Agnico-Eagle reports 2008 results; Record quarterly and annual gold production; Record gold reserves and resources



    
    Stock Symbol: AEM (NYSE and TSX)

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

    TORONTO, Feb. 18 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") today reported quarterly net income of $21.9 million, or $0.15
per share for the fourth quarter of 2008. This result includes a non-cash
foreign currency translation gain of $51.5 million, or $0.35 per share, and a
tax recovery of $11.1 million, or $0.07 per share, offset partly by a non-cash
writedown of investments of $39.2 million, or $0.27 per share. In the fourth
quarter of 2007, the Company reported net income of $65.2 million, or $0.46
per share.
    Fourth quarter 2008 cash used by operating activities was $46.4 million
(net of a change in working capital of minus $52.1 million), down from cash
provided by operating activities of $48.8 million in the fourth quarter of
2007, primarily due to lower metal prices and working capital movements,
offset partly by higher gold production.
    "Compared to the fourth quarter last year, gold production increased 48%
as LaRonde continued its steady performance and the new Goldex mine achieved
its design capacity in December", said Sean Boyd, Vice-Chairman and Chief
Executive Officer. "In addition, with our gold reserves at record levels we
are well positioned to continue to increase gold output with 2009 production
expected to rise more than 100% from the 2008 level," added Mr. Boyd.

    
    Fourth quarter 2008 highlights include:

    -   Record Production - record gold production of 89,360 ounces in the
        fourth quarter contributing to record annual gold production of
        276,762 ounces
    -   Good Cost Control - operating cost per tonne targets achieved at both
        LaRonde and Goldex
    -   Record gold reserves - gold reserves rise 8%, or 1.4 million ounces
        net of production, to 18.1 million ounces
    -   Record gold resources - gold resources rise to record level, even
        after conversion of 1.7 million ounces to reserves in 2008
    -   Gold Production Growth Accelerating - Goldex achieves design
        capacity. Kittila in the commissioning phase and pouring gold. Lapa
        and Pinos Altos on track for 2009 openings. Meadowbank set to open in
        first quarter of 2010
    

    For the full year 2008, the Company recorded net income of $73.2 million,
or $0.51 per share. In 2007, Agnico-Eagle recorded net income of $139.3
million, or $1.05 per share.
    Compared with 2007, full year 2008 earnings were negatively affected by a
lower realized price and reduced production of zinc. This was partially offset
by 20% higher gold production and higher realized gold prices. Full year 2008
earnings per share were also diluted by the issuance of a total of 12.4
million shares during the year, as previously announced.
    For 2008, the Company recorded cash provided by operating activities of
$118.1 million. This is down from 2007 when cash provided by operating
activities totaled $245.5 million. The decrease in cash provided by operating
activities was largely due to the same factors that negatively affected
earnings.
    The Company's financial position remains strong with cash and cash
equivalents of $99.4 million at December 31, 2008 and undrawn credit lines of
approximately $345 million.
    Payable gold production(1) in the fourth quarter of 2008 was a record
89,360 ounces at total cash costs per ounce(2) of $463. This compares with
payable gold production of 60,183 ounces, at total cash costs per ounce of
minus $184 in the fourth quarter of 2007. The increase in total cash costs per
ounce in the fourth quarter of 2008 is mainly due to large realized and
unrealized settlement losses on zinc and copper concentrates (totaling $16
million in the fourth quarter). These losses arose as zinc prices decreased
significantly between shipment and settlement of the concentrates in the
fourth quarter. Without these settlement losses total cash costs per ounce
would have been below $300 per ounce.
    Payable gold production for the full year 2008 was a record 276,762
ounces at total cash costs per ounce of $162. These costs place Agnico-Eagle's
gold production in the lowest quartile of costs in the industry. This
production compares to the full year 2007 level of 230,992 ounces at total
cash costs per ounce of minus $365. The higher gold production in 2008 was
largely due to the start-up of the new Goldex mine, which declared commercial
production in August. The higher costs were largely due to the significantly
lower prices, and lower production of zinc and copper during 2008.

    Conference Call Today

    The Company's senior management will host a conference call on Wednesday,
February 18, 2009 at 4:30pm (E.S.T.) to discuss financial results and provide
an update of the Company's exploration and development activities.

    Via Webcast:

    A live audio webcast of the meeting will be available on the Company's
website homepage at www.agnico-eagle.com.

    Via Telephone:

    For those preferring to listen by telephone, please dial 416-644-3418 or
Toll-free 800-731-6941. To ensure your participation, please call
approximately five minutes prior to the scheduled start of the call.

    Replay archive:

    Please dial the 416-640-1917 or Toll-free access number 877-289-8525,
passcode 21294130 followed by the number sign.
    The conference call will be replayed from Wednesday, February 18, 2009 at
7:00 PM (E.S.T.) to Wednesday, February 25, 2009 11:59 PM (E.S.T.).
    The webcast along with presentation slides will be archived for 180 days
on the Company's website.

    Cash Position Remains Strong, Despite Large Investments in Gold Growth

    Cash and cash equivalents decreased to $99.4 million at December 31, 2008
from the September 30, 2008 balance of $112.2 million. As expected, all of the
Company's operating cash flow and a portion of its existing cash balances were
reinvested in its gold growth projects. Capital expenditures in the quarter
were $230.5 million, including $81.3 million at Meadowbank, $7.0 million on
Goldex, $36.5 million at Kittila, $18.4 million at LaRonde, $51.4 million at
Pinos Altos and $29.5 million at Lapa. For the full year 2008, capital
expenditures totaled $908.9 million.
    In 2009, capital expenditures are expected to total approximately $450
million. With its cash balances, anticipated cash flows and $345 million of
available bank lines, Agnico-Eagle is fully funded for the development and
exploration of its pipeline of gold projects in Canada, Finland and Mexico.

