management.


(e)	IFRIC Interpretation 23 Uncertainty over Income Tax Treatments ("IFRIC 23")

On June 7, 2017 the IASB issued IFRIC 23 to clarify the accounting for uncertainties in income taxes. The Interpretation is to be applied to the determination of taxable profit/loss, tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12 Income Taxes. It is effective January 1, 2019. Early adoption is permitted. The Company is currently assessing the impact on adoption of this Interpretation.

6. ACQUISITION AND DISPOSITION OF MINERAL INTERESTS AND CORPORATE TRANSACTIONS


a)	Assets and disposal Group Held for Sale


i)	Canadian Exploration Properties

On December 21, 2017, the Company announced that it had entered into an agreement to sell certain jointly owned exploration properties of the Canadian Malartic Corporation (“CMC”) including the Kirkland Lake and Hammond Reef properties (the “Canadian Exploration Properties”) for cash proceeds of $162.5 million to Yamana. The Transaction is structured as a sale of assets by CMC (in which the Company holds a 50% indirect interest) pursuant to which Agnico Eagle Mines Limited will acquire all of the Company's indirect 50% interest in the Canadian exploration assets of CMC. The transaction is expected to close in the first quarter of 2018.

At December 31, 2017, the sale was considered highly probable; therefore, the assets of the Canadian Exploration Properties were reclassified as assets held for sale. No impairment loss was recognized on reclassification of the assets as held for sale as the FVLCD is higher than the carrying amount of the assets based on the sales price in the agreement.

The Canadian Exploration Properties are presented in the Canadian Malartic reportable operating segment.


ii)	Gualcamayo and Related Argentinian Exploration Properties

As part of its ongoing strategic and technical reviews of its asset portfolio, the Company has committed to a formal plan to dispose of the Gualcamayo mine and related exploration properties in Argentina (“Gualcamayo”) and has initiated an active program to locate a buyer. The Company is in talks with several interested parties and the sale is expected to be completed before the end of 2018. As the sale was considered highly probable at December 31, 2017, the assets and liabilities of Gualcamayo were classified as assets and liabilities (a disposal group) held for sale and presented separately under current assets and current liabilities, respectively. Immediately prior to the classification to assets and liabilities held for sale, the carrying amount of Gualcamayo was re-measured to its recoverable amount, being its FVLCD, the estimate of which, is supported by various sources including a formal bid received by the Company, external valuation reports and comparable trading company multiples. As a result, the Company has recorded an impairment loss in relation to the Gualcamayo assets and related exploration. Refer to Note 11: Impairment and Reversal of Impairment to the Company's Consolidated Financial Statements.

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The components of assets and liabilities held for sale relating to the above assets and disposal group are as follows:



As at December 31, 2017	Canadian Exploration Properties		Gualcamayo		Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	6.3	$	6.3
Inventories	—		78.4		78.4
Other assets	—		15.7		15.7
	—		100.4		100.4
Property, plant and equipment	98.4		130.8		229.2
Other financial assets	0.8		—		0.8
Goodwill and intangibles	24.0		1.4		25.4
Total assets held for sale	$	123.2	$	232.6	$	355.8

Liabilities
Current liabilities:
Trade and other payables	$	0.4	$	45.0	$	45.4
Other financial liabilities	—		2.4		2.4
Other provisions and liabilities	0.1		7.8		7.9
	0.5		55.2		55.7
Decommissioning, restoration and similar liabilities	0.6		26.5		27.1
Other provisions and liabilities	—		0.9		0.9
Total liabilities relating to assets held for sale	$	1.1	$	82.6	$	83.7
Net assets held for sale	$	122.1	$	150.0	$	272.1


b)	Dilution of Interest in Brio Gold

On December 23, 2016, the Company closed its offering of purchase rights pursuant to which the Company has transferred common shares ("Brio Gold Shares") of Brio Gold to Yamana shareholders. A total of 17,324,507 Brio Gold Shares owned by the Company were transferred pursuant to the transactions at a price of C$3.25 per share for aggregate proceeds of $40.7 million ( C$54.1 million ) to the Company. The proceeds, net of transaction costs, were recorded as non-controlling interests in the consolidated statement of changes in equity. As a result of the completion of these transactions, Brio Gold became a public reporting company with shares listed on the Toronto Stock Exchange. The transaction represented a disposal of Brio Gold Shares to non-controlling interests. Upon completion, the Company held approximately 85% of the issued and outstanding Brio Gold Shares.

On March 6, 2017, the Company announced that it had completed a secondary offering by private placement of 6 million common shares of its holding of Brio Gold Shares. The Company sold the Brio Gold Shares at C$3.35 per share for total proceeds of $14.8 million ( C$20.1 million ) to an arm's length institutional shareholder. The sale was completed at a premium to the offering price of the 2016 purchase rights offering. The accounting treatment of the proceeds from the secondary offering was consistent with that of the 2016 purchase rights offering. Upon completion of the sale, the Company owned 89.2 million Brio Gold Shares, representing approximately 79% of the issued and outstanding Brio Gold Shares.

On June 2, 2017, the Company announced that it had completed a further secondary offering by private placement of 27 million common shares of its holding of Brio Gold Shares. The Company sold the Brio Gold Shares at C$3.00 per share for total proceeds of $56.7 million ( C$76.7 million ) through a syndicate of underwriters. The accounting treatment of the proceeds from this secondary offering was consistent with that of the previous Brio Gold Shares sale transactions. Upon completion of this sale, the Company owned 62.2 million Brio Gold Shares, representing approximately 55.6% of the issued and outstanding Brio Gold Shares.

During the fourth quarter of 2017, the restricted share units held by Brio Gold management vested, further diluting the Company's interest in Brio Gold.

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The Company continues to be the controlling shareholder of Brio Gold, holding approximately 53.6% of the issued and outstanding shares as at December 31, 2017.

In January 2018, Leagold Mining Corporation announced its intention to make an offer to acquire all of the issued and outstanding shares of Brio Gold on or before February 28, 2018. Refer to Note 36: Subsequent Events to the Company's Consolidated Financial Statements for further discussion on the proposed transaction.


c)	Disposition of Mercedes Mine and Related Exploration Properties

On September 30, 2016, the Company completed the sale to Premier Gold Inc. ("Premier") of its Mexican subsidiaries through which the Mercedes mine and other Mexican assets were held. Pursuant to the transaction, the Company received total consideration of $122.5 million in cash, equity securities and a net smelter return royalty having an additional value of $23.2 million on close of the transaction. The equity securities received include 6 million common shares of Premier and 3 million common share purchase warrants of Premier that are exercisable at C$4.75 per common share for 24 months. The Company also received a 1.0% net smelter return royalty on the Mercedes mine, that becomes payable upon the earlier of six years from the completion of the sale or the date upon which cumulative production of 450,000 ounces of gold equivalent from Mercedes has been achieved, as well as a 2.0% net smelter return royalty on the La Silla property in Sinaloa, Mexico and the La Espera property in Sonora, Mexico. The Company recognized a loss of $30.9 million on the sale.

The following table summarizes the statement of operations of the Mexican subsidiaries operations:



For the year ended December 31,
(In millions of US Dollars except for shares and per share amounts, unaudited)	2016
Revenue	$	90.6
Cost of sales excluding depletion, depreciation and amortization	(49.8		)
Gross margin excluding depletion, depreciation and amortization	$	40.8
Depletion, depreciation and amortization	(7.2		)
Impairment of mining properties	—
Mine operating earnings	$	33.6
Other expenses	(14.8		)
Earnings before taxes	$	18.8
Attributable income tax recovery	1.3
Net income (loss) from operations	$	20.1
Loss on disposal	(27.2		)
Attributable income tax expense	(4.6		)
Net loss from discontinued operations	$	(11.7	)


d)	Acquisition of Mineração Riacho dos Machados Ltda (“MRDM”)

On February 17, 2016, Brio Gold, a subsidiary of the Company, entered into an Assignment and Assumption Agreement and a Restructuring Agreement pursuant to which it would ultimately acquire all right, title and interests in Mineração Riacho dos Machados Ltda (“MRDM”), a wholly-owned subsidiary of Carpathian Gold Inc. (“Carpathian”), from Macquarie Bank Limited, holder of rights and interests in loan facility extended to MRDM, and Carpathian. MRDM owns and operates the Riacho Dos Machados ("RDM") mine which is an open-pit gold mining operation located in Minas Gerais State, Brazil. RDM increases the production profile of Brio Gold in a mining-friendly jurisdiction expected to increase the sustainable production level, contribute to cash flow and provide mineral reserve growth and a mineral resource base with growth potential.

On April 29, 2016, the Company closed on the restructuring procedures and concurrently attained control of MRDM for approximately $53.9 million in total cash consideration, excluding acquisition related costs of $3.5 million which have been recognized as an expense and included in other expenses in the Consolidated Statements of Operations for the year ended December 31, 2016.

The Company has recognized its interest in the assets, liabilities, revenues and expenses of MRDM in accordance with the Company’s rights and obligations prescribed by the transaction, as a business combination, in accordance with IFRS 3, Business Combinations .

Total consideration paid by the Company was as follows:

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Cash	$	53.9

The following table summarizes the total fair values of assets and liabilities acquired:



	Final
Cash	$	0.3
Net working capital acquired (i)	2.3
Property, plant and equipment (including mineral interests)	57.4
Non-current liabilities	(6.1		)
Net identifiable assets	$	53.9

(i) Included in net working capital acquired are accounts receivables of $2.6 million at fair value which were collected subsequent to closing of the MRDM acquisition.

MRDM's revenues and net losses were $39.3 million and $6.2 million , respectively, for the year ended December 31, 2016 since the acquisition date. Revenues and net losses for the Company would have been $1.81 billion and $289.2 million , respectively, for year ended December 31, 2016, if the acquisition had taken place on January 1, 2016.

7. COST OF SALES EXCLUDING DEPLETION, DEPRECIATION AND AMORTIZATION



For the years ended December 31,	2017			2016
Contractors and services	$	310.4		$	263.1
Employee compensation and benefits expenses (Note 8)	263.4			247.2
Repairs and maintenance	139.0			123.9
Power	66.9			72.8
Materials and supplies	293.6			262.4
Change in inventories, impact of foreign currency, royalties and other	(30.9		)	59.6
Cost of sales excluding depletion, depreciation and amortization	$	1,042.4		$	1,029.0

8. EMPLOYEE COMPENSATION AND BENEFITS EXPENSES



For the years ended December 31,	2017			2016
Wages and salaries	$	242.6		$	229.9
Social security, pension and government-mandated programs (i)	101.6			90.2
Other benefits (ii)	18.7			14.3
Total employee compensation and benefits expenses	$	362.9		$	334.4
Less: expensed within general and administrative expenses	(62.3		)	(51.5		)
Less: expensed within exploration and evaluation expenses	(17.2		)	(14.4		)
Less: capitalized to property, plant and equipment	(20.0		)	(21.3		)
Employee compensation and benefit expenses included in cost of sales (Note 7)	$	263.4		$	247.2

(i)

Included in this item are defined contribution pension plans for all full-time qualifying employees of the Company. Contributions by the Company are based on a contribution percentage using the annual salary as the base and are made on a quarterly basis or as otherwise determined by the Company. The assets of the plans are held separately from those of the Company and are managed by independent plan administrators. The total expense recognized in the consolidated statement of operations of $ 6.3 million ( 2016 - $3.7 million ) represents contributions payable to these plans by the Company at rates specified in the rules of the plans. As at December 31, 2017 , contributions of $ 9.1 million due in respect of the 2017 reporting period ( 2016 - $5.4 million ) had not been paid over to the plans but were paid subsequent to the end of the year.


(ii)	Included in Other benefits are share-based payment transactions as discussed in Note 29 : Share-Based Payments to the Company's Consolidated Financial Statements.

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9. OTHER EXPENSES



For the years ended December 31,	2017			2016
Change in provisions (i)	$	(26.6	)	$	11.0
Write-down of other assets	13.4			20.0
Business transaction costs	2.9			8.5
Gain on sale of assets	(5.2		)	(4.9		)
Mark-to-market (gain)/loss on deferred share units	(1.7		)	3.1
Net loss/(gain) on investments	2.5			(16.0		)
Legal expenses	0.9			4.1
Reorganization costs	4.8			0.6
Other expenses/losses (ii)	32.6			13.3
Other expenses	$	23.6		$	39.7


(i)	Amount represents the reversal of certain existing provisions based on management's best estimate of the likely outcome.


(ii)	In 2017, other expenses/losses includes $9.4 million related to standby costs incurred during El Peñón's suspension of operations associated with the collective bargaining negotiation, and $5.1 million due to business interruption costs at MRDM.

10. FINANCE INCOME AND EXPENSE



For the years ended December 31,	2017			2016
Interest income	$	3.4		$	1.5
Unrealized gain on derivative	—			0.1
Finance income	$	3.4		$	1.6

Unwinding of discounts on provisions	$	20.4		$	15.4
Interest expense on long-term debt	72.7			79.5
Unrealized loss on derivative	15.3			—
Net foreign exchange loss	15.0			33.7
Amortization of deferred financing, bank, financing fees and other	17.7			15.2
Finance expense	$	141.1		$	143.8
Net finance expense	$	(137.7	)	$	(142.2	)

11. IMPAIRMENT AND REVERSAL OF IMPAIRMENT

In accordance with the Company’s accounting policies and processes, each asset or CGU is assessed at the end of each reporting period as to whether there are any indications, from external and internal sources of information, that an asset or CGU may be impaired. If an indication of impairment exists, the recoverable amount is estimated in order to determine the extent of the impairment loss (if any). In addition, on each reporting date the Company assesses whether there is an indication that a previously recorded impairment should be reversed. Goodwill is tested for impairment at least annually. Refer to Note 3 (e): Significant Accounting Policies - Impairment and Reversal of Impairment of Non-Current Assets and Goodwill to the Company's Consolidated Financial Statements.

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During the year ended December 31, 2017, the Company recorded impairment charges on non-current assets totalling $356.5 million , as follows:



	2017					2016
	Total Impairment			Net Book Value of Mineral Property- as at Dec. 31, 2017 (i)		Total Impairment			Net Book Value of Mineral Property- as at Dec. 31, 2016
Gualcamayo	$	(256.9	)	$	130.8	$	—		$	—
Gualcamayo related Argentinian exploration	$	(99.6	)	$	—	$	—		$	—
El Peñón	$	—		$	—	$	(600.4	)	$	763.6
Brio Gold	$	—		$	—	$	(14.7	)	$	419.7
Total mineral property impairments	$	(356.5	)			$	(615.1	)
Total mineral property impairments for operating mines	$	(256.9	)			$	(711.3	)
Total mineral property (impairment)/reversal for non-operating mines	$	(99.6	)			$	96.2


(i)	The total Net Book Value for Gualcamayo as a whole is $150.0 million . Net Book Values are for mineral properties and are after the impairment recorded during the period. Refer to Note 6a: Acquisition and Disposition of Mineral Interests and Corporate Transactions to the Company's Consolidated Financial Statements for a breakdown of the total net book value.

During the fourth quarter, the Company performed its annual assessment of indications of impairment, compiling details from external and internal sources of information. The decision to classify Gualcamayo and related Argentinian exploration properties as held for sale due to the formal approval for disposition and meeting the other relevant criteria for such classification resulted in an impairment of those assets as they were written-down to the lower of their carrying amount or fair value less costs of disposal immediately prior to their reclassification. Gualcamayo and related Argentinian exploration properties were impaired by $256.9 million and $99.6 million respectively, ( $196.0 million and $77.5 million after tax). Brio Gold considered indicators of impairment as at year-end, and concluded that Brio Gold's operations support the carrying value as at December 31, 2017. No other indicators of impairment or impairment reversal were noted as of December 31, 2017.

