Agnico-Eagle reports Q1 2009 results; Record quarterly gold production; Lapa Mine produces first gold; Kittila mill commissioning ongoing



    
    Stock Symbol: AEM (NYSE and TSX)

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

    TORONTO, April 29 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") today reported quarterly net income of $54.3 million, or $0.35
per share for the first quarter of 2009.
    This result includes a tax recovery of $38.6 million, or $0.25 per share,
a non-cash foreign currency translation gain of $7.5 million, or $0.05 per
share, offset partly by stock option expense of $12.0 million, or $0.08 per
share. In the first quarter of 2008, the Company reported net income of $28.9
million, or $0.20 per share.
    First quarter 2009 cash provided by operating activities was $48.8
million, down from cash provided by operating activities of $54.6 million in
the first quarter of 2008, primarily due to lower metal prices for gold, zinc,
silver and copper, offset partly by higher gold production.
    "Gold production in the first quarter achieved targets and rose 80% over
the first quarter of 2008. While we remain on schedule to open up three new
mines over the next few quarters, the production ramp up at our Kittila mine
in Finland will be slower than expected", said Sean Boyd, Vice-Chairman and
Chief Executive Officer. "Gold output in 2009 is anticipated to be 550,000
ounces to 575,000 ounces, rising to approximately 1.2 million ounces in 2010",
added Mr. Boyd.

    
    First quarter 2009 highlights include:

        -  Record Production - record gold production of 91,812 ounces
        -  Good Cost Control - per tonne targets achieved at both LaRonde and
           Goldex
        -  Next Three New Gold Mines On Schedule - Lapa and Pinos Altos on
           schedule for initial production in 2009. Meadowbank set to open in
           first quarter of 2010
    

    Payable gold production(1) in the first quarter of 2009 was a record
91,812 ounces at total cash costs per ounce(2) of $312. This compares with
payable gold production of 50,892 ounces, at total cash costs per ounce of
minus $399 in the first quarter of 2008.
    The increase in production and total cash costs per ounce in the first
quarter of 2009 is mainly due to the commencement of production at the new
Goldex mine, where there are no byproducts produced from the orebody, and also
due to lower realized prices for byproducts from the LaRonde mine.
    Due to the slower than expected ramp up at the Kittila mine in the second
quarter, the Company's gold production in 2009 is now expected to be between
550,000 ounces and 575,000 ounces at total cash costs per ounce of
approximately $340. Prior guidance was 590,000 ounces of gold in 2009 at total
cash costs per ounce of $325.

    Annual General Meeting Tomorrow

    The Annual General Meeting will begin on Thursday, April 30, 2009 at
11:00am (E.D.T.). The meeting will be held at Le Meridien King Edward Hotel,
Vanity Ballroom located at 37 King Street East, Toronto, Canada. During the
meeting we will provide an overview of our first quarter operating and
financial results along with an update on our growth projects. For those
unable to attend in person, there are several alternatives listed below.

    
    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 416-640-1917 or toll-free 877-289-8525, passcode 21294136
    (followed by the number sign).

    The audio will be replayed from Thursday, April 30, 2009 at 1:00 PM
    (E.D.T.) to Thursday, May 7, 2009 11:59 PM (E.D.T.). The webcast along
    with presentation slides will be archived for 180 days on the website.
    

    Growth Fully Funded - Cash Position Remains Strong

    Cash and cash equivalents increased to $208.4 million at March 31, 2009
from the December 31, 2008 balance of $99.4 million. Long term debt is $415
million at March 31, 2009 from the December 31, 2008 amount of $200 million.
    Capital expenditures in the quarter were $155 million, including $46
million at Pinos Altos, $44 million at Meadowbank, $28 million at Kittila, $20
million at Lapa and $15 million at LaRonde.
    In 2009, full year capital expenditures are now expected to total
approximately $540 million, up from the previous estimate of $450 million. The
change is largely due to increased spending on freight, air transport,
engineering and labour at the Meadowbank project in the Canadian Arctic ($60
million). Additionally, delays at Kittila have resulted in the further
capitalization of pre-commercial production costs ($30 million).
    However, with its cash balance of $208 million, $130 million of available
bank lines, and strong operating cash flows, Agnico-Eagle is fully funded for
the development and exploration of its pipeline of gold projects in Canada,
Finland and Mexico.