    
    Gold Reserves at Record Level. New Year-End 2010 Target for Gold
    Reserves Set at 20 Million to 21 Million Ounces
    

    At year-end 2008, the Company's gold reserves totaled 18.1 million
ounces, an increase of 8% over 2007 levels. The largest increase came from the
Pinos Altos property where approximately one million ounces of reserves were
added in 2008. Also, the LaRonde mine replaced its produced ounces,
effectively adding a year to its mine life.
    In 2009, it is expected that Agnico-Eagle's overall reserves figure will
continue to grow as the Company continues to convert its resource to reserves
and continues the exploration of its properties outside of current resource
envelopes. Agnico-Eagle's goal is to increase gold reserves, from the existing
portfolio of mines and projects, reaching 19 million to 20 million ounces by
year-end 2009. Agnico-Eagle is also presenting a target for year-end 2010 gold
reserves of between 20 million and 21 million ounces of gold.
    The Company anticipates that the main contributors to the targeted
increase in gold reserves, and further increases to gold resources, are likely
to be:

    
    -   Continued conversion of Agnico-Eagle's current gold resources to
        reserves
    -   Depth extension of the main Suuri and Roura zones at Kittila
    -   New gold zones to the north of the Kittila reserves
    -   At Meadowbank, potential of the Goose South zone at depth and strike
        extension
    -   Extensions at depth at Santo Nino, Cerro Colorado and San Eligio
        zones at Pinos Altos
    -   New gold zones in the Creston Mascota area to the northwest of the
        Pinos Altos gold and silver reserve


    A summary of the Company's year-end 2008 and 2007 gold reserves follows:

    -------------------------------------------------------------------------
    Gold Reserve Summary              Proven & Probable Reserve (000s ounces)
    -------------------------------------------------------------------------
                                      2008                    2007
    -------------------------------------------------------------------------
    LaRonde                           4,974                   4,958

    Goldex                            1,571                   1,634

    Lapa                              1,061                   1,071

    Kittila                           3,224                   2,996

    Pinos Altos                       3,593                   2,547

    Meadowbank                        3,638                   3,453
    -------------------------------------------------------------------------
    Total                            18,061                  16,659
    -------------------------------------------------------------------------
    

    Agnico-Eagle's proven and probable byproduct reserves total approximately
141 million ounces of silver, 584,000 tonnes of zinc and 103,000 tonnes of
copper.
    See the following section titled "Detailed Mineral Reserve and Resource
Data" for the full details of the Company's reserve and resource position.
    Tonnage amounts and contained metal amounts presented in the table and in
this news release have been rounded to the nearest thousand.

    Gold Resources Rise to Record Level

    Exploration drilling during 2008 resulted in 1.7 million ounces of
resource material being converted into the reserve category. In spite of this
conversion, the resources continued to grow at several of the mines and
projects.
    The assumptions used in calculating the 2008 reserves and resources were
$725 per ounce gold, $13.32 per ounce silver, $1.27 per pound zinc, $3.15 per
pound copper, $0.90 per pound lead, a C$/US$ exchange rate of 1.09, a US$/Euro
exchange rate of 1.37, and a Mexican Peso/US$ exchange rate of 11.00. For
every 10% change in the gold price (leaving all other assumptions unchanged),
there would be an estimated 2% change in proven and probable reserves. The
metals prices and exchange rates used in the reserve and resource calculation
are the trailing three year averages for such prices or rates in each case, as
mandated by the U.S. Securities and Exchange Commission.
    The byproduct reserves and resources for silver, zinc, copper and lead
contained in the LaRonde ore body, and the silver reserves contained at Pinos
Altos, are presented in the "Detailed Mineral Reserve and Resource Data"
section set out below, and are not included in Agnico-Eagle's gold reserve and
resource totals. Please see this section for more detailed reserve and
resource estimates for all of the Company's properties.

    LaRonde Mine - Strong Production and Cost Control Performance Continues

    The LaRonde mill processed an average of 7,025 tonnes of ore per day in
the fourth quarter of 2008, compared with an average of 7,119 tonnes per day
in the corresponding period of 2007. Milling performance for the full year
2008 was 7,229 tonnes per day versus 7,325 tonnes per day in 2007. LaRonde has
now been operating at a steady state of more than 7,200 tonnes per day for
more than five years, continuing to demonstrate the reliability of this world
class mine.
    Minesite costs per tonne(3) were approximately C$64 in the fourth
quarter. These costs are lower than the C$65 per tonne experienced in the
fourth quarter of 2007. Minesite costs per tonne for the full year 2008 were
on target at approximately C$67, only two percent higher than 2007.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce were $545 in the fourth quarter on production of 54,270 ounces
of gold. This compares with the results of the fourth quarter of 2007 when
total cash costs per ounce were minus $184 on production of 60,183 ounces of
gold. The increase in total cash costs is largely due to significantly lower
byproduct metal prices which caused substantial concentrate settlement losses
in the fourth quarter of 2008. This resulted in a realized zinc price in the
fourth quarter of only $0.30 per pound versus an average spot price of $0.54
per pound. Compared to the fourth quarter of 2007, realized zinc prices were
down 71% in the fourth quarter of 2008.
    For the full year 2008, LaRonde's total cash costs per ounce were $106 on
gold production of 216,208 ounces, placing it among the lowest cash cost gold
mines in the industry. This compares to minus $365 on gold production of
230,992 in 2007, when byproduct metals prices were much stronger.
    Gold production in 2009 at LaRonde is expected to be approximately
203,000 ounces as the gold grade of the orebody continues to decline (partly
due to a higher gold price) until 2012 when the deeper, gold rich, ore is
accessed via the new internal shaft of the LaRonde Extension.

