Agnico-Eagle increases annual cash dividend BY 50%; Meadowbank Gold Reserves increase by 20%; Gold Production Growth fully funded and on schedule



    Stock Symbol: AEM (NYSE and TSX)

    (All amounts expressed in U.S. dollars unless otherwise noted)

    TORONTO, Dec. 10 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle") is
pleased to announce that its Board of Directors has approved the payment of a
cash dividend of $0.18 per common share, 50% higher than the dividend paid in
2007. The dividend will be paid on March 28, 2008 to shareholders of record as
of March 14, 2008. Agnico-Eagle has now declared a dividend to its
shareholders for 26 consecutive years.
    Due to a successful summer drilling program, the gold reserves at the
Meadowbank project continue to grow. The Company is announcing an increase of
20% in probable gold reserves, or almost 600,000 ounces to 3.5 million ounces
from 27.7 million tonnes grading 3.9 grams per tonne. Additionally, the
Company is announcing that the Meadowbank project has been accelerated by six
months and is now expected to begin production in January 2010.
    "Over the next two years, we plan to bring five new gold mines into
production while continuing to add to our gold reserves. During this expansion
period, we have also been able to increase our dividend," said Sean Boyd, Vice
Chairman and CEO. "Despite higher anticipated US dollar construction
expenditures, due largely to US dollar weakness and further scope changes to
one of our major projects, our large cash position, expected cash flow and
available credit facility will allow us to fund our growth without the need
for equity financing," added Mr. Boyd.

    
    Highlights of this corporate update include:

    -   A 50% increase in the 2008 dividend to $0.18 per share
    -   A 20% increase in gold reserves at Meadowbank to 3.5 million ounces
        increasing the mine life by one year and Agnico-Eagle's total gold
        reserves to 16.3 million ounces
    -   Annual payable gold production(1) to increase over five-fold to
        approximately 1.4 million ounces by 2011 with total cash cost per
        ounce(2) expected to be approximately $200
    -   Steady state gold production expected to average 1.3 million ounces
        from 2010 to 2017 with total cash operating costs expected to be
        approximately $250 per ounce
    -   Exploration upside intact with over $65 million of exploration
        expenditures budgeted in 2008 towards 270,000 meters of drilling as
        the Company targets 18 to 20 million ounces of gold reserves within
        the next 15 months
    -   An agreement with its syndicate of lenders to refinance its currently
        secured facility with a $300 million unsecured five year revolving
        credit facility

    (1) Payable gold production means the quantity of a mineral produced
        during a period contained in products that are sold by the Company,
        whether such products are sold during the period or held as inventory
        at the end of the period.
    (2) Total cash costs per ounce is a non-GAAP measure. For reconciliation
        of historical total cash costs per ounce to production costs, as
        reported in the Company's historical financial statements, please see
        the Company's financial statements and 20-F, as filed.
    

    Low Cost Gold Production Growth On Schedule

    The Company today is announcing its production and cost guidance for
2008. Payable gold production is expected to total approximately 360,000
ounces, up approximately 50% from the expected level in 2007 as two new gold
mines are expected to be commissioned during 2008. Total cash costs per ounce
are expected to average under $50, as good cost control and strong byproduct
pricing are expected to continue to contribute to one of the lowest unit costs
in the gold industry.
    With the planned startup of Goldex (100% owned, western Quebec) in April
2008 and the planned startup of Kittila (100% owned, northern Finland) in
September 2008, Agnico-Eagle is taking the first steps towards achieving
growth in gold production which is expected to see it achieve steady state
gold production of approximately 1.3 million ounces per year over the period
of 2010 through 2017 with total cash costs estimated to be approximately
$250 per ounce. This level of costs would be expected to place Agnico-Eagle in
the lowest decile among gold producers globally.