At December 31, 2016, the Company’s impairment review identified the following indicators of impairment:

•

For El Peñón, in 2016, the Company determined a sustainable, longer term optimal production level for the mine that takes into account mineral reserves, conversion of mineral resources, recent production and capital expenditure levels, as well as the more recent narrow vein discoveries. The outcome of the evaluation envisaged a mine with a production expectation for 2017 of 140,000 ounces of gold and 4,150,000 ounces of silver, which the mine was able to achieve. The reduced annual production compared with the historical running rate of the mine, and a modification in the interpretation of the geological potential from exploration, both reduced the overall contained modeled metal, and extended the timeline required to recover it, all of which impacted the recoverable value of the cash generating unit and resulted in a prior year impairment of $600.4 million ( $381.6 million after-tax).

•

With respect to Brio Gold, a net impairment of $ 14.7 million (recovery of $1.7 million after-tax) was taken in 2016. Modifications to the mining plans at Pilar resulted in an impairment of $110.9 million which was offset by a reversal of the previous impairment at C1 Santa Luz. The reversal of $96.2 million was predominantly due to the decision to recommission the mine following a positive technical report, which included the reclassification of mineral resources into mineral reserves, as their ability to be mined profitably was demonstrated, as well as confirmation of improved gold recoveries.

The Company continues to consider, on a regular basis, whether other indicators exist that suggest that the carrying values of its assets are impaired for accounting purposes. While the market capitalization relative to the carrying value of the Company’s assets is reviewed on a regular basis, it is not considered as the sole indicator of impairment. Given recent strategic developments the Company has achieved, and the volatility of the market reflecting the current economic sentiment, using the current share price as a sole determinant of fair value is not reasonable; however, the Company monitors the magnitude of the gap between the Company market capitalization and the asset carrying values. Although the Company's market capitalization as at December 31, 2017 was below the carrying value of the net assets, based on the impairment assessments, the Company has determined that only the impairments recognized in the year ended December 31, 2017 are required. The Company believes that its share price does not impact the Company’s ability to generate cash flows from its assets which support the net book values on a discounted cash flow basis.

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Impairment Testing: Key Assumptions

The determination of FVLCD, with level 3 input of the fair value hierarchy, includes the following key applicable assumptions:

•

Production volumes: In calculating the FVLCD, the production volumes incorporated into the cash flow models based on detailed life-of-mine plans and take into account development plans for the mines agreed by management as part of the long-term planning process. Production volumes are dependent on a number of variables, such as: the recoverable quantities; the production profile; the cost of the development of the infrastructure necessary to extract the reserves; the production costs; the contractual duration of mining rights; and the selling price of the commodities extracted. As each producing mine has specific reserve characteristics and economic circumstances, the cash flows of the mines are computed using appropriate individual economic models and key assumptions established by management. The production profiles used were consistent with the reserves and resource volumes approved as part of the Company’s process for the estimation of proved and probable reserves, resource estimates and in certain circumstances, include expansion projects. These are then assessed to ensure they are consistent with what a market participant would estimate.

•

Commodity prices: Forecast commodity prices are based on management’s estimates and are derived from forward price curves and long-term views of global supply and demand, building on past experience of the industry and consistent with external sources. Estimated long-term gold, silver and copper prices of $1,300 per ounce ( 2016 - $1,250 per ounce), $19.05 per ounce ( 2016 - $18.75 per ounce) and $3.00 per pound (2015- $2.85 per pound) respectively, have been used to estimate future revenues.


•	Discount rates: In calculating the FVLCD, a real post-tax discount rate of 4.50% ( 2016 - 4.75% ) based on the Company's weighted average cost of capital (“WACC”). The WACC used in the models is in real terms, consistent with the other assumptions in the models.


•	Exchange rates: Foreign exchange rates are estimated with reference to external market forecasts and based on observable market data including spot and forward values. In the current year, there was a slight appreciation in the long-term rates in certain of the currencies the Company operates in.

The FVLCD for Gualcamayo and related Argentinian exploration properties is supported by various sources including a formal bid received by the Company, external valuation reports and comparable trading company multiples.

12. INCOME TAXES


(a)	Income Tax Expense/(Recovery)



For the years ended December 31,	2017			2016
Current tax expense/(recovery)
Current tax expense in respect of the current year	$	86.2		$	17.2
Adjustment for prior periods	156.4			4.8
Impact of foreign exchange	(3.9		)	0.2
Interest and penalties	0.5			(0.4		)
	$	239.2		$	21.8

Deferred tax (recovery)/expense
Deferred tax recovery recognized in the current year	$	(361.3	)	$	(337.7	)
Adjustment for prior periods	(5.5		)	11.1
Impact of foreign exchange	13.7			(20.1		)
	$	(353.1	)	$	(346.7	)
Total income tax recovery	$	(113.9	)	$	(324.9	)

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The following table reconciles income taxes calculated at statutory rates with the income tax expense in the Consolidated Statements of Operations:



For the years ended December 31,	2017			2016
Loss before income taxes	$	(318.0	)	$	(615.7	)
Canadian statutory tax rate (%)	26.5		%	26.5		%
Expected income tax recovery	(84.3		)	(163.2		)
Impact of higher foreign tax rates (i), (ii)	(31.7		)	(97.7		)
Impact of change in enacted tax rates (iii), (iv)	(216.8		)	(18.7		)
Permanent differences	(20.7		)	(22.3		)
Unused tax losses and tax offsets not recognized in deferred tax assets	53.0			(46.7		)
Tax effects of translation in foreign operations	(9.2		)	42.8
True-up of tax provisions in respect of prior years and effects of Brazilian Tax Matters	150.7			15.9
Withholding taxes	10.8			7.5
Unrealized foreign exchange	9.9			(20.0		)
Mining taxes on profit	14.5			18.6
Planned distribution of foreign earnings of the company	9.9			(40.7		)
Other	—			(0.4		)
Income tax recovery	$	(113.9	)	$	(324.9	)
Income tax recovery is represented by:
Current income tax expense	$	239.2		$	21.8
Deferred income tax recovery	(353.1		)	(346.7		)
Net income tax recovery	$	(113.9	)	$	(324.9	)


(i)	The Company operates in multiple foreign tax jurisdictions that have tax rates that differ from the Canadian statutory rate.


( ii)	In November 2016, Jacobina was granted a tax incentive for 10 years, which will allow it to reduce its statutory tax rate from 34% to 15.25% on mining profits.


(iii)	In November 2016 , the Quebec government enacted changes to the income tax rate as proposed in the 2016 provincial budget. Beginning in 2017 , the provincial rate is decreasing by 0.1% over the next 4 years with the current rate deceasing from 11.9% to 11.5% in 2020.


(iv)	On December 29, 2017 the Argentinian government enacted tax reform legislation, which reduces the corporate rate from 35 % to 30 % in 2018 with a further reduction to 25% starting in 2020.


(b)	Deferred Income Taxes

The following is the analysis of the deferred income tax assets (liabilities) presented in the Consolidated Balance Sheets:



As at December 31,	2017			2016
The net deferred income tax assets (liabilities) are classified as follows:
Deferred income tax assets	$	97.8		$	116.7
Deferred income tax liabilities	(1,147.1		)	(1,511.4		)
	$	(1,049.3	)	$	(1,394.7	)



For the year ended December 31, 2017	Opening balance			Recognized in profit or loss			Recognized in other compre-hensive income			Reclassification			Closing balance
Deductible temporary differences	$	67.3		$	(42.6	)	$	—		$	—		$	24.7
Amounts related to tax losses	76.7			66.0			—			(9.0		)	133.7
Financing costs	23.8			(21.2		)	—			—			2.6
Decommissioning, restoration and similar liabilities	16.0			(0.2		)	—			—			15.8
Derivative liability	—			(2.8		)	1.4			—			(1.4		)
Property, plant and equipment	(1,578.0		)	352.0			—			—			(1,226.0		)
Unrealized foreign exchange losses	(4.6		)	4.6			—			—			—
Available-for-sale securities	—			0.1			(0.1		)	—			—
Other	4.1			(2.8		)	—			—			1.3
Net deferred income tax liabilities	$	(1,394.7	)	$	353.1		$	1.3		$	(9.0	)	$	(1,049.3	)

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For the year ended December 31, 2016	Opening balance			Recognized in profit or loss			Recognized in other compre-hensive income			Discontinued operations		Closing balance
Deductible temporary differences	$	63.0		$	4.3		$	—		$	—	$	67.3
Amounts related to tax losses	91.4			(14.7		)	—			—		76.7
Financing costs	0.8			23.0			—			—		23.8
Decommissioning, restoration and similar liabilities	23.1			(7.1		)	—			—		16.0
Derivative liability	0.8			0.2			(1.0		)	—		—
Property, plant and equipment	(1,572.7		)	(14.1		)	—			8.8		(1,578.0		)
Unrealized foreign exchange losses	(384.4		)	379.8			—			—		(4.6		)
Available-for-sale securities	—			—			—			—		—
Other	28.8			(24.7		)	—			—		4.1
Net deferred income tax liabilities	$	(1,749.2	)	$	346.7		$	(1.0	)	$	8.8	$	(1,394.7	)

A deferred income tax asset in the amount of $ 82.1 million ( 2016 - $46.5 million ) has been recorded in Canada and $ 7.4 million (2016 - $ 6.2 million) in Brazil. The deferred income tax asset consists mainly of unused tax losses and deductible temporary differences which arose primarily from financing costs and general and administrative expenses. Projections of taxable profits from various sources were used to support the recognition of a portion of the losses. The future projected income could be affected by metal prices and quantities of proven and probable reserves. If these factors or other circumstances change, we would reassess our ability to record the deferred income tax asset relating to the unused tax losses.


(c)	Unrecognized Deductible Temporary Differences and Unused Tax Losses

Deferred tax assets have not been recognized in respect of the following items:



As at December 31,	2017		2016
Deductible temporary differences (no expiry)	$	59.0	$	125.8
Tax losses	391.4		513.6
	$	450.4	$	639.4

Loss carry forwards at December 31, 2017 will expire as follows:



	Canada		U.S.		Brazil		Chile		Argentina		Other		Total
2018	$	—	$	1.6	$	—	$	—	$	—	$	—	$	1.6
2019	—		9.8		—		—		—		0.1		9.9
2020	—		5.6		—		—		—		—		5.6
2021	—		16.8		—		—		3.3		0.2		20.3
2022	—		19.3		—		—		10.2		—		29.5
2023 and onwards	136.1		174.1		—		—		—		—		310.2
Unlimited	1,070.3		—		396.1		22.2		—		—		1,488.6
	$	1,206.4	$	227.2	$	396.1	$	22.2	$	13.5	$	0.3	$	1,865.7

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(d)	Unrecognized Taxable Temporary Differences Associated with Investments and Interests in Subsidiaries

As at December 31, 2017 , an aggregate temporary difference of $3.0 billion ( 2016 - $3.0 billion ) related to investments in subsidiaries was not recognized because the Company controls the reversal of the liability and it is expected that it will not reverse in the foreseeable future.


(e)	Brazilian Tax Matters

On October 25, 2017, the program was formally enacted into law and the Company paid $ 76.7 million in the year ended December 31, 2017. The final program created an option to either pay one lump sum of approximately $ 68 million in the first quarter of 2018, or a total of approximately $ 100 million plus interest in installments over twelve years. The Company elected to proceed with the lump sum payment option, and on January 30, 2018 made the payment. The income tax expense associated with the tax matters has been recorded in the Consolidated Statement of Operations for the year ended December 31, 2017, and is the most significant component of the $ 150.7 million true-up of tax provisions in respect of prior years in the rate reconciliation.

13. LOSS PER SHARE

Loss per share is based on the weighted average number of common shares of the Company outstanding during the year. The diluted loss per share reflects the potential dilution of common share equivalents, such as outstanding share options, in the weighted average number of common shares outstanding during the year, if dilutive.



For the years ended December 31,	2017			2016
Weighted average number of common shares (in thousands) - basic	948,187			947,443
Weighted average number of dilutive share options (i)	—			—
Weighted average number of dilutive Restricted Share Units (i)	—			—
Weighted average number of common shares (in thousands) - diluted (i)	948,187			947,443

Attributable to Yamana Gold Inc. equityholders
Loss per share from continuing and discontinued operations - basic and diluted
Net loss from continuing and discontinued operations	$	(194.4	)	$	(307.9	)
Loss per share - basic and diluted	$	(0.21	)	$	(0.32	)

Loss per share from continuing operations - basic and diluted
Net loss from continuing operations	$	(194.4	)	$	(290.4	)
Loss per share - basic and diluted	$	(0.21	)	$	(0.31	)

Loss per share from discontinued operations - basic and diluted
Net loss from discontinued operations	$	—		$	(17.5	)
Loss per share - basic and diluted	$	—		$	(0.01	)


(i)	Effect of dilutive securities - the potential shares attributable to 954 share options ( 2016 - 1,004 share options) and 636,774 restricted share units ( 2016 - 452,837 restricted share units) were anti-dilutive for the year ended December 31, 2017 .

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14. RESERVES



	2017			2016
Equity reserve
Balance, beginning of year	$	17.8		$	20.1
Exercise of share options and share appreciation rights	—			0.5
Transfer of restricted share units to share capital on vesting	(2.9		)	(4.5		)
Issue of restricted share units	3.1			1.7
Balance, end of year	$	18.0		$	17.8
Hedging reserve (i)
Balance, beginning of year	$	0.2		$	—
Net change in fair value of hedging instruments	7.2			(2.6		)
Reclassification of (gains)/losses to earnings	(0.3		)	2.8
Less attributable to non-controlling interests	(1.1		)	—
Balance, end of year	$	6.0		$	0.2
Available-for-sale reserve (ii)
Balance, beginning of year	$	(3.5	)	$	(0.4	)
Change in fair value of available-for-sale securities	—			(3.1		)
Reclassification of losses to earnings	4.5			—
Balance, end of year	$	1.0		$	(3.5	)
Other reserve
Balance, beginning of year	$	(2.5	)	$	(1.1	)
Re-measurement of employee benefit plan (iii)	1.3			(1.4		)
Balance, end of year	$	(1.2	)	$	(2.5	)
Total reserve balance, end of year	$	23.8		$	12.0


(i)	The hedging reserve represents hedging gains and losses recognized on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognized in the Consolidated Statement of Operations when the hedged transaction impacts the Consolidated Statement of Operations, or is recognized as an adjustment to the cost of non-financial hedged items.


(ii)	The available-for-sale reserve represents the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold or impaired, the relevant portion of the reserve is recognized in the Consolidated Statement of Operations.


(iii)	The re-measurement of employee benefit plan represents the gains and losses recognized on the actuarial re-measurement of the liability related to the severance benefit plan required by the labour law in Chile.

15. SUPPLEMENTARY CASH FLOW INFORMATION


(a)	Non-Cash Investing and Financing Transactions



For the years ended December 31,	2017		2016
Interest capitalized to assets under construction (i)	$	11.3	$	6.5
Non-cash land purchase agreement	$	—	$	21.2
Issue of common shares on vesting of restricted share units ( Note 28 (a))	$	2.9	$	4.5


(i)	For the year ended December 31, 2017, the general capitalization rate was 4.69% (2016: 4.64% ).

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(b) Net Change in Working Capital



For the years ended December 31,	2017			2016
Net (increase)/decrease in:
Trade and other receivables	$	(0.2	)	$	21.1
Inventories	(17.8		)	11.0
Other assets	(35.1		)	(2.0		)
Net increase/(decrease) in:
Trade and other payables	16.6			20.8
Other liabilities	13.8			(7.8		)
Movement in above related to foreign exchange	8.7			(17.8		)
Net change in working capital (i)	$	(14.0	)	$	25.3


(i)	Change in working capital is net of items related to Property, Plant and Equipment.