    LaRonde Extension - Shaft Sinking Well Advanced

    During the fourth quarter of 2008, approximately 163 metres of shaft
sinking was completed on the new internal shaft, compared to 137 metres during
the third quarter of 2008. Shaft sinking performance has been good with the
shaft down to a depth of approximately 570 metres out of a total planned depth
of 840 metres from the underground shaft collar (which is 2,030 metres below
surface). The project remains on schedule.
    Overall, proven and probable gold reserves at LaRonde and the LaRonde
Extension total 5.0 million ounces from 35.8 million tonnes grading 4.3 grams
per tonne ("g/t"). Life of mine average annual gold production is expected to
be approximately 320,000 ounces per year through 2022. First production is
expected from the new internal shaft in 2011.

    Goldex Mine - Achieving Targets

    The Goldex mill processed an average of 6,141 tonnes per day in the
fourth quarter of 2008, exceeding plan. The design capacity for the plant is
approximately 6,900 tonnes per day. This rate has already been exceeded
periodically in 2009.
    During the fourth quarter of 2008, approximately 573,000 tonnes of ore
were blasted at Goldex compared with approximately 560,000 tonnes hoisted. For
the full year 2008, approximately 1.4 million tonnes were blasted while
approximately 900,000 tonnes were hoisted. This is necessary as the mining
method used at Goldex requires some of the broken ore to be temporarily left
within the mining block as ground support. As a result of this method,
production blasting is expected to be completed in 2012, while the anticipated
mine life extends through 2017.
    Minesite costs per tonne at Goldex were approximately C$24 in the fourth
quarter, down from $34 in the third quarter of 2008. As the mine started up in
2008, there is no corresponding 2007 quarter. Minesite costs per tonne for the
full year 2008 were approximately C$27, reflecting the start-up phase of the
mine when higher costs were realized.
    Fourth quarter 2008 gold production was 31,972 ounces compared with the
third quarter of 2008 when gold production was 17,159 and the mine was in its
initial start-up phase. The mine achieved commercial production in August
2008.
    Goldex's total cash costs per ounce were $323 in the fourth quarter. For
the full year 2008, Goldex's total cash costs per ounce were $419 on gold
production of 57,436 ounces, reflecting the partial year and the start-up
phase of the mine. Gold production for 2009 is expected to be 165,000 ounces.
Life of mine production is expected to average 160,000 ounces annually.
    A scoping study is underway to examine the possibility of increasing the
capacity of the mine from 6,900 tonnes per day to at least 8,000 tonnes per
day. This may require additions to the crushing and grinding circuit and
additions to the mining fleet. Results of the study are expected to be
released in the second quarter of 2009.

    
    Kittila Mine - Commercial Production Expected in the Second Quarter of
    2009
    

    The Kittila mine poured its first gold on January 14, 2009. Also during
the month, the first bars were delivered to the refinery for final processing.
In January, approximately 2,100 ounces of gold were produced. As a
conservative measure, Agnico-Eagle has not budgeted any gold production in the
first quarter of 2009 while the commissioning is taking place.
    The commissioning process in the mill is proceeding in a sequential
manner and is anticipated to be complete in the second quarter of 2009. The
grinding circuit has achieved its design criteria and the autoclave is
operating at expected oxidation and throughput levels. However, metallurgical
optimization of the flotation circuit and process optimization of the leach
circuit are ongoing. Additionally, due to the accumulation of fine ore in the
bin, inadequate ore flow has affected the operation to date. This problem will
be addressed by refining the crushing circuit.
    During the fourth quarter of 2008, the Kittila mill processed a total of
108,341 tonnes of ore resulting in 9,429 tonnes of concentrate being processed
by the autoclave, and a further 3,920 tonnes of concentrate being held in the
concentrate storage area at year end. At the end of the quarter, 4,590 tonnes
of concentrate was in the storage area. Gold output in the fourth quarter was
3,118 ounces in concentrate form.
    At the end of the quarter, the ore stockpile at Kittila contained
approximately 199,000 tonnes, grading 4.8 grams per tonne. During the quarter,
mine personnel assumed all of the mining activities including drilling,
blasting and haulage from the contractors.
    Underground development exceeded plan during the quarter achieving 859
meters on a plan of 690 meters. Many of the performance issues encountered
during the initial part of the year were resolved resulting in significantly
improved productivity.
    Gold production is expected to be 125,000 ounces for the full year. Life
of mine annual production is expected to average approximately 150,000 ounces.
    A scoping study is underway examining the possibility of significantly
increasing the production rate at Kittila. This plan involves sinking a shaft
on the property. Results of the study are expected to be released in the
fourth quarter of 2009.

    Lapa - the Next New Gold Mine

    Good lateral development performance was achieved in the fourth quarter
with 2,375 metres being driven. An additional 1,000 metres of vertical
development was also achieved.
    While the main activity at Lapa continues to be lateral and vertical
development, the first test stope was mined during the fourth quarter of 2008.
Drilling began on December 11th on stope 80-31 and the first production blast
was on December 25th. Overall, performance of the drilling and blasting was as
expected. A total of 1,100 tonnes, grading 12.7 g/t, was mucked and placed on
the surface stockpile. The total surface stockpile at the end of January 2009
was approximately 31,000 tonnes grading 8.9 g/t.
    The addition to the plant at LaRonde, where the Lapa ore will be
processed, is expected to be complete early in the second quarter of 2009.
Lapa is expected to begin gold production near the end of the second quarter
of 2009.
    Probable gold reserves at Lapa total 1.1 million ounces from 3.7 million
tonnes grading 8.8 grams per tonne. Life of mine average annual gold
production is expected to be approximately 115,000 ounces per year through
2015.