    
    -------------------------------------------------------------------------
    Estimated Payable
     Gold Production(*)                                            2012-2017
     (000's ounces)     2008        2009        2010        2011     Average
    -------------------------------------------------------------------------

    LaRonde              216         206         184         210         381
    Meadowbank             -           -         438         474         351
    Goldex                93         174         174         174         161
    Lapa                   -          77         144         146          88
    Kittila               50         135         161         172         150
    Pinos Altos            -          91         232         234         185
                    ---------------------------------------------------------
                         358         682       1,333       1,410       1,317
                    ---------------------------------------------------------
    (*)metal amounts by mine have been rounded to the nearest thousand
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Estimated Total
     Cash Costs                                                    2012-2017
     ($/oz)(*)          2008        2009        2010        2011     Average
    -------------------------------------------------------------------------

    LaRonde             (189)       (189)       (162)         15         191
    Meadowbank             -           -         211         235         312
    Goldex               401         262         209         219         227
    Lapa                   -         438         289         264         281
    Kittila              338         307         273         261         299
    Pinos Altos            -         355         142         152         213
                    ---------------------------------------------------------
    Weighted Average      48         167         163         193         249
                    ---------------------------------------------------------
    (*) Total cash costs for all years were calculated using the following
        trailing 3-year average metals prices and exchange rates and include
        royalties where applicable:

    -----------------------------------------------
                           Base Case Assumptions
    -----------------------------------------------
    Silver ($/oz)                  10.55
    Zinc ($/tonne)                 2,596
    Copper ($/tonne)               5,628
    C$/US$                         1.146
    US$/Euro                       1.288
    -----------------------------------------------
    

    Agnico-Eagle remains fully financed for its gold growth program which is
expected to see the startup of five new gold projects, beginning with Goldex
in the second quarter of 2008. The Company currently has approximately
$480 million in cash and equivalents, strong cash provided by operating
activities from LaRonde ($226 million in 2006 and $186 million for the first
nine months of 2007), and substantially undrawn bank lines of $300 million.

    Excellent Cost Control On Project Development

    Over the years 2008 to 2010, Agnico-Eagle's current estimate to complete
its capital projects is $880 million. The increase in capital expenditures
versus the previous estimate of approximately $735 million is primarily due to
foreign exchange and changes in scope. The following table presents the
approximate variance from the previous estimate by factor:

    
    -------------------------------------------------------------------------
    2008-2010 Capital Expenditures
     ($, millions)
    -------------------------------------------------------------------------
    Previous estimate                                                    735
    -------------------------------------------------------------------------
      Currency impact                                                     80
    -------------------------------------------------------------------------
      Additional scope changes                                            45
    -------------------------------------------------------------------------
      General cost escalation                                             20
    -------------------------------------------------------------------------
    Current estimate                                                     880
    -------------------------------------------------------------------------
      Sustaining                                                          55
    -------------------------------------------------------------------------
    Total                                                                935
    -------------------------------------------------------------------------
    

    The original feasibility studies contemplated C$/US$ rates as high as
1.30 and US$/Euro rates as low as 1.20. Currency remains the factor to which
the Company's operating and capital costs are most sensitive. However, in
spite of the negative impact of the relative decline in the US dollar, each of
Agnico-Eagle's mine projects is expected to demonstrate improved returns
versus their feasibility studies as a result of the increased gold price, and
improved production profiles in the case of Pinos Altos and Meadowbank.
    At Pinos Altos, scope changes comprise $40 million related to a
previously announced 21% increase in gold reserve ounces (see press release
August 9, 2007). The remaining $5 million is related to the purchase of
capital equipment at Kittila. General cost escalation has been experienced at
Lapa ($20 million) due largely to the additional development required to
access the orezones which have been more lenticular than expected. The grade,
tonnes and in-situ gold ounces remain unchanged.
    The specific project expenditures for 2008 are presented in the following
table. The exploration expenditures are expected to be the highest in the
Company's history as several of the properties are believed to have
significant exploration upside.

    
    2008 Capital and
     Exploration Expenditures
     ($, 000's)                                           Exploration
                                      Capital     ---------------------------
                                       Budget      Capitalized     Expensed
                                    ------------- ------------- -------------
    LaRonde Sustaining                    30,262         3,165
    LaRonde Extension                     34,972
    Meadowbank                           173,995         9,517
    Goldex                                22,571         2,377
    Lapa                                  77,766           226
    Kittila                               88,623         6,955
    Pinos Altos                          126,015        13,894
    Exploration and Evaluations                                       29,339
                                    -----------------------------------------

    Total                                554,204        36,134        29,339
    

    The following link may be pasted into a web browser for more detailed
information on the capital expenditures by project, by year.