    LaRonde Mine - Strong Production and Cost Control Performance Continues

    The 100% owned LaRonde mine in northwestern Quebec, Canada, began
operation in 1988. Overall, proven and probable gold reserves at LaRonde total
approximately 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 of the LaRonde Extension in 2011.
    The LaRonde mill processed an average of 7,203 tonnes of ore per day in
the first quarter of 2009, compared with an average of 7,431 tonnes per day in
the corresponding period of 2008. LaRonde has now been operating at a steady
state of approximately 7,200 tonnes per day for almost six years, continuing
to demonstrate the reliability of this world class mine.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce were $294 in the first quarter on production of 51,339 ounces
of gold. This compares with the results of the first quarter of 2008 when
total cash costs per ounce were minus $399 on production of 50,892 ounces of
gold. The increase in total cash costs is largely due to significantly lower
byproduct metal prices.
    Minesite costs per tonne(3) were approximately C$72 in the first quarter.
These costs are on budget but higher than the C$65 per tonne experienced in
the first quarter of 2008. The increase is largely due to the sharp increase
in the cost of consumables which began to occur mid-2008.

    LaRonde Extension - Shaft Sinking Well Advanced

    During the first quarter of 2009, approximately 120 metres of shaft
sinking was completed on the new internal shaft. Shaft sinking performance has
been good with the shaft down to a depth of approximately 2,680 metres out of
a total planned depth of 2,880 metres. Shaft sinking is expected to be
completed during the fourth quarter of 2009 with preproduction development
starting thereafter. The project is on schedule to start production in 2011.

    Goldex Mine - Achieving Targets

    The 100% owned Goldex mine in northwestern Quebec began operation in
2008. Proven and probable gold reserves total 1.6 million ounces from 23.8
million tonnes grading 2.1 g/t. Life of mine average annual gold production is
expected to be approximately 160,000 ounces per year through 2017. However, it
is expected that the mine life may be extended as the reserves mined in 2008
were fully replaced by exploration drilling. Also, several nearby satellite
zones of mineralization are being considered for mining, which could further
extend the mine life.
    The Goldex mine continues to steadily ramp up production. The mill
processed an average of 6,770 tonnes per day in the first quarter of 2009,
compared with 6,141 tonnes per day in the fourth quarter of 2008. The design
capacity for the plant is approximately 6,900 tonnes per day. This rate has
periodically been exceeded in 2009.
    First quarter 2009 gold production was 35,959 ounces at total cash costs
per ounce of $338. This compares with the fourth quarter of 2008 when gold
production was 31,972 ounces at total cash costs per ounce of $323. The mine
achieved commercial production in August 2008.
    During the first quarter of 2009, approximately 950,000 tonnes of ore
were blasted at Goldex compared with approximately 650,000 tonnes hoisted.
This difference 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$25 in the first
quarter, up slightly from C$24 in the fourth quarter of 2008.
    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 this quarter.