    Construction at Pinos Altos Progressing as Expected

    Construction of the new Pinos Altos mine is well advanced. Commissioning
and first gold production are expected before the end of the third quarter of
2009. The SAG mill foundations were completed and mechanical installation
started. The leach pads were also completed.
    During the fourth quarter of 2008, construction advanced rapidly in the
process plant, electric line, shop/warehouse and heap leach areas.
    Open pit mining continued with 10.1 million total tonnes mined by year
end, approximately 23% above plan. First ore was mined to the stockpile during
the fourth quarter.
    Underground development productivity improved by about 12% over the
previous quarter and total development by year-end was 3,669 meters.
Performance is expected to continue to improve with the new additional mining
equipment that was delivered to the site at the beginning of 2009.

    
    Pinos Altos Grows by One Million Ounces of Gold and 27 Million Ounces of
    Silver
    

    Following a successful drilling program in 2008, probable reserves total
3.6 million ounces of gold and 100.0 million ounces of silver from 41.7
million tonnes grading 2.7 grams per tonne of gold and 74.6 grams per tonne of
silver. Life of mine average annual gold production is expected to be
approximately 175,000 ounces of gold and 2.6 million ounces of silver per year
over a 13 year mine life.
    However, a feasibility study is expected to be released soon on the
potential to add incremental production from the Creston Mascota deposit,
which contains 0.4 million ounces of the Pinos Altos gold reserve. Creston
Mascota is roughly 10 kilometres to the northwest of the main Santo Nino
deposit at Pinos Altos. The study is considering a stand-alone heap leach
operation.

    Meadowbank Construction Update

    Construction of the new Meadowbank mine is well advanced. Commissioning
and first gold production are expected before the end of the first quarter of
2010.
    Probable gold reserves total 3.6 million ounces from 32.8 million tonnes
grading 3.5 grams per tonne. Life of mine average annual gold production is
expected to be approximately 350,000 ounces per year over a 10 year mine life.
    Pre-stripping in the Portage pit is underway with approximately 800,000
tonnes of waste rock hauled during the fourth quarter of 2008.
    During the fourth quarter of 2008, the mill, power house and service
buildings were fully enclosed. Work is currently continuing on the SAG mill
foundations and internal foundations during the winter season.
    Most of the earthwork related to the construction of the East Dike were
completed by the end of the third quarter of 2008. During the fourth quarter
of 2008, the emphasis was placed on the grouting of the foundation of the
dike. Casing installation is virtually complete. Bedrock drilling has now
progressed to 33% completion.
    Construction of the Bay-Goose Dykes are scheduled for 2009 and 2010.
Completion of the East Dyke will permit the start of initial production from
the Portage Open Pit while completion of the two additional dykes will permit
the extension of the Portage open pit as well as access the higher grade ore
of the Goose Island open pit by 2011. Work has started on dewatering the
Portage open pit area.
    Preparations are underway for the 2009 sea lift season. The outstanding
mill and mining equipment as well as consumables for the following year are
scheduled to be delivered this summer. It is expected to start commissioning
the plant near the beginning of 2010.

    About Agnico-Eagle

    Agnico-Eagle is a long established, Canadian headquartered, gold producer
with operations located in Quebec and Finland, and exploration and development
activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's
LaRonde mine is Canada's largest gold mine in terms of reserves. The Company
has full exposure to higher gold prices consistent with its policy of no
forward gold sales. It has paid a cash dividend for 27 consecutive years.


    
    -------------------------
    (1) Payable production of a mineral means the quantity of 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 this measure to production costs, as reported in the financial
        statements, see Note 1 to the financial statements at the end of this
        press release.
    (3) Minesite costs per tonne is a non-GAAP measure. For reconciliation
        of this measure to production costs, as reported in the financial
        statements, see Note 1 to the financial statements at the end of this
        news release.



                         AGNICO-EAGLE MINES LIMITED
               SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
           (thousands of United States dollars, except where noted,
                               US GAAP basis)
                                 (Unaudited)

                                 Three months ended         Year ended
                                 ------------------         ----------
                                    December 31,            December 31,
                                    ------------            ------------
                                  2008        2007        2008        2007
                              ----------- ----------- ----------- -----------
    Gross profit (exclusive
     of amortization shown
     below)
    LaRonde................... $  12,125   $  66,548   $ 164,157   $ 266,101
    Goldex....................    14,464           -      17,919           -
                              ----------- ----------- ----------- -----------
    Operating margin..........    26,589      66,548     182,076     266,101
                              ----------- ----------- ----------- -----------
    Amortization..............    12,538       6,157      36,133      27,757
    Corporate.................     3,255      13,849      49,952      79,066
                              ----------- ----------- ----------- -----------
    Income before tax.........    10,796      46,542      95,991     159,278
    Tax provision.............   (11,078)    (18,620)     22,824      19,933
                              ----------- ----------- ----------- -----------
    Net earnings.............. $  21,874   $  65,162   $  73,167   $ 139,345
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Net earning per share..... $    0.15   $    0.46   $    0.51   $    1.05
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Operating cash flow
     (deficit)................ $ (46,442)  $  48,840   $ 118,081   $ 245,523
    Realized price per sales
     volume (US$):
      Gold (per ounce)........ $     789   $     895   $     879   $     748
      Silver (per ounce)...... $    9.22   $   14.40   $   14.92   $   13.63
      Zinc (per tonne)........ $     663   $   2,313   $   1,745   $   2,941
      Copper (per tonne)...... $    (374)  $   6,134   $   6,220   $   6,994
    Payable production:
      Gold (ounces)
      LaRonde.................    54,270      60,183     216,208     230,992
      Goldex (Note 2).........    31,972           -      57,436           -
      Kittila (Note 3)........     3,118           -       3,118           -
                              ----------- ----------- ----------- -----------
                                  89,360      60,183     276,762     230,992
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
      Silver (000s ounces)....       930       1,166       4,079       4,920
      Zinc (tonnes)...........    14,383      17,563      65,755      71,577
      Copper (tonnes).........     1,737       2,156       6,922       7,482
    Payable metal sold:
      Gold (ounces - LaRonde).    57,391      58,917     214,153     229,316
      Gold (ounces - Goldex)..    30,588           -      44,448           -
                              ----------- ----------- ----------- -----------
                                  87,979      58,917     258,601     229,316
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
      Silver (000s ounces)....       965       1,214       4,023       5,171
      Zinc (tonnes)...........    12,142      19,191      62,653      72,905
      Copper (tonnes).........     1,943       2,157       6,913       7,466
    Total cash costs per
     ounce (Note 1):
    Gold
    LaRonde................... $     545   $    (184)  $     106   $    (365)
    Goldex (Note 2)...........       323           -         419           -
                              ----------- ----------- ----------- -----------
    Weighted average
     total cash costs per
     ounce(1)................. $     463   $    (184)  $     162   $    (365)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Notes:

    (1) Total cash costs per ounce, net of copper, zinc and byproduct
        credits. Total is weighted average based on commercial production
        ounces.

    (2) Includes non-commercial production of 10,089 ounces in full year.

    (3) Includes non-commercial production of 3,118 ounces in Q4 and in full
        year.



                         AGNICO-EAGLE MINES LIMITED
                         CONSOLIDATED BALANCE SHEETS
             (thousands of United States dollars, US GAAP basis)
                                 (Unaudited)


                                                      As at         As at
                                                      -----         -----
                                                   December 31,  December 31,
                                                   ------------  ------------
                                                       2008          2007
                                                       ----          ----

    ASSETS
    Current
      Cash and cash equivalents..................  $    99,381   $   396,019
      Trade receivables..........................       45,640        79,419
      Inventories:
        Ore stockpiles...........................       24,869         5,647
        Concentrates.............................        5,013         1,913
        Supplies.................................       40,014        15,637
      Other current assets.......................      136,377        91,125
                                                  ------------- -------------
    Total current assets.........................      351,294       589,760

    Other assets.................................        8,383        16,436
    Future income and mining tax assets..........       21,647        17,805
    Property, plant and mine development.........    2,997,500     2,123,397
                                                  ------------- -------------
                                                   $ 3,378,824   $ 2,747,398
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities...  $   139,795   $   108,227
      Dividends payable..........................       28,304        26,280
      Interest payable...........................          146             -
      Income taxes payable.......................        4,814             -
    Total current liabilities....................      173,059       134,507
                                                  ------------- -------------

    Bank debt....................................      200,000             -
                                                  ------------- -------------
    Fair value of derivative financial
     instruments.................................       12,823             -
                                                  ------------- -------------
    Reclamation provision and other liabilities..       71,770        57,941
                                                  ------------- -------------
    Future income and mining tax liabilities.....      403,416       496,016
                                                  ------------- -------------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 154,808,918 (December 31, 2007 -
      142,403,379)...............................    2,299,747     1,931,667
    Warrants.....................................       24,858             -
    Stock options................................       41,052        23,573
    Contributed surplus..........................       15,166        15,166
    Retained earnings............................      157,541       112,240
    Accumulated other comprehensive loss.........      (20,608)      (23,712)
                                                  ------------- -------------

    Total shareholders' equity...................    2,517,756     2,058,934
                                                  ------------- -------------
                                                   $ 3,378,824   $ 2,747,398
                                                  ------------- -------------
                                                  ------------- -------------



                         AGNICO-EAGLE MINES LIMITED
         CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
               (thousands of United States dollars except share
                    and per share amounts, US GAAP basis)
                                 (Unaudited)


                                 Three months ended         Year ended
                                 ------------------         ----------
                                    December 31,            December 31,
                                    ------------            ------------
                                  2008        2007        2008        2007
                              ----------- ----------- ----------- -----------

    REVENUES
    Revenues from mining
     operations..............  $  73,235   $ 108,728   $ 368,938   $ 432,205
    Interest and sundry
     income..................      2,395       6,349      11,721      25,142
    Write-down on sale of
     available-for-sale
     securities..............    (39,224)          -     (74,812)          -
    Gain on sale of
     available-for-sale
     securities..............          -           -      25,626       4,088
                              ----------- ----------- ----------- -----------
                                  36,406     115,077     331,473     461,435

    COSTS AND EXPENSES
    Production...............     46,645      42,180     186,862     166,104
    Loss on derivative
     financial instruments...          -           -           -       5,829
    Exploration and corporate
     development.............      8,541       6,849      34,704      25,507
    Amortization.............     12,538       6,157      36,133      27,757
    General and
     administrative..........      6,731      13,747      47,187      38,167
    Provincial capital tax...      2,018      (1,306)      5,332       3,202
    Interest.................        596         632       2,952       3,294
    Foreign currency loss
     (gain)..................    (51,459)        276     (77,688)     32,297
                              ----------- ----------- ----------- -----------
    Income before income,
     mining and federal
     capital taxes...........     10,796      46,542      95,991     159,278
    Income and mining tax
     expense (recovery)......    (11,078)    (18,620)     22,824      19,933
                              ----------- ----------- ----------- -----------

    Net income for the
     period..................  $  21,874   $  65,162   $  73,167   $ 139,345
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Net income per share
     - basic.................  $    0.15   $    0.46   $    0.51   $    1.05
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Net income per share
     - diluted...............  $    0.15   $    0.46   $    0.50   $    1.04
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Weighted average number
     of shares outstanding
     (in thousands)
    Basic....................    148,041     140,618     144,741     132,768
    Diluted..................    149,189     141,808     145,889     133,958



                         AGNICO-EAGLE MINES LIMITED
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
             (thousands of United States dollars, US GAAP basis)
                                 (Unaudited)

                                 Three months ended         Year ended
                                 ------------------         ----------
                                    December 31,            December 31,
                                    ------------            ------------
                                  2008        2007        2008         2007
                              ----------- ----------- ----------- -----------

