Yamana Gold Inc Q3 2017 MDA FS Final - s22.q4cdn.com · Mark-to-market on investment and other assets 0.3 — 8.7 0.01 Revision in estimates and liabilities including contingencies

Report 2017

Q3

YAMANA FINAL 2017 QUARTERLY COVERS-04-04-17.qxp_Layout 1 copy 17-04-04 2:16 PM Page 3

TABLE OF CONTENTS Page 1. Core Business 1 2. Highlights 2 3. Outlook and Strategy 7 4. Summary of Financial and Operating Statistics 9 4.1: Financial Statistics 9 4.2: Operating Statistics 11 5. Overview of Results 13 5.1: Overview of Financial Results 13 5.2: Overview of Operating Results 19 6. Operating Mines 23 7. Construction, Development and Exploration 30 8. Liquidity, Capital Resources and Contractual Commitments 33 9. Income Taxes 37 10. Economic Trends, Business Risks and Uncertainties 39 11. Contingencies 41 12. Critical Accounting Policies and Estimates 41 13. Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements 42 14. Selected Quarterly Financial and Operating Summary 55 15. Disclosure Controls and Procedures 57

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION

(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”). This Management’s Discussion and Analysis of Operations and Financial Condition ("MD&A") should be read in conjunction with the Company’s condensed consolidated interim financial statements for the three and nine months ended September 30, 2017 and the most recently issued annual consolidated financial statements for the year ended December 31, 2016 ("Consolidated Financial Statements").

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 management discussion and analysis 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 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements.

Cautionary statements regarding forward-looking information and mineral reserves and mineral resources are included in this MD&A.

1. CORE BUSINESS

Yamana Gold Inc. (TSX:YRI and NYSE:AUY) (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 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.

Note 3(a): Significant Accounting Policies - Basis of Consolidation to the most recently audited Consolidated Annual Financial Statements lists Yamana’s significant subsidiaries with majority equity interest and its joint operation of the Canadian Malartic mine. The Company does not have any material off-balance sheet arrangements, except as noted in Note 20: Contractual Commitments to the condensed consolidated interim financial statements.

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2. HIGHLIGHTS For the three months ended September 30, 2017 (unless otherwise noted) The Company had a strong third quarter, both exceeding its plan for production, and achieving this at costs within its guided ranges. As anticipated, production increased quarter-over-quarter, with lower copper costs, and consequently higher cash flows over the second quarter of 2017. In consideration of the strong production results through the end of the third quarter, full year production guidance relating to the Yamana mines was increased as follows:

Revised production guidance Updated Previous Total gold production (ounces) 960,000 940,000 Total silver production (ounces) 5,000,000 4,740,000 Total copper production (lbs.) - Chapada 125,000,000 120,000,000

The revised guidance for gold production represents an increase of 40,000 ounces from the 920,000 ounces guided at the beginning of 2017. Cost guidance for cash costs and all-in-sustaining costs per unit produced, for all metals, is expected to be within the previously guided range. For total cost of sales per unit, the Company expects to be within guidance for silver and copper, while gold is expected to be above guidance due to higher Depletion, Depreciation and Amortization ("DDA"). Sales and Production • Gold production in the third quarter from the Company's six producing mines ("Yamana mines") was 5% higher than the second quarter

of 2017, higher than plan and in line with the same period in 2016. Gold production improved across most individual mines from the second quarter of 2017.

• Silver production in the third quarter was 8% higher than the second quarter of 2017, higher than plan and 10% lower than the same period in 2016.

• Copper production in the third quarter was 27% higher than the second quarter of 2017, higher than plan and 25% higher than the same period in 2016.

For the three months ended September 30, 2017 2016 % change Gold

Sales - Yamana mines (ounces) 256,359 248,773 3% Sales - Consolidated (ounces) 299,588 296,330 1% Production - Yamana mines (ounces) 257,455 259,505 (1)% Production - attributable (ounces) (i) 281,315 305,580 (8)% Revenue per ounce $ 1,264 $ 1,327 (5)% Average realized price per ounce (ii) $ 1,278 $ 1,337 (4)%

Silver Sales (ounces) 1,574,943 1,544,478 2% Production (ounces) 1,431,211 1,592,526 (10)% Revenue per ounce $ 16.64 $ 19.47 (15)% Average realized price per ounce (ii) $ 16.66 $ 19.53 (15)%

Copper Sales (millions of pounds) 36.5 22.1 65% Production (millions of pounds) 37.1 29.6 25% Revenue per pound $ 2.43 $ 1.86 31% Average realized price per pound (ii) $ 2.89 $ 2.14 35%

(i) Attributable production includes production from Yamana mines in addition to production commensurate to the Company's interest in Brio Gold, which for the third quarter of 2017 was a weighted average of 55.6% (2016 - 100%).

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(ii) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management’s Discussion and Analysis.

Costs • All gold cost metrics on a per ounce basis for Yamana mines were lower than or in line with the comparative period of 2016 and in the

case of co-product cash costs and AISC, within the guided ranges. This is despite the foreign exchange effect of the appreciation of the Brazilian Real, Chilean Peso and Canadian Dollar. AISC were also lower in part due to lower sustaining capital expenditures and mine development during the quarter. These activities are expected to continue to be caught up in the remainder of the year although it is anticipated that total sustaining capital expenditures will be below guidance.

• All silver cost metrics on a per ounce basis were lower than the comparative period of 2016 except for co-product cash costs. Total cost of sales per ounce was positively impacted by the increase in sales quantities, while cash costs per ounce were impacted by lower ounces produced. In general, underlying costs decreased despite the appreciation of the Chilean Peso. All silver cost metrics on a per ounce basis were within the previously guided ranges and lower in the case of AISC.

• All copper cost metrics on a per pound basis were lower than the third quarter of 2016, the second quarter of 2017 and plan. • In relation to the recently reintroduced by-product metrics, the Company had a noteworthy by-product credit in the third quarter impacted

by Chapada’s copper production and sales from record throughput.

For the three months ended September 30, 2017 2016 % change Gold

Total cost of sales per ounce sold - Yamana mines (i) $ 999 $ 1,023 (2)% Total cost of sales per ounce sold - Consolidated (i) $ 1,022 $ 1,038 (2)% Co-product cash costs per ounce produced - Yamana mines (ii) $ 672 $ 671 —% Co-product cash costs per ounce produced - Attributable (ii) $ 689 $ 692 —% Co-product AISC per ounce produced - Yamana mines (ii) $ 874 $ 936 (7)% AISC per ounce produced - Attributable (ii) $ 905 $ 965 (6)%

Silver Total cost of sales per ounce sold (i) $ 14.15 $ 15.36 (8)% Co-product cash costs per ounce produced (ii) $ 10.53 $ 9.79 8% Co-product AISC per ounce produced (ii) $ 13.70 $ 13.79 (1)%

Copper Total cost of sales per pound sold at Chapada (i) $ 1.62 $ 1.90 (15)% Chapada co-product cash costs per pound produced (ii) $ 1.35 $ 1.60 (16)% Chapada AISC per pound produced (ii) $ 1.44 $ 2.15 (33)%

For the three months ended September 30, 2017 2016 % change

By-product cash costs per gold ounce produced - Yamana mines (ii)(iii) $ 496 $ 665 (25)% By-product AISC per gold ounce produced - Yamana mines (ii)(iii) $ 729 $ 998 (27)% By-product cash costs per silver ounce produced (ii)(iii) $ 8.64 $ 9.78 (12)% By-product AISC per silver ounce produced (ii)(iii) $ 12.24 $ 14.73 (17)%

(i) Total cost of sales consists of the sum of cost of sales excluding DDA plus DDA. (ii) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. (iii) Comparatives have been restated to conform to the change in presentation adopted in the current period.

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Financial Results • Net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, for the three months ended September 30,

2017 was $43.5 million or $0.05 per share basic and diluted, compared to net loss of $2.1 million or $0.0 per share basic and diluted for the three months ended September 30, 2016.

• Net earnings and net earnings per share for the third quarter of 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 three months ended September 30, 2017 2016 (In millions of US Dollars; unless otherwise noted) $ Per share $ Per share

Non-cash unrealized foreign exchange losses 11.5 0.01 5.4 0.01 Share-based payments/mark-to-market of deferred share units 3.4 — (1.1 ) — Mark-to-market on derivative contracts (0.1 ) — 6.1 0.01 Mark-to-market on investment and other assets 0.3 — 8.7 0.01 Revision in estimates and liabilities including contingencies (3.2 ) — 1.7 — Other provisions, write-downs and adjustments (i) (27.6 ) (0.03 ) 10.6 0.01 Non-cash tax unrealized foreign exchange losses 0.5 — 2.0 — Income tax effect of adjustments 1.8 — (14.3 ) (0.02 ) Total adjustments - increase/(decrease) to net earnings/loss and net earnings/loss per share (ii) (13.4 ) (0.01 ) 19.1

0.02

(i) The balance includes, among other things, the reversal of certain provisions such as tax credits and legal contingencies. (ii) Net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, would be adjusted by a decrease of $16.1 million (2016- $nil), while an increase

of $2.7 million (2016- $nil) would adjust the earnings attributable to non-controlling interests.

• Revenue for the three months ended September 30, 2017, increased from the prior-year comparative period as a result of 35% higher copper prices and higher metal sales quantities. Gold, silver and copper sales were higher compared to the same period of 2016 by 1%, 2% and 65%, respectively.

• Cost of sales excluding DDA for the third quarter was higher than that of the same period in 2016 as a result of higher sales quantities and stronger Brazilian Real, Chilean Peso and Canadian Dollar exchange rates relative to the US Dollar.

• DDA expense was lower than the comparative period despite higher sales quantities. This is due to lower asset book value at El Peñón, following the impairment taken as at December 31, 2016.

For the three months ended September 30, 2017 2016 % change Financial Results

Revenue from continuing operations $ 493.4 $ 464.3 6% Cost of sales excluding DDA $ (279.0 ) $ (261.2) 7% DDA $ (108.0 ) $ (112.1) (4)% Mine operating earnings $ 106.4 $ 91.0 17%

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Balance Sheet and Liquidity (i) • As at September 30, 2017, excluding Brio Gold, the Company had cash and cash equivalents of $115.7 million and available credit of

$768.2 million, for total liquidity of approximately $883.9 million. • Cash flows from operating activities and Net Free Cash Flow (a non-GAAP financial measure, see Section 13: Non-GAAP Financial

Measures and Additional Line Items or Subtotals in Financial Statements) are presented below. The Company significantly improved its Net Free Cash Flow, noting that the net change in working capital for Yamana mines was an approximate $19.0 million inflow.

For the three months ended September 30, (In millions of US Dollars; unless otherwise noted) 2017 2016 Cash flows from operating activities before income taxes and net change in working capital (ii) $ 171.5 $ 176.2 Income taxes paid (5.2 ) (3.2 ) Payments made related to the Brazilian tax matters (30.5 ) — Cash flows from operating activities before net change in working capital (ii) $ 135.8 $ 173.0 Net change in working capital 14.0 5.6 Cash flows from operating activities $ 149.8 $ 178.6 Add: Payments made related to the Brazilian tax matters 30.5 — Add: Other cash payments 6.0 — Less: Non-discretionary items related to the current period Sustaining capital expenditures (50.1 ) (83.3 ) Interest and finance expenses paid (19.2 ) (17.0 ) Net free cash flow (i) 117.0 78.3

(i) For further information on the Company's liquidity and cash flow position, refer to Section 8: 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 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management’s Discussion and Analysis.

Additional liquidity and capital information is as follows:

For the three months ended September 30, (In millions of US Dollars; unless otherwise noted) 2017 2016 % change Dividend per share (declared and paid) $ 0.005 $ 0.005 —% Weighted average number of shares outstanding

Basic (in thousands) 948,254 947,590 —% Diluted (in thousands) 948,830 947,590 —%

Capital Expenditures Sustaining $ 50.1 $ 83.3 (40)% Expansionary 86.5 37.8 129% Exploration 22.9 22.7 1% Total capital expenditures $ 159.5 $ 143.8 11%

Construction and Development, Strategic Developments and Optimization Initiatives • Cerro Moro, Argentina - As at the end of September 2017, construction progress at Cerro Moro is outlined as follows:

Construction remains on schedule for completion in the first quarter of 2018, with the primary drivers for progress this quarter being structural and mechanical erection and the completion of the Tailings Storage Facility which are all progressing according to plan.

Piping and electrical installation contractors were mobilized during the third quarter and are progressing according to schedule.

The main activities planned for next quarter are to complete the structural erection, continue with mechanical installation, and ramp up on the piping and electrical works. The project will also initiate the control, communications and architectural works.

Underground development of 673 metres has been completed to the end of the third quarter, in line with schedule on the total 992 metres planned for 2017, with transition to operations having occurred.

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The Company has filled positions for senior mine and plant management and the process of recruiting the operational workforce is progressing well.Of the $233 million planned to be spent in 2017 and 2018, $178 million is planned to be spent in the current year. Expenditures of $123 million so far up to the end of the third quarter are on budget, leaving approximately $55 million to bespent in the fourth quarter.

Next milestones ahead of commercial production are:Mechanical completion of key process plant facilities by the end of the year, dove-tailing with the plan to progressively hand-over these and subsequent systems for commissioning in early 2018.Commissioning is on track for completion by the end of the first quarter of 2018, with the ramp-up to commence thereafter.

• Kirkland Lake, Canada - The Company has a 50% interest in Kirkland Lake where the evaluation of the development and exploration assets (including Upper Beaver) has been completed. The evaluation used several existing studies as the basis for its value assessment, including Upper Beaver’s pre-feasibility study, conceptual plans for Upper Canada, Amalgamated Kirkland and Anoki-McBean, as well as determination of the significant upside potential from other exploration target areas. The results of the review reveal that the Upper Beaver deposit provides a large component of the overall value and supports construction of a common centralprocessing plant for treatment of the other deposits owned by the partnership. The study shows the potential for a standalone operation, with consolidated production from these deposits in excess of 250,000 ounces per year at attractive cash costs. In order to realize the value from this asset base, the Company and its partner, Agnico Eagle, had evaluated potential strategic alternatives including the possible sale of 100% of the Kirkland Lake property portfolio. Following a successful price discovery process, which surfaced values well in excess of what the Company believes the market is ascribing to the jointly owned Kirkland Lake assets, and recent positiveexploration results, the partnership has now elected to suspend monetization initiatives and move forward with further studies on the exploration and development opportunities at Kirkland Lake. The Company expects an updated mineral resource estimate to be completed on the Upper Canada deposit by the end of 2017.

• Suruca, Brazil - The Company continues advancing development efforts at the Suruca oxides project, however, now with the additional consideration of recent drill results at Suruca Southwest and Suruca Sulphide (located underneath the oxide deposit). The Company is assessing the synergy of a broader Suruca complex, and expects to complete studies for a comprehensive opportunity in 2018. Consequently, this may lead to a lower capital spend in 2018 on the oxide-only project.

• Canadian Malartic, Canada - The Canadian Malartic Extension Project is continuing according to plan and all key Certificates of Authorization ("CAs") have been obtained. The road bypass is complete and the bridge that would allow off-road mining equipment to cross the highway is on schedule to be completed by the end of the fourth quarter, as planned. Expansionary expenditures for the road deviation and mine extension of approximately US$10 to $16 million (on a 50% basis) have been brought forward from 2018.

• Agua Rica, Argentina - The Company has completed initial studies relating to a smaller scale underground sub-level caving operation that would minimize upfront capital expenditures while maintaining longer term optionality to increase the scale of the miningoperation. The underground sub-level caving scenario assumes capital costs substantially below estimates in the feasibility study for a larger open pit operation and at operating costs that would be in the bottom quartile of comparable copper projects. This approach also assumes a much smaller scale underground operation and is consistent with existing environmental regulations. The smaller scale development scenario contemplates a fully stand-alone operation that would not require the use of any Minera Alumbrera infrastructure. The Company is committed to working with stakeholders as it continues to assess this as well as other development scenarios and remains committed to advancing the project. A feasibility study relating to the sub-level scenario will follow for completion by either just the Company or, depending on the strategic alternatives, in conjunction with one or more partners. The Company has retained two financial advisers to advise on potential strategic alternatives that consider both the underground and open pit development options, with the goal of finding the right third party or partner to advance the project towards development.

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Brazilian Tax Matters

As previously disclosed, the Company elected in the third quarter to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Company’s Chapada mine. This commercial resolution creates immediate financial certainty during a time of political volatility and economic reform in country. In coming to the decision to participate, the Company balanced the significant value creation opportunities at Chapada with the costs and risks involved in continued litigation, which could hinder or delay such opportunities. Also contributing to the Company’s decision is that access to governance by judicial courts has limitations, including the financial burden imposed on those who take their disputes through the courts, which requires a bond or other collateral to be posted. The Company believes these financial resources, along with management’s time and effort, are better allocated to value-creating opportunities. The judicial process in Brazil may require years to resolve, often as long as a decade, during which legal fees escalate and interest accrues.

On October 25, 2017, the program was formally enacted into law, substantially in the form passed by the legislature. The final program is a mix of the original provisional measure suggested by the executive branch and the proposed amendments by certain members of the legislative branch. The Company has paid $30.5 million year to date, and has allocated three payments of approximately $14.7 million each (R$48.4 million) by end of year. The final program creates an option to either pay one lump sum next year or much smaller installment payments per year for approximately twelve years. The Company has elected to proceed with the installment payments option, as a result of which the Company will pay $8.6 million per year (R$27.6 million) for the stipulated period. A loss will be recorded in the fourth quarter income statement, based on the aforementioned amounts already paid and to be paid this year, the present value of future payments and certain permitted deductions.

Exploration

The Company's exploration programs continue with the focus of mineral resource discovery and mineral reserve replacement and growth at all mines. For exploration updates for the third quarter, refer to Section 6: Operating Mines and Section 7: Construction, Development and Exploration of this MD&A. For a more comprehensive exploration update, readers are encouraged to refer to the press release dated September 25, 2017.

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 in an organic growth phase, whereby it is focusing on numerous internal value generating opportunities.

The Company’s current key objectives include:• Delivering operational results and execution, and advancing near-term and ongoing optimizations at Yamana’s six producing mines;• Advancing Cerro Moro to mechanical completion through the remainder of 2017 and production in early 2018, with the ramp-up to commence thereafter;• Advancing the Company’s organic pipeline through exploration targeted on the most prospective properties, including:

Significant potential at Chapada, Minera Florida, Canadian Malartic with Odyssey, Cerro Moro and Gualcamayo as a result of new discoveries at each site, andFurther delineation and infill drilling at Minera Florida, El Peñón, Chapada, and Jacobina with the objective to increase minelife and to deliver potential for production increases;

• Continuing balance sheet and financial performance improvements;• Improving the efficiency of all operations, including the successful completion of El Peñón's transformation and a focus on

development and exploration efforts at Minera Florida;• Increase overall mineral reserves and mineral resources, and

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• Evaluating monetization initiatives, which may include the sale of non-strategic assets or other optionality within the portfolio.

The Company has made significant progress against all of these objectives through the end of the third quarter. Underpinned by the strong performance in the current quarter, full year production expectations and guidance relating to the Yamana mines was increased as follows:

Revised Production Guidance Updated Previous Total gold production (ounces) 960,000 940,000 Total silver production (ounces) 5,000,000 4,740,000 Total copper production (lbs.) - Chapada 125,000,000 120,000,000

The revised guidance for gold production represents an increase of 40,000 ounces from the 920,000 ounces guided at the beginning of 2017. Cost guidance for cash costs and all-in-sustaining costs per unit produced, for all metals, is expected to be within the previously guided range. For total cost of sales per unit, the Company expects to be within guidance for silver and copper, while gold is expected to be above guidance due to higher DDA. The Company is expecting gold production growth of approximately 15% over the 2017-2019 period and silver production growth of approximately 200% over the same period with the bulk of the growth in silver coming from Cerro Moro. 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, Suruca and the Canadian Malartic Extension, there will be a significant reduction in expansionary capital as these medium-term development opportunities continue to advance. With the expected reduction in capital spending and increase in production as existing projects are completed, the Company expects to generate significant increases in cash flow and net free cash flow beginning in 2018.

The Company remains committed to maintaining financial flexibility and strengthening the balance sheet through increasing cash flows from growing production at lower costs. The Company is re-evaluating its efforts on certain monetization initiatives as it analyzes its non-strategic assets and pursues opportunities for value increases. The Company's debt maturity profile remains very manageable and well positioned, especially in the short- to medium-term. The Company continues to target a leverage ratio of 1.5 or better, which it believes to be prudent financial policy and planning. The Company maintains ample liquidity and is well positioned for the remaining expansionary capital for Cerro Moro. Price protection efforts initiated during the quarter help underpin cash flows through the Cerro Moro construction period. With the expected step change in cash flow beginning in 2018, as a result of the planned completion of Cerro Moro, the Company anticipates the resumption of net debt reduction.

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4. SUMMARY OF FINANCIAL AND OPERATING STATISTICS 4.1 Financial Statistics

For the three months ended

September 30, For the nine months ended

September 30, (In millions of US Dollars; unless otherwise noted) 2017 2016 2017 2016 Revenue $ 493.4 $ 464.3 $ 1,325.0 $ 1,303.3 Cost of sales excluding depletion, depreciation and amortization (279.0 ) (261.2 ) (778.0 ) (744.9 ) Gross margin excluding depletion, depreciation and amortization $ 214.4 $ 203.1 $ 547.0 $ 558.4 Depletion, depreciation and amortization (108.0 ) (112.1 ) (325.9 ) (334.0 ) Mine operating earnings $ 106.4 $ 91.0 $ 221.1 $ 224.4 Other expenses and income (i) (45.1 ) (62.4 ) (201.0 ) (133.5 ) Earnings before income taxes $ 61.3 $ 8.9 $ 20.1 $ 90.9 Income tax (expense)/recovery (23.0 ) (11.0 ) (24.6 ) 55.7 Net earnings/(loss) from continuing operations $ 38.3 $ (2.1) $ (4.5 ) $ 66.5 Net loss from discontinued operations — (9.7 ) — (5.0 ) Net earnings/(loss) $ 38.3 $ (11.8) $ (4.5 ) $ 61.5 Earnings per share from continuing operations (ii) - basic and diluted $ 0.05 $ — $ — $ 0.07 Earnings/(loss) per share - basic and diluted $ 0.04 $ (0.01) $ — $ 0.06 Dividends declared per share $ 0.005 $ 0.005 $ 0.015 $ 0.025 Dividends paid per share $ 0.005 $ 0.005 $ 0.015 $ 0.015 Weighted average number of common shares outstanding - basic (in thousands) 948,254

947,590 948,092 947,374

Weighted average number of common shares outstanding - diluted (in thousands) 948,830

947,590 948,092 947,953

(i) For the three months ended September 30, 2017, other expenses and income represent the aggregate of the following expenses: general and administrative of $28.5 million (2016 - $24.8 million), exploration and evaluation of $4.9 million (2016 - $3.8 million), other recoveries of $26.9 million (2016 - $13.8 million) and net finance expense of $38.6 million (2016 - $39.7 million).

(ii) Attributable to Yamana Gold Inc. equityholders.

Net earnings and net earnings 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. Those items are denoted as (increases) or decreases to net earnings/(loss) and net earnings/(loss) per share in the following table:



September 30, (In millions of US Dollars; unless otherwise noted) 2017 2016 2017 2016 Non-cash on unrealized foreign exchange losses $ 11.5 $ 5.4 $ 16.1 $ 24.9 Share-based payments/mark-to-market of deferred share units 3.4 (1.1 ) 9.1 16.6 Mark-to-market on derivative contracts (0.1 ) 6.1 4.6 0.4 Mark-to-market on investment and other assets 0.3 8.7 3.0 (11.2 ) Revision in estimates and liabilities including contingencies (3.2 ) 1.7 (2.6 ) 9.1 Other provisions, write-downs and adjustments (i) (27.6 ) 10.6 2.0 9.9 Non-cash tax unrealized foreign exchange losses/(gains) 0.5 2.0 1.5 (70.8 ) Income tax effect of adjustments 1.8 (14.3 ) (5.3 ) (6.9 ) Total adjustments - increase/(decrease) to net earnings(ii) $ (13.4) $ 19.1 $ 28.4 $ (28.0) Total adjustments - increase/(decrease) to net earnings per share $ (0.01) $ 0.02 $ 0.03 $ (0.03) (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 September 30, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, were impacted by a decrease

of $16.1 million (2016- $nil), while an increase of $2.7 million (2016- $nil) relates to non-controlling interests. For the nine months ended September 30, 2017, net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, were impacted by an increase of $22.9 million (2016- $nil), while an increase of $5.5 million (2016- $nil) relates to non-controlling interests.

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The following table lists revenue per ounce or pound sold, average realized prices and average market prices:



September 30, 2017 2016 2017 2016 Gold Revenue per ounce of gold $ 1,264 $ 1,327 (5)% $ 1,243 $ 1,256 (1)% Average realized gold price per ounce (i)(ii) $ 1,278 $ 1,337 (4)% $ 1,256 $ 1,266 (1)% Average market gold price per ounce (iii) $ 1,278 $ 1,335 (4)% $ 1,251 $ 1,260 (1)% Silver Revenue per ounce of silver $ 16.64 $ 19.47 (15)% $ 16.89 $ 16.94 —% Average realized silver price per ounce (i)(ii) $ 16.66 $ 19.53 (15)% $ 16.92 $ 17.00 —% Average market silver price per ounce (iii) $ 16.84 $ 19.61 (14)% $ 17.16 $ 17.12 —% Copper Revenue per pound of copper $ 2.43 $ 1.86 31% $ 2.36 $ 1.89 25% Average realized copper price per pound (i)(ii) $ 2.89 $ 2.14 35% $ 2.69 $ 2.13 26% Average market copper price per pound (iii) $ 2.88 $ 2.17 33% $ 2.70 $ 2.15 26%

(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 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management's Discussion and Analysis.

(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.