(c)	Cash and Cash Equivalents



As at December 31,	2017		2016
Cash at bank	$	146.7	$	96.2
Bank short-term deposits	2.2		1.2
Total cash and cash equivalents (i)	$	148.9	$	97.4


(i)	Cash and cash equivalents consist of cash on hand, cash on deposit with banks, bank term deposits and highly liquid short-term investments with terms of less than 90 days from the date of acquisition.

(d) Other Non-Cash (Recoveries)/Expenses



For the years ended December 31,	2017			2016
Write off / (recoveries) of assets	$	16.4		$	(6.1	)
Revaluation of employees' pension plan	3.9			6.7
Provision on indirect taxes	(10.8		)	6.1
Legal expenses	(33.0		)	11.7
Other expenses	15.7			18.3
Total non-cash (recoveries)/expenses	$	(7.8	)	$	36.7


(e)	Changes in Liabilities Arising from Financing Activities



	Long-term debt			Current portion of long-term debt (i)			Trade and other payables
Balance as at January 1, 2017	$	1,573.8		$	18.6		$	340.0
Changes from financing cash flows
- Proceeds from term loan and notes payable	730.0			—			—
- Repayment of term loan and notes payable	(442.3		)	(18.6		)	—
- Interest paid	—			—			(103.8		)
- Dividends paid	—			—			(18.9		)
Other
Non-cash: Amortization cost of debt	(3.8		)	—			—
Non-cash: Interest accruals	—			—			80.6
Non-cash: Dividends accruals	—			—			19.2
Non-cash: Reclassifications and other	(110.0		)	110.0			28.3
Balance as at December 31, 2017	$	1,747.7		$	110.0		$	345.4


(i)	Presented as a component of Other Financial Liabilities (refer to Note 24: Other Financial Liabilities to the Company's Consolidated Financial Statements).

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16. FINANCIAL INSTRUMENTS


(a)	Financial Assets and Financial Liabilities by Categories



As at December 31, 2017	Loans and receivables		Available-for-sale		Fair value through profit or loss		Derivative instruments in designated hedge accounting relationships		Other financial liabilities at amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	148.9	$	—	$	—	$	148.9
Trade and other receivables	8.1		—		—		—		—		8.1
Receivables from provisional copper sales	—		—		30.5		—		—		30.5
Investments in securities	—		7.2		—		—		—		7.2
Derivative assets - Hedging instruments	—		—		—		6.8		—		6.8
Derivative assets - Non-hedge	—		—		2.5		—		—		2.5
Other financial assets	22.8		—		—		—		—		22.8
Total financial assets	$	30.9	$	7.2	$	181.9	$	6.8	$	—	$	226.8

Financial liabilities
Total debt	$	—	$	—	$	—	$	—	$	1,857.7	$	1,857.7
Accounts payable and accrued liabilities	—		—		—		—		345.4		345.4
Derivative liabilities - Hedging instruments	—		—		—		5.7		—		5.7
Derivative liabilities - Non-hedge	—		—		8.5		—		—		8.5
Other financial liabilities	—		—		—		—		164.6		164.6
Total financial liabilities	$	—	$	—	$	8.5	$	5.7	$	2,367.7	$	2,381.9



As at December 31, 2016	Loans and receivables		Available-for-sale		Fair value through profit or loss		Derivative instruments in designated hedge accounting relationships		Other financial liabilities at amortized cost		Total
Financial assets
Cash and cash equivalents	$	—	$	—	$	97.4	$	—	$	—	$	97.4
Trade and other receivables	4.9		—		—		—		—		4.9
Receivables from provisional copper sales	—		—		31.7		—		—		31.7
Investments in securities	—		22.1		—		—		—		22.1
Derivative assets - Hedging instruments	—		—		—		3.3		—		3.3
Derivative assets - Non-hedge	—		—		1.6		—		—		1.6
Other financial assets	23.5		—		—		—		—		23.5
Total financial assets	$	28.4	$	22.1	$	130.7	$	3.3	$	—	$	184.5

Financial liabilities
Total debt	$	—	$	—	$	—	$	—	$	1,592.4	$	1,592.4
Accounts payable and accrued liabilities	—		—		—		—		340.0		340.0
Derivative liabilities - Hedging instruments	—		—		—		—		—		—
Derivative liabilities - Non-hedge	—		—		—		—		—		—
Other financial liabilities	—		—		—		—		132.8		132.8
Total financial liabilities	$	—	$	—	$	—	$	—	$	2,065.2	$	2,065.2

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(b)	Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In assessing the fair value of a particular contract, the market participant would consider the credit risk of the counterparty to the contract. Consequently, when it is appropriate to do so, the Company adjusts its valuation models to incorporate a measure of credit risk.


i)	Carrying Value Versus Fair Value

Set out below is a comparison by class of the carrying amounts and fair value of the Company's financial instruments, other than those whose carrying amounts are a reasonable approximation of fair value:



	Financial instrument classification	Carrying amount				Fair value (i)
As at December 31,		2017		2016		2017		2016
Debt
Senior unsecured notes	Amortized cost	$	1,754.8	$	1,455.9	$	1,751.5	$	1,460.0


(i)	The Company's senior unsecured notes are accounted for at amortized cost, using the effective interest rate method. The fair value required to be disclosed is determined using quoted prices (unadjusted) in active markets, and is therefore classified within Level 1 of the fair value hierarchy.

Management assessed that the fair values of cash and cash equivalents, trade and other receivables, accounts payable and accrued liabilities, and other financial assets and liabilities approximate their carrying amounts, largely due to the short-term maturities of these instruments. Derivative assets and liabilities are already carried at fair value.


ii)	Fair Value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments that are measured at fair value:


Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The Company assesses its financial instruments and non-financial contracts on a regular basis to determine the existence of any embedded derivatives that would be required to be separated from the host contract and accounted for separately at fair value through profit or loss. As at December 31, 2017 , there were no embedded derivatives requiring separate accounting other than copper concentrate sales.

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The following table summarizes the Company's financial assets and financial liabilities measured at fair value on a recurring basis:



As at December 31, 2017	Level 1 input		Level 2 input		Level 3 input		Aggregate fair value
Assets
Cash and cash equivalents (Note 15(c))	$	148.9	$	—	$	—	$	148.9
Receivables from provisional copper sales	—		30.5		—		30.5
Available-for-sale securities ( Note 19 )	4.6		—		—		4.6
Warrants ( Note 19 )	—		2.6		—		2.6
Derivative related assets ( Note 19 )	—		9.3		—		9.3
	$	153.5	$	42.4	$	—	$	195.9
Liabilities
Derivative related liabilities ( Note 24 )	—		14.2		—		14.2
	$	—	$	14.2	$	—	$	14.2



As at December 31, 2016	Level 1 input		Level 2 input		Level 3 input		Aggregate fair value
Assets
Cash and cash equivalents (Note 15(c))	$	97.4	$	—	$	—	$	97.4
Receivables from provisional copper sales	—		31.7		—		31.7
Available-for-sale securities ( Note 19 )	18.7		—		—		18.7
Warrants ( Note 19 )	—		3.4		—		3.4
Derivative related assets ( Note 19 )	—		4.9		—		4.9
	$	116.1	$	40.0	$	—	$	156.1
Liabilities
Derivative related liabilities ( Note 24 )	—		—		—		—
	$	—	$	—	$	—	$	—

There were no transfers between Level 1 and Level 2 during the years ended December 31, 2017 and 2016.


iii)	Valuation Methodologies Used in the Measurement of Fair Value for Level 2 Financial Assets and Financial Liabilities

Receivables from Provisional Copper Sales

The Company's copper concentrate sales are subject to provisional pricing with the final selling price adjusted at the end of the quotational period. At the end of each reporting period, the Company's accounts receivable relating to these contracts are marked-to-market based on quoted forward prices for which an active commodity market exists.

Warrants

The fair value of warrants is calculated using the Black-Scholes option pricing model, which uses a combination of quoted prices and market-derived inputs, including volatility estimates.

Derivative Related Assets and Liabilities

The fair value of derivative instruments is determined using either present value techniques or option pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs. The Company continues to monitor the potential impact of the recent instability of the financial markets, and will adjust its derivative contracts for credit risk based upon the credit default swap spread for each of the counterparties as warranted.

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iv)	Fair Value of Derivatives

The following table summarizes the fair value of derivative related assets and liabilities:



	Total fair value
	Assets				Liabilities
At as December 31,	2017		2016		2017		2016
Derivatives designated as hedges
Currency contracts
Forward contracts	$	5.2	$	3.3	$	1.6	$	—
Zero-cost collar contracts	1.5		—		4.1		—
Commodity contracts
Zero-cost collar contracts	0.1		—		—		—
Total derivatives designated as hedges (i)	$	6.8	$	3.3	$	5.7	$	—
Derivatives not designated as hedges
Commodity contracts
Forward contracts	—		1.6		5.0		—
Zero-cost collar contracts	1.5		—		3.5		—
Other contracts
DSU contracts (ii)	1.0		—		—		—
Total derivatives not designated as hedges	$	2.5	$	1.6	$	8.5	$	—
Total derivative instruments (Note 19 and Note 24)	$	9.3	$	4.9	$	14.2	$	—
Analyzed by maturity:
Less than 1 year	$	8.5	$	4.9	$	12.8	$	—
Between 1 and 2 years	$	0.8	$	—	$	1.4	$	—

(i)

The net gain on derivatives designated as cash flow hedges for the year ended December 31, 2017 recorded in OCI was $7.2 million (net of tax recovery of $1.3 million ) (2016 - net loss of $1.6 million, net of tax expense of $1.0 million), which represented the effective portion of the change in fair value of the hedges. There was no hedge ineffectiveness for the years ended December 31, 2017 and 2016. The gain reclassified from OCI to the consolidated statement of operations for the year ended December 31, 2017 was $0.3 million (2016 - loss of $2.8 million).


(ii)	During the first quarter of 2017, the Company entered into a derivative contract to mitigate the volatility of its share price on DSU compensation, effectively locking in the exposure of the Company for three million DSUs (approximately 80% of outstanding DSUs) at a value of C $3.5002 per share.

The following table summarizes realized and unrealized gains/(losses) on derivatives:



For the years ended December 31,	2017			2016
Realized gains/losses
Currency contracts: Forward contracts	$	8.2		$	—
Currency contracts: Zero-cost collar contracts	8.6			2.8

Commodity contracts: Forward contracts	(29.1		)	(6.8		)
Commodity contracts: Zero-collar contracts	1.7			—
	$	(10.6	)	$	(4.0	)
Unrealized gains/losses
Currency contracts: Forward contracts	$	—		$	—
Currency contracts: Zero-cost collar contracts	(6.0		)	2.3
Commodity contracts: Forward contracts	(6.6		)	(2.2		)
Commodity contracts: Zero-collar contracts	(2.8		)	—
DSU	1.0			—
	$	(14.4	)	$	0.1

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(b)	Market Risk

Market risk is the risk that changes in market factors, such as foreign exchange, commodity prices or interest rates will affect the value of the Company's financial instruments. Market risks are managed by either accepting the risk or mitigating it through the use of derivatives and other economic hedges.

i. Currency Risk

The Company’s sales are predominantly denominated in US Dollars. The Company is primarily exposed to currency fluctuations relative to the US Dollar as a portion of the Company’s operating costs and capital expenditures are denominated in foreign currencies; predominately the Brazilian Real, the Argentine Peso, the Chilean Peso, and the Canadian Dollar. Monetary assets denominated in foreign currencies are also exposed to foreign currency fluctuations. These potential currency fluctuations could have a significant impact on production costs and affect the Company’s earnings and financial condition. To limit the variability in the Company’s expected operating expenses denominated in foreign currencies, the Company restarted its hedging program in May 2016, entering into forward contracts and zero-cost collar option contracts as summarized below.

The Company has designated these contracts as cash flow hedges for its highly probable forecasted Brazilian Real and Canadian dollar expenditure requirements. The Company has elected to only designate the change in the intrinsic value of options in the hedging relationships.

The following summarizes the terms of the foreign currency contracts that were designated as cash flow hedges:


•	During the second quarter of 2016, the Company entered into zero-cost collar contracts totalling R $510 million (R$ = Brazilian Reais) with the purchase of call options at an average strike price of R$ 3.40 per US Dollar and the sale of put options at an average strike price of R$ 4.13 per US Dollar. The term of the cash flow hedge was from May 2016 to April 2017.

•

During the fourth quarter of 2016, the Company entered into additional zero-cost collar contracts totalling R $400.0 million with the purchase of call options at an average strike price of R $3.25 per US Dollar and sale of put options at an average strike price of R $3.79 per US Dollar. The term of the cash flow hedge was from May 2017 to December 2017 and provided the Company with an approximate 66% hedge over the expected operating costs over the period.

•

During the fourth quarter of 2016, Brio Gold entered into zero-cost collar contracts totalling R $672.0 million with the purchase of call options at an average strike price of R $3.30 per US Dollar and sale of put options at an average strike price of R $3.90 per US Dollar. The term of the cash flow hedge is from January 2017 to December 2018. In addition, Brio Gold entered into currency forward contracts totalling R $672.0 million at an average rate of R $3.55 per US Dollar. The term of the cash flow hedge is from January 2017 to December 2018 and provides Brio Gold with an approximate 60% hedge over the expected operating and capital expenditure costs over the period.


•	During the third quarter of 2017, the Company entered into forward currency contracts for total notional of R $235 million with a weighted average price of R $3.25 per USD. These contracts had all settled by December 2017.


•	During the fourth quarter of 2017, the Company entered into zero-cost collar contracts totalling R $540.0 million with the purchase of call options at an average strike price of R $3.15 per US Dollar and sale of put options at an average strike price of $3.47 per US Dollar. The term of this cash flow hedge is from January 2018 to June 2019.


•	During the fourth quarter of 2017, the Company entered into forward currency contracts for a total notional of CAD $60 million with a weighted average price of CAD $1.2471 per US Dollar. The term of this cash flow hedge is from January 2018 to December 2018.

•

During the fourth quarter of 2017, Brio Gold entered into zero-cost collar contracts totalling R $120.0 million with the purchase of call options at an average strike price of R $3.36 per US Dollar and sale of put options at an average strike price of R $3.70 per US Dollar. The term of the cash flow hedge is from January 2019 to December 2019. In addition, Brio Gold entered into currency forward contracts totalling R $420.0 million at an average rate of R $3.47 per US Dollar. Together, these cash flow hedges have various terms from July 2018 to December 2019 and provide Brio Gold with an approximate 47% hedge over the expected operating costs in 2019.

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The following table outlines the Company's exposure to currency risk and the pre-tax effects on profit or loss and equity at the end of the reporting period of a 10% change in the foreign currency for the foreign currency denominated monetary items. The sensitivity analysis includes cash and cash equivalents and trade payables. The number below indicates an increase or decrease in profit or equity where the US dollar strengthens or weakens by 10% against the relevant foreign currency.



	Effect on net earnings before tax				Effect on other comprehensive income, before tax
(On 10% change in US Dollars exchange rate)	2017		2016		2017		2016
Brazilian Real	$	4.0	$	3.7	$	0.5	$	0.1
Argentine Peso	$	1.0	$	1.1	$	—	$	—
Canadian Dollar	$	8.1	$	7.3	$	—	$	—
Chilean Peso	$	4.4	$	6.6	$	—	$	—

The sensitivity analysis included in the tables above should be used with caution as the results are theoretical, based on management's best assumptions using material and practicable data which may generate results that are not necessarily indicative of future performance. In addition, in deriving this analysis, the Company has made assumptions based on the structure and relationships of variables as at the balance sheet date which may differ due to fluctuations throughout the year with all other variables assumed to remain constant. Actual changes in one variable may contribute to changes in another variable, which may amplify or offset the effect on earnings.


ii.	Commodity Price Risk

Gold, copper and silver prices are affected by various forces including global supply and demand, interest rates, exchange rates, inflation or deflation and the political and economic conditions of major gold, copper and silver-producing countries. The profitability of the Company is directly related to the market price of gold, copper and silver. A decline in the market prices for these precious metals could negatively impact the Company's future operations.