    
    Kittila Mine - Commercial Production Now Expected in the Third Quarter of
    2009
    

    The 100% owned Kittila mine in northern Finland poured its first gold in
January 2009. Proven and probable gold reserves total 3.2 million ounces from
21.4 million tonnes grading 4.7 g/t. Life of mine average annual gold
production is expected to be approximately 150,000 ounces per year through
2023.
    Mechanically, the mill at Kittila is complete and operating with mill
availability exceeding 90%, in line with its design parameters. However, gold
recovery optimization is taking longer than originally anticipated.
    Two metallurgical issues have recently been identified which are reducing
mill recoveries. Indications are that a gold chloride compound is being formed
in the autoclave, along with the activation of organic carbon. These are not
uncommon issues with this type of circuit. As a result, the plant
commissioning phase has been extended to vary the process conditions in the
pressure oxidation circuit. The Company still expects this metallurgical
remediation process will allow Kittila to achieve its design gold recoveries
of more than 83% in the mill over the life of the mine.
    Underground mine development continues according to plan. The surface ore
stockpiles now total approximately 213,000 tonnes grading 5.3 g/t.
    A scoping study is underway examining the possibility of significantly
increasing the designed 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 and will incorporate the most recent exploration
drilling. Nine drills are currently working on resource conversion and other
exploration around the current reserves.
    Agnico-Eagle is hosting the Grand Opening at the Kittila mine on June 4,
2009. Investors, analysts, employees, government officials and media are
expected to attend the celebration for the Company's first international gold
mine.

    Lapa - Produces First Gold

    The 100% owned Lapa mine in northwestern Quebec began production in April
2009. Proven and probable gold reserves total 1.1 million ounces from 3.8
million tonnes grading 8.8 g/t. Life of mine average annual gold production is
expected to be approximately 115,000 ounces per year through 2015.
    The first ore was fed into the Lapa circuit at the LaRonde mill in April
2009. Coarse gold has been extracted from the gravity circuit and the first
gold pour is expected this week. This ore was sourced from the low grade ore
stockpile as is normal in the mill commissioning phase.
    However, production mining has now commenced. To date, three mining
blocks, or stopes, have been extracted. The overall average mucked grade of
these three stopes was 12.2 grams per tonne compared with their expected
reserve grade of 8.7 grams per tonne. The higher grade needs to be confirmed
when this ore is processed in the mill in the next several weeks.

    Pinos Altos Construction Progressing as Expected

    The 100% owned Pinos Altos mine project in northern Mexico is expected to
begin production in the third quarter of 2009. Proven and probable gold
reserves total 3.6 million ounces and 100 million ounces of silver from 41.8
million tonnes grading 2.7 g/t of gold and 74.6 g/t silver. Life of mine
average annual gold production is expected to be approximately 175,000 ounces
per year through 2022. Over this period, annual silver production is expected
to average 2.6 million ounces.
    Construction of the new Pinos Altos mine project is well advanced. All of
the critical components have been delivered to the mine site and mechanical
and electrical installations are proceeding according to plan. The first ore
will be placed on the leach pads during the second quarter of 2009.
Commissioning of the milling circuit and first gold production are expected
before the end of the third quarter of 2009.
    Open pit stripping continued at better than planned rate with 4.2 million
tonnes mined, including initial stripping at the Oberon de Weber pit.
    Underground development productivity improved by approximately 19% over
the previous quarter. Performance is expected to continue to improve with the
new mining equipment that was delivered to the site at the beginning of 2009.

    Meadowbank Project Remains on Schedule for Q1 2010 Start Up

    The 100% owned Meadowbank mine project in Nunavut, northern Canada, is
expected to begin production in the first quarter of 2010. Proven and probable
gold reserves total 3.6 million ounces from 32.8 million tonnes grading 3.5
g/t. Life of mine average annual gold production is expected to be
approximately 350,000 ounces through 2019.
    Construction of the new Meadowbank mine project is well advanced.
Completion of the mill, power plant and service buildings late last year has
permitted construction to proceed as planned over the winter. Highlights
include the completion of the SAG mill foundations and the initiation of
dewatering of Second Portage Lake. Commissioning of the mill and first gold
production are expected before the end of the first quarter of 2010.
    However, the project continues to be affected by cost pressure for
freight, air transport, engineering and labour. In spite of this cost
pressure, the project returns are still expected to be robust.
    Pre-stripping in the Portage pit is underway with approximately 530,000
tonnes of waste rock hauled during the first quarter of 2009. Approximately
15,500 metres of drilling in waste was completed in the Portage pit area.
Additionally, the permanent 1,500 metre long airstrip at the minesite was
completed and commissioned.
    In the first quarter of 2009, approximately 11,500 metres of exploration
drilling was completed. Four drills are dedicated to the mining area and three
drills are working on exploration targets. Results will be presented in an
upcoming exploration update.
    A scoping study is underway which is considering an increase in the
average daily production rate from 8,500 tonnes per day to 10,000 tonnes per
day. This would increase the average annual gold production to more than
400,000 ounces. Results of the study are expected in the third quarter of
2009.