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4.2 Operating Statistics

For the three months ended September 30, 2017 2016 2017 2016

Ounces of production Gold %

change Silver %

change Chapada 38,782 28,605 36% 68,280 69,266 (1)% El Peñón 44,466 53,875 (17)% 1,088,921 1,435,986 (24)% Canadian Malartic (i) 82,097 76,427 7% — — —% Gualcamayo 34,183 42,558 (20)% — — —% Minera Florida 23,089 28,714 (20)% 274,010 87,274 214% Jacobina 34,838 29,326 19% — — —% Total production, Yamana mines 257,455 259,505 (1)% 1,431,211 1,592,526 (10)% Brio Gold (attributable to the Company) (ii) 23,860 46,075 (48)% — — —% Total production, attributable to the Company 281,315 305,580 (8)% 1,431,211 1,592,526 (10)% Brio Gold (attributable to non-controlling interest) 19,053 — n/a — — n/a Total production (v) 300,368 305,580 (2)% 1,431,211 1,592,526 (10)% Cost of sales excluding DDA per ounce sold, Yamana mines $ 678 $ 688 (1)% $ 10.12 $ 10.01 1% Cost of sales excluding DDA per ounce sold $ 713 $ 709 1% $ 10.12 $ 10.01 1% DDA per ounce sold, Yamana mines $ 320 $ 336 (5)% $ 4.03 $ 5.35 (25)% DDA per ounce sold $ 309 $ 329 (6)% $ 4.03 $ 5.35 (25)% Total cost of sales per ounce sold (vii) Chapada $ 321 $ 538 (40)% $ 21.15 $ 8.55 147% El Peñón $ 1,194 $ 1,071 11% $ 14.41 $ 15.51 (7)% Canadian Malartic (i) $ 983 $ 1,040 (5)% $ — $ — —% Gualcamayo $ 1,329 $ 1,021 30% $ — $ — —% Minera Florida $ 1,211 $ 1,032 17% $ 12.24 $ 13.96 (12)% Jacobina $ 1,055 $ 1,167 (10)% $ — $ — —% Total cost of sales per ounce sold, Yamana mines (vii) $ 999 $ 1,023 (2)% $ 14.15 $ 15.36 (8)% Brio Gold (ii) $ 1,159 $ 1,112 4% $ — $ — —% Total cost of sales per ounce sold (vii) $ 1,022 $ 1,038 (2)% $ 14.15 $ 15.36 (8)% Co-product cash costs per ounce produced (iv) Chapada $ 254 $ 353 (28)% $ 2.95 $ 3.09 (5)% El Peñón $ 821 $ 727 13% $ 11.02 $ 10.11 9% Canadian Malartic (i) $ 577 $ 613 (6)% $ — $ — —% Gualcamayo $ 1,088 $ 828 31% $ — $ — —% Minera Florida $ 777 $ 699 11% $ 10.46 $ 9.73 8% Jacobina $ 693 $ 771 (10)% $ — $ — —% Co-product cash costs per ounce produced, Yamana mines (iv) $ 672 $ 671 —% $ 10.53 $ 9.79 8% Brio Gold (ii) $ 876 $ 813 8% $ — $ — —% Co-product cash costs per ounce produced, attributable (iv) $ 689 $ 692 —% $ 10.53 $ 9.79 8% By-product cash costs per ounce produced, Yamana mines (iv) $ 496 $ 665 (25)% $ 8.64 $ 9.78 (12)% Co-product AISC per ounce produced, Yamana mines (iv) $ 874 $ 936 (7)% $ 13.70 $ 13.79 (1)% By-product AISC per ounce produced, Yamana mines (iv) $ 729 $ 998 (27)% $ 12.24 $ 14.73 (17)% AISC per ounce produced, attributable (iv) $ 905 $ 965 (6)% $ 13.70 $ 13.79 (1)% Concentrate production 2017 2016 Chapada concentrate production (tonnes) 70,090 43,720 60% Chapada copper contained in concentrate production (millions of lbs) 37.1 29.6 25% Cost of sales excluding DDA per copper pound sold $ 1.37 $ 1.62 (15)% DDA per copper pound sold $ 0.26 $ 0.28 (7)% Total cost of sales per copper pound sold $ 1.63 $ 1.91 (15)% Chapada co-product cash costs per pound of copper produced (iv) $ 1.35 $ 1.60 (16)% Chapada AISC per pound of copper produced (iv) $ 1.44 $ 2.15 (33)% Sales included in revenue 2017 2016 Gold (ounces) 299,588 296,330 1% Silver (ounces) 1,574,943 1,544,478 2%

Chapada payable copper contained in concentrate (millions of lbs)

36.5

22.1

65%

Chapada concentrate (tonnes) 74,394 47,604 56%

12

For the nine months ended September 30, 2017 2016 2017 2016

Ounces of production Gold %

change Silver %

change

Chapada 83,274 66,944 24% 181,228 181,424 —% El Peñón 121,108 164,445 (26)% 3,229,915 4,566,466 (29)% Canadian Malartic (i) 235,988 222,543 6% — — —% Gualcamayo 109,274 119,425 (8)% — — —% Minera Florida 66,825 78,637 (15)% 422,575 334,310 26% Jacobina 101,240 88,298 15% — — —% Total production, Yamana mines 717,709 740,292 (3)% 3,833,718 5,082,200 (25)% Brio Gold (attributable to the Company) (iii) 96,577 139,184 (31)% — — —% Total production, attributable to the Company 814,286 879,476 (7)% 3,833,718 5,082,200 (25)% Brio Gold (attributable to non-controlling interest) 41,099 — n/a — — n/a Total production (vi) 855,385 879,476 (3)% 3,833,718 5,082,200 (25)% Cost of sales excluding DDA per ounce sold, Yamana mines $ 691 $ 673 3% $ 10.16 $ 8.76 16% Cost of sales excluding DDA per ounce sold $ 719 $ 679 6% $ 10.16 $ 8.76 16% DDA per ounce sold, Yamana mines $ 354 $ 341 4% $ 4.26 $ 4.69 (9)% DDA per ounce sold $ 340 $ 333 2% $ 4.26 $ 4.69 (9)% Total cost of sales per ounce sold (vii) Chapada $ 411 $ 661 (38)% $ 8.25 $ 8.82 (6)% El Peñón $ 1,094 $ 993 10% $ 14.56 $ 13.36 9% Canadian Malartic (i) $ 1,001 $ 1,015 (1)% $ — $ — —% Gualcamayo $ 1,350 $ 1,071 26% $ — $ — —% Minera Florida $ 1,266 $ 1,085 17% $ 13.78 $ 14.24 (3)% Jacobina $ 1,067 $ 1,055 1% $ — $ — —% Total cost of sales per ounce sold, Yamana mines (vii) $ 1,045 $ 1,014 3% $ 14.41 $ 13.45 7% Brio Gold (iii) $ 1,130 $ 996 13% $ — $ — —% Total cost of sales per ounce sold (vii) $ 1,059 $ 1,011 5% $ 14.41 $ 13.45 7% Co-product cash costs per ounce produced (iv) Chapada $ 353 $ 410 (14)% $ 3.43 $ 3.21 7% El Peñón $ 766 $ 665 15% $ 10.66 $ 8.74 22% Canadian Malartic (i) $ 558 $ 597 (7)% $ — $ — —% Gualcamayo $ 963 $ 819 18% $ — $ — —% Minera Florida $ 828 $ 736 13% $ 11.06 $ 9.69 14% Jacobina $ 700 $ 674 4% $ — $ — —% Co-product cash costs per ounce produced, Yamana mines (iv) $ 676 $ 655 3% $ 10.36 $ 8.60 20% Brio Gold (iii) $ 858 $ 714 20% $ — $ — —%

Co-product cash costs per ounce produced, attributable (iv) $ 699 $ 665

5% $ 10.36

$ 8.60

20%

By-product cash costs per ounce produced, Yamana mines (iv) $ 566 $ 632 (10)% $ 8.93 $ 8.31 7% Co-product AISC per ounce produced, Yamana mines (iv) $ 884 $ 899 (2)% $ 13.96 $ 12.06 16% By-product AISC per ounce produced, Yamana mines (iv) $ 816 $ 934 (13)% $ 13.14 $ 12.39 6% AISC per ounce produced, attributable (iv) $ 913 $ 905 1% $ 13.96 $ 12.06 16% Concentrate production 2017 2016 Chapada concentrate production (tonnes) 176,022 147,958 19% Chapada copper contained in concentrate production (millions of lbs) 92.7 78.7 18% Cost of sales excluding DDA per copper pound sold $ 1.51 $ 1.62 (7)% DDA per copper pound sold $ 0.25 $ 0.33 (24)% Total cost of sales per copper pound sold $ 1.76 $ 1.95 (10)% Chapada co-product cash costs per pound of copper produced (ii) $ 1.55 $ 1.64 (5)% Chapada AISC per pound of copper produced (ii) $ 1.77 $ 2.13 (17)% Sales included in revenue 2017 2016 Gold (ounces) 845,691 864,071 (2)% Silver (ounces) 4,043,957 4,985,004 (19)% Chapada concentrate (tonnes) 177,662 148,703 19% Chapada payable copper contained in concentrate (millions of lbs) 86.9 70.7 23%

13

(i) The Company holds a 50% interest in Canadian Malartic. (ii) For the three months ended September 30, 2017, 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 period: Pilar 19,045 ounces (2016 - 20,237 ounces), Fazenda Brasileiro 15,915 ounces (2016 - 17,211 ounces), RDM 7,953 ounces (2016 - 8,628 ounces).

(iii) For the nine months ended September 30, 2017, 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 period: Pilar 59,816 ounces (2016 - 64,891 ounces), Fazenda Brasileiro 44,879 ounces (2016 - 52,608 ounces), RDM 32,981 ounces (2016 - 21,686 ounces). RDM was acquired on April 29, 2016.

(iv) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management’s Discussion and Analysis.

(v) Excludes the Company's 12.5% equity interest in Alumbrera. Gold production at Alumbrera for the third quarter was 6,570 ounces (2016 - 8,015 ounces). (vi) Excludes the Company's 12.5% equity interest in Alumbrera. Gold production at Alumbrera for the first nine months was 18,692 ounces (2016 - 23,111 ounces). (vii) Total cost of sales consists of cost of sales excluding DDA plus DDA. 5. OVERVIEW OF RESULTS 5.1 Overview of Financial Results For the three months ended September 30, 2017 Net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, for the three months ended September 30, 2017 was $43.5 million or $0.05 per share basic and diluted, compared to net loss of $2.1 million or $0.0 per share basic and diluted for the three months ended September 30, 2016. Higher revenue, lower DDA expense were partly offset by higher cost of sales mainly due to the appreciation of some of the foreign currencies in which the Company has exposure. Revenue for the three months ended September 30, 2017 was $493.4 million, compared to $464.3 million in the same period in 2016, as a result of 35% higher copper prices and higher metal sales quantities. Gold, silver and copper sales were higher compared to the same period of 2016 by 1%, 2% and 65%, respectively. Revenue for the quarter was comprised of the following:

For the three months ended September 30, 2017 2016

Quantity

Sold Revenue per ounce/pound

Revenue (in millions of

US Dollars)


US Dollars) Gold (i) 299,588 oz $ 1,264 $ 378.6 $ 393.1 Silver 1,574,943 oz $ 16.64 26.2 30.1 Copper (i) 36,496,657 lbs $ 2.43 88.6 41.1 Revenue $ 493.4 $ 464.3

14


Quantity Sold

Average Realized

Price


US Dollars)


US Dollars) Gold (i) 299,588 oz $ 1,278 $ 382.8 $ 396.1

Silver 1,512,476 oz $ 16.84 25.5 29.8 Silver subject to metal sales agreement (ii) 62,467 oz $ 12.39 0.8 0.3

1,574,943 oz $ 16.66 Copper (i) 34,788,003 lbs $ 2.93 102.0 45.0 Copper subject to metal sales agreement (ii) 1,708,654 lbs $ 2.04 3.5 2.2

36,496,657 lbs $ 2.89 Gross revenue $ 514.6 $ 473.4 (Deduct)/add: - Treatment and refining charges of gold and copper concentrate (11.5 ) (6.9 ) - Sales taxes (5.0 ) (4.1 ) - Metal price adjustments related to concentrate revenue (4.8 ) 2.0 - Other adjustments 0.1 (0.1 ) Revenue $ 493.4 $ 464.3

(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. in respect of the period including deferred

revenue amortized of $2.4 million. Cost of sales excluding DDA for the three months ended September 30, 2017 was $279.0 million, compared to $261.2 million for the same period in 2016. Cost of sales excluding DDA for the quarter was higher than that of the same period in 2016 as a result of higher sales quantities and stronger Brazilian Real, Chilean Peso and Canadian Dollar exchange rates relative to the US Dollar. The impact of the Brazilian real appreciation was partially mitigated by the hedging strategy that the Company has in place. Three months ended September 30, 2016 include a $2.5 million charge to adjust inventory to net realizable value with no current period comparative. 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:


Commercial Gold/Silver

ounces, pounds of

Copper sold

Cost of Sales per Gold/Silver ounce, pound

of Copper sold

Total (in millions of

US Dollars)


US Dollars) Chapada — Gold 39,793 oz $ 321 $ 12.8 $ 10.6 Chapada — Silver 12,311 oz $ 21.15 0.3 0.2 Chapada — Copper 36,496,657 lbs $ 1.62 59.1 41.9 El Peñón — Gold 47,921 oz $ 1,194 57.2 57.9 El Peñón — Silver 1,234,996 oz $ 14.41 17.8 21.9 Gualcamayo — Gold 32,945 oz $ 1,329 43.8 43.6 Canadian Malartic — Gold (50% interest) 78,436 oz $ 983 77.1 78.6 Minera Florida — Gold 22,195 oz $ 1,211 26.9 29.1 Minera Florida — Silver 265,169 oz $ 12.24 3.2 1.5 Jacobina — Gold 35,069 oz $ 1,055 37.0 33.3 Brio Gold - Gold 43,228 oz $ 1,159 50.1 52.9 Corporate office & other 1.7 1.8 Total cost of sales (ii) $ 387.0 $ 373.3 Cost of sales excluding depletion, depreciation and amortization (ii) $ 279.0 $ 261.2 Depletion, depreciation and amortization (ii) 108.0 112.1 Total cost of sales (ii) $ 387.0 $ 373.3

15

The following table provides a reconciliation of the co-product cash cost (a non-GAAP financial measure, see Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements) to the total cost of sales excluding DDA for the quarter:


Gold/Silver ounces or

Copper pounds

produced

Co-Product Cash Costs

per unit produced


US Dollars)


US Dollars) Chapada — Gold 38,782 oz $ 254 $ 9.9 $ 10.1 Chapada — Silver 68,280 oz $ 2.95 $ 0.2 $ 0.2 Chapada — Copper 37,050,747 lbs $ 1.35 $ 50.0 $ 47.4 El Peñón — Gold 44,466 oz $ 821 $ 36.5 $ 39.2 El Peñón — Silver 1,088,921 oz $ 11.02 $ 12.0 $ 14.5 Gualcamayo — Gold 34,183 oz $ 1,088 $ 37.2 $ 35.2 Canadian Malartic — Gold (50% interest) 82,097 oz $ 577 $ 47.4 $ 46.9 Minera Florida — Gold 23,089 oz $ 777 $ 17.9 $ 20.1 Minera Florida — Silver 274,010 oz $ 10.46 $ 2.9 $ 0.8 Jacobina — Gold 34,838 oz $ 693 $ 24.1 $ 22.6 Brio Gold - Gold 42,913 oz $ 875 37.5 37.4 Co-product cash cost of metal produced (i) $ 275.6 $ 274.4 Add (deduct): - Inventory movements and adjustments 11.4 (9.5) - Treatment and refining charges of gold and copper concentrate (11.5 ) (6.9) - Commercial and other costs 0.3 1.3 - Overseas freight for Chapada concentrate 3.2 1.9 Cost of sales excluding depletion, depreciation and amortization $ 279.0 $ 261.2 Depreciation, depletion and amortization $ 108.0 $ 112.1 Total cost of sales (ii) $ 387.0 $ 373.3 (i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. (ii) Total cost of sales consists of cost of sales excluding DDA plus DDA. Gross margin excluding DDA for the three months ended September 30, 2017 was $214.4 million, compared to $203.1 million in the same period of 2016, which resulted from an increase in revenue of $29.1 million, partly offset by higher cost of sales excluding DDA as a result of higher copper sales. DDA expense for the three months ended September 30, 2017 was $108.0 million, compared to $112.1 million for the same period of 2016. DDA expense was lower than the comparative period despite higher sales quantities. This is due to lower asset book value at El Peñón, following the impairment taken as at December 31, 2016. Other expenses and income include general and administrative, exploration and evaluation, other expenses and net finance expense totalling $45.1 million for the three months ended September 30, 2017, compared to $62.4 million for the same period in 2016:

• General and administrative expenses were $28.5 million, compared to $24.8 million for the same period in 2016. Excluding Brio Gold and stock based expenses, general and administrative expenses were $21.5 million, compared to $20.8 million for the same period in 2016. The Company is on track to meet guidance for the year.

• Exploration and evaluation expenses were $4.9 million, compared to $3.8 million for the same period in 2016. This is in-line with the Company's expectations for the period.

16

• Other recoveries were $26.9 million, compared to an expense of $13.8 million for the same period of 2016. The change is driven by the reversal of certain provisions such as tax credits and legal contingencies, and prior year mark-to-market losses with no current period comparatives.

• Net finance expense was $38.6 million, compared to $39.7 million for the same period in 2016. Slightly lower net finance expense is mainly due to the offsetting impact of:

A $7.3 million increase in non-cash unrealized foreign exchange loss in the period; An increase of $1.8 million in accretion expense offset by lower other financing fees; and A decrease of $7 million in unrealized losses on derivatives due to a loss in the prior year compared to a $0.1 million gain

in the current year; Income tax expense for the three months ended September 30, 2017 was $23.0 million, compared to $11.0 million for the same period in 2016. Higher income tax expense in the period as a result of higher earnings before tax. For the nine months ended September 30, 2017 Net earnings from continuing operations, attributable to Yamana Gold Inc. equityholders, for the nine months ended September 30, 2017 were $2.5 million or $0.0 per share basic and diluted, compared to net earnings from continuing operations of $64.3 million or $0.07 per share basic and diluted for the nine months ended September 30, 2016. Earnings for the period were predominantly lower due to an increase in income tax expense. Income tax expense for the nine months ended September 30, 2017 was $24.6 million, compared to an income tax recovery of $55.7 million for the same period in 2016. Income tax expense for the period includes a $1.7 million unrealized foreign exchange losses in tax, compared to a $70.8 million unrealized foreign exchange gains in tax for the same period in 2016. Revenue for the nine months ended September 30, 2017 was $1,325.0 million, compared to $1,303.3 million in the same period in 2016 as result of 23% higher copper sales quantities and 26% higher copper prices compared to the comparative period. This was offset by lower gold and silver sales quantities of 2% and 19% respectively. Realized gold price for the current period was also lower by 1% and silver realized price remained relatively flat compared to the comparative period. Revenue for the period was comprised of the following:

For the nine months ended September 30, 2017 2016

Quantity

Sold Revenue per ounce/pound


US Dollars)


US Dollars) Gold (i) 845,691 oz $ 1,243 $ 1,051.4 $ 1,085.1 Silver 4,043,957 oz $ 16.89 68.3 84.4 Copper (i) 86,880,259 lbs $ 2.36 205.3 133.8 Revenue $ 1,325.0 $ 1,303.3

17


Quantity Sold

Average Realized

Price


US Dollars)


US Dollars) Gold (i) 845,691 oz $ 1,256 $ 1,062.3 $ 1,093.7

Silver 3,861,911 oz $ 17.11 66.1 83.4 Silver subject to metal sales agreement (ii) 182,046 oz $ 12.84 2.3 1.3

4,043,957 oz $ 16.92 Copper (i) 80,787,702 lbs $ 2.74 221.6 146.0 Copper subject to metal sales agreement (ii) 6,092,557 lbs $ 1.98 12.0 4.4

86,880,259 lbs $ 2.69 Gross revenue $ 1,364.3 $ 1,328.8 (Deduct)/add: - Treatment and refining charges of gold and copper concentrate (27.3 ) (21.9) - Sales taxes (13.0 ) (11.6) - Metal price adjustments related to concentrate revenue 0.4 7.8 - Other adjustments 0.6 0.2 Revenue $ 1,325.0 $ 1,303.3

(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. in respect of the period including deferred

revenue amortized of $9 million. Cost of sales excluding DDA for the nine months ended September 30, 2017 was $778.0 million, compared to $744.9 million for the same period in 2016. Cost of sales excluding DDA for the period was higher than that of the same period in 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:


Commercial Gold/Silver

ounces, pounds of

Copper sold

Cost of Sales per Gold/Silver ounce, pound

of Copper sold

Total (in millions of US

Dollars)


Dollars)

Chapada — Gold 80,516 oz $ 411 $ 33.1 $ 34.2 Chapada — Silver 81,918 oz $ 8.25 0.7 0.6 Chapada — Copper 86,880,259 lbs $ 1.75 152.0 137.2 El Peñón — Gold 124,194 oz $ 1,094 135.9 163.6 El Peñón — Silver 3,355,296 oz $ 14.56 48.9 61.1 Gualcamayo — Gold 109,376 oz $ 1,350 147.7 130.4 Canadian Malartic — Gold (50% interest) 226,706 oz $ 1,001 226.9 223.3 Minera Florida — Gold 67,374 oz $ 1,266 85.3 83.4 Minera Florida — Silver 424,697 oz $ 13.78 5.9 4.8 Jacobina — Gold 101,925 oz $ 1,067 108.8 92.9 Brio Gold - Gold 135,600 oz $ 1,130 153.2 140.4 Corporate office & other 3.5 7.0 Total cost of sales (ii) $ 1,101.9 $ 1,078.9 Cost of sales excluding depletion, depreciation and amortization (ii) $ 778.0 $ 744.9 Depletion, depreciation and amortization (ii) 325.9 334.0 Total cost of sales (ii) $ 1,103.9 $ 1,078.9

18

The following table provides a reconciliation of the co-product cash cost (a non-GAAP financial measure, see Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements) to the total cost of sales excluding DDA for the quarter:


Gold/Silver ounces or

Copper pounds

produced

Co-Product Cash Costs

per unit produced


Dollars)


Dollars)

Chapada — Gold 83,274 oz $ 353 $ 29.4 $ 27.5 Chapada — Silver 181,228 oz $ 3.43 $ 0.6 $ 0.6 Chapada — Copper 92,666,833 lbs $ 1.55 $ 143.5 $ 128.9 El Peñón — Gold 121,108 oz $ 766 $ 92.8 $ 109.4 El Peñón — Silver 3,229,915 oz $ 10.66 $ 34.3 $ 39.9 Gualcamayo — Gold 109,274 oz $ 963 $ 105.2 $ 97.8 Canadian Malartic — Gold (50% interest) 235,988 oz $ 558 $ 131.7 $ 132.8 Minera Florida — Gold 66,825 oz $ 828 $ 55.2 $ 57.9 Minera Florida — Silver 422,575 oz $ 11.06 $ 4.7 $ 3.2 Jacobina — Gold 101,240 oz $ 700 $ 70.8 $ 59.5 Brio Gold - Gold 137,675 oz $ 858 118.1 99.4 Co-product cash cost of metal produced (i) $ 786.3 $ 756.9 Add (deduct): - Inventory movements and adjustments 9.6 0.5 - Treatment and refining charges of gold and copper concentrate (27.3 ) (21.9) - Commercial and other costs 1.1 3.4 - Overseas freight for Chapada concentrate 8.3 6.0 Cost of sales excluding depletion, depreciation and amortization $ 778.0 $ 744.9 Depreciation, depletion and amortization $ 325.9 $ 334.0 Total cost of sales (ii) $ 1,103.9 $ 1,078.9

(i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management’s Discussion and Analysis.

(ii) Total cost of sales consists of cost of sales excluding DDA plus DDA. Gross margin excluding DDA for the period was $547.0 million, compared to $558.4 million in the same period of 2016, which resulted from an increase in revenue by $21.7 million and cost of sales excluding DDA increase of $33.1 million, for the aforementioned reasons. DDA expense for the nine months ended September 30, 2017 was $325.9 million, compared to $334.0 million for the same period of 2016. DDA expense was lower than the comparative period due to lower gold and silver sales volume and lower DDA at El Peñón from a lower asset book value related to the impairment taken as at December 31, 2016, offset by higher copper sales volume. Other expenses and income include general and administrative, exploration and evaluation, other expenses and net finance expense totalling $201.0 million for the nine months ended September 30, 2017, compared to $133.5 million for the same period in 2016:

• General and administrative expenses were $79.7 million, compared to $70.3 million for the same period in 2016. Excluding Brio Gold and stock based expenses, general and administrative expenses were $60.4 million, compared to $58.4 million for the same period in 2016. The Company is on track to meet guidance for the year.

• Exploration and evaluation expenses were $14.2 million, compared to $11.9 million for the same period in 2016. Higher exploration expense for the period was due to a slight increase in greenfield exploration for certain Canadian exploration projects in the second quarter and third quarter as well as additional generative exploration. The drill program was new in 2017, with no comparatives in the prior period.

19

• Other expenses were $6.9 million, compared to $20.9 million for the same period of 2016. The change is driven by the reversal of certain provisions such as tax credits and legal contingencies, and mark-to-market losses of deferred share units related the prior year, offset by standby costs related to El Peñón's suspension of operations in early 2018 and prior period realized gains on AFS securities and warrants sales with no comparative in the current period.

• Net finance expense was $100.2 million, compared to $112.7 million for the same period in 2016. Lower net finance expense isdue predominantly to:

A decrease related to lower interest expense on long term debt. Interest on long term debt was $54.7 million compared to $59.2 million in the comparative period;A decrease in non-cash unrealized foreign exchange loss in the period. Non-cash unrealized foreign exchange loss in the period was $16.1 million, compared to $25 million for the comparative period of 2016.

Income tax expense for the nine months ended September 30, 2017 was $24.6 million, compared to an income tax recovery of $55.7 million for the same period in 2016. Income tax expense for the period includes a $1.7 million unrealized foreign exchange losses in tax, compared to a $70.8 million unrealized foreign exchange gains in tax for the same period in 2016.

5.2 Overview of Operating Results

For the three months ended September 30, 2017

The Company delivered another strong quarter and is well positioned to meet its production targets in 2017.

Attributable production was lower than the comparative period of 2016 as it includes production commensurate to the Company's interest in Brio Gold, which for the third quarter of 2017 was a weighted average of 55.6%, compared to 100% for 2016. Attributable production was 2% higher than the previous quarter in 2017.

Gold

Gold production from Yamana's mines was 257,455 ounces, compared to 259,505 ounces for the same period of 2016 and 244,608 ounces for the second quarter of 2017. Gold production attributable to the Company was 281,315 ounces, compared to 305,580 ounces produced in the third quarter of 2016, mainly due to reduced attributable production from Brio Gold. Individual mine quarterly results over the third quarter of 2016 included increases of 36% at Chapada, 7% at Canadian Malartic and 19% at Jacobina, and decreases of 17% at El Peñón, 20% at Gualcamayo, 20% at Minera Florida.

Increased processing rates and higher feed grades contributed to the production increase at Chapada, Canadian Malartic and Jacobina. Gold production at El Peñón was consistent with its new plan as the result of the right-sizing and optimization effort, amid improvements in feed grades and recovery rates. Lower year-over-year production, at Gualcamayo, was mainly due to lower feed grades and recovery rates, as anticipated by the mining sequencing. At Minera Florida, production was lower than the comparative period of 2016 due to lower processing rates as the Company focuses on executing transformational plans at Minera Florida to improve productivity. The focus, at Minera Florida, is on improving dilution control, directing development and exploration efforts toward establishing a growth platform and optimizing the cost structure of the operation.

The following summarizes the total ounces of gold production by mine for the third quarter of 2017, relative to the comparative quarter in 2016:

20

All gold cost metrics on a per ounce basis for Yamana mines were lower than or in line with the comparative period of 2016 and in the case of co-product cash costs and AISC, within the guided ranges. This is despite the foreign exchange effect of the appreciation of the Brazilian Real, Chilean Peso and Canadian Dollar. AISC were also lower in part due to lower sustaining capital expenditures and mine development during the quarter. These activities are expected to continue to be caught up in the remainder of the year although it is anticipated that total sustaining capital expenditures will be below guidance.

The following charts summarize total cost of sales per ounce of gold sold by mine, and co-product AISC and the respective cash costs per ounce of gold produced components by mine for the third quarter of 2017, relative to the comparative quarter in 2016:

Total Cost of Sales AISC and Co-product Cash Costs

Silver

Third quarter silver production was 1,431,211 ounces, compared to the 1,592,526 ounces in the same quarter of 2016, however represented an increase of 8% from the second quarter of 2017 due to the mining of a higher grade area at Minera Florida, exceeding expectations.

All silver cost metrics on a per ounce basis were lower than the comparative period of 2016 except for co-product cash costs. Total cost of sales per ounce was positively impacted by the increase in sales quantities, while cash costs per ounce were impacted by lower ounces produced. In general, underlying costs decreased despite the appreciation of the Chilean Peso. All silver cost metrics on a per ounce basis were within the previously guided ranges and lower in the case of AISC.

Copper

Total copper production from Chapada for the third quarter of 2017 was 37.1 million pounds. This compares to 29.6 million pounds for the same period of 2016, representing an increase of 25%. From the second quarter of 2017, production went up 27% and exceeded plan.