    http://www.agnico-eagle.com/files/CapitalExpenditures.pdf

    LaRonde To Continue To Provide Strong Foundation

    In 2008, payable gold production at LaRonde is expected to decline to
approximately 215,000 ounces, as gold grades are scheduled to be lower during
the year. Minesite costs per tonne at LaRonde are expected to rise slightly to
approximately C$66 per tonne, from the expected level of C$65 per tonne in
2007, due to general inflation. This reflects the success that the employees
at LaRonde have had in controlling costs via economies of scale, efficiency
and optimization efforts. Also contributing were the finalization of long-term
contracts with suppliers and the stable energy costs in Quebec. Total cash
costs at LaRonde are expected to be approximately minus $189 per ounce
assuming three year average byproduct prices and C$/US$ exchange rates.
Byproduct production is expected to be at similar levels to recent years, as
presented in the table found with the following link. Also presented is more
detailed data on the LaRonde mine, including projections of tonnes, grades,
mill recoveries, payable metal production, local currency minesite cost per
tonne and total cash cost per ounce. Life of mine total cash costs are
expected to average $150 per ounce, with average gold production of 340,000
ounces annually. To date, the Company has invested $40 million on the LaRonde
Extension project. A further $185 million is projected to its anticipated
completion in early 2012.

    http://www.agnico-eagle.com/files/LaRondeOperationsSummary.pdf

    During 2008, the exploration focus will be on drilling the massive
sulphide structure to the west of the orebody (below the Bousquet
infrastructure) from the 215 Exploration drift. Additionally, from Level 86, a
geophysical target to the east of the orebody will be drilled as a resumption
of the program on the El Coco property. Approximately $3 million will be spent
on exploration drilling during 2008.

    Goldex On Budget, Production To Begin Ahead Of Schedule

    The Goldex mine is expected to be completed on budget and is expected to
begin production in April 2008, approximately two months ahead of schedule.
The mine is anticipated to produce approximately 90,000 ounces of gold in 2008
at estimated initial total cash costs per ounce of approximately $400. This
higher cost is a result of the lower grades mined during the initial ramp up.
The low grade material is largely stockpiled development ore. Minelife total
cash costs are estimated to be approximately $230 per ounce with average gold
production of approximately 175,000 ounces annually. To date, $160 million has
been invested at Goldex, with a further $23 million expected to be invested by
completion.

    http://www.agnico-eagle.com/files/GoldexOperationsSummary.pdf

    In 2008, the exploration focus at Goldex will be drilling the zone
downtrend to the east of the orebody. Also, a small program of five drill
holes is planned to drill to the west of the orebody targeting the South zone
which, historically, has yielded high-grade gold assays. More than $2 million
is expected to be invested in exploration at Goldex during 2008.

    Kittila To Become Europe's Largest Producing Gold Mine

    The Kittila mine is expected to begin production, on schedule, in
September 2008 with initial gold production estimated to be 50,000 ounces at
total cash costs estimated at $338 per ounce during the year. Life of mine
total cash costs are estimated to be approximately $300 per ounce with
anticipated average gold production of approximately 150,000 ounces annually.
To date, $100 million has been invested at Kittila, with $90 million projected
to be invested prior to completion in the third quarter of 2008.

    http://www.agnico-eagle.com/files/KittilaOperationsSummary.pdf

    The Kittila deposit remains open at depth and along strike. One of the
thickest and richest drill holes to date was completed in 2007. This hole
(SUBH07003: 8.3 g/t gold over 15.1 metres true thickness, previously released)
intersected the main Suuri deposit at a depth of approximately 1,000 metres,
or 400 metres below the current reserves. This area continues to be the focus
of exploration with drilling from surface using two drills. Additionally,
surface drilling continues to focus on targets along the 25 kilometres strike
length of mineralization on the mining lease. Underground drilling from the
new underground decline will begin this month and will focus on definition of
the Roura and Main zones. Also, two additional surface drills will begin
resource conversion and definition of the Main zone at depth in the new year.
    The large 6,000 hectare property position that contains the Kittila
deposit is still in the early stages of exploration, with numerous targets of
interest scheduled for exploration in 2008. The focus of the program will be
the Kuotko (drilling), Paha (induced polarization (IP) surveys and drilling)
and Hako zones (drilling) to the north of the mining lease area. Approximately
$7 million is expected to be invested in exploration in 2008.

