Investor Presentation September 2015
Cautionary Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Except for statements of historical fact relating to the Company, information contained herein constitutes forward-looking statements, including 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 expected 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, the impact of the proposed new mining law in Brazil 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), currency exchange rates (such as the Brazilian Real versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in mineral resources and mineral reserves, risk related to non-core mine dispositions, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, the possibility of project cost overruns or 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, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation and the risk of government expropriation or nationalization of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation and labour disputes, as well as those risk factors discussed or referred to in Yamana s current and annual Management s Discussion and Analysis and the Annual Information Form for the year ended December 31st, 2014 filed with the securities regulatory authorities in all provinces of Canada and available at www.sedar.com, and Yamana s Annual Report on Form 40-F for the year ended December 31st, 2014 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 NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED MINERAL RESOURCES: This presentation uses 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 news release 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. All amounts are expressed in United States dollars unless otherwise indicated. 2
About Brio Gold Focused in precious metals assets in the Americas with the objective of becoming the next leading mid-tier gold producer Subsidiary of Yamana created in Dec 2014 Holds three Brazilian gold assets Pilar operating mine Fazenda Brasileiro operating mine C1 Santa Luz constructed mine to be re-commissioned Total expected gold production of 130,000 oz in 2015 Additional +100,000 oz with re-commissioning of C1 in Q3 2016 Expect total average annual run-rate production of +230,000 oz by 2017 Further opportunity with operational improvements Tremendous exploration upside with large land position in the prolific Greenstone Belt in Brazil Clean balance sheet with cash flowing assets and available $10 million loan facility (1) from Yamana Led by an industry leading management team with an extensive track record of execution and value creation in the mining sector C1 Santa Luz Fazenda Brasileiro Pilar Producing Mine To be re-started 1. As of January 1, 2015. 3
About the Management Team Extensive experience in underground and surface mining, geology, metallurgy, engineering, construction and finance Gil Clausen, President & CEO Over 30-years of senior executive, finance, development and operations experience in the precious and base metals industry. Most recently the President and CEO of Augusta Resource, which was acquired in 2014 by HudBay Minerals. Previously EVP Mining of Washington Group International, Inc. and VP Operations of Stillwater Mining Company. P.Eng. with B.Sc. and M.Sc. Degrees in Mining Engineering from Queen s University and is a graduate of the Queen s executive business program. Joseph Longpré, CFO Over 25-years experience in the equity and debt markets with a strong focus on metals and mining. Previously SVP & CFO of Augusta Resource. Prior to that, Corporate VP of URS Corporation focused on M&A and project finance and Managing Director of the Mining Group at BMO. Holds an MBA from Columbia University Graduate School of Business, a B.Sc. and M.Sc. in Physics from the University of Saskatchewan, and a CMA designation. Nelson Munhoz, VP Operations Over 30-years experience in the mining industry. Previously VP Operations Brazil of Yamana Gold and prior to that held several operating and technical positions at Rio Tinto Brasil since 1987. Holds a Bachelor of Mining Engineering from São Paul University and an MBA from Fundação Getúlio Vargas. Lance