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All copper cost metrics on a per pound basis were lower than the third quarter of 2016, the second quarter of 2017 and plan. Cost decreases per pound of copper are due to higher metal production, higher grades and recovery rates in addition to the effects of cost control initiatives and stockpiling, partly offset by the result of appreciation of the Brazilian Real against the US Dollar. Additionally, co-product AISC decreased, in part due to lower sustaining capital expenditures and mine development during the quarter.

For the nine months ended September 30, 2017

The nine-month production of gold, silver and copper for Yamana mines in 2017 exceeded plan. Production of gold and silver was lower than the first nine months of 2016, as anticipated, while copper production was higher.

Gold

Gold production for Yamana mines was 814,286 ounces of gold, compared to 879,476 ounces for the same period of 2016. Gold production attributable to the Company was 855,385 ounces of gold, compared to 879,476 ounces of gold produced in the first nine months of 2016. Individual mine results in the first nine months compared to the same period of 2016 included decreases of 26% at El Peñón, 15% at Minera Florida, 8% at Gualcamayo and 31% of Brio Gold. These decreases were partly offset by increases of 24% at Chapada, 15% at Jacobina and 6% at Canadian Malartic.

The following summarizes the total ounces of gold production by mine for the first nine months of 2017, relative to the comparative quarter in 2016:

All gold cost metrics on a per ounce basis for the Yamana mines were higher than the comparative period of 2016, except for AISC which were lower due to lower sustaining capital expenditures and mine development and metrics on a by-product basis due to higher copper sales. Development activities are expected to continue to be caught up in the remainder of the year although it is anticipated that it will be below guidance. Co-product cash costs and AISC were within the previously guided ranges despite the foreign exchange effect of the appreciation of the Brazilian Real and Chilean Peso.

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The following charts summarize total cost of sales per ounce of gold sold by mine, and co-product AISC and the respective cash costs per ounce of gold produced components by mine for the first nine months of 2017, relative to the comparative period of 2016:

Total Cost of Sales AISC and Co-product Cash Costs

Silver

Silver production for the first nine months of 2017 was 3,833,718 ounces, compared to 5,082,200 ounces in the same period of 2016. Mine sequencing at certain locations continues to extract ore from areas with lower silver grades. Production exceeded plan for silver.

All silver cost metrics on a per ounce basis were higher than the comparative period of 2016 predominantly due to the appreciation of the Chilean Peso and lower ounces produced.

Copper

Total copper production from Chapada for the first nine months of 2017 was 92.7 million pounds, compared to 78.7 million pounds for the same period of 2016, representing an increase of 18%.

All copper cost metrics on a per pound basis were lower than the first nine months of 2016.

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6. OPERATING MINES CHAPADA, BRAZIL

For the three months ended September 30, For the nine months ended September 30,

Operating Statistics 2017 2016 % change 2017 2016 % change Production Concentrate (tonnes) 70,090 56,100 25 % 176,022 147,958 19%

Gold contained in concentrate (ounces) 38,782 28,605 36 % 83,274 66,944 24% Silver contained in concentrate (ounces) 68,280 69,266 (1 )% 181,228 181,424 —% Copper contained in concentrate (millions of pounds) 37.1 29.6 25 % 92.7 78.7 18%

Total cost of sales per gold ounce sold (ii) $ 321 $ 538 (40 )%$ 411 $ 661 (38)% Total cost of sales per silver ounce sold (ii) $ 21.15 $ 8.55 147 %$ 8.25 $ 8.82 (6)% Total cost of sales per pound of copper sold (ii) $ 1.62 $ 1.90 (15 )%$ 1.75 $ 1.94 (10)% Co-product cash costs per gold ounce produced (i) $ 254 $ 353 (28 )%$ 353 $ 410 (14)% Co-product cash costs per silver ounce produced (i) $ 2.95 $ 3.09 (5 )%$ 3.43 $ 3.21 7% Co-product cash costs per pound of copper produced (i) $ 1.35 $ 1.60 (16 )%$ 1.55 $ 1.64 (5)% All-in sustaining co-product costs per gold ounce produced (i) $ 276 $ 494 (44 )%$ 411 $ 553 (26)% All-in sustaining co-product costs per silver ounce produced (i) $ 3.21 $ 4.28 (25 )%$ 3.98 $ 4.29 (7)% All-in sustaining co-product costs per pound of copper produced (i) $ 1.44 $ 2.15 (33 )%$ 1.77 $ 2.13 (17)% Ore mined (tonnes) 10,820,182 5,233,630 107 % 24,843,284 11,062,046 125% Waste mined (tonnes) 9,582,182 7,602,666 26 % 25,525,421 15,619,282 63% Ore processed (tonnes) 5,915,598 5,195,354 14 % 16,906,632 14,038,270 20% Gold feed grade (g/t) 0.35 0.29 21 % 0.28 0.27 4% Copper feed grade (%) 0.35 0.33 6 % 0.32 0.34 (6)% Concentrate grade - gold (g/t) 17.21 15.86 9 % 14.71 14.07 5% Concentrate grade - copper (%) 23.98 23.97 — % 23.88 24.13 (1)% Gold recovery rate (%) 58.9 59.8 (2 )% 55.1 55.0 —% Copper recovery rate (%) 82.3 78.0 6 % 78.5 75.6 4% Sales (ii) Concentrate (tonnes) 74,394 47,604 56 % 177,662 148,703 19% Payable ounces contained in concentrate

Payable gold contained in concentrate (ounces) 39,793 19,772 101 % 80,516 51,759 56% Payable silver contained in concentrate (ounces) 12,311 26,074 (53 )% 81,918 72,650 13% Payable copper contained in concentrate (millions of pounds) 36.5 22.1 65 % 86.9 70.7 23%

Treatment and refining charges of gold and copper concentrate (millions of $) $ (11.5) $ (6.9 ) 67 %$ (27.3 ) $ (21.9) 25% Metal price adjustments related to concentrate revenue (millions of $) $ (4.8) $ 2.0 (340 )%$ 0.4 $ 7.8 (95)% Depletion, depreciation and amortization Per gold ounces sold $ 55 $ 176 (69 )%$ 64 $ 193 (67)% Per silver ounces sold $ 3.65 $ 3.01 21 %$ 1.29 $ 2.84 (55)% Per copper pound sold at Chapada $ 0.25 $ 0.28 (11 )%$ 0.24 $ 0.32 (25)% (i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. (ii) Quantities sold include quantity adjustment on provisional and final invoice settlements. Chapada delivered on expectations during the quarter and is well positioned to meet its production targets in 2017. Production for the third quarter for both gold and copper continued the quarter-over-quarter increase in 2017 and exceeded plan. Additionally, gold and copper production were higher than the third quarter of 2016 by 36% and 25%, respectively. Strong gold and copper production was driven by a 14% increase in ore processed compared to the same period of last year. Additionally, higher gold and

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copper grades are contributed from the additional ore from Corpo Sul. The mining sequence called for extraction of additional waste and low grade ore in the first nine months of 2017, in order to access higher grade ore from Corpo Sul and will add flexibility from higher stockpiles. This resulted in higher total tonnes mined in 2017 compared to 2016, while resulting in higher mill feed grades for both gold and copper. The stockpile provides leverage and optionality in periods of higher metal prices in particular for copper. Furthermore, given the established and growing near mine exploration and potential at Chapada, an evaluation of the opportunities for plant throughput increases will be pursued.

Late in September, the Company commenced commissioning of the cleaner circuit expansion. This is expected to be complete in the fourth quarter of 2017. Initial results are supportive of improvements to gold and copper recovery rates at the observed higher processing rates.

All per unit costs for gold and copper benefited from higher metal production. Additionally, cost control initiatives offset the appreciation of the Brazilian Real against the US Dollar in the third quarter.

In the third quarter, the exploration program continued to focus on developing near mine targets Suruca SW, Suruca NE, Baru and Interpits, while exploring via soil sampling and initial drill testing district targets which include Formiga, Buriti, Agua Branca, Guara, Curiango, Santa Cruz SW and others. Drill results are in line with expectations for the near mine programs and are under review by the Company to determine next steps. Complete results from the district drilling program through the end of the third quarter are pending with some initial positive results. Both drill programs will continue into the fourth quarter.

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EL PEÑÓN, CHILE


Operating Statistics 2017 2016 % change 2017 2016 % change Production Gold production (ounces) 44,466 53,875 (17 )% 121,108 164,445 (26)% Silver production (ounces) 1,088,921 1,435,986 (24 )% 3,229,915 4,566,466 (29)% Total cost of sales per gold ounce sold $ 1,194 $ 1,071 11 %$ 1,094 $ 993 10% Total cost of sales per silver ounce sold $ 14.41 $ 15.51 (7 )%$ 14.56 $ 13.36 9% Co-product cash costs per gold ounce produced (i) $ 821 $ 727 13 %$ 766 $ 665 15% Co-product cash costs per silver ounce produced (i) $ 11.02 $ 10.11 9 %$ 10.66 $ 8.74 22% All-in sustaining co-product costs per gold ounce produced (i) $ 972 $ 959 1 %$ 949 $ 873 9% All-in sustaining co-product costs per silver ounce produced (i) $ 13.07 $ 13.32 (2 )%$ 13.28 $ 11.47 16% Ore mined (tonnes) 262,917 341,707 (23 )% 738,000 970,605 (24)% Ore processed (tonnes) 287,613 378,168 (24 )% 785,473 1,062,409 (26)% Gold feed grade (g/t) 5.05 4.69 8 % 5.04 5.11 (1)% Silver feed grade (g/t) 134.68 138.78 (3 )% 147.24 155.45 (5)% Gold recovery rate (%) 95.4 94.4 1 % 95.4 94.3 1% Silver recovery rate (%) 87.4 85.3 2 % 86.8 86.0 1% Sales

Gold Sales (ounces) 47,921 54,058 (11 )% 124,194 164,764 (25)% Silver Sales (ounces) 1,234,996 1,408,900 (12 )% 3,355,296 4,576,730 (27)%

Depletion, depreciation and amortization Per gold ounce sold $ 329 $ 368 (11 )%$ 317 $ 342 (7)% Per silver ounce sold $ 3.93 $ 5.40 (27 )%$ 4.21 $ 4.63 (9)% (i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. El Peñón continued quarter-over-quarter gold production increases in 2017. In consideration of the strong production results through the end of the third quarter, full year production results are expected to exceed guidance for both gold and silver. Gold and silver production in the quarter reflects the successful right-sizing of the operation announced earlier in 2017 and subsequent optimization efforts. During the quarter, all per unit costs, were negatively impacted by the appreciation of the Chilean Peso against the US Dollar, however, El Peñón continues to trend towards cost expectations for the year. Costs for September were the lowest of the quarter and show a positive trend that is expected to continue for the remainder of the year. Costs were impacted by a decision to increase development, to improve current year production while ensuring mine flexibility to support production going forward and into 2018. Additionally, costs were also impacted by the cost allocation methodology that considers quantities and prevalent market prices for gold and silver. During the quarter, the increase in gold prices and the mix of gold and silver production impacted AISC for gold by approximately $85 per ounce, while having a positive impact on the silver costs. The El Peñón infill and exploration programs surpassed the budgeted metre goals during the third quarter while lowering per meter costs as the Company tracks well towards its resource upgrade goals for 2017. The Company will continue to test and upgrade known inferred mineral resources occurrences through the fourth quarter. Some of the unspent funding from the district budget will be applied to the near mine exploration program to define new targets for the 2018 program. Results for the quarter are considered positive and in line with expectations.

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CANADIAN MALARTIC (50% interest), CANADA


Operating Statistics 2017 2016 % change 2017 2016 % change Production Gold production (ounces) 82,097 76,427 7 % 235,988 222,543 6% Total cost of sales per gold ounce sold $ 983 $ 1,040 (5 )%$ 1,001 $ 1,015 (1)% Co-product cash costs per gold ounce produced (i) $ 577 $ 613 (6 )%$ 558 $ 597 (7)% All-in sustaining co-product costs per gold ounce produced (i) $ 751 $ 774 (3 )%$ 710 $ 778 (9)% Ore mined (tonnes) 2,937,582 2,569,251 14 % 8,773,320 7,541,249 16% Waste mined (tonnes) 5,563,240 5,394,586 3 % 16,008,797 15,800,872 1% Ore processed (tonnes) 2,527,844 2,483,516 2 % 7,564,091 7,388,155 2% Gold feed grade (g/t) 1.14 1.07 7 % 1.09 1.05 4% Gold recovery rate (%) 89.0 89.2 — % 88.9 89.4 (1)% Sales Gold Sales (ounces) 78,436 75,573 4 % 226,706 219,965 3% Depletion, depreciation and amortization Per gold ounce sold $ 392 $ 413 (5 )%$ 428 $ 411 4%


Canadian Malartic delivered another strong quarter and is well positioned to meet its production targets in 2017. Production was higher than the comparative period of 2016 at lower costs, higher than plan and was positively impacted by higher processing rates and feed grade. Co-product cash costs during the quarter remain within guidance range, are lower for AISC, and show improvement from the comparative period. The impact of higher year-over-year production was partly offset by the appreciation of the Canadian Dollar against the US Dollar. AISC for the quarter were impacted by the timing of sustaining capital expenditures, predominately stripping, which are ramping up and being caught up in the second half of the year, as anticipated. The Canadian Malartic Extension Project is continuing according to plan and all key Certificates of Authorization ("CAs") have been obtained. The road bypass is complete and the bridge that would allow off-road mining equipment to cross the highway is on schedule to be completed by the end of the fourth quarter, as planned. Expansionary expenditures for the road deviation and mine extension of approximately US$10 to $16 million (on a 50% basis) have been brought forward from 2018. During the third quarter, at Odyssey, the Partnership continued to focus on tighter spaced drilling within the Porphyry 12 with the goal of defining contiguous shoots between the North and South Odyssey deposits. Drilling at Odyssey has identified multiple gold-bearing structural corridors in a variety of complex and intersecting structural orientations. Additionally, exploration programs are ongoing to evaluate a number of near-pit/underground targets and the potential to mine portions of the East Malartic deposit, which is located adjacent to, and east of, the Canadian Malartic mine. Additional work is underway to evaluate the continuity of these zones, which have the potential to provide new sources of ore for the Canadian Malartic mill. The internal zone grade shells for use in the year-end Inferred Mineral Resource estimation are being refined. An updated mineral resource estimate is scheduled for early 2018.

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GUALCAMAYO, ARGENTINA


Operating Statistics 2017 2016 % change 2017 2016 % change Production Gold production (ounces) 34,183 42,558 (20 )% 109,274 119,425 (8)% Total cost of sales per gold ounce sold $ 1,329 $ 1,021 30 %$ 1,350 $ 1,071 26% Co-product cash costs per gold ounce produced (i) $ 1,088 $ 828 31 %$ 963 $ 819 18% All-in sustaining co-product costs per gold ounce produced (i) $ 1,138 $ 904 26 %$ 997 $ 862 16% Ore mined (tonnes) 1,358,565 2,300,933 (41 )% 4,614,696 6,578,450 (30)% Waste mined (tonnes) 3,060,649 2,516,472 22 % 9,696,511 7,598,316 28% Ore processed (tonnes) 1,863,215 2,066,122 (10 )% 5,441,392 5,941,265 (8)% Gold feed grade (g/t) 0.91 1.15 (21 )% 0.97 1.01 (4)% Gold recovery rate (%) 53.9 57.2 (6 )% 55.7 62.3 (11)% Sales Gold Sales (ounces) 32,945 42,658 (23 )% 109,376 121,732 (10)% Depletion, depreciation and amortization

Per gold ounce sold $ 322 $ 235 37 %$ 375 $ 241 56% (i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. Gualcamayo continues to be well positioned to meet its production target in 2017. Production in the fourth quarter is expected to be highest for the year as access to higher grade ore was re-established and began stacking in the third quarter, which should facilitate a return to expected recoveries. The operation resumed normal mine sequencing in September as remediation of the localized pit wall failure experienced in the second quarter has been completed. Lower year-over-year production was mainly due to lower feed grades and recovery rates, as anticipated by mine sequencing. In light of the remaining mine life of oxides, the Company has increased the exploration effort required to both increase the mine life and intensify evaluation of the significant potential in non-oxide ore bodies, including deep carbonates. Concurrently, the Company will also be undertaking an effort to right size the operation to reflect a more sustainable production base, better cost structure and more significant contribution to free cash flows and returns. This transformational plan is similar to the successful approach previously taken with El Peñón and Jacobina leading initially to less ounces of production, although at a higher quality. All cost metrics were impacted by lower production and continued to be impacted by the events of the second quarter of 2017. In the previous quarter, the stockpile in the heap leach was required to be written down to break-even. As it takes approximately four to six months for ore placed on the heap leach to be completely processed and sold, the benefit of lower expected cash costs resulting from the planned increase in grades will be realized beginning in the fourth quarter and into 2018. On the district exploration front, the Company began detailed geologic mapping and sampling west of the QDD main pit and Las Vacas occurrences. Particular attention is focused on defining the limits of the San Juan and Los Sapitos limestone horizons, structural disruption of these and other units, location of intrusive bodies and collecting geochemical data. The program has identified several very prospective targets with surface gold anomalies with greater than 3.0 g/t in carbonate cemented limestone breccia close to the current camp facilities and to the northwest. The fourth quarter exploration effort will be augmented, supporting the transformational plan, to develop drill-ready targets for the first quarter of 2018.

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MINERA FLORIDA, CHILE


Operating Statistics 2017 2016 % change 2017 2016 % change Production Gold production (ounces) 23,089 28,714 (20 )% 66,825 78,637 (15)% Silver production (ounces) 274,010 87,274 214 % 422,575 334,310 26% Total cost of sales per gold ounce sold $ 1,211 $ 1,032 17 %$ 1,266 $ 1,085 17% Total cost of sales per silver ounce sold $ 12.24 $ 13.96 (12 )%$ 13.78 $ 14.24 (3)% Co-product cash costs per gold ounce produced (i) $ 777 $ 699 11 %$ 828 $ 736 13% Co-product cash costs per silver ounce produced (i) $ 10.46 $ 9.73 8 %$ 11.06 $ 9.69 14% All-in sustaining co-product costs per gold ounce produced (i) $ 1,038 $ 954 9 %$ 1,118 $ 940 19% All-in sustaining co-product costs per silver ounce produced (i) $ 14.12 $ 13.26 6 %$ 15.07 $ 12.22 23% Ore mined (tonnes) 228,426 222,680 3 % 581,082 671,896 (14)% Ore processed (tonnes) 235,455 456,673 (48 )% 804,446 1,274,490 (37)% Gold feed grade (g/t) 3.40 2.28 49 % 2.93 2.31 27% Silver feed grade (g/t) 55.16 11.11 396 % 26.52 14.42 84% Gold recovery rate (%) 89.7 81.9 10 % 88.1 82.0 7% Silver recovery rate (%) 65.6 50.1 31 % 61.6 54.5 13% Sales Gold Sales (ounces) 22,195 28,220 (21 )% 67,374 76,879 (12)% Silver Sales (ounces) 265,169 109,504 142 % 424,697 335,624 27% Depletion, depreciation and amortization Per gold ounce sold $ 404 $ 313 29 %$ 425 $ 351 21% Per silver ounce sold $ 4.13 $ 4.23 (2 )%$ 4.58 $ 4.55 1%


Minera Florida gold production has been below expectation through the first nine months, whereas silver production has exceeded full year guidance through the end of the third quarter. In consideration of these production results through the end of the third quarter, full year production expectations and guidance relating to Minera Florida is now expected to be below plan. During the quarter, production was lower than the comparative period of 2016 resulting from lower processing rates largely due to the termination of the tailings treatment earlier in 2017. Production increased compared to the previous quarter, driven by an increase in mining rate, with July ore mined being a record. These results are aligned with the transformational strategy for Minera Florida with a focus to improve productivity, dilution, grades, recoveries and operating costs. Concurrently, the Company is directing development and exploration efforts towards establishing a growth platform for the future with the strategic target of 130,000 ounces of gold per year. Silver production, which doubled quarter-over-quarter, was positively impacted by mining from a high silver grade zone as per the mine sequence. 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. The appreciation of the Chilean Peso against the US Dollar in the quarter, compared to the same quarter in 2016, also negatively affected cost performance. All per unit costs for gold are lower than the previous quarter, a trend expected to continue into the fourth quarter as evidenced by September co-product cash costs of $692 per ounce of gold and AISC on a co-product basis of $929 per ounce of gold. The infill and mine exploration programs are on track to accomplish the mineral reserve and mineral resource replacement goals for the year. Minera Florida has secured the permitting for the extension of the Hornitos tunnel. Access to the Las Pataguas mineral bodies via existing workings is expected to be completed in early 2018 with initiation of stope development later in the second quarter of 2018. Planning for an accelerated 2018 exploration program is underway to discover and develop new mineral resources that can be quickly converted to mineral reserve status during 2018.

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JACOBINA, BRAZIL


Operating Statistics 2017 2016 % change 2017 2016 % change Production Gold production (ounces) 34,838 29,326 19 % 101,240 88,298 15% Total cost of sales per gold ounce sold $ 1,055 $ 1,167 (10 )%$ 1,067 $ 1,055 1% Co-product cash costs per gold ounce produced (i) $ 693 $ 771 (10 )%$ 700 $ 674 4% All-in sustaining co-product costs per gold ounce produced (i) $ 852 $ 1,201 (29 )%$ 854 $ 989 (14)% Ore mined (tonnes) 510,421 454,905 12 % 1,476,538 1,324,019 12% Ore processed (tonnes) 498,794 449,937 11 % 1,468,737 1,328,915 11% Gold feed grade (g/t) 2.27 2.11 8 % 2.23 2.16 3% Gold recovery rate (%) 95.8 96.0 — 96.1 95.8 —% Sales Gold Sales (ounces) 35,069 28,492 23 % 101,925 88,084 16% Depletion, depreciation and amortization Per gold ounce sold $ 357 $ 298 20 %$ 355 $ 317 12%


Jacobina had a strong third quarter. In consideration of the strong production results through the end of the third quarter, full year production results are expected to exceed guidance at below guided costs. Production exceeded 32,000 ounces of gold for the fourth consecutive quarter, which demonstrates the sustainability of the improved results delivered at the operation. Processing rate and feed grade continue to benefit from improvements in operating efficiency. Development efforts remain well advanced with approximately 8 to 10 months of developed mining inventory, thereby allowing for flexibility in the mine plan. Furthermore, as has been the case throughout 2017, productivity and cost gains have afforded Jacobina the opportunity to source mineralization that is proximal to existing workings and development but outside the reserve block. Presently, 15% to 20% of Jacobina’s mill feed is being sourced from areas outside mineral reserves thereby providing increased upside optionality for the mine. The improved operating efficiency, higher production, in addition to cost containment initiatives are positively impacting costs, although the appreciation of the Brazilian Real against the US Dollar in the third quarter offset some of the improvement compared to prior periods. AISC decreased by 29% compared to the third quarter of 2016 as sustaining capital expenditures in the quarter were lower than prior year as a result of the more efficient mining and the rationalization of other capital production costs. Down dip extensions of the productive ore bodies at Morro do Vento identified in prior exploration drill campaigns are separated from the productive ore bodies by vertical, north-south post mineral dikes. These mineralized reef extensions remain open to depth and extend along strike for at least two kilometres. Construction of an exploration drill tunnel is in progress to provide proper drill stations to define and develop this mineralization. Revised mining methods at Jacobina are being evaluated to unlock previously un-mined mineralization between development levels at João Belo. The cumulative programs at Morro do Vento Leste and João Belo are expected to be the focus of mineral resource and mineral reserve growth beginning in 2018.

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BRIO GOLD, BRAZIL


Operating Statistics 2017 2016 % change 2017 2016 % change Production Total gold production from Brio Gold mines (ounces) 42,913 46,075 (7 )% 137,676 139,184 (1 )% Attributable to Yamana (ounces) (i) 23,860 46,075 (48 )% 96,577 139,184 (31 )% Attributable to non-controlling interest (ounces) 19,053 — n/a 41,099 — n/a Total cost of sales per gold ounce sold $ 1,159 $ 1,112 4 %$ 1,130 $ 996 13 %Co-product cash costs per gold ounce produced (ii) $ 876 $ 813 8 %$ 858 $ 714 20 %All-in sustaining co-product costs per gold ounce produced (ii) $ 1,228 $ 1,130 9 %$ 1,119 $ 940 19 % Sales Gold sales (ounces) 43,228 47,557 (9 )% 135,600 140,887 (4 )%

(i) Attributable production is determined on a weighted-average basis with respect to ownership of Brio Gold common shares during the periods, which for the third quarter of 2017 was a weighted average of 55.6% (2016 - 100%).

(ii) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements of this Management’s Discussion and Analysis.

The Company owns 62.5 million common shares of Brio Gold, representing in the aggregate approximately 55.6% of the issued and outstanding Brio Gold common shares or approximately 52.8% on a fully diluted basis. Brio Gold operates completely independently. The Company believes that Brio Gold continues to offer substantial investment value. Production in the third quarter of 2017 was lower than the comparative period of 2016. All cost metrics on a per ounce of gold basis were impacted by a strengthening Brazilian Real against the US Dollar, higher throughput costs and lower production. Brio Gold’s third quarter exploration program continued as planned with drilling mostly focused on in-mine development areas at Fazenda Brasileiro and Pilar, with some off-mine exploration, with positive results received to date. The results for a drilling program completed at C1 Santa Luz earlier this year were incorporated into a feasibility study in the quarter and demonstrated a larger mineral reserve. 7. CONSTRUCTION, DEVELOPMENT AND EXPLORATION CONSTRUCTION AND DEVELOPMENT The following highlights key updates during the third quarter of 2017, in respect to certain of the Company's development projects. Cerro Moro, Argentina As at the end of September 2017, construction progress at Cerro Moro is outlined as follows:

• Construction remains on schedule for completion in the first quarter of 2018, with the primary drivers for progress this quarter being structural and mechanical erection and the completion of the Tailings Storage Facility which are all progressing according to plan.

• Piping and electrical installation contractors were mobilized during the third quarter and are progressing according to schedule. • The main activities planned for next quarter are to complete the structural erection, continue with mechanical installation, and ramp

up on the piping and electrical works. The project will also initiate the control, communications and architectural works. • Underground development of 673 metres has been completed to the end of the third quarter, in line with schedule on the total 992

metres planned for 2017, with transition to operations having occurred. • The Company has filled positions for senior mine and plant management and the process of recruiting the operational workforce is

progressing well.

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• Of the $233 million planned to be spent in 2017 and 2018, $178 million is planned to be spent in the current year. Expenditures of $123 million so far up to the end of the third quarter are on budget, leaving approximately $55 million to be spent in the fourth quarter.

Next milestones ahead of commercial production are:• Mechanical completion of key process plant facilities by the end of the year, dove-tailing with the plan to progressively hand-over

these and subsequent systems for commissioning in early 2018.• Commissioning is on track for completion by the end of the first quarter of 2018, with the ramp-up to commence thereafter.

Total production in 2018 (including pre-commercial ounces) is expected to be 80,000 ounces of gold and 4.5 million ounces of silver.

Bringing forward metal production into the first two years of operation is expected to improve returns and payback. As previously disclosed, the current mine plan anticipates partial production in 2018 in consideration of a 3-month ramp-up during the second quarter of 2018, with gold and silver at feed grades of 11 g/t, and 650 g/t respectively. 2019 gold production is estimated to be approximately 130,000 ounces at an average feed grade of 11 g/t, and silver production is estimated to be approximately 9,900,000 ounces at an average feed grade of 920 g/t. The average AISC for the period from 2018 to 2019 is expected to be below $600 per ounce of gold produced and below $9.00 perounce of silver produced, with co-product cash costs for the same period expected to be below $500 per ounce of gold produced and below $7.50 per ounce of silver produced.