    Lapa Shaft Complete, Lateral Development Underway

    The 100% owned Lapa project, located just 11 kilometres east of LaRonde
in northwestern Quebec, is anticipated to begin production by mid-year 2009.
The mine is expected to produce an average of 125,000 ounces of gold per year
over a seven year mine life with average total cash costs of $300 per ounce.
    The production shaft was completed in early October to a final depth of
1,369 metres. Lateral development is now underway as is the "Lapa Circuit" at
LaRonde, where the ore will be processed. To date, $45 million has been
invested at Lapa, with a further $120 million projected to be required to
completion.

    http://www.agnico-eagle.com/files/LapaOperationsSummary.pdf

    The exploration focus at Lapa in 2008 will be on the deeper regions to
the east of the orebody, as the zones are trending in that direction.
Approximately $0.2 million is expected to be invested in exploration during
the year, as the driving of priority lateral development for production will
limit the access for diamond drilling during the year.

    Pinos Altos Economics Continue To Improve

    The 100% owned Pinos Altos project, located in the state of Chihuahua in
northern Mexico, is also expected to begin production by mid-year 2009. The
mine is expected to produce an average of 190,000 ounces of gold per year over
a 12 year mine life. Total cash costs are expected to average $210 per ounce
over these years.
    The production plan has been updated with the increase in reserves. As a
result, over the minelife, payable gold production is expected to increase 29%
and payable silver production is expected to increase 42%. To date,
$30 million has been invested at Pinos Altos, with $200 million projected to
completion in mid-2009.

    http://www.agnico-eagle.com/files/PinosAltosOperationsSummary.pdf

    Drilling on the main Santo Nino and Cerro Colorado zones is expected to
be the exploration focus during the year, inside the mining lease area. The
underground decline has provided better access to test for extensions in these
zones. Five drill rigs will be active on these zones in 2008 with total
expenditures likely to be approximately $14 million. Currently, two
underground diamond drills are mobilized and underground drilling for deeper
targets began this month. Development work on the underground production ramp
at Pinos Altos has also been started.
    All the necessary land agreements with the four local ejidos are in
place. Negotiations for additional surface rights with the underlying royalty
holder are ongoing. If these negotiations are not successful, modifications to
the proposed mine plan contained in the base case feasibility study will be
implemented.

    New Mascota Gold Zone Continues To Develop On Pinos Altos Property

    Approximately seven kilometres to the northeast of Pinos Altos' Santo
Nino zone is the new Mascota zone. Drilling began on this shallow deposit in
2007 and an initial resource estimate is expected to be released in February
2008. The focus of the exploration will be to extend the Mascota zone to the
north and west. To this end, new roads are being built to allow better access
and exploration in this developing gold region.

    Meadowbank Start Up Now Anticipated In Early 2010

    At the 100% owned Meadowbank project in Nunavut, Canada, construction of
the mine is underway with a 110 kilometre all season road to the site nearly
complete. Gold production is now scheduled to begin at the beginning of
January 2010, approximately six months before previously anticipated. Recent
deliveries to the site include materials for the construction of the cement
plant and approximately 25% of the mining fleet. Recently completed work
includes construction of the permanent camp and erection of the fuel tank farm
at Baker Lake. The construction of the mill foundations is underway. To date,
$110 million has been invested at Meadowbank, with $280 million projected to
completion in early 2010.
    The mine is expected to produce an average of 360,000 ounces of gold per
year over a nine year minelife. Total cash costs are expected to average
$300 per ounce over these years.

    http://www.agnico-eagle.com/files/MeadowbankOperationsSummary.pdf

    Approximately 600,000 ounces were converted from resource to reserve in
the recent drilling season. This 20% increase to probable gold reserves
resulted in the total rising to 3.5 million ounces. The majority of the ounces
were converted from drilling within the revised and updated pit envelopes. The
new reserves also include recently converted resources from the Cannu zone.
    The focus of exploration in 2008 will be to extend the Portage and Goose
Island zones to the south, the Cannu zone to the north, and the Goose South
zone at depth. It is expected that approximately $10 million will be spent on
this exploration program in 2008.
    In this developing gold district, Agnico-Eagle has already discovered new
gold mineralization along strike to the north of the main Portage zone.
Approximately seven kilometres to the north is mineralization including the
Vault deposit and a further four kilometres northeast is the new Marge Bay
gold occurrence. Additionally, surface programs will be executed to follow up
on the successful summer exploration program which resulted in the discovery
of several base metals showings on the eastern and western sides of the
property.