During the third quarter of 2017, the Company entered into a portfolio of zero-cost collar contracts for copper with a number of counterparties. The arrangement comprises of written call and purchased put options with identical characteristics and a range of strike prices that expire monthly for a period of six months from January to June 2018. Total notional quantities included under this arrangement amount to approximately 45 million pounds of copper (approximately 7.5 million pounds per month). The weighted average strike prices of the options are $2.85 per pound and $3.33 per pound for the put and call options, respectively, comprising the boundaries of the collar. Upon exercise, the leg of the option in the money may be settled net in cash.

During the third quarter of 2017, the Company also entered into a portfolio of zero-cost collar contracts for gold with a number of counterparties. The arrangement comprises of written call and purchased put options with identical characteristics and a range of strike prices that expire over a period of six months from October 2017 to March 2018. Total notional quantities included under this arrangement amounted to 284,200 ounces of gold, of which collars worth 152,300 notional ounces had settled or expired by December 31, 2017. The weighted average strike prices of the options are $1,300 per ounce and $1,414 per ounce for the put and call options, respectively, comprising the boundaries of the collar.

As at December 31, 2017 the Company had $30.5 million ( December 31, 2016 — $31.7 million ) in receivables relating to provisionally priced concentrate sales. For year ended December 31, 2017 , the Company had unrecognized gains of $4.0 million ( 2016 — $9.1 million gain) on receivables relating to provisionally priced concentrate sales.

As at December 31, 2017 , the Company has outstanding contracts whereby 23.1 million pounds of copper was purchased at a price of $3.07 per pound. The Company periodically uses forward contracts to economically hedge against the risk of declining copper prices for a portion of its forecast copper concentrate sales.

The Company's balance sheet exposure to commodity prices is limited to the trade receivables associated with provisional pricing of metal concentrate sales, particularly copper, and the copper forward contracts. A 10% change in the average metal prices at the balance sheet date with all other variables constant would result in the following impact to the Company's before tax earnings:

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	Effects on net earnings, before tax
(10% change in price)	2017		2016
Gold in concentrate	$	2.0	$	2.1
Copper in concentrate	$	5.0	$	1.7
Silver in concentrate	$	—	$	0.1

The change in the average commodity prices will not have an impact on Other Comprehensive Income.


iii.	Interest Rate Risk

As at December 31, 2017 , the majority of the Company’s long-term debt was at fixed rates. The Company is exposed to interest rate risk on its variable rate debt and may enter into interest rate swap agreements to hedge this risk. The Company did not have any interest-rate hedges as at December 31, 2017 .


iv.	Credit Risk

Credit risk is the risk that a third party might fail to discharge its obligations under the terms of a financial instrument. The Company limits credit risk by entering into business arrangements with high credit-quality counterparties, limiting the amount of exposure to each counterparty and monitoring the financial condition of counterparties whilst also establishing policies to ensure liquidity of available funds. In addition, credit risk is further mitigated in specific cases by maintaining the ability to novate contracts from lower quality credit counterparties to those with higher credit ratings.

For cash and cash equivalents, trade and other receivables and derivative related assets, credit risk is represented by the carrying amount on the consolidated balance sheets. Cash and cash equivalents are deposited with highly rated corporations and the credit risk associated with these deposits is low. The Company sells its products to large international financial institutions and other organizations with high credit ratings. Historical levels of receivable defaults and overdue balances over normal credit terms are both negligible, thus the credit risk associated with trade receivables is also considered to be negligible. For derivatives, the Company assumes no credit risk when the fair value of the instruments is negative. When the fair value of the instruments is positive, this is a reasonable measure of credit risk. The Company does not have any assets pledged as collateral.

The Company's maximum credit exposure to credit risk is as follows:



As at December 31, 2017	2017		2016
Cash and cash equivalents	$	148.9	$	97.4
Trade and other receivables	38.6		36.6
Derivative related assets ( Note 19 )	9.3		4.9
	$	196.8	$	138.9

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v.	Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Under the terms of our trading agreements, counterparties cannot require the Company to immediately settle outstanding derivatives except upon the occurrence of customary events of default. The Company mitigates liquidity risk through the implementation of its Capital Management Policy by managing its capital expenditures, forecast and operational cash flows, and by maintaining adequate lines of credit. As part the capital allocation strategy, the Company examines opportunities to divest assets that do not meet the Company’s investment criteria. In addition, the Company addresses the capital management process as described in Note 31 : Capital Management to the Company's Consolidated Financial Statements. Contractual maturities relating to contractual commitments are included in Note 33 : Contractual Commitments to the Company's Consolidated Financial Statements and relating to long-term debt are included in Note 26 : Long-Term Debt to the Company's Consolidated Financial Statements.



As at December 31,	2017										2016
	Within 1 year		2 - 3 years		4 - 5 years		Over 5 years		Total		Total
Accounts payable and accrued liabilities	$	345.4	$	—	$	—	$	—	$	345.4	$	340.0
Debt repayments	110.0		342.4		222.7		1,196.9		1,872.0		1,604.3
Interest payments on debt	85.6		151.2		127.0		120.8		484.6		426.6
Decommissioning, restoration and similar liabilities (i)	12.1		35.7		75.9		451.5		575.2		732.9
	$	553.1	$	529.3	$	425.6	$	1,769.2	$	3,277.2	$	3,103.8


(i)	Undiscounted inflated amount of future decommissioning, restoration and similar liabilities.

17. TRADE AND OTHER RECEIVABLES



As at December 31,	2017		2016
Trade receivables (i)	$	38.6	$	35.1
Other receivables	—		1.5
Trade and other receivables	$	38.6	$	36.6


(i)	The average credit period for gold and silver sales is less than 30 days and for copper sales, approximately 90 days. No interest is charged on trade receivables and they are neither impaired nor past due.

18. INVENTORIES



As at December 31,	2017			2016
Product inventories	$	35.6		$	51.2
Work in process (i)	14.1			60.2
Ore stockpiles	126.6			64.6
Materials and supplies	93.7			106.4
	$	270.0		$	282.4
Less: non-current ore stockpiles included in property, plant and equipment (Note 21)	$	(106.5	)	$	(28.3	)
	$	163.5		$	254.1

(i) The work in process balance at December 31, 2016 includes $45.8 million of inventories related to Gualcamayo. Due to the classification of Gualcamayo as a disposal group held for sale in 2017 (refer to Note 6(a): Acquisition and Disposition of Mineral Interests and Corporate Transactions to the Company's Consolidated Financial Statements), the work in process balance at December 31, 2017 excludes work in process inventories related to Gualcamayo.

The amount of inventories recognized as an expense during the year ended December 31, 2017 was $ 1.04 billion ( 2016 - $1.03 billion ) and is included in cost of sales excluding depletion, depreciation and amortization. For the year ended December 31, 2017 , a total charge of $11.2 million was recorded to adjust inventory to net realizable value ( 2016 - $0.4 million recovery) which is included in cost of sales excluding depletion, depreciation and amortization.

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19. OTHER FINANCIAL ASSETS



As at December 31,	2017		2016 (ii)
Derivative related assets ( Note 16 (a))	$	9.3	$	4.9
Royalty and other receivables	21.0		20.3
Investments in financial securities (i)	7.2		22.1
Other	1.8		3.2
	$	39.3	$	50.5
Current	$	13.2	$	14.4
Non-current	26.1		36.1
	$	39.3	$	50.5


(i)	Investments in financial securities include AFS securities and warrants with a cost of $16.4 million ( 2016 - $39.3 million ) and a fair value of $7.2 million ( 2016 - $22.1 million ). During the year ended December 31, 2017, the Company sold its position in the shares of certain companies, and the Company's shares in another company were redeemed by corporate action.


(ii)	Comparatives in respect of certain tax balances have been reclassified to conform to the change in presentation adopted in the current period and are now included in Note 20: Other Assets to the Company's Consolidated Financial Statements.

20. OTHER ASSETS



As at December 31,	2017		2016 (ii)
Income tax recoverable and installments	$	23.1	$	18.3
Tax credits recoverable (i)	118.8		116.8
Advances and deposits	53.1		50.5
Other long-term advances	15.2		13.5
	$	210.2	$	199.1
Current	$	119.4	$	149.9
Non-current	90.8		49.2
	$	210.2	$	199.1


(i)	Tax credits recoverable consist of sales taxes which are recoverable either in the form of a refund from the respective jurisdictions in which the Company operates or against other taxes payable and value-added tax.


(ii)	Comparatives in respect of certain tax balances have been reclassified to conform to the change in presentation adopted in the current period and are now included in Note 20: Other Assets to the Company's Consolidated Financial Statements.

21. PROPERTY, PLANT AND EQUIPMENT

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	Mining property costs subject to depletion (i)			Mining property costs not subject to depletion (ii)			Land, building, plant & equipment			Total
Cost, January 1, 2016	$	5,522.5		$	6,546.7		$	2,802.2		$	14,871.4
Additions	192.3			240.2			55.8			488.3
Acquisitions through business combinations (Note 6(d))	17.1			—			40.3			57.4
Reclassification, transfers and other non-cash movements (iii)	421.8			(435.2		)	42.9			29.5
Change in decommissioning, restoration and similar liabilities	36.6			—			—			36.6
Disposals	(329.9		)	(369.7		)	(196.0		)	(895.6		)
Cost, December 31, 2016	$	5,860.4		$	5,982.0		$	2,745.2		$	14,587.6
Additions	231.9			317.9			94.1			643.9
Reclassification, transfers and other non-cash movements (iii)	99.5			(24.1		)	(29.1		)	46.3
Change in decommissioning, restoration and similar liabilities	47.4			0.5			—			47.9
Disposals	1.0			(10.1		)	(28.4		)	(37.5		)
Reclassified as held for sale (Note 6(a))	(109.9		)	(129.8		)	(92.6		)	(332.3		)
Cost, December 31, 2017	$	6,130.3		$	6,136.4		$	2,689.2		$	14,955.9

Accumulated depletion and depreciation, January 1, 2016	$	3,211.3		$	2,275.8		$	1,175.6		$	6,662.7
Depletion and depreciation for the year	261.8			—			215.3			477.1
Impairment	426.8			101.1			87.2			615.1
Reclassification, transfers and other non-cash movements	(0.5		)	—			—			(0.5		)
Disposals	(330.0		)	(295.7		)	(107.4		)	(733.1		)
Accumulated depletion and depreciation, December 31, 2016	$	3,569.4		$	2,081.2		$	1,370.7		$	7,021.3
Depletion and depreciation for the year	224.9			—			212.5			437.4
Impairment (iv)	129.7			146.3			80.5			356.5
Reclassification, transfers and other non-cash movements	—			—			—			—
Disposals	—			(2.9		)	(13.0		)	(15.9		)
Eliminated on reclassification as held for sale (Note 6(a))	(49.8		)	—			(53.3		)	(103.1		)
Accumulated depletion and depreciation, December 31, 2017	$	3,874.2		$	2,224.6		$	1,597.4		$	7,696.2
Carrying value, December 31, 2016	$	2,291.0		$	3,900.8		$	1,374.5		$	7,566.3
Carrying value, December 31, 2017	$	2,256.1		$	3,911.8		$	1,091.8		$	7,259.7


(i)	The following table shows the reconciliation of capitalized stripping costs incurred in the production phase:



As at December 31,	2017			2016
Balance, beginning of year	$	285.3		$	221.7
Additions	135.2			88.7
Amortization	(18.2		)	(25.1		)
Balance, end of year	$	402.3		$	285.3


(ii)	Mining property costs not subject to depletion include: capitalized mineral reserves and exploration potential acquisition costs, capitalized exploration & evaluation costs, capitalized development costs, assets under construction, capital projects and acquired mineral resources at operating mine sites. Mining property costs not subject to depletion are composed of the following:



As at December 31,	2017		2016
Projects with mineral reserves	$	2,429.3	$	2,346.1
Exploration potential	1,220.9		1,465.1
Mines under construction	261.6		89.6
Total	$	3,911.8	$	3,900.8


(iii)	Reclassification, transfers and other non-cash movements includes $ 54.2 million ( 2016 - $6.2 million ) in ore stockpile inventory which is not expected to be processed within the next twelve months.


(iv)	During the year, the Company recognized net impairment charges totalling $356.5 million on certain mineral interests ( 2016 - $615.1 million ). Refer to Note 11 : Impairment and Reversal of Impairment to the Company's Consolidated Financial Statements for additional details.

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22. GOODWILL AND INTANGIBLES



	Goodwill (i)			Other intangibles (ii)			Total
Cost, January 1, 2016	$	427.7		$	79.0		$	506.7
Additions	—			—			—
Cost, December 31, 2016	$	427.7		$	79.0		$	506.7
Additions	$	—		$	—		$	—
Reclassification to assets held for sale	(24.0		)	(1.4		)	(25.4		)
Cost, December 31, 2017	$	403.7		$	77.6		$	481.3
Accumulated amortization and impairment, January 1, 2016	$	—		$	(17.2	)	$	(17.2	)
Amortization	—			(8.5		)	(8.5		)
Accumulated amortization and impairment, December 31, 2016	$	—		$	(25.7	)	$	(25.7	)
Amortization	—			(6.1		)	(6.1		)
Accumulated amortization and impairment, December 31, 2017	$	—		$	(31.8	)	$	(31.8	)
Carrying value, December 31, 2016	$	427.7		$	53.3		$	481.0
Carrying value, December 31, 2017	$	403.7		$	45.8		$	449.5


(i)	Goodwill represents the excess of the purchase cost over the fair value of net assets acquired on a business acquisition. On June 16, 2014 , the Company acquired a 50% interest in Canadian Malartic. Goodwill of $427.7 million was recognized on the excess of the purchase consideration over the fair value of the assets and liabilities acquired.


(ii)	Included in other intangibles are intellectual property and other intangibles recognized in the acquisition of Constructora Gardilcic Ltda. and Constructora TCG Ltda, and capitalized system development costs.

23. TRADE AND OTHER PAYABLES



As at December 31,	2017		2016
Trade payables	$	256.4	$	228.7
Other payables (i)	89.0		111.3
	$	345.4	$	340.0

(i) Other payables include goods received but not yet paid, interest payable and other accruals.

24. OTHER FINANCIAL LIABILITIES



As at December 31,	2017		2016 (iv)
Royalty payable (i)	$	18.1	$	16.1
Payable related to purchase of mineral interests (ii)	10.8		21.2
Severance accrual	32.0		33.2
Deferred share units/performance share units liability (Note 29)	21.0		16.9
Accounts receivable financing credit (iii)	54.1		40.4
Current portion of long-term debt (Note 26)	110.0		18.6
Derivative related liabilities	14.2		—
Other	28.6		5.0
	$	288.8	$	151.4
Current	$	203.1	$	74.5
Non-current	85.7		76.9
	$	288.8	$	151.4

(i)

Included in Royalty payable is an agreement with Miramar Mining Corporation (“Miramar” acquired by Newmont Mining Corporation) for a Proceeds Interest of C$15.4 million . The agreement entitles Miramar to receive payment of this interest over time calculated as the economic equivalent of a 2.5% net smelter return royalty on all production from the Company’s mining properties held at the time of Northern Orion entering into the agreement, or 50% of the net proceeds of disposition of any interest in the Agua Rica property until the Proceeds Interest of C$15.4 million is paid.


(ii)	Payable related to purchase of the remaining interests in Agua Fria.

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(iii)	Accounts receivable financing credit is payable within 30 days from the proceeds on concentrate sales.


(iv)	Comparatives in respect of certain tax balances have been reclassified to conform to the change in presentation adopted in the current period and are now included in Note 25: Other Provisions and Liabilities to the Company's Consolidated Financial Statements.