The 2017 exploration program marks the first year of a four-year program, with an objective to add one million gold-equivalent ounces of mineral resource inventory at Cerro Moro. Additionally, a primary objective is to test and evaluate known higher grade exploration targets in an effort to provide mineralization that could sustain production at the elevated rates planned for the first two years.

During the third quarter, the Company completed 8,506 metres in 37 exploration holes to test the Escondida Far West, Veronica, Zoe West and Gabriela targets and 7,496 metres distributed in 55 infill and metallurgical holes drilled to upgrade mineral resources along the margins and local internal drilling gaps within the Escondida structural system. The infill and exploration programs are returning positive results, confirming the continuity of mineralization and discovering the 1.5 kilometre east-west trending Veronica structure that links the Escondida and Esperanza mineral systems.

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 ("CCD") and aMerrill 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.

Suruca, Brazil

The Company continues advancing development efforts at the Suruca oxides project, however, now with the additional consideration of recent drill results at Suruca Southwest and Suruca Sulphide (located underneath the oxide deposit).

Following the infill program at Suruca to define a near surface gold oxide deposit for open pit heap leach extraction, exploration focused on drill testing the copper-gold sulphide portion of the mineral body that lies immediately to the southwest. Preliminary testing indicates a similar metallurgical response to the Chapada deposit and given the immediate proximity to the Suruca gold deposit, various mining synergies will be considered. Based on the initial results and copper gold soil anomalies of Suruca Southwest, a follow up drilling program has commenced with the objective to extend the copper-gold mineralization further to the southwest.

The Company is assessing the synergy of a broader Suruca complex, and expects to complete studies for a comprehensive opportunity in 2018. Consequently, this may lead to a lower capital spend in 2018 on the oxide-only project.

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OTHER OPTIMIZATION AND MONETIZATION INITIATIVES

The Company continues pursuing internal initiatives and advancing re-evaluations to surface 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 third quarter include, but are not limited to the following:

Kirkland Lake, Canada

The Company has a 50% interest in Kirkland Lake where the evaluation of the development and exploration assets (including Upper Beaver) has been completed. The evaluation used several existing studies as the basis for its value assessment, including Upper Beaver’s pre-feasibility study, conceptual plans for Upper Canada, Amalgamated Kirkland and Anoki-McBean, as well as determination of the significant upside potential from other exploration target areas. The results of the review reveal that the Upper Beaver deposit provides a large component of the overall value and supports construction of a common central processing plant for treatment of the other deposits owned by the partnership. The study shows the potential for a standalone operation, with consolidated production from these deposits in excess of 250,000 ounces per year at attractive cash costs. In order to realize the value from this asset base, the Company and its partner, Agnico Eagle, had evaluated potential strategic alternatives including the possible sale of 100% of the Kirkland Lake property portfolio. Following a successful price discovery process, which surfaced values well in excess of what the Company believes the market is ascribing to the jointly owned Kirkland Lake assets, and recent positive exploration results, the partnership has now elected to suspend monetization initiatives and move forward with further studies on the exploration and development opportunities at Kirkland Lake. The Company expects an updated mineral resource estimate to be completed on the Upper Canada deposit by the end of 2017.

Agua Rica, Argentina

The Company has completed initial studies relating to a smaller scale underground sub-level caving operation that would minimize upfront capital expenditures while maintaining longer term optionality to increase the scale of the mining operation. The underground sub-level caving scenario assumes capital costs substantially below estimates in the feasibility study for a larger open pit operation and at operating costs that would be in the bottom quartile of comparable copper projects. This approach also assumes a much smaller scale underground operation and is consistent with existing environmental regulations. The smaller scale development scenario contemplates a fully stand-alone operation that would not require the use of any Minera Alumbrera infrastructure. It is based on a 0.6% copper cut-off which generates a mineable inventory of approximately 255 million tonnes at 0.81% copper, 0.28 g/t gold, 0.04% molybdenum and 2.85 g/t silver, containing 4.5 billion pounds of copper, 2.29 million ounces of gold, 225 million pounds of molybdenum and 23 million ounces of silver. Based on the mineable inventory, the Company projects a mine life in excess of 25 years at average annual production levels of approximately 156 millionpounds of copper, 46,000 ounces of gold, 3.70 million pounds of molybdenum and 334,000 ounces of silver during the first 10 years post ramp-up. The Company is committed to working with stakeholders as it continues to assess this as well as other development scenarios andremains committed to advancing the project. A feasibility study relating to the sub-level scenario will follow for completion by either just the Company or, depending on the strategic alternatives, in conjunction with one or more partners. The Company has retained two financial advisers to advise on potential strategic alternatives that consider both the underground and open pit development options, with the goal of finding the right third party or partner to advance the project towards development.

Suyai, Argentina

The Company continues to consider the alternatives of a development plan and other strategic options for the project previously disclosed. 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 development of the project.

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Agua De La Falda, Chile (57.3%) The Company continues to pursue strategic and monetization initiatives for the 57.3% 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. After conducting studies in late 2016, the Company is advancing the evaluation of a low capital start-up project based on the remaining oxide inventory, and is looking to expand mineral resources through exploration. Agua De La Falda has installed processing capacity and infrastructure. Agua De La Falda also holds sulfide mineral reserves and mineral resources (Jeronimo), and the Company is reviewing a smaller scale higher grade operation as an option for development, after the start-up project, to minimize the initial capital investment required to exploit the sulfide mineral resources.

EXPLORATION The 2017 exploration program has continued focusing on mineral resource discovery and mineral reserve replacement and growth at all mines. Total expected exploration spending is planned to be $98 million. The Company continues to consider exploration to be a key to unlocking and creating further value for shareholders at existing operations. The following is a summary of the exploration and evaluation expenditures for the current and comparative periods.



September 30, (In millions of US Dollars) 2017 2016 2017 2016 Exploration and evaluation capitalized (i) $ 22.9 $ 22.7 $ 64.6 $ 62.5 Exploration and evaluation expensed (ii) 4.9 3.8 14.2 11.9 Total exploration and evaluation expenditures $ 27.8 $ 26.5 $ 78.8 $ 74.4

(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 Condensed Consolidated Interim Statements of Operations. For a more comprehensive exploration update, readers are encouraged to refer to the press release dated September 25, 2017. For exploration updates relating to operating mines for the third quarter, refer to Sections 6 of the MD&A in the relevant operating mines. 8. 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 current working capital, future operating cash flows and available credit facilities. As at September 30, 2017, the Company's financial resources available to meet its financial obligations include undrawn revolving facility, excluding Brio Gold's undrawn revolving facility, of $768.2 million. For the first nine months of 2017, cash flows from operating activities of continuing operations were $325.7 million, which are expected to remain positive and incremental in the foreseeable future. The Company’s near-term financial obligations include a repayment obligation of long-term debt of $111.3 million over 2017 and 2018, construction and service contract commitments of $500.6 million within the next twelve months and the Brazilian tax amnesty payments (refer to Note 6: Income Taxes for additional details). The Company also guided sustaining capital expenditures of approximately $204 million for in 2017 (excluding Brio Gold), of which $123.8 million has been spent as at September 30, 2017. 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 on cash flows used in investing activities and contractual commitments.

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Through the planned completion of Cerro Moro 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. Efforts to rationalize and create value from non-strategic assets provides optionality for bringing in additional cash. Based on its current credit rating, the Company expects that it can refinance the existing long-term debt obligations on similar or more favourable terms to support the execution of the Company's business strategy. The impact of the appreciation the Brazilian real on costs was partially mitigated by the hedging strategy that the Company has in place. Subsequent to the period end, the Company entered into additional contracts to continue to mitigate the impact of fluctuations in certain exchange rates in the near-term. The following is a summary of liquidity and capital resources balances:

September 30, December 31, As at (In millions of US Dollars) 2017 2016 Cash $ 125.4 $ 97.4 Trade and other receivables $ 35.6 $ 36.6 Long-term debt (excluding current portion) $ 1,642.5 $ 1,573.8 Working capital (i) $ (9.7 ) $ 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 $125.4 million as at September 30, 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 negative $9.7 million as at September 30, 2017, compared to positive $77.3 million as at December 31, 2016. The negative working capital is predominantly driven by $110 million of debt reclassified to other current financial liabilities during the period from long-term debt, and higher copper derivative liability, partly offset by higher cash balance. Cash flows from operating activities are expected to increase through the balance of the year on the strength of incremental production targets in spite of cyclical factors, such as settlement of year-end accruals and payables. The following table summarizes cash inflows and outflows:



September 30, (In millions of Dollars) 2017 2016 2017 2016 Cash flows from operating activities $ 149.8 $ 178.6 $ 325.7 $ 488.5 Cash flows from operating activities before changes in working capital (i) $ 135.8 $ 173.0 $ 375.8 $ 478.7 Cash flows (used in)/from financing activities $ 19.5 $ (33.3 ) $ 78.3 $ (120.1) Cash flows used in investing activities $ (179.8) $ 12.9 $ (376.3 ) $ (247.5) (i) A cautionary note regarding non-GAAP financial measures is included in Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities after net change in working capital for the three months ended September 30, 2017 were $149.8 million, compared to the $178.6 million for the three months ended September 30, 2016, mainly as the result of higher income tax paid associated with the initial payments related to the tax amnesty settlement with the Brazilian tax authorities in the third quarter. Cash flows from operating activities after net change in working capital can be volatile from quarter to quarter due to timing of payments. The Company's cash flows from operating activities are expected to remain positive at the prices of gold, silver and copper observed as at September 30, 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 10: Economic Trends, Business Risks and Contractual Commitments for a detailed discussion of market price risk.

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CASH FLOWS FROM FINANCING ACTIVITIES Cash flows from financing activities were inflows of $19.5 million for the three months ended September 30, 2017, compared to outflows of $33.3 million for three months ended September 30, 2016. Higher cash flows from financing activities was mainly due to lower repayment of long-term debt in the third quarter compared to the same quarter of 2016. Total debt was $1.75 billion as at September 30, 2017, compared to $1.59 billion as at December 31, 2016. Net debt (a non-GAAP financial measure, see Section 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial Statements) as at September 30, 2017 was $1.63 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 and revolver credit facilities to be repaid in the next five years is as follows:

(In millions of US Dollars) 2017 2018 2019 2020 2021 Senior debt notes and revolver credit facilities (i) 1.2 110.1 245.4 84.1 235.0

(i) Balance includes $62.5 million relating to Brio Gold's revolving facility which matures in 2019.

The balance of senior debt notes of $1.09 billion is due in or after 2022. The Company has revolving credit facilities with a balance of $292.0 million as at September 30, 2017 and maturity dates in 2019 and 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 outflows of $179.8 million for the three months ended September 30, 2017, compared to cash outflows of $12.9 million for the three months ended September 30, 2016. Higher capital expenditures in the third quarter coincided with the continued development of Cerro Moro. Further, cash flows used in investing activities in the same quarter of 2016 included the proceeds on the sale of the Mexican operation with no significant comparative amount in the current period. Capital expenditures including sustaining, expansionary and capitalized exploration and evaluation for the three months ended September 30, 2017, were $159.5 million, compared to capital expenditures of $143.8 million, for the three months ended September 30, 2016. These expenditures were incurred as follows: For the three months ended September 30, 2017 2016

(In millions of US Dollars) Sustaining

& other Expansionary Exploration Total Total Chapada (i) $ 3.2 $ 3.6 $ 1.3 $ 8.1 $ 29.1 El Peñón 9.2 — 5.0 $ 14.2 $ 23.6 Gualcamayo 1.1 2.5 2.1 $ 5.7 $ 6.3 Canadian Malartic 13.6 5.6 3.1 $ 22.3 $ 14.2 Minera Florida 6.1 11.5 2.9 $ 20.5 $ 21.7 Jacobina 5.1 3.5 1.8 $ 10.4 $ 13.8 Cerro Moro — 47.0 2.3 $ 49.3 $ 14.4 Brio Gold 11.3 6.6 3.5 $ 21.4 $ 16.2 Other (ii) 0.5 6.2 0.9 $ 7.6 $ 4.5 Total capital expenditures (iii) $ 50.1 $ 86.5 $ 22.9 $ 159.5 $ 143.8 (i) Capital expenditures for Chapada do not include $19.9 million in long-term stockpile additions which are presented as Investing Activities in the Statement of Cash Flows. (ii) Included in Other is $2.9 million (2016 - $1.4 million) of capitalized interest for the period. (iii) Net of movement in accounts payable as applicable for projects under construction and include applicable borrowing costs.

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(In millions of US Dollars) Sustaining

& other Expansionary Exploration Total Total Chapada (i) $ 22.3 $ 10.0 $ 3.8 $ 36.1 $ 65.0 El Peñón 30.4 — 15.5 $ 45.9 $ 63.9 Gualcamayo 3.2 3.3 8.5 $ 15.0 $ 14.4 Canadian Malartic 32.6 10.8 7.6 $ 51.0 $ 44.5 Minera Florida 19.2 14.8 6.9 $ 40.9 $ 34.9 Jacobina 14.7 11.9 4.0 $ 30.6 $ 31.0 Cerro Moro — 123.7 5.5 $ 129.2 $ 38.4 Brio Gold 23.9 25.6 7.9 $ 57.4 $ 39.8 Other (ii) 1.4 15.5 4.9 $ 21.8 $ 12.1 Total capital expenditures (iii) $ 147.7 $ 215.6 $ 64.6 $ 427.9 $ 344.0 (i) Capital expenditures for Chapada do not include $19.9 million in long-term stockpile additions which are presented as Investing Activities in the Statement of Cash Flows. (ii) Included in Other is $7.2 million (2016 - $4.5 million) of capitalized interest for the period. (iii) Net of movement in accounts payable as applicable for projects under construction and include 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. 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 October 20, 2017, the total number of shares outstanding were 948.5 million, the total number of stock options outstanding were 1.9 million, the total number of Deferred Share Units ("DSU") outstanding were 4.2 million, the total number of Restricted Share Units ("RSU") outstanding were 1.5 million, and the total number of Performance Share Units ("PSU") outstanding were 2.5 million. For the third quarter of 2017, the Company declared quarterly dividends totalling $0.005 per share. The following table summarizes the weighted average common shares and equity instruments outstanding as at September 30, 2017:

Equity instruments outstanding

as at

Weighted average dilutive

equity instruments,

three months ended

Weighted average dilutive equity

instruments, three months ended

Weighted average dilutive

equity instruments, nine months

ended

Weighted average dilutive equity

instruments, nine months ended

(In thousands) September 30,

2017 September 30,

2017 September 30,

2016 September 30,

2017 September 30,

2016 Common shares (i) 948,428 948,254 947,590 948,092 947,374 Options 1,925 — — — 1 RSU (ii) 1,531 575 — — 578 DSU (iii) 4,150 — — — — PSU (iii) 2,517 — — — — 948,829 947,590 948,092 947,953 (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

reinvesting cash dividends, less any applicable withholding tax. A plan participant may obtain 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. During the three months ended September 30, 2017, a total of 19,783,417 shares were subscribed to under the plan.

(ii) Excludes RSU granted to Brio Gold employees that are redeemable in Brio Gold common shares. (iii) DSU and PSU are settled in cash and, as such, excluded from the calculation of the weighted average number of shares outstanding.

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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 September 30, 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 $ 500.6

$ 446.5

$ 126.9

$ 1.0

$ 1,075.0

Long-term debt principal repayments (i) 110.0 330.8 427.7 896.9 1,765.3 Decommissioning, restoration and similar liabilities (undiscounted) 14.4

20.3

32.9

665.3

732.9

$ 625.0 $ 797.6 $ 587.5 $ 1,563.2 $ 3,573.2 (i) Excludes interest expense.

9. INCOME TAXES The Company recorded an income tax expense of $23.0 million for the three months ended September 30, 2017 (2016 - $11.0 million). The income tax provision reflects a current income tax expense of $30.8 million and a deferred income tax recovery of $7.8 million, compared to a current income tax expense of $13.9 million and a deferred income tax recovery of $2.9 million for the three months ended September 30, 2016. The balance sheet includes a deferred tax asset of $69.9 million and a deferred tax liability of $1.4 billion. The Company’s unadjusted effective tax rate for the three months ended September 30, 2017 was 37.6% (2016 - 125%), 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 three months ended September 30, 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 $14.2 million and $43.9 million, respectively, was recognized due to uncertainty of future loss utilization.

• Within a number of our foreign subsidiaries, foreign currency exchange gains or losses that arise as U.S. 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 U.S. Dollars are not taxable or deductible. In 2017 a net recovery of $6.6 million was recognized due to the strengthening of the Brazilian Real and the weakening of the Argentinean Peso against the U.S. Dollar. In 2016, a recovery of $19.6 million was recognized on the strengthening of the Brazilian Real and Argentinean Peso against the U.S. 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

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end spot rate for the purposes of calculating deferred taxes. In 2017 and 2016 a recovery of $2.6 million and an expense of $2.0 million, respectively, was recorded on currency fluctuations as described above.

The Company has elected, under IFRS, to record foreign exchange related to deferred income tax assets and liabilities and interest and penalties 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, Argentinean Peso and Canadian Dollar.

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%; 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.

Brazilian Tax Assessments

As previously disclosed, the Company elected in the third quarter to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Company’s Chapada mine. This program was enacted as law on October 25, 2017. For additional details, refer to Section 2: Highlights of this MD&A.

See Note 6: Income Taxes to the Condensed Consolidated Interim Financial Statements for the three and nine months ended September 30, 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 and Annual Management Discussion and Analysis for the year ended December 31, 2016.

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10. 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 and global economic trends that could have a significant impact on its profitability and levels of operating cash flows.

The Company manages its exposure to these risks in accordance with its Risk Management Policy. Readers are also encouraged to read and consider the risk factors and related uncertainties in the Company’s Annual Information and Annual Management Discussion and Analysis for the year ended December 31, 2016. 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. There were no significant changes to those risks or to the Company's management of exposure during the three months ended September 30, 2017, except as noted below:

Metal Price Risk

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 quarter ended September 30, 2017, spot gold prices averaged $1,278 per ounce, or representing a decrease of 4%, compared to $1,335 per ounce in the third quarter of 2016. Prices ranged between $1,211 and $1,346 per ounce during the third quarter of 2017, and between $1,126 and $1,346 per ounce during the 12-month period ended September 30, 2017. As at September 30, 2017, the closing price was $1,283 per ounce.

Gold price moved steadily higher during the quarter, before declining somewhat in the second half of September and ramping up towards the end of the quarter. Geopolitical tensions and a weakening US Dollar helped push gold price up, before a modest recovery in the US Dollar caused the price to ease. 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. In the short-term, gold price should continue to be sensitive to the changing sentiment as to the monetary policy path of the US Federal reserve who has left their rate unchanged since their last hike in June.

Other central banks have also begun to tighten monetary policy and while higher interest rates 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 285,000 ounces of gold, cumulatively to be produced in the fourth quarter of 2017 and 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.

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Copper Price - Market Update

For the quarter ended September 30, 2017, spot copper prices averaged $2.88 per pound, representing an increase of 33%, compared to $2.17 per pound in the third quarter of 2016. Prices ranged between $2.63 and $3.12 per pound in the third quarter of 2017, and between $2.09 and $3.12 during the 12-month period ended September 30, 2017. As at September 30, 2017, the closing price was $2.92 per pound of copper. Copper prices had a pattern similar to gold during the quarter, moving steadily higher until correcting somewhat during September. Prices have been driven by supply disruptions, Chinese economic data, generally increasing 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 September 30, 2017, the Company had 61 million pounds of copper forward contracts in place to January 2018 at an average sales price of $2.76 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 US Dollar ("USD") - Market Update The following summarizes the movement in key currencies vis-à-vis the USD (source: Bloomberg):

: The Canadian dollar, Chilean peso and the Brazilian real strengthened against the USD during the quarter ended September 30, 2017, relative to the June 30, 2017 rates, while the Argentinian peso weakened. The expectation is that the US Fed will raise the Fed Funds rate once more by 0.25% before the end of 2017. However, this will be dependent on economic growth and with other central banks beginning to increase rates this could lead to a weaker USD.


2017 2016 % change

(i) 2017 2016 % change

(i) Average Exchange Rate USD-CAD 1.2531 1.3046 -3.9% 1.3071 1.2962 0.8% USD-BRL 3.1601 3.2451 -2.6% 3.1723 3.3670 -5.8% USD-ARG 17.2914 14.9439 15.7% 16.2357 14.5793 11.4% USD-CLP 642.27 661.57 -2.9% 654.15 669.37 -2.3%

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September 30, 2017

September 30, 2016

% change (i)

December 31, 2016

% change (i)

Period-end Exchange Rate USD-CAD 1.2472 1.3127 -5.0% 1.3441 -7.2% USD-BRL 3.1623 3.2624 -3.1% 3.2552 -2.9% USD-ARG 17.3172 15.3075 13.1% 15.8800 9.1% USD-CLP 639.03 657.33 -2.8% 670.40 -4.7% (i) Positive variance represents the USD increase in value relative to the foreign currency. As at September 30, 2017, the Company had zero-cost collar contracts totaling R$150 million (R$ = Reais) evenly split by month from October 2017 to December 2017 with Brazilian Real to United States Dollar average call and put strike prices of R$3.25 and R$3.79 per USD, respectively, allowing the Company to participate in exchange rate movements between those two strikes. 11. 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 Condensed Consolidated Interim Financial Statements of the Company may be material. Canadian Malartic On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), the operator of the Canadian Malartic mine, was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. Beginning in the spring of 2015, Canadian Malartic GP 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. CMGP will take all reasonable steps necessary to defend themselves from this lawsuit. At the current time, the Company does not believe it is probable that any amounts will be paid with respect to these lawsuits and the amount and timing cannot be reasonably estimated. On April 10, 2017, the Quebec Superior Court dismissed the application for an interlocutory injunction. No dates have been set for the hearing of the application for a permanent injunction to restrict the Canadian Malartic mine’s mining operations to sound levels and mining volumes below the limits to which it is subject. For additional information refer to the Company's Annual Information Form for the year ended December 31, 2016. 12. CRITICAL ACCOUNTING POLICIES AND ESTIMATES The Company's Condensed Consolidated Interim Financial Statements are prepared in accordance with International Financial Reporting Standards 34 Interim Financial Reporting ("IAS 34"). The significant accounting policies applied and recent accounting pronouncements are described in Note 3: Significant Accounting Policies and Note 5: Recent Accounting Pronouncements to the Company's Consolidated Annual Financial Statements for the year ended December 31, 2016 and in Note 1: Basis of Preparation and Presentation to the Company's Condensed Consolidated Interim Financial Statements. In preparing the Condensed Consolidated Interim Financial Statements in accordance with IAS 34, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the period end. Critical

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accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the Company's Condensed Consolidated Interim 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.

The critical judgments and key sources of estimation uncertainties in the application of accounting policies during the quarter ended September 30, 2017 are consistent with those disclosed in Note 4: Critical Judgements and Estimated Uncertainties to the Company's Consolidated Annual Financial Statements for the year ended December 31, 2016.

13. 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 Condensed Consolidated Interim 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 in to the measures are duly noted and retrospectively applied as applicable.

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

43

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 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.

Cash costs per ounce of gold and silver ounce, and per pound of copper are calculated on a weighted average basis.

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 Condensed Consolidated Interim 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

44

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.

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 in the following reconciliations to co-product and by-product cash costs and co-product and by-product AISC agree to the Condensed Consolidated Interim 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.

(i) Reconciliation of cost of sales per the Condensed Consolidated Interim Financial Statements to co-product cash costs and co-product AISC, and by-product cash costs and by-product AISC:

45

Co-product Cash Cost & AISC For the three months ended Sept. 30, 2017 For the three months ended Sep 30, 2016 For the nine months ended Sep 30, 2017 For the nine months ended Sep 30, 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)


Gold)

Total Silver (vi)

Total Copper

Total (incl. Brio Gold)


Gold)

Total Silver (vi)

Total Copper

Cost of sales excluding DDA (i) $ 279.0 $ 213.6 $ 15.3 $ 50.1 $ 261.3 $ 210.1 $ 15.5 $ 35.7 $ 778.0 $ 607.9 $ 39.2 $ 130.9 $ 745.0 $ 586.6 $ 43.7 $ 114.7 DDA 108.0 92.6 6.1 9.4 112.1 97.4 8.3 6.4 325.9 287.3 16.4 22.1 334.0 287.3 23.4 23.3 Total cost of sales $ 387.0 $ 306.2 $ 21.4 $ 59.5 $ 373.4 $ 307.5 $ 23.8 $ 42.1 $ 1,103.9 $ 895.2 $ 55.6 $ 153.0 $ 1,079.0 $ 873.9 $ 67.1 $ 138.0 DDA (108.0 ) (92.6 ) (6.1 ) (9.4 ) (112.1 ) (97.4 ) (8.3 ) (6.4 ) (325.9 ) (287.3 ) (16.4 ) (22.1 ) (334.0 ) (287.3 ) (23.4 ) (23.3 ) Inventory movement (11.5 ) (4.1 ) (0.3 ) (7.1 ) 9.5 1.0 0.1 8.4 (9.0 ) (6.7 ) 0.4 (2.8 ) (0.4 ) (3.7 ) — 3.3 Treatment and refining charges (ii) 11.5 1.7 — 9.8 6.9 1.0 — 5.9 27.3 4.0 0.1 23.2 21.9 3.1 0.1 18.7 Commercial and other costs (0.3 ) (0.1 ) — (0.2 ) (1.3 ) (0.2 ) — (1.1 ) (1.1 ) (0.2 ) — (0.9 ) (3.4 ) (0.6 ) — (2.8 ) Overseas freight for Chapada Conc. (3.2 ) (0.6 ) — (2.6 ) (1.9 ) (0.3 ) — (1.6 ) (8.3 ) (1.6 ) — (6.7 ) (6.0 ) (1.1 ) — (5.0 ) Total co-product cash cost $ 275.5 $ 210.5 $ 15.0 $ 50.0 $ 274.5 $ 211.6 $ 15.6 $ 47.3 $ 786.9 $ 603.4 $ 39.7 $ 143.7 $ 757.1 $ 584.3 $ 43.8 $ 128.9 G&A, excl., shared-based compensation (iii) 25.5 19.9 1.1 4.5 22.4 18.5 1.2 2.7 69.8 55.4 3.0 11.4 59.6 48.7 3.5 7.5 Sustaining capital expenditures (iv) 50.1 44.3 3.2 2.7 82.8 62.1 4.7 16.0 147.9 119.8 10.0 18.1 202.9 152.4 12.6 38.0 Exploration and evaluation expense (iii) 4.9 3.1 0.2 1.5 4.1 3.0 0.4 0.7 14.3 10.1 0.8 3.4 12.6 9.3 1.5 1.7 Total co-product AISC $ 356.0 $ 277.8 $ 19.5 $ 58.7 $ 383.8 $ 295.2 $ 21.9 $ 66.7 $ 1,018.9 $ 788.7 $ 53.5 $ 176.6 $ 1,032.2 $ 794.7 $ 61.4 $ 176.1 Commercial oz and lb produced 300,368 1,431,211 37,050,747 305,582 1,592,527 29,648,035 855,385 3,833,718 92,666,833 879,476 5,082,200 78,678,968 Commercial oz and lb sold 299,588 1,512,476 36,496,657 296,330 1,544,478 22,066,423 845,691 3,861,911 86,880,259 864,071 4,985,004 70,741,048 Cost of sales excl. DDA per oz and lb sold $ 713 $ 10.12 $ 1.37 $ 709 $ 10.01 $ 1.62 $ 719 $ 10.16 $ 1.51 $ 679 $ 8.76 $ 1.62 DDA per oz and lb sold $ 309 $ 4.03 $ 0.26 $ 329 $ 5.35 $ 0.29 $ 340 $ 4.26 $ 0.25 $ 333 $ 4.69 $ 0.33 Total cost of sales per oz and lb sold $ 1,022 $ 14.15 $ 1.63 $ 1,038 $ 15.36 $ 1.91 $ 1,059 $ 14.41 $ 1.76 $ 1,011 $ 13.45 $ 1.95 Co-product cash cost per oz and lb produced $ 701 $ 10.53 $ 1.35 $ 692 $ 9.79 $ 1.60 $ 705 $ 10.36 $ 1.55 $ 665 $ 8.60 $ 1.64 Co-product AISC per oz and lb produced $ 925 $ 13.70 $ 1.58 $ 966 $ 13.80 $ 2.25 $ 922 $ 13.96 $ 1.91 $ 904 $ 12.07 $ 2.24