    Bank Credit Facility Extended

    Subject to the execution of definitive documentation, the Company has
agreed with a syndicate of lenders to extended its $300 million bank credit
facility a further five years to December 31, 2012, and to convert the
facility from secured to unsecured. The current facility remains substantially
undrawn. The extended credit facility will be provided by a syndicate of
lenders led by Scotia Capital and Societe Generale, and including Toronto
Dominion Bank, National Bank of Canada, N M Rothschild & Sons, and Bank of
Montreal.

    Shareholders Can Reinvest Dividends In Shares At A Discount

    Under the Company's Dividend Reinvestment Plan, shareholders will have
the opportunity to reinvest their dividends, commission-free, in shares of
Agnico-Eagle, at 95% of the Average Market Price. Individual shareholders can
also make optional cash payments of up to $20,000 to purchase additional
shares, commission-free, at the same price. Shareholders can obtain details of
the Plan from the Company or via the internet by copying the following link
into a browser.

    http://www.agnico-eagle.com/files/DividendReinvestmentPlan.pdf

    Forward-Looking Statements

    The information in this press release has been prepared as at
December 10, 2007. Certain statements contained in this press release
constitute "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and forward looking
information under the provisions of Canadian provincial securities laws. When
used in this document, words such as "anticipate", "expect", "estimate,"
"forecast," "planned", "will", "likely" and similar expressions are intended
to identify forward-looking statements or information.
    Such statements include without limitation: the Company's forward looking
production guidance, including estimated ore grades, metal production,
minesite costs per tonne, total cash costs per ounce and projected exploration
and capital expenditures, including costs and other estimates upon which such
projections are based; the expected growth of the Company's business; the
Company's goal to increase its mineral reserves, resources, and dividends as
its business grows, and other statements and information regarding anticipated
trends with respect to the Company's operations and exploration. Such
statements reflect the Company's views as at the date of this press release
and are subject to certain risks, uncertainties and assumptions, and undue
reliance should not be placed on such statements. Many factors, known and
unknown, could cause the actual results to be materially different from those
expressed or implied by such forward looking statements. Such risks include,
but are not limited to: the volatility of prices of gold and other metals;
uncertainty of mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, capital expenditures,
and other costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs; mining risks;
risks associated with foreign operations; risks related to title issues at the
Pinos Altos project; governmental and environmental regulation; the volatility
of the Company's stock price; and risks associated with the Company's
byproduct metal derivative strategies. For a more detailed discussion of such
risks and other factors, see Company's Annual Information Form and Annual
Report on Form 20-F for the year ended December 31, 2006, as well as the
Company's other filings with the Canadian Securities Administrators and the
U.S. Securities and Exchange Commission. The Company does not intend, and does
not assume any obligation, to update these forward-looking statements and
information, except as required by law. Accordingly, readers are advised not
to place undue reliance on forward-looking statements. Certain of the
foregoing statements, primarily related to projects, are based on preliminary
views of the Company with respect to, among other things, grade, tonnage,
processing, mining methods, capital costs, total cash costs, minesite costs,
and location of surface infrastructure and actual results and final decisions
may be materially different from those current anticipated.

    About Agnico-Eagle

    Agnico-Eagle is a long established Canadian gold producer with operations
located in Quebec and exploration and development activities in Canada,
Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit in terms of reserves. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold sales. It has
declared a cash dividend for 26 consecutive years.

    Notes To Investors Regarding The Use Of Resources

    Cautionary Note To Investors Concerning Estimates Of Measured And
    Indicated Resources.