Newman, VP Technical Services Over 27-years experience in concentrating, smelting and refining operations and project management in base and precious metals operations. Previously VP Project Development of Augusta Resource and prior to that of Stillwater Mining and Gold Fields. Holds a B.Sc. in Chemistry from Rhodes University and is a Graduate of the Management Advancement Program at the University of Witwatersrand Graduate School of Business. Mark Stevens, VP Exploration Over 30-years technical and managerial experience in exploration, and mining. Previously VP Exploration of Augusta Resource and prior to that the Chief Geologist with Pincock, Allen & Holt. Holds a B.Sc. in Geology from Colorado State of University and a M.Sc. in Geology from the University of Utah. Letitia Wong, VP Corporate Development Over 10-years experience in finance and investor relations. Previously, VP Investor Relations of Augusta Resource and Ventana Gold. Prior to that Director of Investor Relations at Yamana Gold. Holds a B.Com. in Finance from the University of British Columbia (Sauder School of Business) and is a CFA charter holder. 4
Quality Brazilian Assets Pilar Fazenda Brasileiro Producing underground mine Large resource base with significant exploration upside Long term cash flow potential at current gold price 2015E production of 70,000 oz of gold Established underground mine with consistent production Operating history of over 20 years Expected mine life of 6+ years Proven track record of sustained mine life extension Significant exploration upside 2015E production of approx. 60,000 oz of gold C1 Santa Luz Fazenda Brasileiro Pilar C1 Santa Luz Fully constructed mine and mill with excellent infrastructure On care and maintenance Metallurgical testwork and PEA completed Provides additional production growth Re-commissioning expected to commence in Q3 2016 Expected annual production of approx. 100,000 oz of gold Producing Mine To be re-started 5
Pilar upate Underground Mine Goiás, Brazil Overview Located 350 km from Brasilia, east of Crixas Greenstone Belt Consists of 47,000 ha, easily accessible by road and air with excellent infrastructure on site Primary underground mining methods: modified room and pillar and long hole open stoping Commenced production in 2013, commercial production declared in 2014 Targeted mining rate of over 1,000,000 tpa Significant cost improvements from change in mining method Quarterly Operating Metrics (1) Pilar 2015E Production: ~70,000 oz Production (oz) 16,486 18,757 19,153 21,237 Cash Costs ($/oz) 12,962 $791 $832 $756 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Mine in Commissioning Commercial Production Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Mine in Commissioning Commercial Production Low profile equipment at Pilar 1. Cash cost is a non-gaap measure. A reconciliation can be found at www.yamana.com/q22015 in accordance with previous Canadian GAAP for public entities. 6
Pilar LOM production and cost (1,2) profile Production (koz) Cash Costs/AISC ($/oz) 250 $800 $700 200 $600 150 $500 $400 100 $300 50 $200 $100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Production Cash Costs $- 1. Based on Brio internal model. Assumes a gold price of $1,250/oz and a long term BRL/USD exchange rate of 3.80. 2. Cash cost is a non-gaap measure. A reconciliation can be found at www.yamana.com/q22015 in accordance with previous Canadian GAAP for public entities. 7
Pilar Opportunities Lower unit costs through productivity improvements and throughput increases Nearby Maria Lázara deposit expected to contribute ~25,000 oz of gold annually Recently started to contribute to production in August 2015 Provides additional flexibility to the operation Additional near mine potential from satellite deposits (including Très Buracos, which is planned as a lower cost open pit resource located four km from the Pilar plant) and further upside with expansive surrounding concessions Maria Lázara Pilar Plant Caiamar Très Buracos Maria Lázara Pilar 8