    Analyst Presentation

    Agnico-Eagle will be hosting a project update for Equity Analysts on May
29 at the corporate head office in Toronto. The update will comprise
presentations on each of the Company's six mines as well as the exploration
focus in 2009. Interested parties should contact Hazel Winchester at
hwinchester@agnico-eagle.com, or 416 847 3717. All presentation materials will
also be posted on the Company's website.

    AEM Warrants Listed

    As of April 30, 2009, a total of 8.6 million Agnico-Eagle common share
purchase warrants will be listed and posted for trading on the Toronto Stock
Exchange. The trading symbol will be AEM.WT.U with the CUSIP number 008474 14
0. The trading currency is US dollars.
    These warrants were issued as part of the $290 million private placement
which closed on December 3, 2008.
    Each warrant entitles the holder thereof to purchase one common share at
an exercise price of US$47.25 per share at any time prior to 4:30 p.m.
(Toronto time) until December 2, 2013.
    Registration of interests in and transfers of Warrants shall be made
through the book-based system operated by CDS Clearing and Depository Services
Inc. The Warrants will be evidenced by one or more Warrants certificate(s) for
an amount representing the aggregate number of such Warrants outstanding from
time to time.
    The Warrants will be governed by the terms of a warrant indenture dated
April 4, 2009 between the Company and Computershare Trust Company of Canada,
as warrant agent. The warrant indenture will provide for appropriate
adjustments to the Warrants in the event of stock dividends, subdivisions,
consolidations and other forms of capital reorganization.

    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 operating 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 2 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
                                                       ------------------
                                                            March 31,
                                                            ---------
                                                        2009         2008
                                                        ----         ----
    Gross profit (exclusive of amortization
     shown below)
    LaRonde.........................................    $37,647      $75,483
    Goldex..........................................     18,466            -
                                                     -----------  -----------
    Operating margin................................     56,113       75,483
    Amortization....................................     12,130        7,030
    Corporate.......................................     14,647       17,279
    Income before tax...............................     29,336       51,174
    Tax provision...................................    (25,005)      22,266
                                                     -----------  -----------
    Net earnings....................................    $54,341      $28,908
                                                     -----------  -----------
                                                     -----------  -----------
    Net earning per share...........................      $0.35        $0.20
                                                     -----------  -----------
                                                     -----------  -----------
    Operating cash flow.............................    $48,823      $54,587
    Realized price per sales volume (US$):
      Gold (per ounce)..............................       $969       $1,089
      Silver (per ounce)............................     $13.53       $19.91
      Zinc (per tonne)..............................     $1,213       $2,530
      Copper (per tonne)............................     $4,110      $10,559
    Payable production:
      Gold (ounces)
      LaRonde.......................................     51,339       50,892
      Goldex........................................     35,959            -
      Kittila.......................................      4,514            -
                                                     -----------  -----------
      Total gold (ounces)...........................     91,812       50,892
                                                     -----------  -----------
                                                     -----------  -----------
      Silver (000's ounces).........................      1,029        1,026
      Zinc (tonnes).................................     13,291       19,467
      Copper (tonnes)...............................      1,682        1,453
    Payable metal sold:
      Gold (ounces - LaRonde).......................     53,516       51,596
      Gold (ounces - Goldex)........................     30,901            -
      Gold (ounces - Kittila).......................          -            -
      Silver (000's ounces).........................      1,012        1,018
      Zinc (tonnes).................................     17,057       18,710
      Copper (tonnes)...............................      1,686        1,421
    Total cash costs per ounce (Note 1):
    Gold
    LaRonde.........................................       $294        $(399)
    Goldex..........................................        338            -
                                                     -----------  -----------
    Weighted average total cash costs per ounce.....       $312        $(399)
                                                     -----------  -----------
                                                     -----------  -----------