    This press release may use the terms "measured resources" and "indicated
resources". We advise investors that while those terms are recognized and
required by Canadian regulations, the U.S. Securities and Exchange Commission
(the "SEC") does not recognize them. Investors are cautioned not to assume
that any part or all of mineral deposits in these categories will ever be
converted into reserves.

    Cautionary Note To Investors Concerning Estimates Of Inferred Resources.

    This press release may also use the term "inferred resources". We advise
investors that while this term is recognized and required by Canadian
regulations, the SEC does not recognize it. "Inferred 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 part or all of an inferred resource exists, or is
economically or legally mineable.

    Scientific And Technical Data

    Agnico-Eagle Mines Limited is reporting mineral resource and reserve
estimates in accordance with the CIM guidelines for the estimation,
classification and reporting of resources and reserves.

    
    Meadowbank Detailed Mineral Reserve and Resource Data

    -------------------------------------------------------------------------
    Category                              Au(g/t)          Au         Tonnes
                                                    (000's oz.)       (000's)
    -------------------------------------------------------------------------
    Total Probable Mineral
     Reserves                               3.90         3,475        27,676
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Category                              Au(g/t)          Au         Tonnes
                                                    (000's oz.)       (000's)
    -------------------------------------------------------------------------
    Total Indicated Resource                1.64           543        10,321
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Category                              Au(g/t)          Au         Tonnes
                                                    (000's oz.)       (000's)
    -------------------------------------------------------------------------
    Total Inferred Resource                 4.55           442         3,023
    -------------------------------------------------------------------------
    

    Tonnage amounts and contained metal amounts presented in the tables in
this news release have been rounded to the nearest thousand. Mineral reserves
are separate from resources. The effective date of the Meadowbank mineral
resources and reserves is November 12, 2007. Inferred Resource includes PDF
deposit.

    Cautionary Note To U.S. Investors - The SEC permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms in this press release, such as "measured", "indicated", and
"inferred", and "resources" that the SEC guidelines strictly prohibit U.S.
registered companies from including in their filings with the SEC. U.S.
Investors are urged to consider closely the disclosure in our Form 20-F, which
may be obtained from us, or from the SEC's website at:
http://sec.gov/edgar.shtml. A "final" or "bankable" feasibility study is
required to meet the requirements to designate reserves under Industry
Guide 7. Estimates were calculated using historic three-year average metals
prices and foreign exchange rates in accordance with the SEC Industry Guide 7.
Industry Guide 7 requires the use of prices that reflect current economic
conditions at the time of reserve determination which Staff of the SEC has
interpreted to mean historic three-year average prices. The assumptions used
for the November 12, 2007 Meadowbank mineral reserves and resources estimate
reported by the Company were based on three-year average prices for the period
ending September 30, 2007, of $553 per ounce gold, and $C/US$ exchange rate
of 1.16.
    The Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") requires mining companies to disclose reserves and resources using
the subcategories of "proven" reserves, "probable" reserves, "measured"
resources, "indicated" resources and "inferred" resources. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
    A mineral reserve is the economically mineable part of a measured or
indicated resource demonstrated by at least a preliminary feasibility study.
This study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be justified. A mineral
reserve includes diluting materials and allows for losses that may occur when
the material is mined. A proven mineral reserve is the economically mineable
part of a measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. A probable mineral
reserve is the economically mineable part of an indicated mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
    A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the earth's crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. A measured
mineral resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape, physical characteristics, can be estimated with
a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonable assumed.
An inferred mineral resource is that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. Mineral resources which
are not mineral reserves do not have demonstrated economic viability.

    Investors are cautioned not to assume that part or all of an inferred
resource exists, or is economically or legally mineable.