Fazenda Brasileiro Underground Mine - Bahia, Brazil Large land package of 66,000 ha, accessible by air and road Established underground mine with successful operating history of 20 years 3,500 tpd open pit/underground operation (conventional sublevel open stoping) Consistent production and history of reserve replacement ensures free cash flow generation Average annual production rate of ~ 75,000 oz from 2004 to 2014 Expect mine life of 6+ years with a history of mine life extension and resource replenishment Fazenda Brasileiro Opportunities New drilling program focused on resource conversion and mine life extension - already successful with the discovery of a new mineralized extension, E388 East New long term development plan for extending the mine life Koz 100 80 Production (1) & Cash Costs Forecast (2,3) $/oz $600 2015E Production: ~60,000 oz 60 40 20 $400 $200 0 2015 2016 2017 2018 2019 2020 2021 Production Cash Costs 1. Excludes any expected mine life extensions. 2. Cash cost is a non-gaap measure. A reconciliation can be found at www.yamana.com/q22015 in accordance with previous Canadian GAAP for public entities. 3. Assumes BRL/USD exchange rate of 3.8. $- 9
Reserves and Resources (koz Au) Fazenda Brasileiro History of reserve and resource replacement In 2003, Fazenda Brasileiro had approximately two years of reserve life and after almost 10 years of continuous operation, reserves and resources at the end of 2014 were greater than they were at the time of Yamana s acquisition Reserve & Resource Replacement 1,000 95 96 100 900 88 90 800 700 600 500 400 75 76 76 70 55 67 70 64 80 70 60 50 40 Production (koz Au) 300 30 200 20 100 10 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Reserves M&I Resources Inferred Production 0 10
New Discovery: E388 East Brio renewed exploration efforts at MFB New discovery, E388 East, is at shallow depths (350 m) and near existing primary infrastructure, immediately adjacent to the main haulage ramp First phase exploration results similar in thickness and grade to those that were seen in MFB s early years Provides further confidence that MFB will continue its track record of reserve replenishment and resource expansion, with the potential to increase production to historic levels Highlights from Brio s exploration program (1) Hole Intercept (m) Width (m) Average Grade (g/t) FS-13894 66-76 10 11.8 FS-13903 48-50 2 24.1 FS-13788 75-89 14 10.6 FS-08480 63-71 8 9.3 FX-08232 30-36 6 13.1 FS-12885 33-44 11 5.9 FS-13902 81-90 9 7.2 FS-13899 53-58 5 14.4 FS-13882 74-92 18 6.7 FS-13881 76-84 8.0 12.2 Exploration budget at MFB of $2.5M for exploring prioritized targets in and adjacent to the existing mine infrastructure 1. Please see Yamana s July 16, 2015 press release for QA/QC and Qualified Person information. 11
Potential Areas Longitudinal View 12
C1 Santa Luz Open-pit operations to be re-commissioned - Bahia, Brazil Consists of 71,000 ha, located 60 km north of Fazenda Brasileiro Newly constructed open pit mine with excellent on-site infrastructure Commenced production mid-2013 then placed on care and maintenance in 2014 Modified process flowsheet designed, metallurgical testwork and PEA completed Testwork demonstrated combined average recoveries of 83.7%; PEA estimates average annual production of ~100,000 oz Drilling campaign being designed to optimize mine design and extend the LOM C1 Santa Luz 1. See Yamana s August 13, 2015 press release for QA/QC and Qualified Person information on the C1 Santa Luz mineral resource estimate. 13
NPV ($M) NPV ($M) PEA Highlights (1) After-tax NPV (5%) of $199M After-tax IRR of 56% Average annual production of ~100,000 oz of gold Total recovered ounces of 1.03 million ounces Ten year mine life Average grade of 1.48 g/t gold Total material mined of 24.4M tonnes Cash costs of $841 AISC of $898 per ounce Weighted average overall recovery of 83.7% Non-carbonaceous dacitic mineral 90.0% Carbonaceous low to high sulphur minerals 74.0% Initial plant cost of $27.7M, plus $4.9M contingency Total capital of $47.9M $400 $350 $300 $250 $200 $150 $100 $50 $- $350 $300 $250 $200 $150 $100 $50 $- NPV Sensitivity Analysis Gold Price NPV (0%) NPV (5%) NPV (8%) $1,125 $1,250 $1,375 Gold Price ($/oz) NPV Sensitivity Analysis BRL to USD 3.06 3.40 3.74 Brazilian Real to US Dollar 1. As announced in Yamana s August 13, 2015 press release. Metrics assume a long-term Brazilian Real to U.S. Dollar exchange rate of 3.40 and a flat gold price of US$1,250 14