25. OTHER PROVISIONS AND LIABILITIES



As at December 31,	2017		2016 (v)
Other taxes payable	$	15.8	$	20.7
Provision for repatriation taxes payable (i)	22.9		13.1
Provision for taxes	25.6		25.8
Deferred revenue on metal agreements - Altius ( ii )	57.5		59.8
Deferred revenue on metal agreements - Sandstorm ( iii)	158.5		164.8
Other provisions and liabilities (iv)	73.0		133.9
	$	353.3	$	418.1
Current	$	56.7	$	55.8
Non-current	296.6		362.3
	$	353.3	$	418.1


(i)	The Company is subject to additional taxes in Chile on the repatriation of profits to its foreign shareholders. Total taxes in the amount of $ 22.9 million ( December 31, 2016 - $13.1 million ) have been accrued on the assumption that the profits will be repatriated.


(ii)	On March 31, 2016 , the Company entered into a copper purchase agreement with Altius, pursuant to which, the Company received advanced consideration of $61.1 million against future deliveries of copper produced by the Company's Chapada mine in Brazil. The advanced consideration is accounted for as deferred revenue, with revenue recognized when copper is delivered to Altius.

The following table summarizes the changes in deferred revenue:



As at December 31,	2017
Balance as at January 1, 2017	$	59.8
Recognition of revenue during the year	(2.3		)
	$	57.5
Current portion	$	4.0
Non-current portion	53.5
Balance as at December 31, 2017	$	57.5

(iii)

On October 27, 2015 the Company entered into three metal purchase agreements with Sandstorm pursuant to which, the Company received advanced consideration of $170.4 million against future deliveries of silver production from Cerro Moro, Minera Florida and Chapada, copper production from Chapada, and gold production from Agua Rica. The advanced consideration is accounted for as deferred revenue, with revenue recognized when the respective metals are delivered to Sandstorm.

The following table summarizes the changes in deferred revenue:



As at December 31,	2017
Balance as at January 1, 2017	$	164.8
Recognition of revenue during the year	(6.3		)
	$	158.5
Current portion	$	7.7
Non-current portion	150.8
Balance as at December 31, 2017	$	158.5

(iv)

Other provisions and liabilities include provisions relating to legal proceedings, silicosis and other. In 2004 , a former director of Northern Orion (now named 0805346 B.C. Ltd.) commenced proceedings in Argentina against Northern Orion claiming damages in the amount of $177.0 million for alleged breaches of agreements entered into with the plaintiff. The plaintiff alleged that the agreements entitled him to a pre-emptive right to participate in acquisitions by Northern Orion in Argentina and claimed damages in connection with the acquisition by Northern Orion of its 12.5% equity interest in the Alumbrera Mine. On August 22, 2008 , the National Commercial Court No. 13 of the City of Buenos Aires issued a first-instance judgement rejecting the claim. The plaintiff appealed this judgement to the National Commercial Appeals Court. On May 22, 2013 , the appellate court overturned the first-instance decision. The appellate court determined that the plaintiff was entitled to make 50% of Northern Orion’s investment in the Alumbrera acquisition, although weighted the chance of the plaintiff’s 50% participation at 15% . The matter was remanded to the first-instance court to determine the value. The parties have undergone two valuations over the last several years, both of which have been subsequently annulled. The most recent annulled award suggested a valuation of $54.2 million , well in excess of the amount Northern Orion considered reflective of the claim. In August 2017, Northern Orion entered into a confidential settlement agreement pursuant to which this matter was definitely and finally settled in consideration of an amount to be paid in installments over a number of years. The total amount

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payable pursuant to the settlement is substantially below the amount awarded in the last valuation proceeding which, under Argentine law, the Company successfully sought to annul. At the option of the Company, all or any portion of the amount can be paid in shares of the Company.


(v)	Comparatives in respect of certain tax balances have been reclassified to conform to the change in presentation adopted in the current period and are now included in Note 25: Other Provisions and Liabilities to the Company's Consolidated Financial Statements.

26. LONG-TERM DEBT



As at December 31,	2017			2016
$300 million senior debt notes (a)	$	297.5		$	—
$500 million senior debt notes (b)	496.2			495.6
$300 million senior debt notes (c)	295.1			294.9
$500 million senior debt notes (d)	484.6			484.1
$270 million senior debt notes (e)	181.4			181.3
$1 billion revolving facility (f)	27.0			116.2
$75 million revolving facility (g)	72.6			—
Long-term debt from 50% interest of Canadian Malartic (h)	3.3			20.3
Total debt	$	1,857.7		$	1,592.4
Less: current portion of long-term debt (Note 24)	(110.0		)	(18.6		)
Long-term debt (i)	$	1,747.7		$	1,573.8


(i)	Balances are net of transaction costs of $14.3 million , net of amortization ( December 31, 2016 - $11.9 million ).


(a)	On November 27, 2017, the Company issued 4.625% senior unsecured debt notes for a total of $300.0 million . These notes have a maturity of December 15, 2027.


(b)	On June 25, 2014 , the Company issued 4.95% senior unsecured debt notes for a total of $500.0 million . These notes have a maturity of July 15, 2024 .


(c)	On June 10, 2013 , the Company closed on a private placement of senior unsecured debt notes for a total of $300.0 million . These notes are comprised of two series of notes as follows:


•	Series A - $35.0 million at a rate of 3.64% with maturity of June 10, 2018 .


•	Series B - $265.0 million at a rate of 4.78% with maturity of June 10, 2023 .


(d)	On March 23, 2012 , the Company closed on a private placement of senior unsecured debt notes for a total of $500.0 million . These notes are comprised of four series of notes as follows:


•	Series A - $75.0 million at a rate of 3.89% with a maturity of March 23, 2018 .


•	Series B - $85.0 million at a rate of 4.36% with a maturity of March 23, 2020 .


•	Series C - $200.0 million at a rate of 4.76% with a maturity of March 23, 2022 .


•	Series D - $140.0 million at a rate of 4.91% with a maturity of March 23, 2024 .


(e)	On December 18, 2009 , the Company closed on a private placement of senior unsecured debt notes for a total of $270.0 million . These notes are comprised of three series of notes as follows:


•	Series A - $15.0 million at a rate of 5.53% fully repaid on December 21, 2014 .


•	Series B - $73.5 million at a rate of 6.45% fully repaid on December 21, 2016 .


•	Series C - $181.5 million at a rate of 6.97% with a maturity of December 21, 2019 .


(f)	On May 29, 2015 , the company refinanced its revolving facility of $1.0 billion . The following summarizes the terms in respect to this facility as at December 31, 2017 :


•	The revolving facility is unsecured and has a maturity date of September 30, 2021 .

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•	Amounts drawn bear interest at a rate of LIBOR plus 1.20% to 2.25% per annum, depending upon the Company’s credit rating.


•	Undrawn amounts are subject to a commitment fee of 0.24% to 0.45% per annum depending upon the Company’s credit rating.


•	During the year, the Company withdrew $355.0 million from the revolving facility and repaid $445.0 million


(g)	Brio Gold entered into a revolving term senior secured credit facility in the amount of $75.0 million , with no recourse to Yamana Gold Inc. The Credit Facility contains representations and warranties, conditions precedent, covenants, and events of default typical for a facility of this type. The following summarizes the terms with respect to this facility as at December 31 2017:


•	The term of the revolving facility is three years, with a reduction to $50.0 million two years after the initial draw down, which was January 25, 2017.


•	Interest rate margins are tied to a grid based on LIBOR that varies with the leverage ratio of Brio Gold.


•	During the year, Brio Gold withdrew $75.0 million from the revolving facility, with the facility being fully drawn down at the year-end.


(h)	The following summarizes the debts related to the Company's 50% interest in Canadian Malartic, which is not guaranteed by the Company:


•	Obligations under finance lease of $3.3 million (C $4.1 million ) with interest rates ranging between 3.5% and 4.7% , maturing November 2019.


•	During the year, the Company made finance lease payments of $2.6 million and loan payments of $14.9 million , resulting in the loan being fully repaid.

The following is a schedule of long-term debt principal repayments which includes corporate debt, the revolving facilities, and debt assumed from the 50% interest in Canadian Malartic which is neither corporate nor guaranteed by the Company:



	Long-term debt
2018	$	110.0
2019	208.3
2020	134.1
2021	30.0
2022	192.7
2023	261.2
2024	635.7
2025	—
2026	—
2027	300.0
	$	1,872.0

27. DECOMMISSIONING, RESTORATION AND SIMILAR LIABILITIES

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As at December 31,	2017			2016
Balance, beginning of year	$	235.6		$	194.3
Decommissioning, restoration and similar liabilities acquired during the year (Note 6(d))	—			5.8
Decommissioning, restoration and similar liabilities disposed during the year (Note 6(c))	—			(6.5		)
Unwinding of discount in the current year for operating mines	24.4			13.6
Unwinding of discount in the current year for non-operating mines	2.3			1.8
Adjustments to decommissioning, restoration and similar liabilities during the year	47.6			20.3
Foreign exchange impact	(3.9		)	14.4
Expenditures during the current year	(4.6		)	(8.1		)
Reclassification to liabilities relating to assets held for sale	(27.1		)	—
Balance, end of year	$	274.3		$	235.6
Current (i)	$	16.1		$	13.4
Non-current	258.2			222.2
	$	274.3		$	235.6


(i)	The current portion of decommissioning, restoration and similar liabilities is included in the current portion of Note 25: Other Provisions and Liabilities to the Company's Consolidated Financial Statements.

Decommissioning, restoration and similar liabilities are calculated as the net present value of future cash flows, which total $413.4 million ( December 31, 2016 - $356.8 million ) using discount rates specific to the liabilities of 1.83% to 15.26% ( December 31, 2016 - 1.2% to 19.09% ). The settlement of the obligations is estimated to occur through to 2043. Decommissioning, restoration and similar liabilities of the Company's mines and projects are incurred in Brazilian Reais, Chilean Pesos, Argentine Pesos, Canadian Dollars and US Dollars. The liabilities, other than those denominated in US Dollars, are subject to translation gains and losses from one reporting period to the next in accordance with the Company's accounting policy for foreign currency translation of monetary items. Adjustments during the year reflect changes in estimates and assumptions including discount rates and inflation rates. The translation gains or losses, as well as changes in the estimates related to these liabilities are reflected in the carrying amounts of the related property, plant and equipment.

28. SHARE CAPITAL


(a)	Common Shares Issued and Outstanding

The Company is authorized to issue an unlimited number of common shares at no par value and a maximum of eight million first preference shares. There were no first preference shares issued or outstanding as at December 31, 2017 ( 2016 : nil ).



For the years ended December 31,	2017			2016
	Number of common shares			Number of common shares
Issued and outstanding - 948,524,667 common shares	Number of common shares	Amount		Number of common shares	Amount
(December 31, 2016 - 947,797,596 common shares):	(In thousands)	(In millions)		(In thousands)	(In millions)
Balance, beginning of year	947,798	$	7,630.5	947,039	$	7,625.4
Exercise of options and share appreciation rights	—	—		56	0.3
Issued on vesting of restricted share units	591	2.9		556	4.5
Dividend reinvestment plan (i)	136	0.3		147	0.3
Balance, end of year	948,525	$	7,633.7	947,798	$	7,630.5

(i)

(b) Dividends Paid and Declared

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For the years ended December 31,	2017		2016
Dividends paid	$	18.9	$	28.0
Dividends declared in respect of the year	$	19.4	$	19.7
Dividend paid (per share)	$	0.02	$	0.03
Dividend declared in respect of the year (per share)	$	0.02	$	0.02

29. SHARE-BASED PAYMENTS

The total expense relating to share-based payments includes accrued compensation expense related to plans granted in the current period, plans granted in the prior period and adjustments to compensation associated with mark-to-market adjustments on cash-settled plans, as follows:



For the years ended December 31,	2017			2016
Accrued expense on equity-settled compensation plans	$	3.3		$	2.2
Accrued expense on cash-settled compensation plans	4.4			1.9
Total expense for instruments granted	$	7.7		$	4.1
Compensation expense for Brio Gold	7.0			7.0
Mark-to-market change on cash-settled plans	(2.1		)	3.1
Total expense recognized as compensation expense	$	12.6		$	14.2

The following table summarizes the equity instruments outstanding related to share-based payments.



As at December 31, (In thousands)	2017	2016
Share options outstanding (i), (ii), (iii)	1,831	2,242
Restricted share units ("RSU") (iv)	1,474	707
Deferred share units ("DSU") (v)	4,288	3,829
Performance share units ("PSU") (vi), (vii)	2,521	1,873


(i)	The aggregate maximum number of common shares that may be reserved for issuance under the Company's Share Incentive Plan is 24.9 million (2016 - 24.9 million).


(ii)	Share options outstanding at December 31, 2017 had a weighted average exercise price of C $7.75 (December 31, 2016 - C $7.81 ). As at December 31, 2017, 1,662,521 share options with a weighted average exercise price of C $8.00 were exercisable (December 31, 2016 - 1,761,821 share options with a weighted exercise price of C $8.50 ).


(iii)	During the year ended December 31, 2017, no share options were granted, and 410,873 share options expired.


(iv)	During the year ended December 31, 2017, the Company granted 1,358,562 RSUs with a weighted average grant date fair value of C $4.46 per RSU; a total of 591,373 RSUs vested and the Company credited $ 2.9 million (2016 - $ 4.5 million) to share capital in respect of RSUs that vested during the period.

(v)

During the year ended December 31, 2017, the Company granted 459,354 DSUs and recorded an expense of C$ 1.6 million. During the first quarter, the Company entered into a derivative contract to mitigate the volatility of share price on DSU compensation, effectively locking in the exposure of the Company for 3 million DSUs (approximately 80% of outstanding DSUs) at a value of C $3.5002 per share. For the year ended December 31, 2017, the Company recorded a mark-to-market loss on DSUs of $ 0.7 million and a mark-to-market gain on the DSU hedge of $ 1.0 million.


(vi)	During the year ended December 31, 2017, 1,224,321 PSU units were granted. This PSU plan has an expiry date on December 2, 2019 and had a fair value of C$ 4.04 per unit at December 31, 2017.


(vii)	The fair value of PSUs granted during the year ended December 31, 2017 was determined using a probability weighted analysis using the Monte Carlo simulation with the following significant assumptions:



Dividend yield (CAD Dollars)	0.61	%
Expected volatility (i)	57.71	%
Risk-free interest rate	2.0464	%
Contractual life	3 years

(i) The expected volatility is based on the historical volatility of the Company's shares.

30. NON-CONTROLLING INTEREST

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As at December 31,	2017		2016
Agua De La Falda S.A. (i)	$	18.7	$	18.7
Brio Gold Inc. (ii)	115.2		49.1
	$	133.9	$	67.8


(i)	The Company holds a 56.7% interest of Agua De La Falda ("ADLF") project along with Corporación Nacional del Cobre de Chile ("Codelco"). The ADLF project is an exploration project which includes the Jeronimo Deposit and is located in northern Chile.

(ii)

The Company held approximately 53.6% of the issued and outstanding shares of Brio Gold as at December 31, 2017 (December 31, 2016 - 85% ). For details on the movement in the Company's shareholding during the year refer to Note 6: Acquisition and Disposition of Mineral Interests and Corporate Transactions to the Company's Consolidated Financial Statements. Further, in January 2018, Leagold Mining Corporation announced their intent to make an offer to acquire all of the issued and outstanding shares of Brio Gold on or before February 28, 2018. Refer to Note 36: Subsequent Events to the Company's Consolidated Financial Statements for further details.

31. CAPITAL MANAGEMENT

The Company’s objectives in managing capital are to ensure sufficient liquidity to pursue its strategy of organic growth combined with strategic acquisitions, to ensure the externally imposed capital requirements relating to its long-term debt are being met, and to provide returns to its shareholders. The Company defines capital that it manages as net worth, which is comprised of total shareholders’ equity and debt obligations (net of cash and cash equivalents). Refer to Note 28 : Share Capital and Note 26 : Long-term Debt, respectively, to the Company's Consolidated Financial Statements, for a quantitative summary of these items.