Co-product Cash Cost & AISC For the three months ended Sep 30, 2017 For the three months ended Sep 30, 2016 For the nine months ended Sep 30, 2017 For the nine months ended Sep 30, 2016


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) $ 60.9 $ 10.6 $ 0.2 $ 50.1 $ 43.0 $ 7.2 $ 0.1 $ 35.7 $ 159.4 $ 27.9 $ 0.6 $ 130.9 $ 139.4 $ 24.3 $ 0.4 $ 114.7 DDA 11.2 2.2 — 9.0 9.8 3.5 0.1 6.2 26.5 5.2 0.1 21.2 32.7 10.0 0.2 22.5 Total cost of sales $ 72.1 $ 12.8 $ 0.2 $ 59.1 $ 52.8 $ 10.7 $ 0.2 $ 41.9 $ 185.9 $ 33.1 $ 0.7 $ 152.1 $ 172.1 $ 34.3 $ 0.6 $ 137.2 DDA (11.2 ) (2.2 ) — (9.0 ) (9.8 ) (3.5 ) (0.1 ) (6.2 ) (26.5 ) (5.2 ) (0.1 ) (21.2 ) (32.7 ) (10.0 ) (0.2 ) (22.5 ) Inventory movement (8.8 ) (1.7 ) — (7.1 ) 11.0 2.5 0.1 8.4 (3.5 ) (0.7 ) — (2.8 ) 5.1 1.7 0.1 3.3 Treatment and refining charges (ii) 11.5 1.7 — 9.8 6.9 1.0 — 5.9 27.3 4.0 0.1 23.2 21.9 3.1 0.1 18.7 Commercial and other costs (0.3 ) (0.1 ) — (0.2 ) (1.3 ) (0.2 ) — (1.1 ) (1.1 ) (0.2 ) — (0.9 ) (3.4 ) (0.6 ) — (2.8 ) Overseas freight for Chapada Conc. (3.2 ) (0.6 ) — (2.6 ) (1.9 ) (0.3 ) — (1.6 ) (8.3 ) (1.6 ) — (6.7 ) (6.1 ) (1.1 ) — (5.0 ) Total co-product cash cost $ 60.1 $ 9.9 $ 0.2 $ 50.0 $ 57.7 $ 10.2 $ 0.2 $ 47.3 $ 173.8 $ 29.4 $ 0.7 $ 143.7 $ 156.9 $ 27.4 $ 0.6 $ 128.9 G&A, excl., shared-based compensation (iii) 0.3 0.1 — 0.2 0.1 — — 0.1 0.6 0.1 — 0.5 0.6 0.1 — 0.5 Sustaining capital expenditures (iv) 3.1 0.6 — 2.5 19.9 3.9 0.1 15.9 22.3 4.4 0.1 17.8 47.1 9.2 0.2 37.7 Exploration and evaluation expense (iii) 0.9 0.2 — 0.7 0.5 0.1 — 0.4 1.7 0.3 — 1.4 1.1 0.2 — 0.9 Total co-product AISC $ 64.4 $ 10.8 $ 0.2 $ 53.4 $ 78.2 $ 14.2 $ 0.3 $ 63.7 $ 198.4 $ 34.2 $ 0.8 $ 163.4 $ 205.7 $ 36.9 $ 0.8 $ 168.0 Commercial oz and lb produced 38,782 68,280 37,050,747 28,605 69,266 29,648,035 83,274 181,228 92,666,833 66,944 181,424 78,678,968 Commercial oz and lb sold 39,793 12,311 36,496,657 19,772 26,074 22,066,423 80,516 81,918 86,880,259 51,759 72,650 70,741,048 Cost of sales excl. DDA per oz and lb sold $ 265 $ 17.51 $ 1.37 $ 362 $ 5.54 $ 1.62 $ 347 $ 6.95 $ 1.51 $ 469 $ 5.98 $ 1.62 DDA per oz and lb sold $ 55 $ 3.65 $ 0.25 $ 176 $ 3.01 $ 0.28 $ 64 $ 1.29 $ 0.24 $ 193 $ 2.84 $ 0.32 Total cost of sales per oz and lb sold $ 321 $ 21.15 $ 1.62 $ 538 $ 8.55 $ 1.90 $ 411 $ 8.25 $ 1.75 $ 661 $ 8.82 $ 1.94 Co-product cash cost per oz and lb produced $ 254 $ 2.95 $ 1.35 $ 353 $ 3.09 $ 1.60 $ 353 $ 3.43 $ 1.55 $ 410 $ 3.21 $ 1.64 Co-product AISC per oz and lb produced $ 276 $ 3.21 $ 1.44 $ 494 $ 4.30 $ 2.20 $ 411 $ 3.98 $ 1.77 $ 553 $ 4.30 $ 2.10

46



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) $ 54.3 $ 41.4 $ 12.9 $ 46.3 $ 52.2 $ 38.0 $ 14.2 $ 47.4 $ 131.4 $ 96.6 $ 34.8 $ 130.0 $ 147.3 $ 107.3 $ 40.0 $ 132.8 DDA 20.7 15.8 4.9 30.8 27.5 19.9 7.6 31.2 53.4 39.3 14.1 97.0 77.5 56.3 21.2 90.4 Total cost of sales $ 75.0 $ 57.2 $ 17.8 $ 77.1 $ 79.7 $ 57.9 $ 21.8 $ 78.6 $ 184.8 $ 135.9 $ 48.9 $ 227.0 $ 224.8 $ 163.6 $ 61.2 $ 223.2 DDA $ (20.7 ) (15.8 ) (4.9 ) (30.8 ) $ (27.5 ) (19.9 ) (7.6 ) (31.2 ) $ (53.4 ) (39.3 ) (14.1 ) (97.0 ) $ (77.5 ) (56.3 ) (21.2 ) (90.4 ) Inventory movement (5.8) (4.9 ) (0.9 ) 1.0 1.5 1.2 0.3 (0.5 ) (4.1 ) (3.8 ) (0.3 ) 1.7 2.0 2.1 (0.1 ) — Total co-product cash cost $ 48.5 $ 36.5 $ 12.0 $ 47.3 $ 53.7 $ 39.2 $ 14.5 $ 46.9 $ 127.3 $ 92.8 $ 34.5 $ 131.7 $ 149.3 $ 109.4 $ 39.9 $ 132.8 G&A, excl., shared-based compensation (iii) 0.3 0.2 0.1 0.8 — — — 0.6 0.3 0.2 0.1 2.9 — — — 2.7 Sustaining capital expenditures (iv) 9.2 6.9 2.3 13.6 15.9 11.6 4.3 11.6 30.3 22.0 8.3 32.7 42.6 31.2 11.4 37.3 Exploration and evaluation expense (iii) (0.5) (0.4 ) (0.1 ) (0.1 ) 1.2 0.9 0.3 0.1 — (0.1 ) 0.1 0.2 4.1 3.0 1.1 0.3 Total co-product AISC $ 57.5 $ 43.2 $ 14.3 $ 61.6 $ 70.8 $ 51.7 $ 19.1 $ 59.2 $ 157.9 $ 114.9 $ 43.0 $ 167.5 $ 196.0 $ 143.6 $ 52.4 $ 173.1 Commercial oz produced 44,466 1,088,921 82,097 53,875 1,435,986 76,427 121,108 3,229,915 235,988 164,445 4,566,466 222,543 Commercial oz sold 47,921 1,234,996 78,436 54,058 1,408,900 75,573 124,194 3,355,296 226,706 164,764 4,576,730 219,965 Cost of sales excl. DDA per oz sold $ 865 $ 10.48 $ 591 $ 703 $ 10.11 $ 627 $ 777 $ 10.36 $ 573 $ 651 $ 8.74 $ 604 DDA per oz sold $ 329 $ 3.93 $ 392 $ 368 $ 5.40 $ 413 $ 317 $ 4.21 $ 428 $ 342 $ 4.63 $ 411 Total cost of sales per oz sold $ 1,194 $ 14.41 $ 983 $ 1,071 $ 15.51 $ 1,040 $ 1,094 $ 14.56 $ 1,001 $ 993 $ 13.36 $ 1,015 Co-product cash cost per oz produced $ 821 $ 11.02 $ 577 $ 727 $ 10.11 $ 613 $ 766 $ 10.66 $ 558 $ 665 $ 8.74 $ 597 Co-product AISC per oz produced $ 972 $ 13.07 $ 751 $ 959 $ 13.32 $ 774 $ 949 $ 13.28 $ 710 $ 873 $ 11.47 $ 778



Gualcamayo Gold

Minera Florida Total

Minera Florida Gold

Minera Florida Silver

Gualcamayo Gold


Minera Florida Gold


Gualcamayo Gold


Minera Florida Gold


Gualcamayo Gold


Minera Florida Gold


Cost of sales excluding DDA (i) $ 33.2 $ 20.1 $ 17.9 $ 2.2 $ 33.5 $ 21.4 $ 20.3 $ 1.1 $ 106.6 $ 60.5 $ 56.6 $ 3.9 $ 101.0 $ 59.7 $ 56.4 $ 3.3 DDA 10.6 10.1 9.0 1.1 10.0 9.3 8.8 0.5 41.1 30.6 28.7 1.9 29.4 28.5 27.0 1.5 Total cost of sales $ 43.8 $ 30.2 $ 26.9 $ 3.3 $ 43.5 $ 30.7 $ 29.1 $ 1.6 $ 147.7 $ 91.1 $ 85.3 $ 5.8 $ 130.4 $ 88.2 $ 83.4 $ 4.8 DDA $ (10.6 ) (10.1) (9.0 ) (1.1 ) $ (10.0 ) (9.3 ) (8.8 ) (0.5 ) $ (41.1 ) (30.6 ) (28.7 ) (1.9 ) $ (29.4 ) (28.5) (27.0 ) (1.5 ) Inventory movement 4.0 0.7 — 0.7 1.7 (0.4 ) (0.2 ) (0.2 ) (1.4 ) (0.5 ) (1.3 ) 0.8 (3.1 ) 1.5 1.5 — Total co-product cash cost $ 37.2 $ 20.8 $ 17.9 $ 2.9 $ 35.2 $ 21.0 $ 20.1 $ 0.9 $ 105.2 $ 60.0 $ 55.3 $ 4.7 $ 97.9 $ 61.2 $ 57.9 $ 3.3 G&A, excl., shared-based compensation (iii) 0.6 0.1 0.1 — 0.5 — — — 0.6 0.2 0.2 — 0.7 — — — Sustaining capital expenditures (iv) 1.1 6.2 5.3 0.9 2.7 7.3 7.0 0.3 3.2 19.2 17.7 1.5 4.4 16.3 15.5 0.8 Exploration and evaluation expense (iii) — 0.7 0.6 0.1 — 0.3 0.3 — — 1.8 1.6 0.2 — 0.5 0.5 — Total co-product AISC $ 38.9 $ 27.8 $ 23.9 $ 3.9 $ 38.4 $ 28.6 $ 27.4 $ 1.2 $ 109.0 $ 81.2 $ 74.8 $ 6.4 $ 103.0 $ 78.0 $ 73.9 $ 4.1 Commercial oz produced 34,183 23,089 274,010 42,558 28,714 87,274 109,274 66,825 422,575 119,425 78,637 334,310 Commercial oz sold 32,945 22,195 265,169 42,658 28,220 109,504 109,376 67,374 424,697 121,732 76,879 335,624 Cost of sales excl. DDA per oz sold $ 1,007 $ 807 $ 8.11 $ 786 $ 719 $ 9.73 $ 975 $ 841 $ 9.20 $ 829 $ 734 $ 9.69 DDA per oz sold $ 322 $ 404 $ 4.13 $ 235 $ 313 $ 4.23 $ 375 $ 425 $ 4.58 $ 241 $ 351 $ 4.55 Total cost of sales per oz sold $ 1,329 $ 1,211 $ 12.24 $ 1,021 $ 1,032 $ 13.96 $ 1,350 $ 1,266 $ 13.78 $ 1,071 $ 1,085 $ 14.24 Co-product cash cost per oz produced $ 1,088 $ 777 $ 10.46 $ 828 $ 699 $ 9.73 $ 963 $ 828 $ 11.06 $ 819 $ 736 $ 9.69 Co-product AISC per oz produced $ 1,138 $ 1,038 $ 14.12 $ 904 $ 954 $ 13.26 $ 997 $ 1,118 $ 15.07 $ 862 $ 940 $ 12.22

47



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) $ 24.5 $ 39.7 $ — $ — $ 24.8 $ 39.0 $ — $ — $ 72.6 $ 117.5 $ — $ — $ 65.0 $ 99.8 $ — $ — DDA 12.5 10.5 1.8 1.4 8.5 13.9 1.8 1.5 36.1 35.8 5.4 4.2 27.9 40.5 7.1 5.8 Total cost of sales $ 37.0 $ 50.2 $ 1.8 $ 1.4 $ 33.3 $ 52.9 $ 1.8 $ 1.5 $ 108.7 $ 153.3 $ 5.4 $ 4.2 $ 92.9 $ 140.3 $ 7.1 $ 5.8 DDA (12.5 ) (10.4 ) (1.8 ) (1.4 ) (8.5 ) (13.9 ) (1.8 ) (1.5 ) (36.1 ) (35.8 ) (5.4 ) (4.2 ) (27.9 ) (40.5 ) (7.1 ) (5.8 ) Inventory movement (0.3 ) (2.1 ) — — (2.1 ) (1.6 ) — — (1.7 ) 0.7 — — (5.5 ) (0.4 ) — — Total co-product cash cost $ 24.2 $ 37.7 $ — $ — $ 22.7 $ 37.4 $ — $ — $ 70.9 $ 118.2 $ — $ — $ 59.5 $ 99.4 $ — $ — G&A, excl., shared-based compensation (iii) 0.5 3.7 19.3 13.9 0.1 0.1 21.0 17.2 0.8 11.3 53.1 39.3 0.5 0.3 54.8 44.3 Sustaining capital expenditures (iv) 5.1 11.3 0.6 0.4 12.5 12.1 0.9 0.7 14.7 24.1 1.3 1.0 27.3 25.7 2.2 1.7 Exploration and evaluation expense (iii) — 0.3 3.5 2.5 — — 1.9 1.6 — 0.6 10.0 7.4 — — 6.5 5.3 Total co-product AISC $ 29.8 $ 53.0 $ 23.4 $ 16.8 $ 35.3 $ 49.6 $ 23.8 $ 19.5 $ 86.4 $ 154.2 $ 64.4 $ 47.7 $ 87.3 $ 125.4 $ 63.5 $ 51.3 Commercial oz and lb produced 34,838 42,913 29,326 46,075 101,240 137,675 88,298 139,185 Commercial oz and lb sold 35,069 43,228 28,492 47,557 101,925 135,600 88,084 140,887 Cost of sales excl. DDA per oz and lb sold $ 698 $ 917 $ 869 $ 821 $ 713 $ 866 $ 738 $ 709 DDA per oz and lb sold $ 357 $ 242 $ 298 $ 292 $ 355 $ 264 $ 317 $ 288 Total cost of sales per oz and lb sold $ 1,055 $ 1,159 $ 1,167 $ 1,112 $ 1,067 $ 1,130 $ 1,055 $ 996 Co-product cash cost per oz and lb produced $ 693 $ 875 $ 771 $ 813 $ 700 $ 858 $ 674 $ 714 Co-product AISC per oz and lb produced $ 852 $ 1,230 $ 1,201 $ 1,077 $ 854 $ 1,120 $ 989 $ 901



Corporate Office & Other Silver

Corporate Office & Other Copper







Cost of sales excluding DDA (i) $ — $ — $ — $ — $ — $ — $ — $ — DDA 0.1 0.4 0.1 0.2 0.3 0.9 0.5 0.8 Total cost of sales $ 0.1 $ 0.4 $ 0.1 $ 0.2 $ 0.3 $ 0.9 $ 0.5 $ 0.8 DDA (0.1 ) (0.4 ) (0.1 ) (0.2) (0.3 ) (0.9 ) (0.5) (0.8 ) Total co-product cash cost — — — — — — — — G&A, excl., shared-based compensation (iii) 1.1 4.3 1.2 2.6 2.9 10.9 3.5 7.0 Sustaining capital expenditures (iv) — 0.1 0.1 0.1 0.1 0.3 0.2 0.3 Exploration and evaluation expense (iii) 0.2 0.8 0.1 0.2 0.6 2.1 0.4 0.8 Total co-product AISC $ 1.3 $ 5.2 $ 1.4 $ 2.9 $ 3.6 $ 13.3 $ 4.1 $ 8.1

48



Total Gold (including Brio Gold)

Brio Gold (Attributable to Non-controlling

Interests)

Total Gold (attributable to Yamana Gold equityholders)



Interests)




Interests)




Interests)


Cost of sales excluding DDA (i) $ 213.6 $ 17.6 $ 196.0 $ 210.1 $ — $ 210.1 $ 607.9 $ 47.5 $ 560.4 $ 586.6 $ — $ 586.6 DDA 92.6 4.6 88.0 97.4 — 97.4 287.3 13.6 273.7 287.3 — 287.3 Total cost of sales $ 306.2 $ 22.2 $ 284.0 $ 307.5 $ — $ 307.5 $ 895.2 $ 61.1 $ 834.1 $ 873.9 $ — $ 873.9 DDA (92.6 ) (4.6 ) (88.0) (97.4 ) — (97.4) (287.3 ) (13.6) (273.7 ) (287.3 ) — (287.3 ) Inventory movement (4.1 ) (1.0 ) (3.1) 1.0 — 1.0 (6.7 ) 0.3 (7.0 ) (3.7 ) — (3.7 ) Treatment and refining charges (ii) 1.7 — 1.7 1.0 — 1.0 4.0 — 4.0 3.1 — 3.1 Commercial and other costs (0.1 ) — (0.1) (0.2 ) — (0.2) (0.2 ) — (0.2 ) (0.6 ) — (0.6 ) Overseas freight for Chapada Conc. (0.6 ) — (0.6) (0.3 ) — (0.3) (1.6 ) — (1.6 ) (1.1 ) — (1.1 ) Total co-product cash cost $ 210.5 $ 16.6 $ 193.9 $ 211.6 $ — $ 211.6 $ 603.4 $ 47.8 $ 555.6 $ 584.3 $ — $ 584.3 G&A, excl., shared-based compensation (iii) 19.9 1.7 18.2 18.5 — 18.5 55.4 5.0 50.4 48.7 — 48.7 Sustaining capital expenditures (iv) 44.3 5.0 39.3 62.1 — 62.1 119.8 10.8 109.0 152.4 — 152.4 Exploration and evaluation expense (iii) 3.1 0.1 3.0 3.0 — 3.0 10.1 0.2 9.9 9.3 — 9.3 Total co-product AISC $ 277.8 $ 23.4 $ 254.4 $ 295.2 $ — $ 295.2 $ 788.7 $ 63.8 $ 724.9 $ 794.7 $ — $ 794.7 Commercial oz and lb produced 300,368 281,315 305,582 305,582 855,385 794,257 879,476 879,476 Commercial oz and lb sold 299,588 280,394 296,330 296,330 845,691 785,484 864,071 864,071 Cost of sales excl. DDA per oz and lb sold $ 713 $ 699 $ 709 $ 709 $ 719 $ 713 $ 679 $ 679 DDA per oz and lb sold $ 309 $ 314 $ 329 $ 329 $ 340 $ 348 $ 333 $ 333 Total cost of sales per oz and lb sold $ 1,022 $ 1,013 $ 1,038 $ 1,038 $ 1,059 $ 1,062 $ 1,011 $ 1,011 Co-product cash cost per oz and lb produced $ 701 $ 689 $ 692 $ 692 $ 705 $ 699 $ 665 $ 665 Co-product AISC per oz and lb produced $ 925 $ 905 $ 966 $ 966 $ 922 $ 913 $ 904 $ 904

49



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


(v) Total Gold

(incl. Brio Gold) Brio Gold Total Gold -

Yamana Mines (v)

Cost of sales excluding DDA (i) $ 213.6 $ 39.7 $ 173.9 $ 210.1 $ 39.0 $ 171.1 $ 607.9 $ 117.5 $ 490.4 $ 586.6 $ 99.8 $ 486.8 DDA 92.6 10.5 82.1 97.4 13.9 83.5 287.3 35.8 251.5 287.3 40.5 246.8 Total cost of sales $ 306.2 $ 50.2 $ 256.0 $ 307.5 $ 52.9 $ 254.6 $ 895.2 $ 153.3 $ 741.9 $ 873.9 $ 140.3 $ 733.6 DDA (92.6 ) (10.4 ) (82.2) (97.4 ) (13.9) (83.5) (287.3 ) (35.7) (251.6 ) (287.3 ) (40.5 ) (246.8 ) Inventory movement (4.1 ) (2.1 ) (2.0) 1.0 (1.5) 2.5 (6.7 ) 0.6 (7.3 ) (3.7 ) (0.4 ) (3.3 ) Treatment and refining charges (ii) 1.7 — 1.7 1.0 — 1.0 4.0 — 4.0 3.1 — 3.1 Commercial and other costs (0.1 ) — (0.1) (0.2 ) — (0.2) (0.2 ) — (0.2 ) (0.6 ) — (0.6 ) Overseas freight for Chapada Conc. (0.6 ) — (0.6) (0.3 ) — (0.3) (1.6 ) — (1.6 ) (1.1 ) — (1.1 ) Total co-product cash cost $ 210.5 $ 37.7 $ 172.8 $ 211.6 $ 37.5 $ 174.1 $ 603.4 $ 118.2 $ 485.2 $ 584.3 $ 99.4 $ 484.9 G&A, excl., shared-based compensation (iii) 19.9 3.7 16.2 18.5 2.4 16.1 55.4 11.3 44.1 48.7 4.6 44.1 Sustaining capital expenditures (iv) 44.3 11.3 33.0 62.1 12.1 50.0 119.8 24.2 95.6 152.4 25.7 126.7 Exploration and evaluation expense (iii) 3.1 0.2 2.9 3.0 — 3.0 10.1 0.6 9.5 9.3 — 9.3 Total co-product AISC $ 277.8 $ 52.9 $ 224.9 $ 295.2 $ 52.0 $ 243.2 $ 788.7 $ 154.3 $ 634.4 $ 794.7 $ 129.7 $ 665.0 Commercial oz and lb produced 300,368 257,455 305,582 259,506 855,385 717,709 879,476 740,291 Commercial oz and lb sold 299,588 256,359 296,330 248,773 845,691 710,090 864,071 723,184 Cost of sales excl. DDA per oz and lb sold $ 713 $ 678 $ 709 $ 688 $ 719 $ 691 $ 679 $ 673 DDA per oz and lb sold $ 309 $ 320 $ 329 $ 336 $ 340 $ 354 $ 333 $ 341 Total cost of sales per oz and lb sold $ 1,022 $ 999 $ 1,038 $ 1,023 $ 1,059 $ 1,045 $ 1,011 $ 1,014 Co-product cash cost per oz and lb produced $ 701 $ 672 $ 692 $ 671 $ 705 $ 676 $ 665 $ 655 Co-product AISC per oz and lb produced $ 925 $ 874 $ 966 $ 937 $ 922 $ 884 $ 904 $ 898

50

By-product Cash Cost & AISC For the three months ended Sep 30, 2017 For the three months ended Sep 30, 2016 For the nine months ended Sep 30, 2017 For the nine months ended Sep 30, 2016



(v) Total

Silver (vi) Total Copper Total Gold -

Yamana Mines (v) Total

Silver (vi) Total Copper


(v) Total

Silver (vi) Total Copper Total Gold -

Yamana Mines (v) Total

Silver (vi) Total Copper

Cost of sales excluding DDA (i) $ 173.9 $ 15.3 $ 50.1 $ 171.1 $ 15.5 $ 35.7 $ 490.4 $ 39.2 $ 130.9 $ 486.8 $ 43.7 $ 114.7 DDA 82.2 6.1 9.4 83.5 8.3 6.4 251.6 16.4 22.1 246.8 23.4 23.3 Total cost of sales $ 256.1 $ 21.4 $ 59.5 $ 254.6 $ 23.8 $ 42.1 $ 742.0 $ 55.6 $ 153.0 $ 733.6 $ 67.1 $ 138.0 DDA (82.2 ) (6.1 ) (9.4) (83.5 ) (8.3) (6.4) (251.6 ) (16.4) (22.1 ) (246.8 ) (23.4 ) (23.3 ) Inventory movement (2.2 ) (0.3 ) (7.1) 2.5 0.1 8.4 (7.6 ) 0.4 (2.6 ) (3.3 ) — 3.3 Treatment and refining charges (ii) 1.7 — 9.8 1.0 — 5.9 4.0 0.1 23.2 3.1 0.1 18.7 Commercial and other costs (0.1 ) — (0.2) (0.2 ) — (1.1) (0.2 ) — (0.9 ) (0.6 ) — (2.8 ) Overseas freight for Chapada Conc. (0.6 ) — (2.6) (0.3 ) — (1.6) (1.6 ) — (6.7 ) (1.1 ) — (5.0 )

(45.3 ) (3.6) —

(212.7 ) (15.4) —

(135.6 ) (11.8 ) —

Chapada copper co-product cash cost 46.6 3.4 (50.0) 43.7 3.6 (47.3) 134.0 9.9 (143.9 ) 118.5 10.4 (128.9 ) Total by-product cash cost $ 127.6 $ 12.3 $ — $ 172.5 $ 15.6 $ — $ 406.3 $ 34.2 $ — $ 467.8 $ 42.4 $ — G&A, excl., shared-based compensation (iii) 20.4 1.4 — 18.5 1.4 — 54.7 3.8 — 51.0 4.1 — Sustaining capital expenditures (iv) 35.4 3.4 — 64.6 6.0 — 112.4 11.3 — 161.6 15.7 — Exploration and evaluation expense (iii) 4.3 0.3 — 3.6 0.5 — 12.7 1.0 — 10.7 1.8 — Total by-product AISC $ 187.7 $ 17.4 $ — $ 259.2 $ 23.5 $ — $ 586.1 $ 50.3 $ — $ 691.1 $ 64.0 $ — Commercial oz and lb produced 257,455 1,431,211 259,505 1,592,526 717,709 3,833,718 740,292 5,082,200 Commercial oz and lb sold 256,359 1,512,476 248,773 1,544,478 710,090 3,861,911 723,184 4,985,004 Cost of sales excl. DDA per oz and lb sold $ 678 $ 10.12 $ 688 $ 10.01 $ 691 $ 10.16 $ 673 $ 8.76 DDA per oz and lb sold $ 320 $ 4.03 $ 336 $ 5.35 $ 354 $ 4.26 $ 341 $ 4.69 Total cost of sales per oz and lb sold $ 999 $ 14.15 $ 1,023 $ 15.36 $ 1,045 $ 14.41 $ 1,014 $ 13.45 By-product cash cost per oz and lb produced $ 496 $ 8.64 $ 665 $ 9.78 $ 566 $ 8.93 $ 632 $ 8.31 By-product AISC per oz and lb produced $ 729 $ 12.24 $ 998 $ 14.73 $ 816 $ 13.14 $ 934 $ 12.39

By-product credits from Chapada copper revenue (91.7 ) (6.1 ) —

51

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


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

— — (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 )

(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 (2015 - 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 19(b)

Operating Segments, Information about Profit and Loss, to the Condensed Consolidated Interim 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.