    A feasibility study is a comprehensive study of a mineral deposit in
which all geological, engineering, legal, operating, economic, social,
environmental and other relevant factors are considered in sufficient detail
that it could reasonably serve as the basis for a final decision by a
financial institution to finance the development of the deposit for mineral
production.
    Daniel Racine, P.Eng. Ing., Vice-president Operations, a Qualified Person
under the Canadian Securities Administrator's National Instrument 43-101 ("NI
43-101"), has supervised revisions to the operating and capital cost
estimates, and production forecasts prepared by each of the Company's
divisions. Alain Blackburn, Ing., Senior Vice-president Exploration, also a
Qualified Person under NI 43-101, has reviewed the exploration information
reported in this press release.
    The Qualified Person responsible for the Meadowbank mineral resource
estimate (except for PDF) is Daniel Doucet, Ing., Principal Engineer Geology
for the Company's Technical Services Group, Abitibi Regional Office. The
effective date of the estimate is November 12, 2007. Except for some
differences in the key assumptions (namely, a $553 per ounce gold, a $C/US$
exchange rate of 1.16, and a resource cut-off grade of 1.0 gram per tonne gold
over a minimum thickness of 4.0 metres) the parameters and methods used to
estimate the mineral resources are essentially identical to those reported in
the Technical Report disclosed by Cumberland Resources Ltd. on SEDAR on
March 31, 2005.
    The PDF deposit resource estimates (Aug. 2000) were prepared by
Cumberland in accordance with standards outlined in National Instrument 43-101
and CIM Standards on Mineral Resources and Reserves (August 2000). James
McCrea, P.Geo., Manager, Mineral Resources for Cumberland, is the Qualified
Person under NI 43-101. PDF deposit resources are not included in the
feasibility study of the Meadowbank project.
    The Meadowbank open pit mineral reserves have been prepared in accordance
with NI 43-101; the open pit reserves were derived from the measured and
indicated mineral resource model using a cut-off gold grade of 1.5 grams per
tonne. Pierre Matte, Ing., Principal Engineer Mining for the Company's
Technical Services Group, Abitibi Regional Office, and Martin Bergeron Ing.,
General Manager fro the Company's Meadowbank mining project, and Paul-Henri
Girard, General Manager Technical Services are the Qualified Persons who
supervised the preparation of the stated reserves which were based on
revisions of the operating and capital cost estimates contained in the
Technical Report describing Meadowbank Feasibility study which was disclosed
by Cumberland Resources Ltd. on SEDAR on March 31, 2005.
    The PDF deposit resource estimates (Aug. 2000) were prepared by
Cumberland in accordance with standards outlined in National Instrument 43-101
and CIM Standards on Mineral Resources and Reserves (August 2000). James
McCrea, P.Geo., Manager, Mineral Resources for Cumberland, is the Qualified
Person under NI 43-101. PDF deposit resources are not included in the
feasibility study of the Meadowbank project.
    Required information for the Meadowbank project that is set out in
Canadian Securities Administrators' National Instrument 43-101 Sections 3.2,
3.3 and 3.4 can be found either in the Technical Report filed by Cumberland
Resources Ltd. on SEDAR on March 1, 2004, or in press releases filed by
Cumberland Resources Ltd on December 12, 2005 and January 17, 2007. There are
no known environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues that materially affect the Meadowbank
mineral resources or mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.

    Note Regarding Certain Measures Of Performance

    This press release presents measures including "total cash costs per
ounce" and "minesite cost per tonne" that are not recognized measures under US
GAAP. This data may not be comparable to data presented by other gold
producers. The Company believes that these generally accepted industry
measures are realistic indicators of operating performance and useful for year
over year comparisons. However, both of these non-GAAP measures should be
considered together with other data prepared in accordance with US GAAP, and
these measures, taken by themselves, are not necessarily indicative of
operating costs or cash flow measures prepared in accordance with US GAAP. The
Company provides a reconciliation of realized total cash costs per ounce and
minesite costs per tonne to the most comparable US GAAP measures in its annual
and interim filings with securities regulators in Canada and the United
States. The estimates presented herein are based upon the total cash costs per
ounce and minesite cost per tonne that the Company expects to incur to mine
gold during 2008 and beyond and do not include production costs attributable
to accretion expense and other asset retirement costs, which will vary over
time. It is therefore not practicable to reconcile these forward-looking
non-US GAAP financial measures to the most comparable US GAAP measure. A
reconciliation of the Company's total cash cost per ounce and minesite cost
per tonne to the most comparable financial measures calculated and presented
in accordance with US GAAP for the Company's historical results of operations
is set forth in the Company's Annual Information Form and Annual Report on
Form 20-F for the year ended December 31, 2006, filed with the Canadian
Securities Administrators and the SEC.





For further information:

For further information: David Smith, VP, Investor Relations, (416)
947-1212


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