The Company manages its capital structure and makes adjustments to it in light of general economic conditions, the risk characteristics of the underlying assets and the Company’s working capital requirements. In order to maintain or adjust its capital structure, the Company, upon approval from its Board of Directors, may issue shares, pay dividends, or undertake other activities as deemed appropriate under the specific circumstances. The Board of Directors reviews and approves any material transactions out of the ordinary course of business, including proposals on acquisitions or other major investments or divestitures, as well as capital and operating budgets. The Company has not made any changes to its policies and processes for managing capital during the year.

The Company has the following externally imposed financial covenants on certain of its debt arrangements:


(a)	Tangible net worth of at least $2.3 billion .


(b)	Maximum net total debt (debt less cash) to tangible net worth of 0.75 .


(c)	Leverage ratio (net total debt/EBITDA) to be less than or equal to 3.5 :1.

Not meeting these capital requirements could result in a condition of default by the Company. As at December 31, 2017 , the Company has met all of the externally imposed financial covenants.

32. OPERATING SEGMENTS


(a)	Information about Assets and Liabilities

Property, plant and equipment referred to below consist of land, buildings, equipment, mining properties subject to depletion and mining properties not subject to depletion which include assets under construction and capitalized exploration and evaluation costs.



As at December 31, 2017	Chapada		El Peñón		Canadian Malartic (i)		Jacobina		Minera Florida		Gualca-mayo (ii)		Corporate and other (iii)		Total excluding Brio Gold		Brio Gold		Total
Property, plant and equipment	$	720.4	$	753.0	$	1,265.1	$	741.9	$	430.7	$	—	$	2,841.9	$	6,753.0	$	506.7	$	7,259.7
Goodwill and intangibles	$	—	$	5.4	$	403.7	$	—	$	—	$	—	$	40.4	$	449.5	$	—	$	449.5
Non-current assets	$	732.9	$	768.6	$	1,685.5	$	762.6	$	432.1	$	—	$	2,998.2	$	7,379.9	$	520.0	$	7,899.9
Total assets	$	798.2	$	828.4	$	1,869.6	$	783.3	$	458.0	$	232.5	$	3,214.5	$	8,184.5	$	578.8	$	8,763.3
Total liabilities	$	318.0	$	221.5	$	436.4	$	162.0	$	147.8	$	82.6	$	2,826.8	$	4,195.1	$	120.9	$	4,316.0

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As at December 31, 2016	Chapada		El Peñón		Canadian Malartic		Jacobina		Minera Florida		Gualca-mayo		Corporate and other (iii)		Total excluding Brio Gold		Brio Gold		Total
Property, plant and equipment	$	635.9	$	764.4	$	1,380.6	$	737.7	$	409.0	$	411.9	$	2,747.2	$	7,086.7	$	479.6	$	7,566.3
Goodwill and intangibles	$	—	$	6.8	$	427.7	$	—	$	—	$	1.4	$	45.1	$	481.0	$	—	$	481.0
Non-current assets	$	643.9	$	775.2	$	1,867.2	$	751.8	$	415.1	$	412.9	$	2,884.9	$	7,751.0	$	498.3	$	8,249.3
Total assets	$	723.1	$	828.0	$	1,925.2	$	779.5	$	444.9	$	534.9	$	3,013.7	$	8,249.3	$	552.4	$	8,801.7
Total liabilities	$	190.9	$	200.5	$	476.2	$	157.5	$	134.1	$	150.4	$	2,783.6	$	4,093.2	$	128.5	$	4,221.7

(i)

As at December 31, 2017, certain of the Company's jointly owned exploration properties of the Canadian Malartic Corporation were classified as assets held for sale and presented separately in the consolidated balance sheet at December 31, 2017 as current assets. Refer to Note 6: Acquisition and Disposition of Mineral Interests and Corporate Transactions to the Company's Consolidated Financial Statements .

(ii)

As at December 31, 2017, Gualcamayo was reclassified as a disposal group held for sale and all assets and liabilities of Gualcamayo are presented separately in the consolidated balance sheet at December 31, 2017 as current assets and current liabilities respectively. Refer to Note 6: Acquisition and Disposition of Mineral Interests and Corporate Transactions to the Company's Consolidated Financial Statements .


(iii)	"Corporate and other" includes Agua Rica ($ 1.1 billion) (2016 - $ 1.1 billion), other advanced stage development projects, exploration properties and corporate entities.


(b)	Information about Profit and Loss



For the year ended December 31, 2017	Chapada			El Peñón			Canadian Malartic			Jacobina			Minera Florida			Gualca-mayo			Corporate and other			Total excluding Brio Gold			Brio Gold			Total
Revenue (ii) (iii)	$	425.4		$	274.0		$	403.1		$	170.8		$	123.1		$	188.6		$	—		$	1,585.0		$	218.8		$	1,803.8
Cost of sales excluding depletion, depreciation and amortization	(215.3		)	(165.2		)	(186.0		)	(98.6		)	(79.5		)	(143.8		)	—			(888.4		)	(154.0		)	(1,042.4		)
Gross margin excluding depletion, depreciation and amortization	$	210.1		$	108.8		$	217.1		$	72.2		$	43.6		$	44.8		$	—		$	696.6		$	64.8		$	761.4
Depletion, depreciation and amortization	(38.1		)	(70.2		)	(129.4		)	(44.8		)	(40.5		)	(53.7		)	(7.6		)	(384.3		)	(42.5		)	(426.8		)
Impairment of mining properties	—			—			—			—			—			(256.9		)	—			(256.9		)	—			(256.9		)
Segment income/(loss)	$	172.0		$	38.6		$	87.7		$	27.4		$	3.1		$	(265.8	)	$	(7.6	)	$	55.4		$	22.3		$	77.7
Other expenses (i)																												(395.7		)
Loss before taxes																												$	(318.0	)
Income tax recovery																												113.9
Loss from continuing operations																												$	(204.1	)
Loss from discontinued operation																												—
Net loss																												$	(204.1	)



For the year ended December 31, 2016	Chapada			El Peñón			Canadian Malartic			Jacobina			Minera Florida			Gualca-mayo			Corporate and other			Total excluding Brio Gold			Brio Gold			Total
Revenue (ii) (iii)	$	317.0		$	380.8		$	366.8		$	145.5		$	135.5		$	205.9		$	—		$	1,551.5		$	236.2		$	1,787.7
Cost of sales excluding depletion, depreciation and amortization	(201.5		)	(204.1		)	(179.0		)	(86.8		)	(79.2		)	(136.0		)	—			(886.6		)	(142.4		)	(1,029.0		)
Gross margin excluding depletion, depreciation and amortization	$	115.5		$	176.7		$	187.8		$	58.7		$	56.3		$	69.9		$	—		$	664.9		$	93.8		$	758.7
Depletion, depreciation and amortization	(45.9		)	(105.7		)	(121.3		)	(39.9		)	(33.7		)	(39.6		)	(9.1		)	(395.2		)	(67.1		)	(462.3		)
Impairment of mining properties	—			(600.5		)	—			—			—			—			—			(600.5		)	(110.8		)	(711.3		)
Segment income/(loss)	$	69.6		$	(529.5	)	$	66.5		$	18.8		$	22.6		$	30.3		$	(9.1	)	$	(330.8	)	$	(84.1	)	$	(414.9	)
Other expenses (i)																												(200.8		)
Loss before taxes																												$	(615.7	)
Income tax recovery																												324.9
Loss from continuing operations																												$	(290.8	)
Loss from discontinued operation																												(17.5		)
Net loss																												$	(308.3	)


(i)	Other expenses are comprised of general and administrative expense of $113.6 million ( 2016 - $100.2 million ), exploration and evaluation expense of $21.2 ( 2016 - $14.9 million ), net finance expense of $137.7 million ( 2016 - $142.2 million ), other operating expenses of $23.6 ( 2016 - $39.7 million ) and expenses related to impairment of non-

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operating mineral properties of $99.6 million ( 2016 - reversal of $96.2 million ). Refer to Note 11 : Impairment and Reversal of Impairment to the Company's Consolidated Financial Statements for additional details including the amount corresponding to each reportable segment.


(ii)	Gross revenues are derived from sales of gold of $1,433.9 million ( 2016 - $1,473.5 million ) and silver of $86.1 million ( 2016 - $112.7 million ) and copper of $283.8 million ( 2016 - $201.5 million ).

(iii)

Intersegment sales are eliminated in the above information reported to the Company’s CODM. For the year ended December 31, 2017, intersegment purchases included $1,803.8 million of gold, silver and copper purchased by the Company’s corporate office from the Company’s producing mines (2016 - $1,787.7 million ) and revenue related to the sale of these metals to third parties was $1,803.8 million (2016 - $1,787.7 million ).



Capital expenditures	Chapada		El Peñón		Canadian Malartic		Gualca-mayo		Minera Florida		Jacobina		Corporate and other (i)		Total excluding Brio Gold		Brio Gold		Total
For the year ended December 31, 2017	$	46.7	$	56.3	$	89.4	$	23.6	$	52.6	$	45.1	$	209.6	$	523.3	$	84.2	$	607.5
For the year ended December 31, 2016	$	82.6	$	88.4	$	60.7	$	21.8	$	45.3	$	46.1	$	83.3	$	428.2	$	67.2	$	495.4


(i)	Balance includes $179.7 million for construction of Cerro Moro ( 2016 - $63.9 million ).


(c)	Information about Geographical Areas

Revenue is attributed to regions based on the source location of the product sold.



As at December 31,	2017		2016
Canada	$	403.1	$	366.8
Chile	397.1		516.3
Brazil	815.0		698.8
Argentina	188.6		205.8
Total revenue	$	1,803.8	$	1,787.7

Non-current assets for this purpose exclude deferred tax assets.



As at December 31,	2017		2016
Canada	$	1,782.5	$	2,118.7
Chile	1,716.2		1,529.1
Brazil	2,082.9		1,902.7
Argentina	2,207.6		2,549.1
United States	36.9		33.0
Total non-current assets	$	7,826.1	$	8,132.6


(d)	Information about Major Customers

The Company sells its gold, silver and copper through the corporate office to major metal exchange markets or directly to major Canadian financial institutions and to smelters. Given the nature of the Company's product, there are always willing market participants ready to purchase the Company's products at the prevailing market prices.

The following table presents sales to individual customers that exceeded 10% of annual metal sales for the following periods:



For the years ended December 31,	2017			2016
Customer (i)
1	$	384.5		$	422.3
2	267.1			232.5
3	—			297.5
4	262.7			278.6
5	229.9			—
Total sales to customers exceeding 10% of annual metal sales	$	1,144.2		$	1,230.9
Percentage of total metal sales	63.4		%	68.9		%


(i)	A balance is only included for a customer in each year where total sales to that customer exceeded 10% of annual metal sales in the period.

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33. CONTRACTUAL COMMITMENTS

Construction and Service Contracts



As at December 31,	2017		2016
Within 1 year	$	515.3	$	312.4
Between 1 to 3 years	501.7		247.5
Between 3 to 5 years	150.0		57.7
After 5 years	—		10.4
	$	1,167.0	$	628.0

In addition, the Company has arranged irrevocable letters of credit for the amounts of $18.3 million ( C$24.6 million ) in favor of the Government of Quebec and $0.4 million ( C$0.5 million ) in favor of the Government of Ontario as a guarantee of payment of the rehabilitation and restoration work relating to the Company's share of mining interest in Canadian Malartic. Such irrevocable letters of credit will be automatically extended for one year periods from the expiration date and future expiration dates thereafter.

Operating Leases

The Company leases office premises under non-cancellable operating leases. The total of future minimum lease payments under non-cancellable operating leases are as follows:



As at December 31,	2017		2016
Within 1 year	$	5.9	$	1.9
Between 1 and 5 years	14.7		1.5
After 5 years	6.1		—
	$	26.7	$	3.4

The total operating lease payments that were expensed during the year amounted to $4.0 million ( 2016 - $4.3 million ).

34. CONTINGENCIES

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company, but which will be resolved only when one or more future events occur or fail to occur. The impact of any resulting loss from such matters affecting these Consolidated Financial Statements of the Company may be material.

Canadian Malartic

On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), a general partnership jointly owned by the Company and Agnico Eagle Mines Limited (the "Partnership"), was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. The complaint is in respect of "neighbourhood annoyances" arising from dust, noise, vibrations and blasts at the mine. The plaintiffs are seeking damages in an unspecified amount as well as punitive damages in the amount of $ 20 million. The class action was certified in May 2017. In November 2017, a declaratory judgment was issued allowing the Partnership to settle individually with class members for 2017. The plaintiffs have since announced that they intend to file an application for leave to appeal this declaratory judgment. On December 11, 2017, hearings were completed in respect of certain preliminary matters, including the Partnership's application for partial dismissal of the class action. The Company and the Partnership will take all necessary steps to defend themselves from this lawsuit.

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35. RELATED PARTY TRANSACTIONS


(a)	Related Parties and Transactions

The Company’s related parties include its subsidiaries, a joint venture in which the Company is a joint operator, and key management personnel. During its normal course of operation, the Company enters into transactions with its related parties for goods and services.

For the years ended December 31, 2017 and 2016 , there are no other related party transactions other than those disclosed below.


(b)	Compensation of Key Management Personnel

The Company considers key management personnel to be those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly.



For the years ended December 31,	2017		2016
Senior Leadership Team
Salaries	$	12.8	$	6.6
Share-based payments (i)	4.9		2.5
Other benefits	2.7		1.5
	$	20.4	$	10.6
Board Directors
Fees	$	1.6	$	1.7
Share-based payments	1.1		1.0
Other benefits	—		—
	$	2.7	$	2.7
Other Executives and Officers
Salaries	$	4.1	$	3.5
Share-based payments	1.1		0.6
Other benefits	0.7		0.5
	$	5.9	$	4.6
Brio Gold
Salaries	$	2.1	$	1.5
Share-based payments	7.0		7.0
Other benefits	—		0.1
	$	9.1	$	8.6
Total
Salaries	$	20.6	$	13.3
Share-based payments (i)	14.1		11.1
Other benefits (ii)	3.4		2.1
	$	38.1	$	26.5


(i)	Refer to Note 29 : Share-Based Payments to the Company's Consolidated Financial Statements for further disclosures on share-based payments. Balances exclude the periodic fair value adjustment (mark-to-market) on the deferred share units.


(ii)	Included in other benefits are contributions to defined contribution pension plans.

36. SUBSEQUENT EVENTS

Non-Adjusting Events


(a)	Shareholder Supported Take-over Bid for Brio Gold Inc.

In January 2018, Leagold Mining Corporation ("Leagold") announced that it intended to make an offer to acquire all of the issued and outstanding shares of Brio Gold Inc. (“Brio Shares”) on or before February 28, 2018 (the “Offer”). Pursuant to the Offer, holders of Brio Shares would receive 0.922 of a share of Leagold for each Brio Share held. Based on the share exchange ratio to be provided under the Offer, the Company would receive 58,115,953 shares of Leagold, representing approximately 22% ownership in the combined entity. The Company entered into a support agreement endorsing a transaction with Leagold. Pursuant to the agreement, the Company agreed to tender all of its Brio Shares and to hold the Leagold shares it receives pursuant to the Offer for a minimum period of 12 months, subject to certain exceptions.


(b)	Copper Advanced Sales Program

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(c)	Refinancing of Debt - Redemption of 2019 Notes

During the fourth quarter of 2017, the Company completed an offering of $300 million of 4.625% senior notes due December 2027. With these funds, on January 29, 2018, the Company redeemed $181.5 million of 6.97% senior notes due December 2019 at a make-whole price of 108.12 . These items have extended the tenor of the Company’s fixed term debt profile at lower average interest rates and improved financial flexibility. During the first and second quarter of 2018, the Company has senior notes maturities of $73.6 million and $35.0 million, respectively, that will be retired as they come due. Following the 2018 maturities, the Company’s next scheduled maturity of fixed rate debt of $84 million is not until March 2020.

