Yamana Announces Gold Discovery on Martinetas Property - Santa Cruz, Vanguardia, Argentina.

SPOKANE, Wash--(BUSINESS WIRE)--Dec. 19, 1996--Yamana Resources (TSE: YRI) Yamana Resources announces drill hole results on its Martinetas epithermal gold property in Santa Cruz, Vanguardia, Argentina which indicate a potentially significant geologic resource of gold mineralization.

Assay results have been received for the first 13 reverse circulation drill holes, totaling 2,226 meters and provide initial tests of two of six targets on Martinetas. All holes were mineralized. Eight holes on Target #1 revealed a subcropping, mineralized, volcanic tuff bed.

The best drill intercepts so far are 132 meters (true thickness: 114 meters) of 1.02 g/t Au (including 14 meters at 4.87 g/t Au), and 32 meters (true thickness: 28 meters) of 1.07 g/t Au, (including 12 meters at 2.02 g/t Au). Indications are that this surface gold resource is open in three directions, as well as to depth. It is expected to be substantially expanded with continued drilling.

Richard R. Walters, Yamana's Chief Operating Officer commented: "Yamana has taken the first step in the development of what we believe is a significant gold deposit discovery, in a highly prospective epithermal gold district."

Drill testing on Target #2 found sufficient traces of gold to justify more drilling. Plans call for completing a total of 17 drill holes on four of the six Martinetas targets before Christmas.

Drilling on Martinetas began in October, following a scheduled winter shut down, using Yamana's new dual purpose, track-mounted rig, and productivity has increased steadily since start-up.

This drilling is the start of an aggressive evaluation program at Yamana's Santa Cruz properties. More than 3,500 surface samples have been taken on the properties thus far this season, confirming and expanding the inventory of more than 30 drill targets. Yamana anticipates that the $4 million exploration program up to June, 1997, will include 20,000 meters of drilling and more than 12,000 surface samples. The program will cover Yamana's 14 properties, totaling 830 square kilometers, and continuing district-wide reconnaissance activity.

Noted Walters, "Our realistic objective is to find a multimillion-ounce, bulk-tonnage gold deposit."

The next drilling in Yamana's program is scheduled for the Company's Microonda property where it will focus on previously announced gold intercepts and new targets. Probes will be made of geophysical anomalies associated with attractive geochemical gold values recently defined by surface grid sampling.

Yamana's Santa Cruz operations are coordinated through its Bema Ranch facility, located in the east central region of the Vanguardia gold district. Recent upgrades there include a dedicated assay laboratory, additional living quarters, storage and shop facilities. The station currently has a crew of 35 people. The fire assay lab is managed by an independent company, SGS Chile Ltda., a well-known commercial laboratory, which certifies the analytical results. It is now operating at its design capacity of 150 samples per day, and can provide assay results within three days.

Yamana, which is operator of the project through the exploration stage, has an exploration agreement with Rio Algom Limited covering the Santa Cruz properties. Rio Algom may earn a 50-percent interest in the properties by funding US$20 million on the project before August 31, 2001. To increase its interest to 60 percent on a specific property, Rio Algom must complete a feasibility study and make a production decision.

Yamana Resources is a Canadian exploration company holding 65 properties covering 32,000 square kilometers in Argentina, Chile, Paraguay and Indonesia. This includes 27,000 square kilometers on the island of Kalimantan, Indonesia, where the company holds extensive areas near the Busang gold deposit.

CAUTIONARY STATEMENT

This News Release includes certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Yamana, are forward-looking statements that involve various risks and uncertainties.

There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Yamana's expectations are disclosed under the heading "Risk Factors" and elsewhere in Yamana's documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange

Commission and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to Yamana or persons acting on its behalf are expressly qualified in their entirety by this notice. -0-

YAMANA RESOURCES INC.

SANTA CRUZ, VANGUARDIA, ARGENTINA
Epithermal Gold Project


                        Martinetas Property
                 Reverse Circulation Drill Hole Results

      INTERVAL               TRUE    GRADE   INCLUDING   MAX.
HOLE  From - To  INTERCEPT THICKNESS g/t Au  (x)m @     GRADE
 No.   (Meters)   (Meters)  (Meters)         g/t Au    (x)m at
                                                        g/t Au

02-001    0-18     18      15.6     1.041   8 @ 1.760   2at 3.40

02-002    6-38     32      27.7     1.074  12 @ 2.022   4at 4.30
         62-74     12      10.4     1.070    - - - -    2at 3.30
02-003   14-32     18      15.6     0.932  12 @ 1.070   2at 3.80
02-004   12-30     18      15.6     0.252    - - - -    2at 0.50
02-005   84-94     10       8.7     0.481    - - - -    2at 1.60
02-006   18-36     18      15.6     1.088  10 @ 1.596   2at 3.40
02-007   20-32     12       6.0     0.650    - - - -    2at 1.10
02-008   78-94     16       8.0     0.141    - - - -    2at 0.20
02-009 120-130     10       8.7     0.144    - - - -    2at 0.60
       146-167     21      18.2     0.145    - - - -
02-010 122-135     13      11.3     0.147    - - - -    2at 0.40
02-011   26-36     10       8.7     0.343(x) 8 @ 0.405  2at 0.60
         52-80     28      24.2     0.143    - - - -
02-012    2-26     24      24.0     1.035   12 @ 1.808  2at 6.00
02-013   4-136    132     114.3     1.016   32 @ 1.088  4at 4.00
                                            16 @ 1.093  4at 3.70
                                            14 @ 4.866  4at16.50

       200-218     18      15.6     0.341     - - - -   2at 1.65


(x) also, 10m at 35.1 g/t Ag incl. 2m at 68.3 g/t Ag

CONTACT: Yamana Resources Inc.

Greg W. Taylor, 509/838-6615

509/838-0714 (Fax)

There is a map available by contacting the company at the number above.