    Operating activities
    Net income for the
     period. ................  $  21,874   $  65,162   $  73,167   $ 139,345
    Add (deduct) items not
     affecting cash:
      Amortization...........     12,538       6,157      36,133      27,757
      Future income and
       mining taxes..........    (16,661)    (13,841)     16,681      16,380
      Unrealized loss on
       derivative contracts..          -           -           -       5,018
      Gain on sale of
       available-for-sale
       securities............     39,224           -      49,186      (4,088)
      Amortization of
       deferred costs and
       other.................    (51,343)      4,945     (60,079)     54,355
    Changes in non-cash
     working capital balances
      Trade receivables......     15,171      (4,800)     33,779       5,568
      Income taxes payable...      4,814           -       4,814     (14,231)
      Other taxes
       recoverable...........      3,768           -     (28,299)          -
      Inventories............     (2,656)        862     (45,904)     (1,187)
      Other current assets...    (35,602)    (25,276)      3,965     (39,055)
      Interest payable.......       (312)          -         146           -
      Accounts payable and
       accrued liabilities...    (37,257)     15,631      34,492      55,661
                              ----------- ----------- ----------- -----------

    Cash provided by (used in)
     operating activities....    (46,442)     48,840     118,081     245,523
                              ----------- ----------- ----------- -----------

    Investing activities
    Additions to property,
     plant and mine
     development.............   (230,547)   (203,085)   (908,853)   (523,793)
    Acquisition, investments
     and other...............      1,411      (2,446)    (58,922)    (34,166)
    Cash acquired upon
     acquisition of
     Cumberland Resources
     Ltd.....................          -           -           -      96,043
                              ----------- ----------- ----------- -----------

    Cash used in investing
     activities..............   (229,136)   (205,531)   (967,775)   (461,916)
                              ----------- ----------- ----------- -----------

    Financing activities
    Dividends paid...........          -           -     (23,779)    (13,406)
    Repayment of capital
     lease...................       (755)          -     (16,178)     (3,418)
    Bank debt................   (100,000)          -     200,000           -
    Proceeds from common
     shares issued...........    337,912     124,181     376,265     144,138
    Warrants issued, net.....     24,858           -      24,858           -
                              ----------- ----------- ----------- -----------

    Cash provided by
     financing activities....    262,015     124,181     561,166     127,314
                              ----------- ----------- ----------- -----------

    Effect of exchange rate
     changes on cash and
     cash equivalents........        735         935      (8,110)     26,481
                              ----------- ----------- ----------- -----------

    Net increase in cash and
     cash equivalents during
     the period..............    (12,828)    (31,575)   (296,638)    (62,598)
    Cash and cash equivalents,
     beginning of period.....    112,209     427,594     396,019     458,617
                              ----------- ----------- ----------- -----------

    Cash and cash equivalents,
     end of period...........  $  99,381   $ 396,019   $  99,381   $ 396,019
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Other operating cash flow
     information:
    Interest paid during the
     period..................  $   2,976   $     768   $   6,345   $   2,406
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Income, mining and capital
     taxes paid during the
     period..................          -   $  (1,406)  $   3,854   $  22,138
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------



    Note 1: Reconciliation of Total Cash Costs Per Ounce and Minesite Costs
    Per Tonne

                             Three months Three months    Year        Year
                             ------------ ------------    ----        ----
                                 ended       ended       ended       ended
                                 -----       -----       -----       -----
    (thousands of dollars,      December    December    December    December
    ----------------------      --------    --------    --------    --------
    except where noted)         31, 2008     31, 2007   31, 2008    31, 2007
    -------------------       ----------- ----------- ----------- -----------

    Production costs per
      Consolidated Statements
       of Income               $  46,645   $  42,180   $ 186,862   $ 166,104
    Adjustments:
      Byproduct revenues.....     (3,144)    (56,022)   (142,337)   (260,668)
      Inventory adjustment(i)     (1,848)      3,194       1,561      11,528
      Non-cash reclamation
       provision.............       (323)       (427)     (1,266)     (1,264)
                              ----------- ----------- ----------- -----------

    Cash operating costs       $  41,330   $ (11,075)  $  44,820   $ (84,300)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Gold production
     (ounces)................     89,360      60,183     276,762     230,992
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Total cash costs (per
     ounce)(ii)..............  $     463   $    (184)  $     162   $    (365)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------



                                   Three       Three      Twelve      Twelve
                                  months      months      months      months
                                   ended       ended       ended       ended
    (thousands of dollars,      December    December    December    December
    except where noted)         31, 2008    31, 2007    31, 2008    31, 2007
    ------------------------- ----------- ----------- ----------- -----------
    Production costs per
      Consolidated Statements
       of Income.............  $  46,645   $  42,180   $ 186,862   $ 166,104

    Attributable to LaRonde..     34,411      42,180     166,496     166,104
    Attributable to Goldex...     12,234           -      20,366           -
    Total....................  $  46,645   $  42,180   $ 186,862   $ 166,104
                              ----------- ----------- ----------- -----------

    LaRonde Cost per Tonne
    ----------------------
    Production costs.........  $  34,411   $  42,180   $ 166,496   $ 166,104
    Adjustments:
    Inventory adjustments
     (iii)...................     (1,416)     (1,660)         45         916
    Non-cash reclamation
     provision...............       (288)       (427)     (1,194)     (1,264)
                              ----------- ----------- ----------- -----------