37. GUARANTOR SUBSIDIARIES ANNUAL FINANCIAL STATEMENTS

The obligations of the Company under the senior debt notes and revolver facility are guaranteed by the following 100% owned subsidiaries of the Company (the ‘‘guarantor subsidiaries’’): Mineração Maracá Industria e Comércio S.A., Jacobina Mineração e Comércio Ltda., Minera Meridian Limitada, Minera Florida Limitada, Yamana Chile Rentista de Capitales Mobiliarios Limitada, Yamana Argentina Holdings B.V., and Yamana Malartic Canada Inc. All guarantees by the guarantor subsidiaries are joint and several, and full and unconditional, subject to certain customary release provisions contained in the indenture (as supplemented) governing the senior debt notes. Based on the domestic regulations of jurisdictions of the subsidiaries, collection of funds in the form of dividend or loan payments would be subject to customary repatriation restrictions.

The following tables outline separate condensed financial information related to the issuer, and the guarantor and non-guarantor subsidiaries and as set out in the Consolidated Balance Sheets as at December 31, 2017 and December 31, 2016 and the Consolidated Statements of Operations, Consolidated Statements of Comprehensive Loss and Consolidated Statements of Cash Flows for the years ended December 31, 2017 and December 31, 2016 . For the purposes of this information, the financial information of the Company and the guarantor subsidiaries reflect investments in subsidiary companies on an equity accounting basis and are in compliance with Rule 3-10 of Regulation S-X. As provided for under Rule 3-10 of Regulation S-X the Company’s basis is “pushed down” to the applicable subsidiary columns.

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CONDENSED CONSOLIDATED BALANCE SHEETS



As at December 31, 2017	Yamana Gold Inc. (parent)		Guarantor subsidiaries			Non-guarantors		Eliminations and reclassifications			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	98.2	$	24.9		$	25.8	$	—		$	148.9
Trade and other receivables	24.4		10.2			4.0		—			38.6
Inventories	11.8		109.0			42.7		—			163.5
Other financial assets	2.6		(0.5		)	11.1		—			13.2
Other assets	3.1		89.1			27.2		—			119.4
Assets held for sale	—		123.2			232.6		—			355.8
Intercompany receivables	—		125.9			19.1		(145.0		)	—
	$	140.1	$	481.8		$	362.5	$	(145.0	)	$	839.4
Non-current assets:
Property, plant and equipment	24.4		3,556.5			3,678.8		—			7,259.7
Investment in associates	4,554.3		177.1			—		(4,731.4		)	—
Other financial assets	17.3		4.7			4.1		—			26.1
Deferred tax assets	73.0		14.7			10.1		—			97.8
Goodwill and intangibles	34.8		409.1			5.6		—			449.5
Other assets	—		44.5			46.3		—			90.8
Intercompany receivables	1,486.4		—			—		(1,486.4		)	—
Total assets	$	6,330.3	$	4,688.4		$	4,107.4	$	(6,362.8	)	$	8,763.3
Liabilities
Current liabilities:
Trade and other payables	$	49.7	$	191.5		$	104.2	$	—		$	345.4
Income taxes payable	—		87.0			4.8		—			91.8
Other financial liabilities	121.4		56.8			24.9		—			203.1
Other provisions and liabilities	1.0		11.6			44.1		—			56.7
Liabilities held for sale	—		1.1			82.6		—			83.7
Intercompany payables	145.1		7.5			185.2		(337.8		)	—
	$	317.2	$	355.5		$	445.8	$	(337.8	)	$	780.7
Non-current liabilities:
Long-term debt	1,673.2		1.9			72.6		—			1,747.7
Decommissioning, restoration and similar liabilities	—		185.9			72.3		—			258.2
Deferred tax liabilities	5.5		553.8			587.8		—			1,147.1
Other financial liabilities	21.0		38.7			26.0		—			85.7
Other provisions and liabilities	—		70.4			226.2		—			296.6
Intercompany payables	—		115.6			1,370.8		(1,486.4		)	—
Total liabilities	$	2,016.9	$	1,321.8		$	2,801.5	$	(1,824.2	)	$	4,316.0
Equity
Equity attributable to Yamana Gold Inc. shareholders	$	4,313.4	$	3,366.6		$	1,287.2	$	(4,653.8	)	$	4,313.4
Non-controlling interest	—		—			18.7		115.2			133.9
Total equity	$	4,313.4	$	3,366.6		$	1,305.9	$	(4,538.6	)	$	4,447.3
Total liabilities and equity	$	6,330.3	$	4,688.4		$	4,107.4	$	(6,362.8	)	$	8,763.3

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As at December 31, 2016	Yamana Gold Inc. (parent)			Guarantor subsidiaries		Non-guarantors		Eliminations and reclassifications			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	35.1		$	29.5	$	32.8	$	—		$	97.4
Trade and other receivables	31.7			3.0		1.9		—			36.6
Inventories	10.5			125.0		118.6		—			254.1
Other financial assets	4.5			5.0		4.9		—			14.4
Other assets	3.9			85.1		60.9		—			149.9
Assets held for sale	—			—		—		—			—
Intercompany receivables	(14.7		)	152.1		18.6		(156.0		)	—
	$	71.0		$	399.7	$	237.7	$	(156.0	)	$	552.4
Non-current assets:
Property, plant and equipment	23.1			3,572.5		3,970.7		—			7,566.3
Investment in associates	4,800.7			203.6		—		(5,004.3		)	—
Other financial assets	29.5			3.3		3.3		—			36.1
Deferred tax assets	45.5			50.0		21.2		—			116.7
Goodwill and intangibles	38.0			434.4		8.6		—			481.0
Other assets	—			39.5		9.7		—			49.2
Intercompany receivables	1,318.9			—		—		(1,318.9		)	—
Total assets	$	6,326.7		$	4,703.0	$	4,251.2	$	(6,479.2	)	$	8,801.7
Liabilities
Current liabilities:
Trade and other payables	$	42.4		$	176.1	$	121.5	$	—		$	340.0
Income taxes payable	—			—		4.8		—			4.8
Other financial liabilities	—			71.4		3.1		—			74.5
Other provisions and liabilities	—			12.6		43.2		—			55.8
Liabilities held for sale	—			—		—		—			—
Intercompany payables	170.7			20.8		72.0		(263.5		)	—
	$	213.1		$	280.9	$	244.6	$	(263.5	)	$	475.1
Non-current liabilities:
Long-term debt	1,572.2			1.6		—		—			1,573.8
Decommissioning, restoration and similar liabilities	—			123.8		98.4		—			222.2
Deferred tax liabilities	12.3			579.8		919.3		—			1,511.4
Other financial liabilities	16.9			52.5		7.5		—			76.9
Other provisions and liabilities	—			54.1		308.2		—			362.3
Intercompany payables	—			104.9		1,214.0		(1,318.9		)	—
Total liabilities	$	1,814.5		$	1,197.6	$	2,792.0	$	(1,582.4	)	$	4,221.7
Equity
Equity attributable to Yamana Gold Inc. shareholders	$	4,512.2		$	3,505.4	$	1,440.5	$	(4,945.9	)	$	4,512.2
Non-controlling interest	—			—		18.7		49.1			67.8
Total equity	$	4,512.2		$	3,505.4	$	1,459.2	$	(4,896.8	)	$	4,580.0
Total liabilities and equity	$	6,326.7		$	4,703.0	$	4,251.2	$	(6,479.2	)	$	8,801.7

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



For the year ended December 31, 2017	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Revenue	$	1,555.6		$	1,780.6		$	403.0		$	(1,935.4	)	$	1,803.8
Cost of sales excluding depletion, depreciation and amortization	(1,536.5		)	(1,141.1		)	(294.0		)	1,929.2			(1,042.4		)
Gross margin excluding depletion, depreciation and amortization	$	19.1		$	639.5		$	109.0		$	(6.2	)	$	761.4
Depletion, depreciation and amortization	(6.5		)	(322.7		)	(97.6		)	—			(426.8		)
Impairment of mining properties	—			—			(256.9		)	—			(256.9		)
Mine operating earnings/(loss)	12.6			316.8			(245.5		)	(6.2		)	77.7
Expenses (i)
General and administrative	(50.9		)	(9.8		)	(52.9		)	—			(113.6		)
Exploration and evaluation	(0.9		)	(10.1		)	(10.2		)	—			(21.2		)
Equity (loss)/income from associates	(176.6		)	(26.5		)	—			203.1			—
Other expenses	(4.4		)	(15.9		)	(3.3		)	—			(23.6		)
Reversal/(Impairment) of non-operating mining properties	—			—			(99.6		)	—			(99.6		)
Operating (loss)/income	(220.2		)	254.5			(411.5		)	196.9			(180.3		)
Finance income (i)	123.8			75.0			201.7			(397.1		)	3.4
Finance expense	(137.1		)	(205.2		)	(203.1		)	404.3			(141.1		)
Net finance income (expense)	(13.3		)	(130.2		)	(1.4		)	7.2			(137.7		)
(Loss)/income before taxes	(233.5		)	124.3			(412.9		)	204.1			(318.0		)
Income tax recovery from continuing operations	29.3			(214.3		)	298.9			—			113.9
Net loss from continuing operations	(204.2		)	(90.0		)	(114.0		)	204.1			(204.1		)
Net loss from discontinued operations	—			—			—			—			—
Net loss	$	(204.2	)	$	(90.0	)	$	(114.0	)	$	204.1		$	(204.1	)

Attributable to:
Yamana Gold Inc. equityholders	(204.2		)	(90.0		)	(104.3		)	204.1			(194.4		)
Non-controlling interests	—			—			(9.7		)	—			(9.7		)
Net loss	(204.2		)	(90.0		)	(114.0		)	204.1			(204.1		)

Total other comprehensive income	$	5.6		$	—		$	7.1		$	—		$	12.7
Total comprehensive loss	$	(198.6	)	$	(90.0	)	$	(106.9	)	$	204.1		$	(191.4	)

| 65



For the year ended December 31, 2016	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Revenue	$	1,845.9		$	1,653.6		$	435.0		$	(2,146.8	)	$	1,787.7
Cost of sales excluding depletion, depreciation and amortization	(1,786.9		)	(1,108.0		)	(279.8		)	2,145.7			(1,029.0		)
Gross margin excluding depletion, depreciation and amortization	59.0			545.6			155.2			(1.1		)	758.7
Depletion, depreciation and amortization	(7.3		)	(347.0		)	(108.0		)	—			(462.3		)
Impairment of mining properties	—			(600.5		)	(110.8		)	—			(711.3		)
Mine operating earnings/(loss)	51.7			(401.9		)	(63.6		)	(1.1		)	(414.9		)
Expenses (i)
General and administrative	(48.6		)	(20.5		)	(31.1		)	—			(100.2		)
Exploration and evaluation	(0.6		)	(8.7		)	(5.6		)	—			(14.9		)
Equity (loss)/income from associates	(366.6		)	65.6			—			301.0			—
Other expenses	5.6			(15.7		)	(29.6		)	—			(39.7		)
Reversal/(Impairment) of non-operating mining properties	—			—			96.2			—			96.2
Operating (loss)/income	(358.5		)	(381.2		)	(33.7		)	299.9			(473.5		)
Finance income (i)	130.9			85.3			208.8			(423.4		)	1.6
Finance expense	(97.7		)	(258.5		)	(217.2		)	429.6			(143.8		)
Net finance income (expense)	33.2			(173.2		)	(8.4		)	6.2			(142.2		)
(Loss)/income before taxes	(325.3		)	(554.4		)	(42.1		)	306.1			(615.7		)
Income tax recovery from continuing operations	17.0			284.7			23.2			—			324.9
Net loss from continuing operations	(308.3		)	(269.7		)	(18.9		)	306.1			(290.8		)
Net loss from discontinued operations	—			(11.6		)	(5.9		)	—			(17.5		)
Net loss	$	(308.3	)	$	(281.3	)	$	(24.8	)	$	306.1		$	(308.3	)

Attributable to:
Yamana Gold Inc. equityholders	(308.3		)	(281.3		)	(24.4		)	306.1			(307.9		)
Non-controlling interests	—			—			(0.4		)	—			(0.4		)
Net loss	(308.3		)	(281.3		)	(24.8		)	306.1			(308.3		)

Total other comprehensive loss	$	(4.3	)	$	—		$	—		$	—		$	(4.3	)
Total comprehensive loss	$	(312.6	)	$	(281.3	)	$	(24.8	)	$	306.1		$	(312.6	)

(i) Balances are net of intercompany movements in the respective classifications which are eliminated on consolidation.

| 66

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



For the year ended December 31, 2017	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Operating activities
Loss before taxes	$	(233.5	)	$	124.3		$	(412.9	)	$	204.1		(318.0		)
Adjustments to reconcile earnings before taxes to net operating cash flows:
Depletion, depreciation and amortization	6.5			322.7			97.6			—			426.8
Share-based payments	7.2			—			5.4			—			12.6
Equity loss/(income) from associate	176.6			26.5			—			(203.1		)	—
Finance income	(123.8		)	(75.0		)	(201.7		)	397.1			(3.4		)
Finance expense	137.1			205.2			203.1			(404.3		)	141.1
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	(4.0		)	—			—			—			(4.0		)
Mark-to-market on investments and other assets	2.5			—			—			—			2.5
Impairment of mineral properties	—			—			356.5			—			356.5
Amortization of deferred revenue on metal purchase agreements	—			(8.6		)	—			—			(8.6		)
Other non-cash (recoveries)/expenses	—			16.3			(24.1		)	—			(7.8		)
Advanced payments received on metal purchase agreements	6.6			—			—			—			6.6
Decommissioning, restoration and similar liabilities paid	—			(3.7		)	(0.9		)	—			(4.6		)
Other cash payments	—			—			(6.0		)	—			(6.0		)
Cash flows from/(used in) operating activities before income taxes paid and net change in working capital	$	(24.8	)	$	607.7		$	17.0		$	(6.2	)	$	593.7
Income taxes paid	—			(18.9		)	(0.1		)	—			(19.0		)
Payments made related to the Brazilian tax matters	—			(76.7		)	—			—			(76.7		)
Cash flows from/(used in) operating activities before net change in working capital	$	(24.8	)	$	512.1		$	16.9		$	(6.2	)	$	498.0
Net change in working capital	7.6			(48.1		)	(2.0		)	28.5			(14.0		)
Intercompany movement in operations	(66.6		)	12.8			138.9			(85.1		)	—
Cash flows from/(used in) operating activities of continuing operations	$	(83.8	)	$	476.8		$	153.8		$	(62.8	)	$	484.0
Cash flows from/(used in) operating activities of discontinued operations	$	—		$	—		$	—		$	—		$	—
Investing activities
Acquisition of property, plant and equipment	$	(2.4	)	$	(306.0	)	$	(299.4	)	$	(36.0	)	$	(643.8	)
Proceeds from sale of Mexican operations	—			—			—			—			—
Acquisition of Mineração Riacho dos Machados Ltda, net of cash acquired	—			—			—			—			—
Proceeds on disposal of investments and other assets	17.5			—			—			—			17.5
Cash used in other investing activities	—			(17.9		)	—			—			(17.9		)
Cash flows from/(used in) investing activities of continuing operations	$	15.1		$	(323.9	)	$	(299.4	)	$	(36.0	)	$	(644.2	)
Cash flows from/(used in) investing activities of discontinued operations	$	—		$	—		$	—		$	—		$	—
Financing activities
Dividends paid	$	(18.9	)	$	—		$	—		$	—		$	(18.9	)
Interest and other finance expenses paid	(103.8		)	—			—			—			(103.8		)
Proceeds from Brio Gold Inc. private placement and rights offering	71.5			—			—			—			71.5