Commercial and other costs

By-product credits from Chapada copper revenue

52

NET DEBT The Company uses the financial measure "Net Debt", which is a non-GAAP financial measure, to supplement information in its Condensed Consolidated Interim 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, (In millions of US Dollars)

September, 2017

December 31, 2016

Debt Non-current portion $ 1,642.5 $ 1,573.8 Current portion 110.0 18.6 Total debt $ 1,752.5 $ 1,592.4 Less: Cash and cash equivalents 125.4 97.4 Net debt (i) $ 1,627.1 $ 1,495.0

(i) Beginning January 1, 2016, the Company revised the presentation of net debt and comparative balances have been restated to conform to the change in presentation adopted in the current period.

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 Condensed Consolidated Interim Financial Statements. Net Free Cash Flow 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 with respect to its operating cash flow capacity to meet non-discretionary outflow 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 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:

53

For the three months ended September 30,

For the nine months ended September 30,

(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 $ 171.5

$ 176.2

$ 423.6

$ 529.1

Income taxes paid (5.2 ) $ (3.2 ) (17.3 ) (50.4) Payments made related to the Brazilian tax matters (30.5 ) — (30.5 ) — Cash flows from operating activities before net change in working capital $ 135.8 $ 173.0 $ 375.8 $ 478.7 Net change in working capital 14.0 5.6 (50.1 ) 9.8 Cash flows from operating activities $ 149.8 $ 178.6 $ 325.7 $ 488.5 Add: Payments made related to the Brazilian tax matters 30.5 — 30.5 — Add: Other cash payments 6.0 — 6.0 — Less: Non-discretionary items related to the current period

Sustaining capital expenditures (50.1 ) (83.3) (147.7 ) (203.2) Interest and finance expenses paid (19.2 ) (17.0) (69.5 ) (65.9)

Net free cash flow $ 117.0 $ 78.3 $ 145.0 $ 219.4

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 Condensed Consolidated Interim 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:

2017 2016 For the three months ended September 30, (In millions of US Dollars; unless otherwise noted) Total Gold Silver Copper Total Gold Silver Copper

Revenue $ 493.4 $ 378.6 $ 26.2 $ 88.6 $ 464.3 $ 393.1 $ 30.1 $ 41.1 Treatment and refining charges of gold and copper concentrate 11.5

1.7

—

9.8

6.9

1.0

—

5.9

Sales taxes 5.0 2.6 — 2.4 4.1 2.7 — 1.4 Metal price adjustments related to concentrate revenue 4.8 — — 4.8 (2.0 ) (0.8 ) — (1.2 ) Other adjustments (0.1) (0.1 ) 0.1 (0.1 ) 0.1 0.1 — — Gross revenue $ 514.6 $ 382.8 $ 26.3 $ 105.5 $ 473.4 $ 396.1 $ 30.1 $ 47.2 Commercial gold/silver ounces, million pounds of copper sold 299,588

1,574,943

36.5

296,330

1,544,478

22.1

Revenue per gold/silver ounce, pound of copper sold $ 1,264 $ 16.64 $ 2.43 $ 1,327 $ 19.47 $ 1.86 Average realized price per gold/silver ounce, pound of copper sold $ 1,278

$ 16.66

$ 2.89

$ 1,337

$ 19.53

$ 2.14

54

2017 2016 For the nine months ended September 30, (In millions of US Dollars; unless otherwise noted) Total Gold Silver Copper Total Gold Silver Copper Revenue $ 1,325.0 $ 1,051.4 $ 68.3 $ 205.3 $ 1,303.3 $ 1,085.1 $ 84.4 $ 133.8 Treatment and refining charges of gold and copper concentrate 27.3

4.0

0.1

23.2

21.9

3.1

0.1

18.7

Sales taxes 13.0 8.1 — 4.9 11.6 7.2 0.3 4.1 Metal price adjustments related to concentrate revenue (0.4) (0.8 ) — 0.4 (7.8 ) (1.6 ) — (6.2 ) Other adjustments (0.6) (0.4 ) — (0.2 ) (0.2 ) (0.4 ) — 0.2 Gross revenue $ 1,364.3 $ 1,062.3 $ 68.4 $ 233.6 $ 1,328.8 $ 1,093.4 $ 84.8 $ 150.6 Commercial gold/silver ounces, million pounds of copper sold 845,691

4,043,957

86.9

864,071

4,985,004

70.7

Revenue per gold/silver ounce, pound of copper sold $ 1,243 $ 16.89 $ 2.36 $ 1,256 $ 16.94 $ 1.89 Average realized price per gold/silver ounce, pound of copper sold $ 1,256

$ 16.92

$ 2.69

$ 1,266

$ 17.00

$ 2.13

ADDITIONAL LINE ITEMS OR SUBTOTALS IN FINANCIAL STATEMENTS The Company uses the following line items and subtotals in the 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.

• 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.

55

14. SELECTED QUARTERLY FINANCIAL AND OPERATING SUMMARY

For the three months ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, (In millions of US Dollars, unless otherwise noted) 2017 2017 2017 2016 Financial results Revenue (i) $ 493.4 $ 428.1 $ 403.5 $ 484.4 Mine operating earnings $ 106.4 $ 55.2 $ 59.5 $ (639.3 ) Net earnings/(loss) from continuing operations $ 38.3 $ (36.8 ) $ (5.9) $ (355.4 ) Net earnings/(loss) $ 38.3 $ (36.8 ) $ (5.9) $ (368.0 ) Cash flows from operating activities from continuing operations $ 149.8 $ 124.6 $ 51.3 $ 163.0 Cash flows from operating activities before income taxes paid and net change in working capital (ii) $ 171.5

$ 126.5

$ 125.6

$ 161.2

Cash flows from operating activities before net change in working capital (ii) $ 135.8

$ 122.8

$ 117.2

$ 147.7

Cash flows to investing activities from continuing operations $ (179.8) $ (82.3 ) $ (114.0) $ (119.5 ) Cash flows from/(to) financing activities operations from continuing operations $ 19.5

$ (11.5 ) $ 70.4

$ (187.7 )

Per share financial results Net earnings/(loss) per share from continuing operations attributable to Yamana equityholders Basic and diluted $ 0.05 $ (0.04 ) $ (0.01) $ (0.38 ) Weighted average number of common shares outstanding - Basic (in thousands) 948,254

948,116

947,901

947,647

Weighted average number of common shares outstanding - diluted (in thousands) 948,254

948,116

947,901

947,647

Financial position Cash and cash equivalents $ 125.4 $ 132.3 $ 105.9 $ 97.4 Total assets $ 8,993.3 $ 8,868.7 $ 8,850.4 $ 8,801.7 Total non-current liabilities $ 3,679.2 $ 3,713.4 $ 3,707.8 $ 3,746.6 Production - Gold Gold ounces produced - attributable (iii) 281,315 275,437 257,533 319,265 Discontinued operations - gold ounces — — 23,023 — Total gold ounces produced 281,315 275,437 280,556 319,265 Total cost of sales per gold ounce sold (ii) $ 1,022 $ 1,105 $ 1,038 $ 1,004 Co-product cash costs per gold ounce produced - Attributable (ii)(iii) $ 689 $ 696 $ 712 $ 667 Co-product cash costs per gold ounce produced - Yamana mines (ii)(iii) $ 672 $ 671 $ 687 $ 635 By-product cash costs per gold ounce produced - Yamana mines (ii)(iii) $ 496 $ 601 $ 610 $ 553 Co-product AISC per gold ounce produced - Attributable (ii)(iii) $ 905 $ 899 $ 936 $ 928 Co-product AISC per gold ounce produced - Yamana mines (ii)(iii) $ 874 $ 869 $ 912 $ 892 By-product AISC per gold ounce produced - Yamana mines (ii)(iii) $ 729 $ 841 $ 893 $ 870 Production - Silver Silver ounces produced (iii) 1,431,211 1,323,399 1,079,108 1,627,051 Discontinued operations - silver ounces — — — — Total silver ounces produced 1,431,211 1,323,399 1,079,108 1,627,051 Total cost of sales per silver ounce sold (ii) $ 14.15 $ 13.92 $ 15.36 $ 15.58 Co-product cash costs per silver ounce produced (ii)(iii) $ 10.53 $ 10.19 $ 10.36 $ 10.07 By-product cash costs per silver ounce produced (ii)(iii) $ 8.64 $ 9.18 $ 9.00 $ 8.90 Co-product AISC per silver ounce produced (ii)(iii) $ 13.70 $ 14.04 $ 14.24 $ 14.48 By-product AISC per silver ounce produced (ii)(iii) $ 12.24 $ 13.63 $ 13.71 $ 14.18 Production - Other Chapada concentrate production (tonnes) 70,090 54,342 51,589 68,375 Chapada copper contained in concentrate (millions of pounds) 37.1 29.1 26.5 36.9 Total cost of sales per pound of copper sold (ii) $ 1.63 $ 1.91 $ 1.81 $ 1.80 Chapada co-product cash costs per pound of copper produced $ 1.35 $ 1.61 $ 1.78 $ 1.44 Chapada co-product AISC per pound of copper produced (ii)(iii) $ 1.84 $ 1.84 $ 2.13 $ 2.13 Sales included in revenue Gold (ounces) 299,588 278,187 267,916 324,197 Silver (millions of ounces) 1.6 1.3 1.2 1.6 Chapada concentrate (tonnes) 74,394 52,643 50,626 68,477

56

Chapada payable copper contained in concentrate (millions of pounds) 36.5 25.2 34.2 34.2 Revenue per ounce / pound Gold - per ounce $ 1,264 $ 1,255 $ 1,196 $ 1,196

$ 16.85 $ 17.11 $ 17.11 Copper - per pound $ 2.43 $ 2.27 $ 2.02 $ 2.02 Average realized prices Gold - per ounce (i) $ 1,278 $ 1,268 $ 1,210 $ 1,210 Silver - per ounce (i) $ 16.66 $ 16.89 $ 17.17 $ 17.17 Copper - per pound (i) $ 2.89 $ 2.52 $ 2.48 $ 2.48

For the three months ended Sep. 30, Jun. 30, Mar. 31, Dec. 31, (In millions of US Dollars, unless otherwise noted) 2016 2016 2016 2015 Financial results Revenues (i) $ 464.3 $ 438.0 $ 400.9 $ 439.1 Mine operating earnings $ 91.0 $ 54.3 $ 79.0 $ 49.3 Net (loss)/earnings from continuing operations $ (2.1) $ 30.3 $ 36.1 $ (1,448.7 ) Net (loss)/earnings $ (11.8) $ 34.8 $ 36.4 $ (1,842.1 ) Cash flows from operating activities from continuing operations $ 178.6 $ 192.7 $ 116.3 $ 296.9 Cash flows from operating activities before income taxes paid and net change in working capital (ii) $ 176.2

$ 200.2

$ 151.6

$ 309.4

Cash flows from operating activities before net change in working capital (ii) $ 173.0

$ 189.5

$ 115.2

$ 294.3

Cash flows to investing activities from continuing operations $ 12.9 $ (120.6 ) $ (139.7) $ (144.7 ) Cash flows (to)/from financing activities operations from continuing operations $ (33.3) $ (108.7 ) $ 22.0

$ (168.2 )

Per share financial results (Loss)/earnings per share from continuing operations attributable to Yamana equityholders

Basic and diluted $ 0.00 $ 0.03 $ 0.04 $ (1.53 ) Weighted average number of common shares outstanding - basic (in thousands) 947,590

947,346

947,173

946,773

Weighted average number of common shares outstanding - diluted (in thousands) 948

948,096

947,670

946,773,031

Financial position Cash and cash equivalents $ 243.6 $ 93.4 $ 124.6 $ 119.9 Total assets $ 9,564.5 $ 9,532.9 $ 9,584.0 $ 9.5 Total non-current liabilities $ 4,124.0 $ 4,098.7 $ 4,178.6 $ 4,111.4 Production - Gold Commercial gold ounces produced - attributable (iii) 305,581 290,137 283,757 277,515 Discontinued operations - gold ounces 23,023 22,948 24,304 20,407 Total gold ounces produced 328,604 313,085 308,061 337,201 Total cost of sales per gold ounce sold (ii) $ 1,038 $ 1,056 $ 939 $ 970 Co-product cash costs per gold ounce produced - Attributable (ii)(iii) $ 692 $ 698 $ 601 $ 609 Co-product cash costs per gold ounce produced - Yamana mines (ii)(iii) $ 671 $ 692 $ 603 $ 601 By-product cash costs per gold ounce produced - Yamana mines (ii)(iii) $ 665 $ 644 $ 585 $ 521 Co-product AISC per gold ounce produced - Attributable (ii)(iii) $ 965 $ 958 $ 785 $ 773 Co-product AISC per gold ounce produced - Yamana mines (ii)(iii) $ 936 $ 969 $ 791 $ 773 By-product AISC per gold ounce produced - Yamana mines (ii)(iii) $ 998 $ 987 $ 814 $ 726 Production - Silver Commissioning silver ounces produced from continuing operations (iii) 1,592,526 1,687,644 1,802,029 1,857,469 Discontinued operations - silver ounces 98,995 103,262 124,620 102,116 Total silver ounces produced 1,691,521 1,790,906 1,926,649 1,959,586 Total cost of sales per silver ounce sold (ii) $ 15.36 $ 12.94 $ 12.06 $ 12.93 Co-product cash costs per silver ounce produced (ii)(iii) $ 9.79 $ 8.47 $ 7.68 $ 7.71 By-product cash costs per silver ounce produced (ii)(iii) $ 9.78 $ 7.92 $ 7.39 $ 6.48 Co-product AISC per silver ounce produced (ii)(iii) $ 13.79 $ 12.18 $ 10.44 $ 9.93 By-product AISC per silver ounce produced (ii)(iii) $ 14.73 $ 12.42 $ 10.67 $ 9.29 Production - Other Chapada concentrate production (tonnes) 56,100 43,720 48,138 70,255 Chapada copper contained in concentrate production (millions of pounds) 29.6 23.2 25.9 36.6

Silver - per ounce $ 16.64

57

Total cost of sales per pound of copper sold (ii) $ 1.91 $ 2.09 $ 1.81 $ 1.42 Chapada co-product cash costs per pound of copper produced $ 1.60 $ 1.80 $ 1.54 $ 1.31 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) 296,330 291,152 276,589 282,638 Silver (millions of ounces) 1.5 1.7 1.8 1.8 Chapada concentrate (tonnes) 47,604 52,735 48,364 74,538 Chapada payable copper contained in concentrate (millions of pounds) 222.1 26.0 22.7 38.6 Revenue per ounce / pound Gold - per ounce $ 1,327 $ 1,256 $ 1,179 $ 1,051 Silver - per ounce $ 19.47 $ 16.72 $ 14.92 $ 14.35 Copper - per pound $ 1.86 $ 1.7 $ 2.14 $ 1.73 Average realized prices Gold - per ounce (i) $ 1,337 $ 1,267 $ 1,189 $ 1,102 Silver - per ounce (i) $ 19.53 $ 16.83 $ 14.93 $ 14.65 Copper - per pound (i) $ 2.14 $ 2.12 $ 2.12 $ 2.26 (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 13: Non-GAAP Financial Measures and Additional Line Items or Subtotals in Financial

Statements of this Management’s Discussion and Analysis. (iii) Balances are from continuing operations.

15. 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:

58

• 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 thedirectors of the Company; and

• 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 because changes in conditions or deterioration in the degree of compliance with the Company’s policies and procedures.

CHANGES IN INTERNAL CONTROLS

During the period ended September 30, 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 ChiefFinancial 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 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 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 September 30, 2017 and December 31, 2016 and results of operations for the periods ended September 30, 2017 and September 30, 2016.

This Management’s Discussion and Analysis has been prepared as of October 25, 2017. The Condensed Consolidated Interim Financial Statements prepared in accordance with IAS 34 follow this Management’s Discussion and Analysis. This Management’s Discussion and Analysis is intended to supplement and complement the unaudited condensed consolidated interim financial statements and notes thereto as of and for the three and nine months ended September 30, 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 annual audited consolidated financial statements for the year ended December 31, 2016 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, which are included in the 2016 Annual Report on Form 40-F on file with the United States Securities and Exchange Commission. Certain notes to the Financial

59

Statements are specifically referred to in this Management’s Discussion and Analysis and such notes are incorporated by reference herein. All Dollar amounts in the Management’s Discussion and Analysis are in United States Dollars, unless otherwise specified.

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 orregulations and/or change in the administration of laws, policies and practices, the impact of the proposed new mining law in Brazil and the new Chilean tax reform package, 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, the Argentine peso and the Mexican peso versus the United States 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.

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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, 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 andregulations of the Commission thereunder.

*************

TABLE OF CONTENTS Page Condensed Consolidated Interim Statements of Operations 62 Condensed Consolidated Interim Statements of Comprehensive Income/(Loss) 63 Condensed Consolidated Interim Statements of Cash Flows 64 Condensed Consolidated Interim Balance Sheets 65 Condensed Consolidated Interim Statements of Changes in Equity 66 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS:

Note 1: Basis of Preparation and Presentation 67 Note 2: Recent Accounting Pronouncements 67 Note 3: Acquisition and Disposition of Mineral Interests 70 Note 4: Other (Recoveries)/Expenses 72 Note 5: Finance Income and Expense 72 Note 6: Income Taxes 73 Note 7: Earnings/(Loss) Per Share 74 Note 8: Other Comprehensive Income 74 Note 9: Supplementary Cash Flow Information 75

Note 10: Fair Value Measurement 76 Note 11: Inventories 78 Note 12: Property, Plant and Equipment 79 Note 13: Selected Composition Notes 80 Note 14: Long-Term Debt 81 Note 15: Share Capital 82 Note 16: Share-Based Payments 83 Note 17: Non-Controlling Interest 83 Note 18: Capital Management 84 Note 19: Operating Segments 84 Note 20: Contractual Commitments 88 Note 21: Contingencies 88 Note 22: Subsequent Events 89

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YAMANA GOLD INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS



(In millions of United States Dollars except for shares and per share amounts, unaudited) 2017 2016 2017 2016 Revenue $ 493.4 $ 464.3 $ 1,325.0 $ 1,303.3 Cost of sales excluding depletion, depreciation and amortization (279.0 ) (261.2 ) (778.0 ) (744.9 ) Gross margin excluding depletion, depreciation and amortization $ 214.4 $ 203.1 $ 547.0 $ 558.4 Depletion, depreciation and amortization (108.0 ) (112.1 ) (325.9 ) (334.0 ) Mine operating earnings $ 106.4 $ 91.0 $ 221.1 $ 224.4 Expenses General and administrative (28.5 ) (24.8 ) (79.7 ) (70.3 ) Exploration and evaluation (4.9 ) (3.8 ) (14.2 ) (11.9 ) Other recoveries/(expenses) (Note 4) 26.9 (13.8 ) (6.9 ) (20.9 ) Operating earnings $ 99.9 $ 48.6 $ 120.3 $ 121.3 Finance income (Note 5) 0.8 0.4 2.6 0.7 Finance expense (Note 5) (39.4 ) (40.1 ) (102.8 ) (113.4 ) Net finance expense $ (38.6) $ (39.7 ) $ (100.2 ) $ (112.7) Earnings before income taxes $ 61.3 $ 8.9 $ 20.1 $ 8.6 Current income tax expense (Note 6) $ (30.8) $ (13.9 ) $ (61.1 ) $ (34.5) Deferred income tax recovery (Note 6) 7.8 2.9 36.5 90.2 Income tax (expense)/recovery of continuing operations $ (23.0) $ (11.0 ) $ (24.6 ) $ 55.7 Net earnings/(loss) from continuing operations $ 38.3 $ (2.1 ) $ (4.5 ) $ 64.3 Net loss from discontinued operations (Note 3(b)) — (9.7 ) — (5.0 ) Net earnings/(loss) $ 38.3 $ (11.8 ) $ (4.5 ) $ 59.3 Attributable to:

Yamana Gold Inc. equity holders $ 43.5 $ (11.8 ) $ 2.5 $ 59.3 Non-controlling interests (5.2 ) — (7.0 ) —

Net earnings/(loss) $ 38.3 $ (11.8 ) $ (4.5 ) $ 59.3 Net earnings/(loss) per share (Note 7)

Net earnings/(loss)per share from continuing operations, attributable to Yamana Gold Inc. equityholders - basic and diluted $ 0.05 $ — $ — $ 0.07

Net earnings/(loss) per share from discontinued operations - basic and diluted $ — $ (0.01 ) $ — $ (0.01)

Net earnings/(loss) per share - basic and diluted $ 0.04 $ (0.01 ) $ — $ 0.06 Weighted average number of shares outstanding (in thousands) (Note 7)

Basic 948,254 947,590 948,092 947,374 Diluted 948,830 947,590 948,092 947,953

The accompanying notes are an integral part of the condensed consolidated interim financial statements.

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YAMANA GOLD INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)



September 30, (In millions of United States Dollars, unaudited) 2017 2016 2017 2016 Net earnings/(loss) $ 38.3 $ (11.8 ) $ (4.5 ) $ 59.3 Other comprehensive income/(loss), net of taxes (Note 8) Items that may be reclassified subsequently to profit or loss: - Net gain in fair value of available-for-sale securities ("AFS"),

net of income taxes $ 0.2 $ 0.3 $ 0.1 $ 5.1

- Reclassification of losses recorded in earnings — — 4.5 — - Increase in fair value of hedging instruments 24.8 4.5 61.0 4.5 - Decrease in fair value of hedging instruments (6.3 ) — (39.3 ) — - Tax impact on fair value of hedging instruments (3.6 ) — (5.8 ) — Total other comprehensive income $ 15.1 $ 4.8 $ 20.5 $ 9.6 Total comprehensive income/(loss) $ 53.4 $ (7.0 ) $ 16.0 $ 68.9 Attributable to :

Yamana Gold Inc. equity holders $ 58.6 $ (7.0 ) $ 18.4 $ 68.9 Non-controlling interests (5.2 ) — (2.4 ) —

Total comprehensive income/(loss) $ 53.4 $ (7.0 ) $ 16.0 $ 68.9


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YAMANA GOLD INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS



September 30, (In millions of United States Dollars, unaudited) 2017 2016 2017 2016 Operating activities Earnings before income taxes $ 61.3 $ 8.9 $ 20.1 $ 8.6 Adjustments to reconcile earnings before taxes to net operating cash flows:

Depletion, depreciation and amortization 108.0 112.1 325.9 334.0 Share-based payments (Note 16) 3.3 (1.1) 9.0 16.6 Finance income (Note 5) (0.8) (0.4) (2.6 ) (0.7) Finance expense (Note 5) 39.4 40.1 102.8 113.4 Mark-to-market on sales of concentrate and price adjustments on unsettled invoices (1.0) 0.7

(1.7 ) (8.1)

Mark-to-market on investments and other assets 0.3 8.7 3.0 (11.2) Amortization of deferred revenue on metal purchase agreements (Note 13) (2.4) (1.8) (8.5 ) (4.0) Other non-cash (recoveries)/expenses (26.7) 11.8 (12.4 ) 21.6

Advanced payments received on metal purchase agreement and unearned revenue (Note 13) —

—

—

64.0

Decommissioning, restoration and similar liabilities paid (3.9) (2.8) (6.0 ) (5.1) Other cash payments (6.0) — (6.0 ) — Cash flows from operating activities before income taxes paid and net change in working capital $ 171.5

$ 176.2

$ 423.6

$ 529.1

Income taxes paid (5.2) (3.2) (17.3 ) (50.4) Payments made related to the Brazilian tax matters (30.5) — (30.5 ) — Cash flows from operating activities before net change in working capital $ 135.8 $ 173.0 $ 375.8 $ 478.7 Net change in working capital (Note 9(b)) 14.0 5.6 (50.1 ) 9.8 Cash flows from operating activities of continuing operations $ 149.8 $ 178.6 $ 325.7 $ 488.5 Cash flows from operating activities of discontinued operations (Note 3(b)) $ — $ (2.2) $ — $ 12.5 Investing activities Acquisition of property, plant and equipment (Note 12) $ (179.4) $ (143.8) $ (447.7 ) $ (344.0) Acquisition of Mineração Riacho dos Machados Ltda Note 3(c)) — — — (50.2) Proceeds from disposition of mineral interest (Note 3(a)(b)) — 122.5 71.5 122.5 Proceeds from disposition of investments and other assets — 33.6 17.3 33.6 Other investing activities (0.4) 0.6 (17.4 ) (9.4) Cash flows (used in)/from investing activities of continuing operations $ (179.8) $ 12.9 $ (376.3 ) $ (247.5) Cash flows (used in)/from investing activities of discontinued operations (Note 3(b)) $ —

$ (4.4) $ —

$ (12.8)

Financing activities Dividends paid (Notes (9(d),15(b)) $ (4.6) $ (4.7) $ (14.2 ) $ (23.2) Interest and other finance expenses paid (Note 9(d)) (19.2) (17.0) (69.5 ) (65.9) Repayment of long-term debt (Notes 9(d),14) (59.2) (117.0) (150.5 ) (306.5) Proceeds from long-term debt (Notes 9(d),14) 102.5 105.4 312.5 275.5 Cash flows from/(used in) financing activities of continuing operations $ 19.5 $ (33.3) $ 78.3 $ (120.1) Effect of foreign exchange of non-United States Dollar denominated cash and cash equivalents $ 3.6

$ (1.4) $ 0.3

$ 3.1

(Decrease)/Increase in cash and cash equivalents of continuing operations $ (6.9) $ 156.8 $ 28.0 $ 124.0 Decrease in cash and cash equivalents of discontinued operations $ — $ (6.6) $ — $ (0.3) Cash and cash equivalents of continuing operations, beginning of period $ 132.3 $ 86.8 $ 97.4 $ 119.6 Cash and cash equivalents of discontinued operations, beginning of period $ — $ 6.6 $ — $ 0.3 Cash and cash equivalents, end of period of continuing operations $ 125.4 $ 243.6 $ 125.4 $ 243.6 Cash and cash equivalents, end of period of discontinued operations (Note 3(b)) $ —

$ —

$ —

$ —

Note 9: Supplementary Cash Flow Information The accompanying notes are an integral part of the condensed consolidated interim financial statements.