    Minesite operating
     costs (US$).............  $  32,707   $  40,093   $ 165,347   $ 165,756
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite operating
     costs (C$)..............  $  41,519   $  42,878   $ 176,893   $ 177,735
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Tonnes of ore milled
     (000s tonnes)...........        646         655       2,639       2,673
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite costs per tonne
     (C$)(iv)................  $      64   $      65   $      67   $      66
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Goldex Cost per Tonne
    ---------------------
    Production costs.........  $  12,234   $       -   $  20,366   $       -
    Adjustments:
    Inventory adjustments
     (iii)...................     (1,882)          -        (448)          -
    Non-cash reclamation
     provision...............        (39)          -         (72)          -
                              ----------- ----------- ----------- -----------
    Minesite operating
     costs (US$).............  $  10,313   $       -   $  19,846   $       -
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite operating
     costs (C$)..............  $  13,463   $       -   $  23,224   $       -
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Tonnes of ore milled
     (000s tonnes)...........        565   -                 851           -
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite costs per tonne
     (C$)(iv)................  $      24   $       -   $      27   $       -
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


    ---------------
    Notes:

    (i)   Under the Company's revenue recognition policy, revenue is
          recognized on concentrates when legal title passes. Since total
          cash costs are calculated on a production basis, this inventory
          adjustment reflects the sales margin on the portion of concentrate
          production for which revenue has not been recognized in the period.

    (ii)  Total cash costs is not a recognized measure under US GAAP and this
          data may not be comparable to data presented by other gold
          producers. The Company believes that this generally accepted
          industry measure is a realistic indication of operating performance
          and is useful in allowing year over year comparisons. As
          illustrated in the table above, this measure is calculated by
          adjusting Production Costs as shown in the Consolidated Statements
          of Income and Comprehensive Income for net byproduct revenues,
          royalties, inventory adjustments and asset retirement provisions.
          This measure is intended to provide investors with information
          about the cash generating capabilities of the Company's mining
          operations. Management uses this measure to monitor the performance
          of the Company's mining operations. Since market prices for gold
          are quoted on a per ounce basis, using this per ounce measure
          allows management to assess the mine's cash generating capabilities
          at various gold prices. Management is aware that this per ounce
          measure of performance can be impacted by fluctuations in byproduct
          metal prices and exchange rates. Management compensates for the
          limitation inherent with this measure by using it in conjunction
          with the minesite costs per tonne measure (discussed below) as well
          as other data prepared in accordance with US GAAP. Management also
          performs sensitivity analyses in order to quantify the effects of
          fluctuating metal prices and exchange rates.

    (iii) This inventory adjustment reflects production costs associated with
          unsold concentrates.

    (iv)  Minesite costs per tonne is not a recognized measure under US GAAP
          and this data may not be comparable to data presented by other gold
          producers. As illustrated in the table above, this measure is
          calculated by adjusting Production Costs as shown in the
          Consolidated Statements of Income and Comprehensive Income for
          inventory and asset retirement provisions and then dividing by
          tonnes processed through the mill. Since total cash costs data can
          be affected by fluctuations in byproduct metal prices and exchange
          rates, management believes minesite costs per tonne provides
          additional information regarding the performance of mining
          operations and allows management to monitor operating costs on a
          more consistent basis as the per tonne measure eliminates the cost
          variability associated with varying production levels. Management
          also uses this measure to determine the economic viability of
          mining blocks. As each mining block is evaluated based on the net
          realizable value of each tonne mined, in order to be economically
          viable the estimated revenue on a per tonne basis must be in excess
          of the minesite costs per tonne. Management is aware that this per
          tonne measure is impacted by fluctuations in production levels and
          thus uses this evaluation tool in conjunction with production costs
          prepared in accordance with US GAAP. This measure supplements
          production cost information prepared in accordance with US GAAP and
          allows investors to distinguish between changes in production costs
          resulting from changes in production versus changes in operating
          performance.



    Detailed Mineral Reserve and Resource Data (as at December 31, 2008)

    -------------------------------------------------------------------------
                          Au     Ag   Cu     Zn     Pb     Au        Tonnes
    Category and Zone   (g/t)  (g/t)  (%)    (%)    (%)   (000s oz.) (000s)
    -------------------------------------------------------------------------
    Proven Mineral
     Reserve
    -----------------------------------------------------------------
    Goldex               1.95                                   27       434
    -------------------------------------------------------------------------
    Kittila              4.84                                   31       199
    -------------------------------------------------------------------------
    Lapa                 7.53                                    6        23
    -------------------------------------------------------------------------
    LaRonde              2.76  67.87   0.33   3.27   0.37      362     4,075
    -------------------------------------------------------------------------
    Pinos Altos          1.35  19.08                             4        97
    -------------------------------------------------------------------------
    Subtotal Proven
     Mineral Reserve     2.77                                  430     4,828


    -------------------------------------------------------------------------
    Probable Mineral
     Reserve
    -----------------------------------------------------------------
    Goldex               2.05                                1,544    23,391
    -------------------------------------------------------------------------
    Kittila              4.69                                3,193    21,171
    -------------------------------------------------------------------------
    Lapa                 8.80                                1,055     3,730
    -------------------------------------------------------------------------
    LaRonde              4.52  31.18   0.28   1.42   0.12    4,612    31,735
    -------------------------------------------------------------------------
    Meadowbank           3.45                                3,638    32,773
    -------------------------------------------------------------------------
    Pinos Altos          2.68  74.61                         3,589    41,669
    -------------------------------------------------------------------------
    Subtotal Probable
     Mineral Reserve     3.55                               17,631   154,469
    -------------------------------------------------------------------------
    Total Proven and
     Probable Mineral
     Reserves            3.53                               18,061   159,297
    -------------------------------------------------------------------------



    ---------------------------------------------------------------
                          Au     Ag   Cu     Zn     Pb     Tonnes
    Category and Zone   (g/t)  (g/t)  (%)    (%)    (%)    (000s)
    ---------------------------------------------------------------
    Indicated Mineral
     Resource
    ---------------------------------------------------------------
    Bousquet             5.63                                1,704
    ---------------------------------------------------------------
    Ellison              5.68                                  415
    ---------------------------------------------------------------
    Goldex               1.79                                  220
    ---------------------------------------------------------------
    Kittila              2.99                                3,471
    ---------------------------------------------------------------
    Lapa                 4.36                                  987
    ---------------------------------------------------------------
    LaRonde              1.83  26.77   0.15   1.55   0.16    6,349
    ---------------------------------------------------------------
    Meadowbank           2.17                               21,956
    ---------------------------------------------------------------
    Pinos Altos          1.00  26.08                        12,468
    ---------------------------------------------------------------
    Total Indicated
     Resource            2.07                               47,569
    ---------------------------------------------------------------