New Flowsheet Tested 17 tonnes of material Average overall recoveries of 83.7% Dacitic 90% Carbonaceous 74% Eliminates the flotation circuit and leaching of sulphide concentrate 15
Project timeline Optimization studies and drilling: H2 2015 Detailed engineering and plant design: To be completed end of Q1 2016 Complete pre-feasibility/feasibility study mid Q1 2016 Complete construction of plant modifications mid Q3 2016 Re-commissioning of C1 Santa Luz mid Q3 2016 C1 Santa Luz Schedule 2015 2016 Activity/Milestone: Q3 Q4 Q1 Q2 Q3 Q4 Complete Testwork Finalize Flowsheet Optimization Studies and Drilling Detailed Design a a Complete Pre-feasibility Study Construction X Re-commissioning and operations 16
Brio Gold Production Guidance Production Profile (Koz Au) 250 200 H1 2015: 66,389 oz On track to achieve guidance 180 230 150 130 100 50 0 2015E 2016E 2017E Pilar Fazenda Brasileiro C1 Santa Luz 17
Brio Gold Cash Cost Cash Costs ($/oz Au) (1,2) 2015E Cash Cost Breakdown $824 $798 $773 $730 2014 Q1-15 Q2-15 2015E 1. Cash cost guidance for 2015E assumes a BRL/USD exchange rate of 2.7. 2. A non-gaap measure. A reconciliation can be found at www.yamana.com/q22015 in accordance with previous Canadian GAAP for public entities. 18
Production (koz) Attractive Production Profile Near term growth with long-term upside potential Production and Cash Cost Profile (1,2) 500 $800 $700 400 $600 300 200 $500 $400 $300 Cash Costs (US$/oz) 100 $200 $100 0 $0 15E 16E 17E 18E 19E 20E Fazenda Pilar C1 Cash Costs 1. Based on Brio internal life of mine plans, does not include a view on future discovery of resources. Cash cost forecast assumes a BRL/USD exchange rate of 3.8. 2. Cash cost is a non-gaap measure. A reconciliation can be found atwww.yamana.com/q12015 in accordance with previous Canadian GAAP for public entities. 19
Key Near-Term Catalysts 1 Commence Production at Maria Lázara at Pilar H2 2015 2 Rehabilitate C1 Santa Luz 2015- H1 2016 3 Exploration Results at Fazenda Brasileiro 2015 4 Take Brio Gold Public 2015 5 Re-commence Production at C1 Santa Luz Q3 2016 6 Continued Exploration at all 3 Assets, M&A Growth 2015/16 20
Vehicle for Growth in the Americas Expand Pilar High grade satellite orebodies (Maria Lázara, 3 Buracos) Extend Fazenda Brasileiro LOM Strong history of exploration success Multiple drill-ready targets Organic and Inorganic Growth Potential to significantly increase production via expansions and accretive M&A Rehabilitate C1 Potential production of +100,000 oz annually Underground potential to extend mine life Multiple Growth Opportunities 21
Investment Highlights Offers Immediate Production and Cash Flow with a Clean Balance Sheet Additional Near Term Production Growth with the Re-start of C1 Santa Luz Q3 2016 Located In One Of The Lowest Risk Mining Jurisdictions Globally Sizeable Resource Base with Opportunity for Expansion Prospective Land Packages Providing Further Exploration Upside Favourable Exchange Rate Environment for Brazilian Real 22
Contact Information Letitia Wong VP, Corporate Development T: (416) 860-6310 E: letitia.wong@briogoldinc.com
Operation - Pilar Underground Room and Pillar Mine Method Long Hole Open Stoping Method Orebody with DIP > 25 Orebody with DIP < 25 24
Pilar Exploration CRIXAS CAIAMAR CHAPADA (70KM from Pilar) TRES BURACOS PILAR MARIA LAZARA Brio holds a total of 47,000 hectares of exploration concessions including multiple prospective satellite orebodies Located in Archean/Paleoproterozoic Greenstone Belts (Pilar and Guarinos), a highly prolific region, with several gold occurrences discovered to date East of the Crixas Greenstone belt which hosts the Crixas mine (AngloGold) and southeast of Yamana s Chapada mine. The Maria Lázara deposit 15 km from Pilar provides near-term growth potential Higher grade, wider zones Substantial inferred resources Construction currently underway 25
Fazenda Brasileiro Geology FAZENDA FAZENDA BRASILEIRO BRASILEIRO 26
C1 Santa Luz Geology C1 Santa Luz 27