    Note 1

    Total cash costs per ounce, net of copper, zinc and other byproduct
    credits. Total is weighted average based on commercial production ounces.
    Total cash costs per ounce is a non-GAAP measure. For a reconciliation to
    the financial statements, see Note 2 to the financial statements. See
    also "Note Regarding Certain Measures of Performance"



                         AGNICO-EAGLE MINES LIMITED
                         CONSOLIDATED BALANCE SHEETS
             (thousands of United States dollars, US GAAP basis)
                                 (Unaudited)
                                                        As at       As at
                                                      March 31,  December 31,
                                                     ----------- ------------
                                                        2009         2008
                                                        ----         ----
    ASSETS
    Current
      Cash and cash equivalents.....................   $208,375      $99,381
      Trade receivables.............................     60,837       45,640
      Inventories:
        Ore stockpiles..............................     27,084       24,869
        Concentrates................................      4,823        5,013
        Supplies....................................     36,161       40,014
      Other current assets..........................    113,990      136,377
                                                     -----------  -----------
    Total current assets............................    451,270      351,294

    Other assets....................................      6,734        8,383
    Future income and mining tax assets.............     21,778       21,647
    Property, plant and mine development............  3,150,222    2,997,500
                                                     -----------  -----------
                                                     $3,630,004   $3,378,824
                                                     -----------  -----------
                                                     -----------  -----------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities......   $112,882     $139,795
      Dividends payable.............................        277       28,304
      Interest payable..............................        548          146
      Income taxes payable..........................      4,221        4,814
                                                     -----------  -----------

    Total current liabilities.......................    117,928      173,059
                                                     -----------  -----------

    Bank debt.......................................    415,000      200,000
                                                     -----------  -----------

    Fair value of derivative financial
     instruments....................................     13,056       12,823
                                                     -----------  -----------

    Reclamation provision and other
     liabilities....................................     70,218       71,770
                                                     -----------  -----------

    Future income and mining tax
     liabilities....................................    395,043      403,416
                                                     -----------  -----------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 155,656,432 (December 31, 2008
       - 154,808,918)...............................  2,329,090    2,299,747
    Stock options...................................     53,375       41,052
    Warrants........................................     24,858       24,858
    Contributed surplus.............................     15,166       15,166
    Retained earnings...............................    211,882      157,541
    Accumulated other comprehensive loss............    (15,612)     (20,608)
                                                     -----------  -----------

    Total shareholders' equity......................  2,618,759    2,517,756
                                                     -----------  -----------
                                                     $3,630,004   $3,378,824
                                                     -----------  -----------
                                                     -----------  -----------


                         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
                                                       ------------------
                                                            March 31,
                                                            ---------
                                                        2009         2008
                                                        ----         ----
    REVENUES
    Revenues from mining operations.................   $105,831     $119,134
    Interest and sundry income......................      4,693        4,115
    Gain on sale of available-for-sale
     securities.....................................        194          406
                                                     -----------  -----------
                                                        110,718      123,655
    COSTS AND EXPENSES
    Production......................................     49,718       43,651
    Exploration and corporate development...........      6,249        8,898
    Amortization....................................     12,130        7,030
    General and administrative......................     18,800       19,868
    Provincial capital tax..........................      1,109          869
    Interest........................................        869        1,054
    Foreign currency gain...........................     (7,493)      (8,889)
                                                     -----------  -----------
    Income before income, mining and federal
     capital taxes..................................     29,336       51,174
    Income and mining tax expense...................    (25,005)      22,266
                                                     -----------  -----------