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YAMANA GOLD INC. CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS AS AT,

(In millions of United States Dollars, unaudited) September 30,

2017 December 31,

2016 Assets Current assets: Cash and cash equivalents $ 125.4 $ 97.4 Trade and other receivables 35.6 36.6 Inventories (Note 11) 236.4 254.1 Other financial assets (Note 13(a)) 122.9 75.5 Other assets (Note 13(b)) 122.3 88.8 $ 642.6 $ 552.4 Non-current assets: Property, plant and equipment (Note 12) 7,727.1 7,566.3 Other financial assets (Note 13(a)) 20.8 36.5 Deferred tax assets 69.9 116.7 Goodwill and intangibles 477.5 481.0 Other assets (Note 13(b)) 55.4 48.8 Total assets $ 8,993.3 $ 8,801.7 Liabilities Current liabilities: Trade and other payables (Note 9(d)) $ 354.1 $ 340.0 Income taxes payable 46.1 4.8 Other financial liabilities (Note 13(d)) 210.4 95.2 Other provisions and liabilities (Note 13(c)) 41.7 35.1 $ 652.3 $ 475.1 Non-current liabilities: Long-term debt (Notes 9(d),14) 1,642.5 1,573.8 Decommissioning, restoration and similar liabilities 243.4 222.2 Deferred tax liabilities 1,419.1 1,511.4 Other financial liabilities (Note 13(d)) 83.1 76.9 Other provisions and liabilities (Note 13(c)) 291.2 362.3 Total liabilities $ 4,331.6 $ 4,221.7 Equity Share capital (Note 15) Issued and outstanding 948,427,799 common shares (December 31, 2016 - 947,797,596 common shares) $ 7,633.4 $ 7,630.5 Reserves 32.5 12.0 Deficit (3,142.1 ) (3,130.3 ) Equity attributable to Yamana Gold Inc. shareholders $ 4,523.8 $ 4,512.2 Non-controlling interest (Note 17) 137.9 67.8 Total equity $ 4,661.7 $ 4,580.0 Total liabilities and equity $ 8,993.3 $ 8,801.7

Note 20: Contractual Commitments and Note 21: Contingencies The accompanying notes are an integral part of the condensed consolidated interim financial statements. Approved by the Board

“Peter Marrone” “Richard Graff” PETER MARRONE RICHARD GRAFF Director Director

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YAMANA GOLD INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

(In millions of United States Dollars, unaudited) Share capital

Equity reserve

Hedging reserve

Available -for-sale reserve

Other reserve

Total reserves

Retained earnings/ (deficit)

Equity attributable to Yamana

shareholders

Non- controlling

interest Total equity

Balance as at January 1, 2016 $ 7,625.4 $ 20.1 $ — $ (0.4 ) $ (1.1 ) $ 18.6 $ (2,802.7) $ 4,841.3 $ 23.3 $ 4,864.6 Net earnings — — — — — — 59.3 59.3 — 59.3 Accumulated other comprehensive income, net of income tax (Note 8) —

—

4.5

5.1

—

9.6

—

9.6

—

9.6

Transactions with owners

Issued on exercise of stock options 0.3

0.3

—

—

—

0.3

—

0.6

—

0.6

Issued on vesting of restricted share units (Note 16) 3.3

(3.3 ) —

—

—

(3.3 ) —

—

—

—

Restricted share units (Note 16) — 1.5 — — — 1.5 — 1.5 5.3 6.8 Dividend reinvestment plan 0.3 — — — — — — 0.3 — 0.3 Dividends — — — — — — (14.5 ) (14.5 ) — (14.5 )

Balance as at September 30, 2016 $ 7,629.3 $ 18.6 $ 4.5 $ 4.7 $ (1.1 ) $ 26.7 $ (2,757.9) $ 4,898.1 $ 28.6 $ 4,926.7 Balance as at January 1, 2017 $ 7,630.5 $ 17.8 $ 0.2 $ (3.5 ) $ (2.5 ) $ 12.0 $ (3,130.3) $ 4,512.2 $ 67.8 $ 4,580.0 Net loss — — — — — — 2.5 2.5 (7.0 ) (4.5 ) Accumulated other comprehensive income, net of income tax (Note 8) —

—

15.9

4.6

—

20.5

—

20.5

—

20.5

Transactions with owners Divestment of Brio Shares — — — — — — — — 71.5 71.5 Issued on vesting of restricted share units (Note 15) 2.6

(2.6 ) —

—

—

(2.6 ) —

—

—

—

Restricted share units (Note 16) — 2.6 — — — 2.6 — 2.6 5.6 8.2 Dividend reinvestment plan (Note 15) 0.3 — — — — — — 0.3 — 0.3 Dividends — — — — — — (14.3 ) (14.3 ) — (14.3 )

Balance as at September 30, 2017 $ 7,633.4 $ 17.8 $ 16.1 $ 1.1 $ (2.5 ) $ 32.5 $ (3,142.1) $ 4,523.8 $ 137.9 $ 4,661.7


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YAMANA GOLD INC.NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the Three and Nine Months Ended September 30, 2017(With Comparatives as at December 31, 2016 and for the Three and Nine Months Ended September 30, 2016)(Tabular amounts in millions of United States Dollars, unless otherwise noted, unaudited)

1. BASIS OF PREPARATION AND PRESENTATION

These Condensed Consolidated Interim Financial Statements of Yamana Gold Inc. (the "Company" or "Yamana"), including comparative figures, have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34") using the accounting principles consistent with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These Condensed Consolidated Interim Financial Statements do not include all disclosures required by IFRS for annual audited consolidated financial statements and accordingly should be read in conjunction with the Company’s Annual Audited Consolidated Financial Statements for the year ended December 31, 2016 prepared in accordance with IFRS as issued by the IASB. These Condensed Consolidated Interim Financial Statements were authorized for issuance by the Board of Directors of the Company on October 25, 2017.

These Condensed Consolidated Interim Financial Statements have been prepared on the basis of and using the accounting policies, methods of computation and presentation consistent with those applied and disclosed in Note 3: Significant Accounting Policies and Note 5: Recent Accounting Pronouncements to the Company’s Annual Audited Consolidated Financial Statements for the year ended December 31, 2016 except as noted below.

In preparing the Condensed Consolidated Interim Financial Statements in accordance with IAS 34, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses for the period end. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the Company's Condensed Consolidated Interim 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.

The critical judgments and key sources of estimation uncertainties in the application of accounting policies during the three and nine months ended September 30, 2017 are the same as those disclosed in Note 4: Critical Judgements and Estimated Uncertainties to the Company's Annual Audited Consolidated Financial Statements for the year ended December 31, 2016.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Certain pronouncements have been issued by the IASB or the International Financial Reporting Interpretations Committee (“IFRIC”) that are mandatory for accounting periods after December 31, 2016. 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") - The Standard 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. It is effective for annual reporting periods beginning January 1, 2018 for public entities. The Company continues its assessment of the impact of adopting IFRS 9. Currently, the Company enters into commodity derivatives including forward contracts

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and options to manage exposure to fluctuations in metal prices and currency exchange rates to achieve the Company's risk management goals. Update of the impact assessment is summarized below:

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. Year-to-date unrealized mark-to-market loss of copper forwards was $12.1 million and time value gain of copper options $2.7 million, which would have been recorded in other comprehensive income ("OCI") had the Company elected to apply hedge accounting under IFRS 9.Not-held-for-trading investments - If an irrevocable election to present in OCI changes in the fair value of investments in equity instruments that are not held for trading was made, the cumulative gain of approximately $1.1 million currently in OCI as of September 30, 2017, would be subsequently transferred to an equity account if the investments were disposed of. No restatement on adoption of IFRS 9 associated with available-for-sale ("AFS") or not-held-for-trading investments would be required as there are no current AFS investments which have had any unrealized or realized movement in profit or loss. Hedge designation of time value of options - Currently, the Company hedges 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 hedge 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 of intrinsic value is taken to OCI and any variability of time value taken to profit or loss. Beginning in 2018, it is the Company’s intention to 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, which is allowed under IFRS 9. As of September 30, 2017, the year-to-date time value of currency options expensed through profit or loss was $0.5 million. Also refer to Note 22: Subsequent Events for information on the additional currency hedges entered into by the Company subsequent to the end of the third quarter.Modification of the terms of financial liability - With respect to term modification of a debt instrument, the Company is in compliance with IFRS 9 by continuing its current practice in assessing change of terms of debt instrument in order to determine whether the modification of terms is substantial that would result in an extinguishment of the original financial liability andrecognition of the amended debt instrument as a new financial liability. The standard requires that when a financial liability at amortized cost is modified or exchanged, and such modification or exchange does not result in derecognition, that the adjustment to the amortized cost of the financial liability is recognized in in profit or loss. To transition from IAS 39 to IFRS 9, the Company will provide the required disclosure and recognize any difference between the previous carrying amount and the carrying amount at the beginning of the annual reporting period that includes the date of initial application in the opening retained earnings of the annual reporting period that includes the date of initial application.

Application of IFRS 9 on the Company's other financial instruments is not expected to have a significant impact on the Company's financial position nor its results of operations.

(b) IFRS 15 Revenue from Contracts with Customers ("IFRS 15") - The Standard covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. It is effective for annual reporting periods beginning on or after January 1, 2018 for public entities. The Company continues to work through its assessment of the impact of adopting IFRS 15. The Company generates revenue mainly fromselling precious metals and copper through various revenue streams. Typical for the mining industry, each metal sale transaction is stand-alone and without multiple element arrangements. For precious metal, the points in the streams where revenue is recognized after the related performance obligations have been satisfied, are concluded to be essentially the same under IFRS 15 and IAS 18 Revenue. In general, the performance obligations of the sale transactions related to each of the Company's revenue-generating

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streams are satisfied at a point in time with reliably measurable transaction prices and no financing consideration, due to the structure and dynamics of the commodity market where the Company sells its products, with the following exceptions:

• Variable consideration - Metal concentrate sales are subject to the customary business practice of provisional invoicing. In essence, the initial provisional invoice represents an estimate of total shipment value less customary expenses based on averagemarket price during a quotation period, with 90% of the value paid in cash. The subsequent adjustments (reflected in second provisional invoice and final invoices) are calculated on the basis of the final assay quantity times the average spot price by metal during the subsequent quotational period, net of the first provisional invoice amount. Subsequent adjustments include quantity adjustments and price adjustments. Effective September 2017, the Company significantly increased the number of samples takenfrom each shipment of metal concentrate. This will have the impact of increasing the confidence level in overall concentrate grades and reduce the potential variability in quantity measurement. Given the information available at the time of fulfilling the Company’s performance obligations as the seller of goods, the Company believes the estimated invoice value reflected in the first provisional invoice readily represents the best estimate of transaction price, which includes the value of variable consideration potentially related to quantity adjustments. The Company does not expect a significant reversal in the amount of cumulative revenue recognized will occur at the issuance of the final invoice. The variability associated with price adjustment would give rise to an embedded derivative in trade and other receivables, which is currently accounted for under IAS 39.

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 contract, hence causing variability of consideration in each of the sale transactions covered by the metal streaming contract. Approach in accounting for such element is currently under assessment. If such variability due to change in mineral R&R is found within the scope of "variable consideration", the Company does not expect its relative impact on the Company's financial statements to be significant as all of the existing metal streaming contracts are at the early stage of arrangement.

• Significant financing component - In metal streaming sales, for consideration of advance payments of a combination of cash and share purchase warrants for customer’s common shares, the metal streaming agreements stipulate that certain quantity of metal is to be delivered to the customer in accordance with a delivery schedule based on a predetermined pricing formula during the future delivery period. Result of assessment indicates that financial component exists in the Company's metal streaming agreements. The Company is continuing to assess whether the financing component is significant in each of the metal streaming agreements that would provide the customer or the Company with a significant benefit of financing the transfer of goods to and performing other services for the customer.

Assessment and analysis of the facts and circumstances surrounding the Company's revenue-generating streams of metal concentrate and metal streaming agreements continue with respect to the measurement requirements of IFRS 15 regarding variable consideration, significant financing component and other potential impact.

The Company is currently assessing the two transition methods allowed by the new Standard, namely, the full retrospective method in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, and the modified retrospective method with the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of retained earnings at the date of initial application or other component of equity as appropriate. Given the above exceptions represent only a relatively minor segment of the Company's revenue-generating activities, the impact of IFRS 15 on the Company's financial statements is not expected to be significant overall.

(c) IFRS 16 Leases ("IFRS 16") - The Standard requires lessees to recognize assets and liabilities for most leases. It is effective for annual reporting periods beginning January 1, 2019 for public entities. 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 since the second quarter included the development of project plan, project team structure, development of process tools for

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lease identification and roll-out of the data gathering phase, and the initiation of a search for a software solution for lease information management.

(d) 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 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 is currently assessing the impact on the adoption of this Standard, evaluating the transition alternatives and developing procedures and communication. The impact of IFRIC 22 on the Company's financial statements is not expected to be significant.

(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 the adoption of this Standard.

3. ACQUISITION AND DISPOSITION OF MINERAL INTERESTS

a) Disposition of Interest in Brio Gold Inc.

On December 23, 2016, the Company closed an offering of purchase rights pursuant to which the Company transferred a part of its holding of Brio Gold Inc. ("Brio Gold") common shares ("Brio Shares") to Yamana shareholders. A total of 17,324,507 Brio 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 Shares to non-controlling interests.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 Shares. The Company sold the Brio 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 Shares, representing approximately 79% of the issued and outstanding Brio 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 Shares. The Company sold the Brio 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 Brio Shares sale transaction in March 2017. Upon completion of this sale, the Company owned 62.5 million Brio Shares, representing approximately 55.6% of the issued and outstanding Brio Shares.

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b) 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 has recognized a loss of $30.9 million on the sale. c) 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 period 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:

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.

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4. OTHER (RECOVERIES)/EXPENSES



2017 2016 2017 2016

Change in provisions (i) $ (29.2)$ 1.7 $ (28.6)$ 6.0(Recoveries)/Write-down of other assets (ii) (4.7) 3.8 — 3.4

Business transaction costs 0.5 1.0 2.8 6.8

Loss on sale of assets — 1.3 0.5 0.9

Mark-to-market loss/(gain) on deferred share units 0.5 (3.1) (0.6) 8.4

Realized losses on sale of AFS securities and mark-to-market loss/(gain) on warrants 0.3 6.2

3.0 (15.9)

Other expenses (iii) 5.7 2.9 29.8 11.3

Other (recoveries)/expenses $ (26.9)$ 13.8 $ 6.9 $ 20.9

(i) Amount represents the reversal of certain existing provisions based on management's best estimate of the likely outcome.

(ii) In the three months ended September 30, 2017, the Brazilian entities (inclusive of Brio) realized $4.9 million in gains on sales of tax credits.

(iii) Other expenses in the nine months ended September 30, 2017 reflect a $9.4 million expense related to standby costs incurred during El Peñón's suspension of operations

associated with the collective bargaining negotiation, and $3.0 million due to business interruption costs at MRDM.

5. FINANCE INCOME AND EXPENSE



September 30,

2017 2016 2017 2016

Interest income $ 0.8 $ 0.4 $ 2.6 $ 0.7

Finance income $ 0.8 $ 0.4 $ 2.6 $ 0.7

Unwinding of discounts on provisions $ (5.5)$ (3.7) $ (15.4)$ (10.8)

Interest expense on long-term debt (19.2) (19.9) (54.7) (59.2)

Unrealized loss on derivative 0.1 (6.9) (4.6) (6.4)

Net foreign exchange loss (11.5) (4.2) (16.1) (25.0)

Amortization of deferred financing, bank financing fees & other (3.3) (5.4) (12.0) (12.0)

Finance expense $ (39.4)$ (40.1) $ (102.8)$ (113.4)

Net finance expense $ (38.6)$ (39.7) $ (100.2)$ (112.7)

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6. INCOME TAXES Tax expense is recognized based on management's best estimate of the average annual income tax rate expected for the full financial year multiplied by the pre-tax income of the interim reporting period. The following table reconciles income taxes calculated at statutory rates with the income tax expense in the Condensed Consolidated Interim Statements of Operations:



2017 2016 2017 2016 Earnings before income taxes $ 61.3 $ 8.9 $ 20.1 $ 8.6 Canadian statutory tax rate (%) 26.5 % 26.5 % 26.5 % 26.5 %

Expected income tax (recovery) expense $ 16.2 $ 2.4 $ 5.2 $ 2.3 Impact of lower tax rates (i) (5.0 ) 2.3 (26.4 ) (38.7 ) Change in tax rates (ii) — — — (8.2 ) Permanent differences (5.2 ) (4.6 ) (15.7 ) (46.0 ) Unused tax losses and tax offsets not recognized in deferred tax assets 14.2 43.9 35.4 52.2 Unrealized foreign exchange losses (gains) in tax expense (2.6 ) 2.0 (4.8 ) (70.8 ) Tax effect of translation in foreign operations (6.6 ) (19.6 ) 6.5 48.4 True-up of tax provisions in respect of prior years 5.7 (0.4 ) 4.8 8.9 Withholding taxes 4.0 2.4 8.6 6.2 Mining taxes on profit 3.3 1.9 11.4 8.1 Planned distribution of foreign earnings — (15.9 ) — (15.9 ) Other (1.0 ) (3.4 ) (0.4 ) (2.2 ) Income tax expense/(recovery) $ 23.0 $ 11.0 $ 24.6 $ (55.7 )

Income tax recovery is represented by: Current income tax expense $ 30.8 $ 13.9 $ 61.1 $ 34.5 Deferred income tax recovery (7.8 ) (2.9 ) (36.5 ) (90.2 ) Net income tax expense/(recovery) $ 23.0 $ 11.0 $ 24.6 $ (55.7 )

(i) The Company operates in multiple foreign tax jurisdictions that have tax rates that differ from the Canadian statutory rate. (ii) On February 8, 2016, the Chilean government enacted changes to its tax law that reduced the withholding tax on the repatriation of dividend from 35% to 32%. In

November 2016, the Quebec Government enacted changes to the income tax rate as proposed in the 2015 provincial budget. In the current year, the general corporate income tax rate will gradually decrease by 0.1% over the next 4 years with the current rate decreasing from 11.8% to 11.5% in 2020. 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.

Brazilian Tax Assessments As previously disclosed, the Company elected in the third quarter to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Company’s Chapada mine. This commercial resolution creates immediate financial certainty during a time of political volatility and economic reform in country. In coming to the decision to participate, the Company balanced the significant value creation opportunities at Chapada with the costs and risks involved in continued litigation, which could hinder or delay such opportunities. Also contributing to the Company’s decision is that access to governance by judicial courts has limitations, including the financial burden imposed on those who take their disputes through the courts, which requires a bond or other collateral to be posted. The Company believes these financial resources, along with management’s time and effort, are better allocated to value-creating opportunities. The judicial process in Brazil may require years to resolve, often as long as a decade, during which legal fees escalate and interest accrues. On October 25, 2017, the program was formally enacted into law, substantially in the form passed by the legislature. The final program is a mix of the original provisional measure suggested by the executive branch and the proposed amendments by certain members of the legislative branch. The Company has paid $30.5 million year to date, and has allocated three payments of approximately $14.7 million each (R$48.4 million) by end of year. The final program creates an option to either pay one lump sum next year or much smaller installment payments per year for approximately twelve years. The Company has elected to proceed with the installment payments option, as a result of which the Company will pay $8.6 million per year (R$27.6 million) for the stipulated period. A loss will be recorded in

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the fourth quarter income statement, based on the aforementioned amounts already paid and to be paid this year, the present value of future payments and certain permitted deductions. 7. EARNINGS/(LOSS) PER SHARE Earnings/(Loss) per share are based on the weighted average number of common shares of the Company outstanding during the period. The diluted earnings/(loss) per share reflects the potential dilution of common share equivalents, such as outstanding share options and warrants, in the weighted average number of common shares outstanding during the period, if dilutive.



September 30,

2017 2016 2017 2016 Weighted average number of common shares (in thousands) - basic 948,254 947,590 948,092 947,374 Weighted average number of dilutive stock options (in thousands) 1 — — 1 Weighted average number of dilutive Restricted Share Units (in thousands) 575 — — 578 Weighted average number of common shares (in thousands) - diluted (i) 948,830 947,590 948,092 947,953 Basic and diluted earnings/(loss) per share from continuing operations Net earnings/(loss) from continuing operations $ 38.3 $ (2.1) $ (4.5 ) $ 64.3 Earnings/(loss) per share from continuing operations - basic and diluted $ 0.04 $ — $ — $ 0.07 Basic and diluted earnings/(loss) per share attributable to Yamana equity holders Net earnings/(loss) attributable to Yamana equity holders $ 43.5 $ (11.8) $ 2.5 $ 59.3 Earnings/(loss) per share attributable to Yamana equity holders - basic and diluted $ 0.05

$ (0.01) $ —

$ 0.06

Basic and diluted earnings/(loss) per share Net earnings/(loss) $ 38.3 $ (11.8) $ (4.5 ) $ 59.3 Earnings/(loss) per share - basic and diluted $ 0.04 $ (0.01) $ — $ 0.06

(i) For the nine months ended September 30th, 2017, 951 stock options and 558,816 restricted share units were excluded from the diluted weighted average number of shares calculation as their effect would have been anti-dilutive.

8. OTHER COMPREHENSIVE INCOME



September 30,

2017 2016 2017 2016 Net change in unrealized gains on available-for-sale securities: Reclassification of losses recorded in earnings $ — $ — $ 4.5 $ — Mark to Market of available-for-sale securities (net of tax) 0.2 0.3 0.1 5.1 $ 0.2 $ 0.3 $ 4.6 $ 5.1 Net change in fair value of hedging instruments Increase in fair value of hedging instruments $ 24.8 $ 4.5 $ 61.0 $ 4.5 Decrease in fair value of hedging instruments (6.3 ) — (39.3 ) — Tax impact (3.6 ) — (5.8 ) — $ 14.9 $ 4.5 $ 15.9 $ 4.5 Accumulated other comprehensive income attributable to equity shareholders $ 15.1

$ 4.8

$ 20.5

$ 9.6

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9. SUPPLEMENTARY CASH FLOW INFORMATION (a) Non-Cash Investing and Financing Transactions



September 30,

2017 2016 2017 2016 Interest capitalized to assets under construction $ 2.9 $ 1.4 $ 7.2 $ 4.5 Non-cash land purchase agreement $ — $ 21.2 $ — $ 21.2 Issue of common shares on vesting of RSU (Note 15) $ 0.6 $ 0.3 $ 2.6 $ 3.3

(b) Net Change in Working Capital



September 30,

2017 2016 2017 2016 Net (increase)/decrease in: Trade and other receivables $ (11.8) $ 9.8 $ (0.2 ) $ 40.4 Inventories 5.2 (21.9 ) (11.9 ) (3.9 ) Other assets (9.5 ) 1.1 (29.9 ) (9.4 ) Net increase/(decrease) in: Trade payable and other payables 18.1 15.6 (22.8 ) (4.8 ) Other liabilities 12.3 11.2 (0.7 ) 4.8 Movement in above related to foreign exchange (0.3 ) (10.2 ) 15.4 (17.3 ) Net change in working capital $ 14.0 $ 5.6 $ (50.1 ) $ 9.8

(c) Cash and Cash Equivalents

September 30,

2017 December 31,

2016 Cash at bank $ 124.4 $ 96.2 Bank short-term deposits 1.0 1.2 Total cash and cash equivalents of continuing operations (i) $ 125.4 $ 97.4

(i) Cash and cash equivalents consist of cash on hand, cash on deposit with banks, banks term deposits and highly liquid short-term investments with terms of less than 90 days from the date of acquisition.

(d) Change in Liabilities Arising from Financing Activities

Long-term debt

Current portion of long-term debt

(i)

Current liabilities (excluding current

portion of long-term debt)

Trade and other payables

Balance as at December 31, 2016 $ 1,573.8 $ 18.6 $ 76.6 $ 340.0 Cash flows: Proceeds of long-term debt (Note 14) 312.5 — — — Cash flows: Repayments from long-term debt (Note 14) (133.2 ) (17.3 ) — — Cash flows: Interest paid — — — (69.5 ) Cash flows: Dividends paid — — — (14.2 ) Non-cash: Amortization cost of debt (1.9 ) — — — Non-cash: Interest accruals — — — 18.3 Non-cash: Dividends accruals — — — 14.4 Non-cash: Reclassifications and other (108.7 ) 108.7 23.8 65.1

Balance as at September 30, 2017 $ 1,642.5 $ 110.0 $ 100.4 $ 354.1 (i) Presented as a component of Other Financial Liabilities (Note 13(d) Selected Composition Notes).

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10. FAIR VALUE MEASUREMENT (a) Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, trade and other receivables, investments in financial securities, trade and other payables, long-term debt and derivative assets (liabilities). The carrying values of cash and cash equivalents, trade and other receivables, advances and deposits, trade and other payables approximate their fair values due to the relatively short-term nature of these instruments. Adjustments recognized in the balance sheet relating to concentrate sales are fair valued based on published and observable prices. Fair values of derivatives were based on market closing prices at period end, on published and observable market prices for similar instruments and on inputs derived principally from or corroborated by observable market data or other means, except for the determination of the fair value of warrants for which the Black-Scholes model was used. There were no material differences between the carrying value and fair value of non-current financial assets and liabilities. As at September 30, 2017, the debt has a carrying value of $1.8 billion (December 31, 2016 — $1.6 billion), which is comprised of a revolving facility, senior debt and assumed debt from Canadian Malartic with fair values of $292 million, $1.5 billion, $3.6 million respectively (December 31, 2016 — $116.2 million, $1.5 billion and assumed debt from Canadian Malartic of $20.3 million). The fair value was calculated by discounting the future cash flows by a discount factor based on an interest rate of 5% which reflects the Company's own credit risk. Fair values of available-for-sale securities were calculated based on current and available market information. The Company assesses its financial instruments and non-financial contracts on a regular basis to determine the existence of any embedded derivatives which would be required to be accounted for separately at fair value and to ensure that any embedded derivatives are accounted for in accordance with the Company’s policy. As at September 30, 2017, there were no embedded derivatives requiring separate accounting other than concentrate sales.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

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. The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis:

As at September 30, 2017 Level 1 Input

Level 2 Input

Level 3 Input

Aggregate Fair Value

Assets: Available-for-sale securities (Note 13(a)) $ 4.8 $ — $ — $ 4.8 Warrants — 2.2 — 2.2 Derivative related assets (Note 13(a)) — 30.2 — 30.2 $ 4.8 $ 32.4 $ — $ 37.2 Liabilities: Derivative related liabilities (Note 13(d)) $ — $ 10.6 $ — $ 10.6 $ — $ 10.6 $ — $ 10.6

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As at December 31, 2016 Level 1 Input

Level 2 Input

Level 3 Input

Aggregate Fair Value

Assets: Available-for-sale securities (Note 13(a)) $ 18.7 $ — $ — $ 18.7 Warrants — 3.4 — 3.4 Derivative related assets (Note 13(a)) — 4.9 — 4.9 $ 18.7 $ 8.3 $ — $ 27.0 Liabilities: Derivative related liabilities (Note 13(d)) $ — $ 2.2 $ — $ 2.2

$ — $ 2.2 $ — $ 2.2

Valuation Techniques Available-for-Sale Securities The fair value of publicly traded available-for-sale securities is determined based on a market approach reflecting the bid price of each particular security at the balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for the particular security, and therefore available-for-sale securities are classified within Level 1 of the fair value hierarchy. Derivative Instruments 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. Gold Sales Contracts and Metal Concentrate Sales Contracts Gold sales are made at market observable spot prices. Metal concentrate sales are based on market prices on measurement dates, which are two or three months after shipment depending on the terms of the off-take agreements. The sales are measured initially and then adjusted monthly on the basis of prices quoted on the London Metal Exchange until the measurement date. Therefore, metal concentrate sales would be classified within Level 2 of the fair value hierarchy. The Company continues to monitor and, as warranted, adjust for credit risk based upon the credit default swap spread for each of the counterparties. The following table summarizes unrealized derivative (losses)/gains:



September 30,

2017 2016 2017 2016 Commodity contracts $ 3.3 $ (0.8) $ (0.1 ) $ (6.0) Currency contracts (3.2 ) (6.1 ) (4.5 ) (0.4 ) DSU contracts (0.5 ) — (0.5 ) — $ (0.4) $ (6.9) $ (5.1 ) $ (6.4)

The following table summarizes realized derivative gains/(losses):



September 30,

2017 2016 2017 2016 Commodity contracts $ (9.2) $ 0.9 $ (9.8 ) $ 0.9 Currency contracts 3.2 — 16.8 — $ (6.0) $ 0.9 $ 7.0 $ 0.9

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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. As at September 30, 2017, there are no substantial changes to the market risk described in Note 16: Financial Instruments to the Consolidated Annual Financial Statements, except for the change in managing the Company’s currency risk as discussed below. The Company’s sales are predominantly denominated in United States Dollars. The Company is primarily exposed to currency fluctuations relative to the United States 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. The Company entered into zero-cost collar contracts totaling R$510 million (R$ = Brazilian Reais) with the purchase of call options at an average strike price of R$3.40 per USD and the sale of put options at an average strike price of R$4.13 per USD. The term of the cash flow hedge was from May 2016 to April 2017. In October 2016, the Company entered into an additional zero-cost collar contracts totaling R$400.0 million with the purchase of call options at an average strike price of R$3.25 per USD and sale of put options at an average strike price of $3.79 is per USD. The term of this cash flow hedge is from May 2017 to December 2017. 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. 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 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 amount to 284,200 ounces of gold. 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. 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. Of these, contracts for notional quantities of R$94 million have been settled during the three months ended September 30, 2017, and the remainder settle monthly from October 2017 to December 2017. 11. INVENTORIES

As at, September 30,

2017 December 31,

2016 Product inventories $ 48.8 $ 51.2 Metal in circuit and gold in process 54.7 60.2 Ore stockpiles 18.2 36.3 Materials and supplies 114.7 106.4 $ 236.4 $ 254.1

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The amount of inventories recognized as an expense during the three months and nine month periods ended September 30, 2017 was $279.0 million and $778.0 million, respectively (2016 - $261.2 million and $744.9 million) and is included in cost of sales excluding depletion, depreciation and amortization. For the three months and nine months ended September 30, 2017, a total charge of $nil and $9.5 million respectively, were recorded to adjust inventory to net realizable value (2016 - charges of $2.5 million and $4.7 million), which is included in cost of sales excluding depletion, depreciation and amortization. 12. PROPERTY, PLANT AND EQUIPMENT

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 209.4 240.2 96.1 545.7 Reclassification, transfers and other non-cash movements (iii) 421.8 (435.2 ) 42.9 29.5 Change in decommissioning, restoration & 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 127.5 274.1 46.1 447.7 Reclassification, transfers and other non-cash movements (iii) 76.3 15.0 (52.9 ) 38.4 Change in decommissioning, restoration & similar liabilities 8.6 0.5 — 9.1 Disposals 0.9 0.9 (18.4 ) (16.6 ) Cost, September 30, 2017 $ 6,073.7 $ 6,272.5 $ 2,720.0 $ 15,066.2 Accumulated depreciation, January 1, 2016 $ 3,211.3 $ 2,275.8 $ 1,175.6 $ 6,662.7 Depreciation for the period 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 depreciation, December 31, 2016 $ 3,569.4 $ 2,081.2 $ 1,370.7 $ 7,021.3 Depreciation for the period 175.4 — 150.2 325.6 Disposals — — (7.8 ) (7.8 ) Accumulated depreciation, September 30, 2017 $ 3,744.8 $ 2,081.2 $ 1,513.1 $ 7,339.1 Carrying value, December 31, 2016 $ 2,291.0 $ 3,900.8 $ 1,374.5 $ 7,566.3 Carrying value, September 30, 2017 $ 2,328.9 $ 4,191.3 $ 1,206.9 $ 7,727.1

(i) The following table shows the reconciliation of capitalized stripping costs incurred in the production phase:


2017 December 31,

2016 Balance, beginning of period $ 301.9 $ 238.3 Additions 123.8 88.7 Amortization (10.5 ) (25.1 ) Balance, end of period $ 415.2 $ 301.9

(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:


2017 December 31,

2016 Projects with mineral reserves $ 2,566.7 $ 2,346.1 Exploration potential 1,451.9 1,465.1 Mines under construction 172.7 89.6 Total $ 4,191.3 $ 3,900.8

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(iii) Reclassification, transfers and other non-cash movements for the period includes $50.5 million (2016 - $24.1 million) in stockpile inventory which is not expected to be processed within one year for a cumulative balance of $88.1 million.

