OREANDA-NEWS. BRIO GOLD INC. ("Brio Gold"), a subsidiary of Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) ("Yamana" or "the Company"), today announced preliminary second quarter 2015 results and a new discovery at the Fazenda Brasileiro operation.

PRELIMINARY SECOND QUARTER OPERATIONAL RESULTS

Brio Gold's operating mines produced 35,211 ounces of gold in the second quarter of 2015 at cash costs(1) of $773 per ounce. Production for the first half of 2015 of 66,389 ounces is consistent with budget and these mines are on track to meet guidance of 130,000 ounces of gold at average cash costs of $730 per ounce of gold in 2015.

  First
Quarter
2015		 Second
Quarter
2015*		 First Half
2015*
Production (oz.)      
  Pilar 19,153 21,237 40,390
  Fazenda Brasileiro 12,024 13,974 25,998
  Total Brio Gold 31,177 35,211 66,389
Cash costs (per oz.)      
  Pilar $832 $756 $792
  Fazenda Brasileiro $810 $798 $804
Total Brio Gold $824 $773 $797

*Preliminary Results

Pilar outperformed in the second quarter with production and cash costs better than budget. Pilar production was 21,237 ounces of gold and averaged over 7,000 ounces of gold per month in the second quarter, which is above the baseline average of 6,300 ounces per month established in the first quarter of 2015. Cash costs improved from the previous quarter to $756 per ounce. Development work continues at the satellite Maria Lazarus deposit with full production stoping ready to begin in the third quarter of 2015. When in full production, Maria Lazarus is expected to contribute approximately 25,000 ounces per year.

Second quarter production at Fazenda Brasileiro increased from the first quarter of 2015 to 13,974 ounces of gold at cash costs of approximately $798 per ounce. Production at Fazenda Brasileiro is expected to continue increasing quarter over quarter throughout the year.

At C1 Santa Luz, Brio Gold continues to advance the project with the continuation of detailed metallurgical testwork and the completion of final process flow sheet design, and is now awaiting final confirmatory pilot plant testwork results. Brio Gold also expects operating and capital cost estimates based on these results to be completed in the third quarter. Once the testwork and cost estimates have been finalized, detailed engineering design is expected to commence shortly thereafter. The preliminary capital cost estimate for the flow sheet modification remains within the Company's previous guidance of $20 to $30 million. C1 Santa Luz is expected to contribute approximately 100,000 ounces of gold annually.

y Assurance and Quality Control by its mines and exploration projects. This includes the use of professionally prepared standards and blanks and analysis of sample duplicates. Regular evaluation of laboratory QA/QC results are conducted internally by the laboratories, as well as externally by a dedicated geochemical laboratory specialist.

Qualified Person

Mark G. Stevens, P. Geo., Vice President, Exploration for Brio Gold has reviewed and confirmed the scientific and technical information contained within this press release and serves as the Qualified Person as defined in the National Instrument 43-101.