    Net income for the period.......................    $54,341      $28,908
                                                     -----------  -----------
                                                     -----------  -----------

    Net income per share - basic....................      $0.35        $0.20
                                                     -----------  -----------
                                                     -----------  -----------
    Net income per share - diluted..................      $0.35        $0.20
                                                     -----------  -----------
                                                     -----------  -----------
    Weighted average number of shares
     outstanding (in thousands)
      Basic.........................................    155,184      143,372
      Diluted.......................................    157,196      144,375




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

                                                       Three months ended
                                                       ------------------
                                                            March 31,
                                                            ---------
                                                        2009         2008
                                                        ----         ----
    Operating activities
    Net income for the period.......................    $54,341      $28,908
    Add (deduct) items not affecting cash:
      Amortization..................................     12,130        7,030
      Future income and mining taxes................    (25,138)      15,699
      Gain on sale of available-for-sale
       securities...................................       (194)        (406)
      Amortization of deferred costs and other......         36        4,372
    Changes in non-cash working capital balances
      Trade receivables.............................    (15,197)     (14,106)
      Income taxes payable..........................       (593)       4,648
      Inventories...................................      1,923          147
      Other current assets..........................     29,920       (8,994)
      Interest payable..............................        402            -
      Accounts payable and accrued liabilities......     (8,807)      17,289
                                                     -----------  -----------
    Cash provided by operating activities...........     48,823       54,587
                                                     -----------  -----------

    Investing activities
    Additions to property, plant and mine development  (155,347)    (158,030)
    Acquisition, investments and other..............        490       (2,741)
                                                     -----------  -----------
    Cash used in investing activities...............   (154,857)    (160,771)
                                                     -----------  -----------

    Financing activities
    Dividends paid..................................    (27,132)     (23,779)
    Repayment of capital lease and other............       (362)        (763)
    Bank debt.......................................    215,000            -
    Proceeds from common shares issued..............     28,941       30,263
                                                     -----------  -----------
    Cash provided by financing activities...........    216,447        5,721
                                                     -----------  -----------

    Effect of exchange rate changes on cash
     and cash equivalents...........................     (1,419)      (1,137)
                                                     -----------  -----------

    Net increase (decrease) in cash and cash
     equivalents during the period..................    108,994     (101,600)
    Cash and cash equivalents, beginning of period..     99,381      396,019
                                                     -----------  -----------

    Cash and cash equivalents, end of period........   $208,375     $294,419
                                                     -----------  -----------
                                                     -----------  -----------
    Other operating cash flow information:
    Interest paid during the period.................     $1,522         $683
                                                     -----------  -----------
                                                     -----------  -----------
    Income, mining and capital taxes paid
     during the period..............................     $1,747           $-
                                                     -----------  -----------

    Note 2  The following tables provide a reconciliation of the mine site
    cash costs per ounce of gold produced and mine site costs per tonne to
    production costs as set out the interim consolidated financial
    statements:

    Mine Site Cash Costs per
    Ounce of Gold
    -------------------------
                                                          Three        Three
                                                         months       months
                                                          ended        ended
                                                       March 31,    March 31,
    (thousands of dollars, except where noted)             2009         2008
    ------------------------------------------       -----------  -----------
    Total Production costs per Consolidated
     Statements of Income..........                     $49,718      $43,651

    Attributable to LaRonde                              38,247       43,651
    Attributable to Goldex                               11,471            -
                                                     -----------  -----------
      Total........................                     $49,718      $43,651
                                                     ------------------------
                                                     ------------------------