    ---------------------------------------------------------------
                          Au     Ag   Cu     Zn     Pb     Tonnes
    Category and Zone   (g/t)  (g/t)  (%)    (%)    (%)    (000s)
    ---------------------------------------------------------------
    Inferred Mineral
     Resource
    ---------------------------------------------------------------
    Bousquet             7.45                                1,667
    ---------------------------------------------------------------
    Ellison              5.81                                  786
    ---------------------------------------------------------------
    Goldex               2.42                               11,949
    ---------------------------------------------------------------
    Kittila              4.42                               17,550
    ---------------------------------------------------------------
    Lapa                 7.97                                  761
    ---------------------------------------------------------------
    LaRonde              5.91  18.91   0.44   0.77   0.08    4,937
    ---------------------------------------------------------------
    Meadowbank           2.78                                4,953
    ---------------------------------------------------------------
    Pinos Altos          1.65  39.95                         4,000
    ---------------------------------------------------------------
    Total Inferred
     Resource            3.84                               46,603
    ---------------------------------------------------------------
    

    Forward-Looking Statements

    The information in this press release has been prepared as at February
18, 2008. 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 and are referred to herein as "forward-looking
statements".
    Such statements include without limitation: the Company's forward looking
production guidance, including estimated ore grades, metal production, life of
mine horizons, and projected exploration and capital expenditures, including
costs and other estimates upon which such projections are based; the Company's
goal to increase its mineral reserves and resources; 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. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable by
Agnico-Eagle as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The factors and assumptions of Agnico-Eagle contained in this
news release, which may prove to be incorrect, include, but are not limited
to, the assumptions set forth herein and in management's discussion and
analysis as well as: that there are no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions, damage to
equipment, natural occurrences, political changes, title issues or otherwise;
that permitting, development and expansion at each of Agnico-Eagle's
development projects proceeds on a basis consistent with current expectations,
and that Agnico-Eagle does not change its development plans relating to such
projects; that the exchange rate between the Canadian dollar, European Union
euro, Mexican peso and the United States dollar will be approximately
consistent with current levels or as set out in this news release; prices for
gold, silver, zinc, copper and lead will be consistent with Agnico-Eagle's
expectations; that prices for key mining and construction supplies, including
labour costs, remain consistent with Agnico-Eagle's current expectations; that
production meets expectations; that Agnico-Eagle's current estimates of
mineral reserves, mineral resources, mineral grades and mineral recovery are
accurate; that there are no material delays in the timing for completion of
ongoing development projects; and that there are no material variations in the
current tax and regulatory environment. 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; 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 the Company's Annual
Information Form and Annual Report on Form 20-F for the year ended December
31, 2007, as well as the Company's other filings with the Canadian Securities
Administrators and the U.S. Securities and Exchange Commission (the "SEC").
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.

    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 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.

    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 mineral reserves and resources estimate reported by the Company on
February 18th, 2009 were based on three year average prices for the period
ending December 31, 2008 of $725 per ounce gold, $13.32 per ounce silver,
$1.27 per pound zinc, $3.15 per pound copper, $0.90 per pound lead and C$/US$,
US$/Euro and MXP/US$ exchange rates of 1.09, 1.37 and 11.00, respectively.
    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.
    The mineral reserves presented in this disclosure are exclusive of
mineral resources.

    
    -------------------------------------------------------------------------
    Property/Project name   Qualified Person         Date of most recent
    and location            responsible for the      SEDAR Technical Report
                            current Mineral          (NI 43-101) disclosure
                            Resource and Reserve
                            Estimate relationship
                            to Agnico-Eagle
    -------------------------------------------------------------------------
    LaRonde, Bousquet &     François Blanchet Ing.,  March 24, 2005
    Ellison, Quebec,        LaRonde Division
    Canada                  Superintendent of
                            geology
    -------------------------------------------------------------------------
    Kittila, Finland        Marc Legault P.Eng.,     December 11, 2008
                            VP Project Development
    Pinos Altos, Chihuhua,  Dyane Duquette, P.Geo.,  September 24, 2007
    Mexico                  senior geologist,
                            Abitibi Technical
                            Services Group
    -------------------------------------------------------------------------
    Meadowbank, Nunavut,    Dyane Duquette, P.Geo.,  December 15, 2008
    Canada                  senior geologist,
                            Abitibi Technical
                            Services Group
    -------------------------------------------------------------------------
    Goldex, Quebec, Canada  Richard Genest, Ing.,    October 27, 2005
                            Goldex Division
                            Superintendent of
                            geology
    -------------------------------------------------------------------------
    Lapa, Quebec, Canada    Normand Bédard, P.Geo.,  June 8, 2006.
                            Lapa Superintendant of
                            geology
    -------------------------------------------------------------------------
    

    The effective date for all of the Company's mineral resource and reserve
estimates in this press release is December 31st, 2008. No independent
verification of the data has been published. Additional information about each
of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3
and paragraphs 3.4 (a), (c) and (d) can be found in the Technical Reports
referred to above, which may be found at www.sedar.com. Other important
operating information can be found in the Company's press release dated
December 3rd, 2008.
    The contents of this press release have been prepared under the
supervision of, and reviewed by, Marc Legault P.Eng., Vice-president Project
Development and a "Qualified Person" for the purposes of NI 43-101.

    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. 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 out in Note 1 to the financial statements included
herein.





For further information:

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


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