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Repayment of term loan and notes payable	(460.9		)	—						—		(460.9		)
Proceeds from term loan and notes payable	655.0			—			75.0			—		730.0
Proceeds/(repayments) of intercompany financing activities	(11.2		)	(150.9		)	63.3			98.8		—
Cash flows from/(used in) financing activities of continuing operations	$	131.7		$	(150.9	)	$	138.3		$	98.8	$	217.9
Effect of foreign exchange on non-US Dollar denominated cash and cash equivalents	0.1			(6.6		)	6.6			—		0.1
Increase/(Decrease) in cash and cash equivalents of continuing operations	$	63.1		$	(4.6	)	$	(0.7	)	$	—	$	57.8
Increase/(Decrease) in cash and cash equivalents of discontinued operations	$	—		$	—		$	—		$	—	$	—
Cash and cash equivalents of continuing operations, beginning of year	$	35.1		$	29.5		$	32.8		$	—	$	97.4
Cash and cash equivalents of discontinued operations, beginning of year	$	—		$	—		$	—		$	—	$	—
Cash and cash equivalents reclassified as held for sale	$	—		$	—		$	(6.3	)	$	—	$	(6.3	)
Cash and cash equivalents of continuing operations, end of year	$	98.2		$	24.9		$	25.8		$	—	$	148.9
Cash and cash equivalents of discontinued operations, end of year	$	—		$	—		$	—		$	—	$	—

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For the year ended December 31, 2016	Yamana Gold Inc. (parent)			Guarantor subsidiaries			Non-guarantors			Eliminations and reclassifications			Consolidated
Operating activities
Loss before taxes	$	(325.3	)	$	(554.4	)	$	(42.1	)	$	306.1		(615.7		)
Adjustments to reconcile earnings before taxes to net operating cash flows:
Depletion, depreciation and amortization	7.3			347.0			108.0			—			462.3
Share-based payments	7.2			—			7.0			—			14.2
Equity loss/(income) from associate	366.6			(65.6		)	—			(301.0		)	—
Finance income	(130.9		)	(85.3		)	(208.8		)	423.4			(1.6		)
Finance expense	97.7			258.5			217.2			(429.6		)	143.8
Mark-to-market on sales of concentrate and price adjustments on unsettled invoices	(9.3		)	0.2			—			—			(9.1		)
Mark-to-market on investments and other assets	(16.1		)	0.1			11.7			—			(4.3		)
Impairment of mineral properties	—			600.5			14.6			—			615.1
Amortization of deferred revenue on metal purchase agreements	—			—			(6.8		)	—			(6.8		)
Other non-cash (recoveries)/expenses	—			24.7			12.0			—			36.7
Advanced payments received on metal purchase agreements	—			—			64.0			—			64.0
Decommissioning, restoration and similar liabilities paid	—			(6.3		)	(1.8		)	—			(8.1		)
Other cash payments	—			—			—			—			—
Cash flows from/(used in) operating activities before income taxes paid and net change in working capital	$	(2.8	)	$	519.4		$	175.0		$	(1.1	)	$	690.5
Income taxes paid	—			(59.3		)	(4.6		)	—			(63.9		)
Payments made related to the Brazilian tax matters	—			—			—			—			—
Cash flows from/(used in) operating activities before net change in working capital	$	(2.8	)	$	460.1		$	170.4		$	(1.1	)	$	626.6
Net change in working capital	(20.2		)	2.6			25.0			17.9			25.3
Intercompany movement in operations	(99.5		)	115.2			(68.3		)	52.6			—
Cash flows from/(used in) operating activities of continuing operations	$	(122.5	)	$	577.9		$	127.1		$	69.4		$	651.9
Cash flows from/(used in) operating activities of discontinued operations	$	—		$	12.9		$	—		$	—		$	12.9
Investing activities
Acquisition of property, plant and equipment	$	(3.4	)	$	(277.9	)	$	(214.1	)	$	—		$	(495.4	)
Proceeds from sale of Mexican operations	124.0			—			—			—			124.0
Acquisition of Mineração Riacho dos Machados Ltda, net of cash acquired	—			—			(50.2		)	—			(50.2		)
Proceeds on disposal of investments and other assets	33.6			—			—			—			33.6
Cash used in other investing activities	(9.1		)	(10.6		)	—			—			(19.7		)
Cash flows from/(used in) investing activities of continuing operations	$	145.1		$	(288.5	)	$	(264.3	)	$	—		$	(407.7	)
Cash flows from/(used in) investing activities of discontinued operations	$	—		$	(12.9	)	$	—		$	—		$	(12.9	)
Financing activities
Dividends paid	$	(28.0	)	$	—		$	—		$	—		$	(28.0	)
Interest and other finance expenses paid	(96.2		)	—			—			—			(96.2		)
Proceeds from Brio Gold Inc. private placement and rights offering	40.7			—			—			—			40.7
Repayment of term loan and notes payable	(462.6		)	(21.9		)	—			—			(484.5		)
Proceeds from term loan and notes payable	300.5			—			—			—			300.5

| 69



Proceeds/(repayments) of intercompany financing activities	194.7			(271.8		)	146.5			(69.4		)	—
Cash flows from/(used in) financing activities of continuing operations	$	(50.9	)	$	(293.7	)	$	146.5		$	(69.4	)	$	(267.5	)
Effect of foreign exchange on non-US Dollar denominated cash and cash equivalents	(2.5		)	5.8			(2.5		)	—			0.8
Increase/(Decrease) in cash and cash equivalents of continuing operations	$	(30.8	)	$	1.5		$	6.8		$	—		$	(22.5	)
Increase/(Decrease) in cash and cash equivalents of discontinued operations	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents of continuing operations, beginning of year	$	65.9		$	28.0		$	26.0		$	—		$	119.9
Cash and cash equivalents of discontinued operations, beginning of year	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents reclassified as held for sale	$	—		$	—		$	—		$	—		$	—
Cash and cash equivalents of continuing operations, end of year	$	35.1		$	29.5		$	32.8		$	—		$	97.4
Cash and cash equivalents of discontinued operations, end of year	$	—		$	—		$	—		$	—		$	—

*************

| 70

EXHIBIT 99.4

CERTIFICATION REQUIRED BY RULE 13a-14(a) OR RULE 15d-14(a), PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Peter Marrone, certify that:




1.	I have reviewed this annual report on Form 40-F of Yamana Gold Inc.;




2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;




3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;




4.	The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the issuer's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer's internal control over financial reporting; and




5.	The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer's board of directors (or persons performing the equivalent functions):

EXHIBIT 99.4

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer's ability to record, process, summarize and report financial information; and

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting.

Date: March 29, 2018

_/s/ Peter Marrone _________________

Name: Peter Marrone

Title: Chairman and Chief Executive Officer

EXHIBIT 99.5

CERTIFICATION REQUIRED BY RULE 13a-14(a) OR RULE 15d-14(a), PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jason LeBlanc, certify that:




1.	I have reviewed this annual report on Form 40-F of Yamana Gold Inc.;




2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;




3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;




4.	The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:




5.	The issuer's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit committee of the issuer's board of directors (or persons performing the equivalent functions):

EXHIBIT 99.5

(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting.

Date: March 29, 2018

/s/ Jason LeBlanc

Name: Jason LeBlanc

Title: Senior Vice President, Finance and

Chief Financial Officer

EXHIBIT 99.6

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

Yamana Gold Inc. (the “Company”) is filing with the U.S. Securities and Exchange Commission on the date hereof, its annual report on Form 40-F for the fiscal year ended December 31, 2017 (the “Report”).

I, Peter Marrone, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as enacted pursuant to section 906 of the U.S. Sarbanes-Oxley Act of 2002, that:

(i) the Report fully complies with the requirements of section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii) t he information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



/s/ Peter Marrone
Name:	Peter Marrone
Title:	Chairman and Chief Executive Officer


Date: March 29, 2018

EXHIBIT 99.7

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ENACTED PURSUANT TO

SECTION 906 OF THE U.S. SARBANES-OXLEY ACT OF 2002

I, Jason LeBlanc, Senior Vice President, Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as enacted pursuant to section 906 of the U.S. Sarbanes-Oxley Act of 2002, that:

(i) the Report fully complies with the requirements of section 13(a) or 15(d) of the U.S. Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



/s/ Jason LeBlanc
Name:	Jason LeBlanc
Title:	Senior Vice President, Finance and Chief Financial Officer


Date: March 29, 2018

EXHIBIT 99.8

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-145300, 333-148048, and 333-159047 on Form S-8 and Registration Statement No. 333-217016 on Form F-3D and to the use of our report dated February 15, 2018 relating to the consolidated financial statements of Yamana Gold Inc. and subsidiaries (“Yamana”) and our report dated February 15, 2018 relating to the effectiveness of Yamana’s internal control over financial reporting appearing in this Annual Report on Form 40-F of Yamana for the year ended December 31, 2017

/s/ Deloitte LLP

Chartered Professional Accountants

Toronto, Canada

March 29, 2018

EXHIBIT 99.9

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Chester Moore, P.Eng., hereby consent to the use of my name in connection with the references to the reports entitled “Technical Report on the Chapada Mine, Goiás State, Brazil” dated March 21, 2018 and “Technical Report on the El Peñón Mine, Antofagasta Region, Northern Chile” dated March 2, 2018 (together, the “Reports”), to the use of my name in connection with the written disclosure under the headings “Description of the Business – Material Producing Mines – Chapada Mine” and “Description of the Business – Material Producing Mines – El Peñón Mine”, excluding the written disclosure under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates” (the “Disclosure”), and to the inclusion of the Disclosure and extracts from or a summary of the Reports (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

I do also hereby consent to the use of my name and the incorporation by reference of the Incorporated Information in Yamana's Registration Statements on Form F-3D (File No. 333-217016) and on Form S-8 (File Nos. 333-148048; 333-145300; 333-159047).

By: /s/ Chester Moore

Name: Chester Moore, P.Eng.

March 28, 2018

EXHIBIT 99.10

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Hugo Miranda, ChMC (RM), hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Chapada Mine, Goiás State, Brazil” dated March 21, 2018 (the “Report”), to the use of my name in connection with the written disclosure under the heading “Description of the Business – Material Producing Mines – Chapada Mine” (the “Disclosure”), excluding the written disclosure under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates”, and to the inclusion of the Disclosure and extracts from or a summary of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Hugo Miranda

Name: Hugo Miranda, ChMC (RM)

March 28, 2018

EXHIBIT 99.11

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Avakash Patel, P.Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Chapada Mine, Goiás State, Brazil” dated March 21, 2018 (the “Report”), to the use of my name in connection with the written disclosure under the heading “Description of the Business – Material Producing Mines – Chapada Mine” excluding the written disclosure under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates” (the “Disclosure”), and to the inclusion of the Disclosure and extracts from or a summary of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Avakash Patel

Name: Avakash Patel, P.Eng.

March 28, 2018

EXHIBIT 99.12

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Holger Krutzelmann, P.Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the El Peñón Mine, Antofagasta Region, Northern Chile” dated March 2, 2018 (the “Report”), to the use of my name in connection with the written disclosure under the heading “Description of the Business – Material Producing Mines – El Peñón Mine”, excluding the written disclosure under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates” (the “Disclosure”), and to the inclusion of the Disclosure and extracts from or a summary of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Holger Krutzelmann

Name: Holger Krutzelmann, P.Eng.

March 28, 2018

EXHIBIT 99.13

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Normand Lecuyer, P.Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the El Peñón Mine, Antofagasta Region, Northern Chile” dated March 2, 2018 (the “Report”), to the use of my name in connection with the written disclosure under the heading “Description of the Business – Material Producing Mines – El Peñón Mine”, excluding the written disclosure under the heading “Mineral Projects – Summary of Mineral Reserve and Mineral Resource Estimates” (the “Disclosure”), and to the inclusion of the Disclosure and extracts from or a summary of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Normand Lecuyer

Name: Normand Lecuyer, P.Eng.

March 28, 2018

EXHIBIT 99.14

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Donald Gervais, P. Geo., hereby consent to the use of my name in connection with the mineral resource and mineral reserve estimates for the Canadian Malartic Mine as at December 31, 2017 (the “Estimates”), to the use of my name in connection with the reference to the report entitled “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 (the “Report”), to the use of my name in connection with the written disclosure under the heading “Description of the Business – Material Producing Mines – Canadian Malartic Mine” (the “Disclosure”) and to the inclusion of references to and extracts from or summaries of the Estimates, Report and Disclosure (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Donald Gervais

Name: Donald Gervais, P. Geo.

March 28, 2018

EXHIBIT 99.15

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Christian Roy, Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 (the “Report”) and to the inclusion of references to and summaries of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Christian Roy

Name: Christian Roy, Eng.

March 28, 2018

EXHIBIT 99.16

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Alain Thibault, Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 (the “Report”) and to the inclusion of references to and summaries of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Alain Thibault

Name: Alain Thibault, Eng.

March 28, 2018

EXHIBIT 99.17

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Carl Pednault, Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 (the “Report”) and to the inclusion of references to and summaries of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Carl Pednault

Name: Carl Pednault, Eng.

March 28, 2018

EXHIBIT 99.18

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Daniel Doucet, Eng., hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic Property” dated August 13, 2014 (the “Report”) and to the inclusion of references to and summaries of the Report (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Daniel Doucet

Name: Daniel Doucet, Eng.

March 28, 2018

EXHIBIT 99.19

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Luiz Pignatari, Registered Member of the Chilean Mining Commission, hereby consent to the use of my name in connection with the reference to the report entitled “Technical Report on the Chapada Mine, Goiás State, Brazil” dated March 21, 2018 (the “Report”), to the use of my name in connection with the mineral reserve and mineral resource estimates for the Chapada Mine as at December 31, 2017 (the “Estimates”) and to the inclusion of references to and summaries of the Report and the Estimates (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Luiz Pignatari

Name: Luiz Pignatari

Title: Registered Member of the Chilean Mining Commission

March 28, 2018

EXHIBIT 99.20

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Sergio Castro, Registered Member of the Chilean Mining Commission, hereby consent to the use of my name in connection with the mineral reserve estimates for the El Peñón Mine as at December 31, 2017 (the “Estimates”) and to the inclusion of references to and summaries of the Estimates (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Sergio Castro

Name: Sergio Castro

Title: Registered Member of the Chilean Mining Commission

March 28, 2018

EXHIBIT 99.21

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Felipe Machado de Araújo, Registered Member of the Chilean Mining Commission, hereby consent to the use of my name in connection with the mineral resource estimates for the Chapada Mine as at December 31, 2017 (the “Estimates”) and to the inclusion of references to and summaries of the Estimates (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Felipe Machado de Araújo

Name: Felipe Machado de Araújo

Title: Registered Member of the Chilean Mining Commission

March 28, 2018

EXHIBIT 99.22

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Jorge Camacho, Registered Member of the Chilean Mining Commission, hereby consent to the use of my name in connection with the mineral resource estimates for the El Peñón Mine as at December 31, 2017 (the “Estimates”) and to the inclusion of references to and summaries of the Estimates (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Jorge Camacho

Name: Jorge Camacho

Title: Registered Member of the Chilean Mining Commission

March 28, 2018

EXHIBIT 99.23

CONSENT OF EXPERT

In connection with the Annual Report on Form 40-F of Yamana Gold Inc. (“Yamana”) for the year ended December 31, 2017 (the “Form 40-F”), I, Marcos Valencia A., FAuIMM, Registered Member of Chilean Mining Commission, hereby consent to the use of my name in connection with the mineral resource estimates for the El Peñón Mine as at December 31, 2017 (the “Estimates”) and to the inclusion of references to and summaries of the Estimates (the “Incorporated Information”) in the Annual Information Form filed as an exhibit to the Form 40-F.

By: /s/ Marcos Valencia A.

Name: Marcos Valencia A., FAuIMM

Title: Registered Member of Chilean Mining Commission

March 28, 2018