13. SELECTED COMPOSITION NOTES a) Other Financial Assets


2017 December 31,

2016 Income tax recoverable and installments $ 29.1 $ 18.3 Tax credits recoverable (i) 54.2 43.2 Derivative related asset 30.2 4.9 Royalty and other receivables 20.0 20.3 Investments in financial securities (ii) 7.0 22.1 Other 3.2 3.2 $ 143.7 $ 112.0 Current $ 122.9 $ 75.5 Non-current 20.8 36.5 $ 143.7 $ 112.0

(i) Tax credits recoverable classified as other financial assets consist of sales taxes which are recoverable in the form of a refund from the respective jurisdictions in which the Company operates.

(ii) Investments in financial securities includes AFS securities and warrants with a cost of $16.8 million (2016 - $39.3 million) and a fair value of $7 million (2016 - $22.1 million).

b) Other Assets


2017 December 31,

2016 Tax credits recoverable (i) $ 72.6 $ 73.6 Advances and deposits 52.0 50.5 Other advances 53.1 13.5 $ 177.7 $ 137.6 Current $ 122.3 $ 88.8 Non-current 55.4 48.8 $ 177.7 $ 137.6

(i) Tax credits recoverable classified as other assets consist of sales taxes which are recoverable against other taxes payable and value-added tax. c) Other Provisions and Liabilities


2017 December 31,

2016 Provision for repatriation taxes payable (i) $ 13.0 $ 13.1 Provision for taxes 29.9 25.8 Deferred revenue on metal agreements - Altius (ii) 57.2 59.8 Deferred revenue on metal agreements - Sandstorm (iii) 158.6 164.8 Other provisions and liabilities (iv) 74.2 133.9 $ 332.9 $ 397.4 Current $ 41.7 $ 35.1 Non-current 291.2 362.3 $ 332.9 $ 397.4

(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 $13.0 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 Minerals Corporation. Movement of deferred revenue of $2.6 million in the year to date is related to the amortization of deferred revenue on metal delivery.

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(iii) Deferred revenue on metal agreements includes the proceeds received from three metal agreements signed with Sandstorm Gold Ltd. Movement of deferred revenue of $6.2 million in the year to date is related to the amortization of deferred revenue on metal delivery.

(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 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 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.

d) Other Financial Liabilities


2017 December 31,

2016 Other taxes payable 21.9 $ 20.7 Royalty payable (i) 18.1 16.1 Payable related to purchase of mineral interests (ii) 10.8 21.2 Severance accrual 35.6 33.2 Deferred Share Units/Performance Share Units liability (Note 16) 16.1 16.9 Accounts receivable financing credit (iii) 41.8 40.4 Current portion of long-term debt (Note 14) (Note 9(d)) 110.0 18.6 Derivative related liabilities 10.6 2.2 Other 28.6 2.8 $ 293.5 $ 172.1 Current $ 210.4 $ 95.2 Non-current 83.1 76.9 $ 293.5 $ 172.1

(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. (iii) Accounts receivable financing credit is payable within 30 days from the proceeds on concentrate sales.

14. LONG-TERM DEBT


2017 December 31,

2016 $500 million senior debt notes, issued on June 25, 2014 $ 496.0 $ 495.6 $300 million senior debt notes, issued on June 10, 2013 295.1 294.9 $500 million senior debt notes, issued on March 23, 2012 484.5 484.1 $270 million senior debt notes, issued on December 18, 2009 181.3 181.3 $1 billion revolving facility (ii) 231.8 116.2 $75 million revolving facility (iii) 60.2 — Long-term debt from 50% interest of Canadian Malartic 3.6 20.3 Total debt $ 1,752.5 $ 1,592.4 Less: current portion of long-term debt (110.0 ) (18.6 ) Long-term debt (i) $ 1,642.5 $ 1,573.8

(i) Balances are net of transaction costs of $12.4 million, net of amortization (December 31, 2016 - $11.9 million). The Company incurred $2.3 million (December 31, 2016 - nil) in transaction costs in the period related to the Brio revolving facility.

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(ii) During the nine months ended September 30, 2017, the Company drew $250.0 million and repaid $135.0 million on its $1.0 billion revolving facility. The Company will, from time to time, repay balances outstanding on its revolving credit and intends to renew the credit facility upon maturity in 2021.

(iii) During the nine months ended September 30, 2017, Brio Gold drew $72.5 million and repaid $10.0 million on its $75.0 million revolving facility. Brio Gold will, from time to time, repay balances outstanding on its revolving credit and intends to renew the credit facility upon maturity in 2019.

The following is a schedule of long-term debt principal repayments which includes corporate debt, the revolving facility, and debt assumed from the 50% interest in Canadian Malartic which is neither corporate nor guaranteed by the Company:

Long-term Debt 2017 $ 1.2 2018 110.1 2019 245.4 2020 84.1 2021 235.0 2022 192.7 2023 261.2 2024 635.7 $ 1,765.4

15. 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 September 30, 2017 (2016: nil).

For the nine months ended September 30, 2017 2016 Number of Number of Issued and outstanding - 948,427,799 common shares common shares Amount common shares Amount (December 31, 2016 - 947,797,593 common shares): (in thousands) (in millions) (in thousands) (in millions) Balance, as at January 1, $ 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 532 2.6 556 4.5 Dividend reinvestment plan (i) 98 0.3 147 0.3 Balance, end of period $ 948,428 $ 7,633.4 $ 947,798 $ 7,630.5

(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 September 30, 2017, shareholders holding a total of 19,783,417 shares have subscribed to the plan.

(b) Dividends Paid and Declared



September 30,

2017 2016 2017 2016 Dividends paid $ 4.6 $ 4.7 $ 14.2 $ 23.2 Dividends declared in respect of the period $ 4.8 $ 4.9 $ 14.3 $ 14.5 Dividend paid (per share) $ 0.005 $ 0.005 $ 0.015 $ 0.025 Dividend declared in respect of the period (per share) $ 0.005 $ 0.005 $ 0.015 $ 0.015

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16. SHARE-BASED PAYMENTS The total expense relating to share-based payments includes accrued compensation expense related to plans granted and adjustments to compensation associated with mark-to-market adjustments on cash-settled plans, as follows:



September 30,

2017 2016 2017 2016 Accrued expense on equity-settled compensation plans $ 1.0 $ 0.4 $ 2.7 $ 1.9 Accrued expense on cash-settled compensation plans 0.3 (0.1 ) 1.7 1.1 Total expense for instruments granted $ 1.3 $ 0.3 $ 4.4 $ 3.0 Compensation expense for Brio Gold Inc. 1.9 1.7 5.6 5.2 Mark-to-market loss/(recovery) on cash-settled plans 0.1 (3.1 ) (0.9 ) 8.4 Total expense recognized as compensation expense $ 3.3 $ (1.1 ) $ 9.1 $ 16.6


2017 December 31,

2016 Total carrying amount of liabilities for cash-settled arrangements 16.1 16.9

The following table summarizes the equity instruments outstanding related to share-based payments as at:

As at (In thousands) September 30,

2017 December 31,

2016 Options (i) 1,925 2,242 Restricted share units ("RSU") (ii) 1,531 707 Deferred share units ("DSU") (iii) 4,150 3,829 Performance share units ("PSU") (iv) 2,517 1,873

(i) During the three months ended September 30, 2017, 56,666 options were expired. (ii) During the three months ended September 30, 2017, the Company granted 3,169 RSUs with a weighted average grant date fair value of C$3.00 per RSU. (iii) During the three months ended September 30, 2017, the Company granted 118,629 DSUs and recorded an expense of $0.4 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 three million DSUs (approximately 80% of outstanding DSUs) at a value of C$3.5002 per share. For the quarter ended September 30, 2017, the DSU had a mark-to-market loss of $0.5 million and the DSU hedge had a mark-to-market gain of $0.4 million.

(iv) During the three months ended September 30, 2017, the Company granted 6,720 PSUs at a fair value of C$3.00 per unit. 17. NON-CONTROLLING INTEREST Non-controlling interests exist in less than wholly-owned subsidiaries of the Company and represent the outside interest's share of the carrying values of the subsidiaries. Non-controlling interests are recorded at their proportionate share of the fair value of identifiable net assets acquired as at the date of acquisition and are presented immediately after the equity section of the consolidated balance sheet. When the subsidiary company issues its own shares to outside interests and does not result in a loss of control, a dilution gain or loss arises as a result of the difference between the Company's share of the proceeds and the carrying value of the underlying equity, an equity transaction, is included in equity.

As at September 30,

2017 December 31,

2016 Agua De La Falda S.A. (i) $ 18.7 $ 18.7 Brio Gold Inc. (ii) 119.2 49.1 $ 137.9 $ 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.

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(ii) Equity instruments, including share-based payments, issued by a subsidiary that is not owned by the parent are non-controlling interests regardless of whether they are vested and of the exercise price. During the three months ended September 30, 2017, Brio Gold Inc. recognized an expense of $1.9 million for the RSUs granted in prior years which is included in general and administrative expenses.

18. 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 15: Share Capital and Note 14: Long-term Debt 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 September 30, 2017, the Company has met all of the externally imposed financial covenants.

19. OPERATING SEGMENTS

The Company has seven core reportable operating segments which include the following mines: The Chapada mine in Brazil, El Peñónmine in Chile, Canadian Malartic mine in Canada (50% interest), Gualcamayo mine in Argentina, Minera Florida in Chile, Jacobina in Brazil and Brio Gold Inc. with assets in Brazil. The Company aggregates and discloses the financial results of non-reportable operating segmentswhich include, but are not limited to: investments in associate and corporate entities as these operating segments do not meet the quantitative thresholds to be considered reportable operating segments. The Company’s chief operating decision makers perform planning, review operation results, assess performance and make resource allocation decisions for each of these segments at an operational level on a number of measures, which include mine operating earnings, production levels and unit production costs. General and administrative, exploration and evaluation, finance income and costs, impairment charges and reversals, and investment write-down are managed on a consolidated basis and are therefore not reflected in segment income.

(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 exploration and evaluation costs.

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As at September 30, 2017 Chapada El Peñón Canadian Malartic

Gualca-mayo

Minera Florida Jacobina

Corporate and

other (i)

Total excluding Brio Gold

Brio Gold Inc. Total

Property, plant and equipment $ 694.3 $ 761.3 $ 1,349.4 $ 392.8 $ 411.8 $ 732.9 $ 2,887.4 $ 7,229.9 $ 497.2 $ 7,727.1 Goodwill and intangibles $ — $ 5.7 $ 427.7 $ 1.4 $ — $ — $ 42.7 $ 477.5 $ — $ 477.5 Non-current assets $ 693.1 $ 779.3 $ 1,797.4 $ 393.9 $ 414.3 $ 745.0 $ 3,014.5 $ 7,837.5 $ 513.2 $ 8,350.7 Total assets $ 783.1 $ 840.2 $ 1,854.2 $ 497.9 $ 440.5 $ 773.9 $ 3,229.7 $ 8,419.5 $ 573.8 $ 8,993.3 Total liabilities $ 213.7 $ 198.8 $ 423.1 $ 150.3 $ 129.8 $ 145.6 $ 2,957.3 $ 4,218.6 $ 113.0 $ 4,331.6

As at December 31, 2016 Chapada El Peñón Canadian Malartic

Gualca-mayo


Corporate and

other (i)



Property, plant and equipment $ 635.9 $ 764.4 $ 1,380.6 $ 411.9 $ 409.0 $ 737.7 $ 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 $ 412.9 $ 415.1 $ 751.8 $ 2,884.9 $ 7,751.0 $ 498.3 $ 8,249.3 Total assets $ 723.1 $ 828.0 $ 1,925.2 $ 534.9 $ 444.9 $ 779.5 $ 3,013.7 $ 8,249.3 $ 552.4 $ 8,801.7 Total liabilities $ 190.9 $ 200.5 $ 476.2 $ 150.4 $ 134.1 $ 157.5 $ 2,783.6 $ 4,093.2 $ 128.5 $ 4,221.7

(i) Total assets in "Corporate and other" include Agua Rica ($1.1 billion) and Cerro Morro (2017: $803.5 million, 2016: 661.9 million), other advanced stage development, exploration properties and investments in associates and corporate entities.

(b) Information about Profit and Loss

For the three months ended September 30, 2017 Chapada El Peñón

Canadian Malartic

Gualca-mayo


Corporate and

other (iii)



Revenues (ii) $ 137.7 $ 82.0 $ 100.5 $ 41.1 $ 33.1 $ 44.9 $ — $ 439.3 $ 54.1 $ 493.4 Cost of sales excluding depletion, depreciation and amortization (60.9 ) (54.4 ) (46.3) (33.2 ) (20.1 ) (24.4 ) —

(239.3 ) (39.7 ) (279.0 )

Gross margin excluding depletion, depreciation and amortization $ 76.8

$ 27.6

$ 54.2

$ 7.9

$ 13.0

$ 20.5

$ —

$ 200.0

$ 14.4

$ 214.4

Depletion, depreciation and amortization (11.2 ) (20.6 ) (30.8) (10.6 ) (10.1 ) (12.5 ) (1.8 ) (97.6 ) (10.4 ) (108.0 ) Mine operating earnings/(loss) $ 65.6 $ 7.0 $ 23.4 $ (2.7 ) $ 2.9 $ 8.0 $ (1.8 ) $ 102.4 $ 4.0 $ 106.4

Other expenses (i) (45.1 ) Earnings before taxes $ 61.3

Income tax expense (23.0 ) Net earnings from continuing operations $ 38.3

Net earnings from discontinued operations — Net earnings $ 38.3

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For the three months ended September 30, 2016 Chapada El Peñón

Canadian Malartic

Gualca-mayo


Corporate and

other (iii)



Revenues (ii) $ 67.8 $ 99.8 $ 102.4 $ 55.5 $ 39.6 $ 37.5 $ — $ 402.6 $ 61.7 $ 464.3 Cost of sales excluding depletion, depreciation and amortization (43.0 ) (52.2 ) (47.4) (33.5 ) (21.4 ) (24.8 ) —

(222.3 ) (38.9 ) (261.2 )


$ 47.6

$ 55.0

$ 22.0

$ 18.2

$ 12.7

$ —

$ 180.3

$ 22.8

$ 203.1

Depletion, depreciation and amortization (9.8 ) (27.5 ) (31.2) (10.1 ) (9.3 ) (8.5 ) (1.8 ) (98.2 ) (13.9 ) (112.1 ) Mine operating earnings/(loss) $ 15.0 $ 20.1 $ 23.8 $ 11.9 $ 8.9 $ 4.2 $ (1.8 ) $ 82.1 $ 8.9 $ 91.0


Income tax recovery (11.0 ) Net loss from continuing operations $ (2.1)

Net loss from discontinued operations (9.7 ) Net loss $ (11.8)

(i) Other expenses are comprised of general and administrative expense of $28.5 million (2016 -$24.8 million), exploration and evaluation expense of $4.8 million (2016 - $3.8 million), net finance expense of $43.2 million (2016 - $39.7 million) and other (recoveries) / expense of $(26.8) million (2016 - $13.8 million).

(ii) Revenues are derived from sales of gold of $382.8 million (2016 - $396.1 million), silver of $26.3 million (2016 - $30.1 million) and copper of $105.5 million (2016 - $47.2 million) net of revenue adjustments relating to treatment and refining charges of gold and copper concentrate, sales taxes, metal price adjustments related to concentrate revenue and other adjustments totaling negative $21.2 million (2016 - negative $9.1 million)

(iii) "Corporate and other" includes Agua Rica and Cerro Morro as well as other advanced stage development, exploration properties and investments in associate and corporate entities.

For the nine months ended September 30, 2017 Chapada El Peñón

Canadian Malartic

Gualca-mayo


Corporate and

other (iii)



Revenues (ii) $ 303.4 $ 213.7 $ 287.7 $ 133.2 $ 91.9 $ 127.8 $ — $ 1,157.7 $ 167.3 $ 1,325.0 Cost of sales excluding depletion, depreciation and amortization (159.4 ) (131.3 ) (130.0) (106.6 ) (60.5 ) (72.7 ) —

(660.5 ) (117.5 ) (778.0 )


$ 82.4

$ 157.7

$ 26.6

$ 31.4

$ 55.1

$ —

$ 497.2

$ 49.8

$ 547.0

Depletion, depreciation and amortization (26.5 ) (53.4 ) (97.0) (41.1 ) (30.6 ) (36.1 ) (5.5 ) (290.2 ) (35.7 ) (325.9 ) Mine operating earnings/(loss) $ 117.5 $ 29.0 $ 60.7 $ (14.5 ) $ 0.8 $ 19.0 $ (5.5 ) $ 207.0 $ 14.1 $ 221.1


Income tax expense (24.6 ) Net loss from continuing operations $ (4.5)

Net loss from discontinued operations — Net loss $ (4.5)

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For the nine months ended September 30, 2016 Chapada El Peñón

Canadian Malartic

Gualca-mayo


Corporate and

other (iii)



Revenues (ii) $ 200.2 $ 285.6 $ 278.1 $ 150.0 $ 102.5 $ 110.1 $ — $ 1,126.5 $ 176.8 $ 1,303.3 Cost of sales excluding depletion, depreciation and amortization (139.4 ) (147.3 ) (132.8) (101.0 ) (59.7 ) (65.0 ) —

(645.2 ) (99.7 ) (744.9 )


$ 138.3

$ 145.3

$ 49.0

$ 42.8

$ 45.1

$ —

$ 481.3

$ 77.1

$ 558.4

Depletion, depreciation and amortization (32.7 ) (77.5 ) (90.4) (29.4 ) (28.5 ) (27.9 ) (7.1 ) (293.5 ) (40.5 ) (334.0 ) Mine operating earnings/(loss) $ 28.1 $ 60.8 $ 54.9 $ 19.6 $ 14.3 $ 17.2 $ (7.1 ) $ 187.8 $ 36.6 $ 224.4


Income tax recovery 55.7 Net earnings from continuing operations $ 64.3

Net loss from discontinued operations (5.0 ) Net earnings $ 59.3

(i) Other expenses are comprised of general and administrative expense of $79.6 million (2016 -$70.3 million), exploration and evaluation expense of $14.2 million (2016 - $11.9 million), net finance expense of $105.0 million (2016 - $112.7 million) and other expense of $6.9 million (2016 - $20.9 million).

(ii) Revenues are derived from sales of gold of $1,062.3 million (2016 - $1093.7 million), silver of $66.1 million (2016 - $84.7 million) and copper of $233.6 million (2016 - $150.4 million) net of revenue adjustments relating to treatment and refining charges of gold and copper concentrate, sales taxes, metal price adjustments related to concentrate revenue and other adjustments totaling negative $39.3 million (2016 - negative $25.5 million).

(iii) "Corporate and other" includes Agua Rica and Cerro Morro as well as other advanced stage development, exploration properties and investments in associate and corporate entities.

Capital expenditures Chapada El Peñón Canadian Malartic

Gualca-mayo


Corporate and

other



22.3 $ 5.7

$ 20.5

$ 10.4

$ 56.9

$ 138.1

$ 21.4

$ 159.5

For the three months ended September 30, 2016 $ 29.1

$ 23.6

$ 14.2

$ 6.3

$ 21.7

$ 13.8

$ 18.9

$ 127.6

$ 16.2

$ 143.8

36.1 $ 45.9

$ 51.0

$ 15.0

$ 40.9

$ 30.6

$ 151.0

$ 370.5

$ 57.4

$ 427.9

For the nine months ended September 30, 2016 $ 65.0

$ 63.9

$ 44.5

$ 14.4

$ 34.9

$ 31.0

$ 50.5

$ 304.2

$ 39.8

$ 344.0

For the three months ended September 30, 2017 8.1 $ 14.2 $

For the nine months ended September 30, 2017 $

$

| 88

20. CONTRACTUAL COMMITMENTS Construction and Service Contracts


2017 December 31,

2016 Within 1 year $ 499.3 $ 312.4 Between 1 to 3 years 446.2 247.5 Between 3 to 5 years 126.9 57.7 After 5 years 1.0 10.4 $ 1,073.4 $ 628.0

Operating Leases The aggregate amount of minimum lease payments under non-cancellable operating leases is as follows:


2017 December 31,

2016 Within 1 year $ 1.3 $ 1.9 Between 1 to 3 years 0.3 1.5 Between 3 to 5 years — — After 5 years — — $ 1.6 $ 3.4

21. 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 Condensed Consolidated Interim Financial Statements of the Company may be material. Canadian Malartic On August 2, 2016, Canadian Malartic General Partnership (“CMGP”), the operator of the Canadian Malartic mine, was served with a class action lawsuit with respect to allegations involving the Canadian Malartic mine. Beginning in the spring of 2015, Canadian Malartic GP 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. CMGP will take all reasonable steps necessary to defend themselves from this lawsuit. At the current time, the Company does not believe it is probable that any amounts will be paid with respect to these lawsuits and the amount and timing cannot be reasonably estimated. On April 10, 2017, the Quebec Superior Court dismissed the application for an interlocutory injunction. No dates have been set for the hearing of the application for a permanent injunction to restrict the Canadian Malartic mine’s mining operations to sound levels and mining volumes below the limits to which it is subject.

89

22. SUBSEQUENT EVENTS

Brazilian Tax Matters

The Company elected in the third quarter to participate in a program to settle all significant outstanding income tax assessments in Brazil and all income tax assessments relating to the Company’s Chapada mine. This program was enacted as law on October 25, 2017. For additional details, refer to Note 6: Income Taxes.

Currency Contracts

Subsequent to September 30, 2017, the Company entered into zero-cost collar contracts totaling R$540.0 million with the purchase of call options at an average strike price of R$3.15 per USD and sale of put options at an average strike price of $3.47 per USD. The term of this cash flow hedge is from January 2018 to June 2019. Additionally, 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 USD. The term of this cash flow hedge is from January 2018 to December 2018.

*************

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Board of Directors

John Begeman(1)(4)

Christiane Bergevin(3)(4)

Andrea Bertone

Alex Davidson(2)(4)

Robert Gallagher

Richard Graff(1)

Lead Director

Kimberly Keating

Nigel Lees(2)

Peter Marrone*Chairman and Chief Executive Officer

Patrick Mars(1)(2)(3)

Carl Renzoni(1)(3)

Jane Sadowsky(1)(3)

Dino Titaro(2)(3)(4)

* Non-independent Board Member

(1) Member of the Audit Committee

(2) Member of the Compensation Committee

(3) Member of the Corporate Governance andNominating Committee

(4) Member of the Sustainability Committee

Senior Management

Peter MarroneChairman and Chief Executive Officer

Jason LeBlancSenior Vice President, Finance and Chief Financial Officer

Daniel RacineExecutive Vice President and Chief Operating Officer

Greg McKnightExecutive Vice President, Business Development

Yohann BouchardSenior Vice President, Operations

Richard CampbellSenior Vice President, Human Resources

Gerardo FernandezSenior Vice President, Operations

Ross GallingerSenior Vice President, Health, Safety and SustainableDevelopment

Barry MurphySenior Vice President, Technical Services

Steve ParsonsSenior Vice President, Investor Relations and CorporateCommunications

Sofia TsakosSenior Vice President, General Counsel and CorporateSecretary

William H. WulftangeSenior Vice President, Exploration

Corporate Information

| 91

Share Listings

Toronto Stock Exchange: YRINew York Stock Exchange: AUY

Electronic Delivery of Shareholder Documents

If you would like to receive your shareholder and financial documents electronically, please enroll in Yamana’s electronic delivery program through AST Trust Company (Canada) athttps://ca.astfinancial.com/edelivery

Capitalization

Common Shares Issued as at September 30, 2017: 948,427,799

Transfer Agent

For information regarding shareholdings, dividends,certificates, change of address, electronic delivery, orexchange of share certificates due to an acquisition please contact:

AST Trust Company (Canada)P.O. Box 700Station BMontreal, QCH3B 3K31-800-387-0825 (toll free in North America)416-682-3860 (outside North America)Email: [email protected]/ca-en

Shareholder Information

Investor Contact

For additional financial information, industry developments,latest news and corporate updates:

Phone: 416-815-0220Email: [email protected]: www.yamana.com

Auditors

Deloitte LLP

Legal Counsel

Cassels, Brock & Blackwell LLPPaul, Weiss, Rifkind, Wharton & Garrison LLP

Executive Office

200 Bay Street Royal Bank Plaza, North TowerSuite 2200Toronto, Ontario M5J 2J3Phone: 416-815-0220Fax: 416-815-0021

www.yamana.com

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