    LaRonde Cash Costs per Ounce
    ----------------------------
    Production costs...............                     $38,247      $43,651
    Adjustments:
      Byproduct revenues                                (24,046)     (62,943)
      Inventory adjustment(i)                             1,192         (730)
      Non-cash reclamation provision                       (274)        (306)
                                                     -----------  -----------
    Cash operating costs                                $15,119     $(20,328)
                                                     -----------  -----------
                                                     -----------  -----------
    Gold production (ounces)                             51,339       50,892
                                                     -----------  -----------
                                                     -----------  -----------
    Total cash costs (per ounce)(ii)                       $294        $(399)
                                                     -----------  -----------
                                                     -----------  -----------

    Goldex Cash Costs per Ounce
    ---------------------------
    Production costs...............                     $11,471           $-
    Adjustments:
    Inventory adjustment(i)                                 743            -
    Non-cash reclamation provision                          (47)           -
                                                     -----------  -----------
    Cash operating costs                                $12,167           $-
                                                     -----------  -----------
                                                     -----------  -----------
    Gold production (ounces)                             35,959            -
                                                     -----------  -----------
                                                     -----------  -----------
    Total cash costs (per ounce)(ii)                       $338           $-
                                                     -----------  -----------
                                                     -----------  -----------


    Mine Site Cost per Tonne
    -----------------------------

                                                          Three        Three
                                                         months       months
                                                          ended        ended
                                                       March 31,    March 31,
    (thousands of dollars, except where noted)             2009         2008
    ------------------------------------------       -----------  -----------

    LaRonde Cost per Tonne
    ----------------------
    Production costs...............                     $38,247      $43,651
    Adjustments:
    Inventory adjustments(iii)                           (1,028)         999
    Non-cash reclamation provision                         (274)        (306)
                                                     -----------  -----------
    Minesite operating costs (US$)                      $36,945      $44,344
                                                     -----------  -----------
                                                     -----------  -----------
    Minesite operating costs (C$)                       $46,495      $43,995
                                                     -----------  -----------
                                                     -----------  -----------
    Tonnes of ore milled (000's tonnes)............         648          676
                                                     -----------  -----------
                                                     -----------  -----------
    Minesite costs per tonne (C$)(iv)                       $72          $65
                                                     -----------  -----------
                                                     -----------  -----------

    Goldex Cost per Tonne
    ---------------------
    Production costs...............                     $11,471           $-
    Adjustments:
    Inventory adjustments(iii)                              743            -
    Non-cash reclamation provision                          (47)           -
                                                     -----------  -----------
    Minesite operating costs (US$)                      $12,167           $-
                                                     -----------  -----------
                                                     -----------  -----------
    Minesite operating costs (C$)                       $15,193           $-
                                                     -----------  -----------
                                                     -----------  -----------
    Tonnes of ore milled (000's tonnes)............         609            -
                                                     -----------  -----------
                                                     -----------  -----------
    Minesite costs per tonne (C$)(iv)                       $25           $-
                                                     -----------  -----------
                                                     -----------  -----------

    (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 per ounce 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 April 29,
2009. 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, the estimated timing of scoping studies, 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, exploration and
the funding thereof. 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 and the Company's
Annual Report on Form 20-F for the year ended December 31, 2008 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 Report on
Form 20-F for the year ended December 31, 2008, 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 uses 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 also uses 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 reasonably 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 responsible  Date of most
    and location             for the current Mineral       recent SEDAR
                             Resource and Reserve          Technical Report
                             Estimate and relationship to  (NI 43-101)
                             Agnico-Eagle                  disclosure
    -------------------------------------------------------------------------
    LaRonde, Bousquet &      François Blanchet Ing.,       March 24, 2005
    Ellison, Quebec, Canada  LaRonde Division
                             Superintendent of geology
    -------------------------------------------------------------------------
    Kittila, Finland         Marc Legault P.Eng.,          December 11, 2008
                             VP Project Development
    -------------------------------------------------------------------------
    Pinos Altos, Chihuhua,   Dyane Duquette, P.Geo.,       March 25, 2009
    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., Lapa  June 8, 2006.
                             Division 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.





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