Yamana Gold Declares Quarterly Dividend

TORONTO, Aug. 3, 2011 /CNW/ --
(All dollar amounts are expressed in United States dollars unless
otherwise specified)

TORONTO, Aug. 3, 2011 /CNW/ - YAMANA GOLD INC. (TSX:YRI) (NYSE:AUY) (LSE:YAU) today declared a third quarter dividend
of $0.045 per share.  Shareholders of record at the close of business
on Friday, September 30, 2011 will be entitled to receive payment of
this dividend on Friday, October 14, 2011.  The dividend is an
'eligible dividend' for Canadian tax purposes.

On May 10, 2011, the Board of Directors approved an increase in the
Company's annual dividend to $0.18 per share or $0.045 per share per
quarter.  This represents a 50 percent increase over the prior annual
dividend of $0.12 per share, or $0.03 per share per quarter.

Yamana is committed to delivering value to shareholders, across all
measures including cash value by means of dividends.  The Company plans
to continue this trend of returning greater value to shareholders in
cash as earnings, cash flow and cash balances continue to increase.

About Yamana

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

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Lisa Doddridge
Vice President, Corporate Communications and Investor Relations
416-945-7362
1-888-809-0925
Email:  lisa.doddridge@yamana.com