Agnico-Eagle reports Q1 2010 results; Record quarterly revenue and gold
production; Meadowbank Mine achieves commercial production

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 $22.3 million, or $0.14 per share, for the first quarter of 2010. This result includes a non-cash foreign currency translation loss of $8.9 million, or $0.06 per share, as well as a non-cash stock-based compensation expense of $17.3 million, or $0.11 per share. In the first quarter of 2009, the Company reported net income of $54.3 million, or $0.35 per share. A 105% increase in gold production and a similar increase in gross mine profit were more than offset by non-cash foreign currency translation losses, increased depreciation, non-cash stock-based compensation and the deferred tax provision.

First quarter 2010 cash provided by operating activities was $74.5 million (including an increase in working capital of $18.0 million), up from cash provided by operating activities of $48.8 million in the first quarter of 2009 (which included a decrease in working capital of $7.6 million). This increase was largely due to gold production that was more than double that in the comparable period in 2009 and significantly higher metal prices for gold, zinc, silver and copper.

"Strong operating earnings and cash flows are being generated from our six gold mines. Three of the mines are now operating at steady state and the other three are in the stage of final commissioning and optimization," said Sean Boyd, Vice-Chairman and Chief Executive Officer. "With internal expansions being studied for Pinos Altos, Meadowbank and Kittila, we are well positioned to continue to increase our gold reserves, gold production, earnings and cash flows. Each of these important performance metrics should continue to grow on a per share basis," added Mr. Boyd.

    
    First quarter 2010 highlights include:

    -   Six Operating Gold Mines - with the Meadowbank mine declaring
        commercial production as of March 1, 2010, Agnico-Eagle now has a
        portfolio of six operating mines
    -   Record Gold Production - record quarterly production of
        188,232 ounces, despite a longer than expected maintenance shutdown
        at Kittila
    -   Good Cost Control Continues - minesite costs per tonne continue to be
        on target at the steady state mines; LaRonde, Goldex and Lapa.
    -   Improved Available Liquidity - subsequent to quarter end, issued
        $600,000,000 of unsecured long-term notes with all proceeds used to
        reduce amounts outstanding under the existing credit lines
    

Payable gold production(1) in the first quarter of 2010 was a record 188,232 ounces at total cash costs per ounce(2) of $443. This compares with payable gold production of 91,812 ounces at total cash costs per ounce of $312 in the first quarter of 2009. The increase in total cash costs per ounce in the first quarter of 2010 is mainly due to the higher costs at Kittila and Meadowbank as will be discussed in subsequent sections, and a stronger Canadian dollar, offset somewhat by a significant increase in gold production.

For full year 2010, both gold production and total cash costs are still expected to be in line with previous guidance of between 1.0 and 1.1 million ounces and $399 per ounce, respectively.

First Quarter 2010 Results Conference Call Webcast

The Company's senior management will host a conference call on Friday, April 30, 2010 at 8:30 AM (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 416-644-3417 or Toll-free 877-974-0446. 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, access code 4282479 followed by the number sign.

The conference call replay will expire on Friday May 7, 2010.

The webcast along with presentation slides will be archived for 180 days on the website.

Annual and Special General Meeting ("AGM")

The AGM will begin on Friday, April 30, 2010 at 11:00 am (E.S.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 strategy and growth objectives and our operating and financial results for the first quarter. For those unable to attend in person, please see alternative listed below.

Via Telephone:

For those preferring to listen in only by telephone, please dial 416-644-3414 or Toll-free 800-814-4859. 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, access code 4278072 followed by the number sign.

The conference call replay will expire on Friday May 7, 2010.

Cash Position Remains Strong - Notes Issuance Provides Additional Liquidity

Cash and cash equivalents decreased to $118.1 million at March 31, 2010 from the December 31, 2009 balance of $163.6 million. All of the Company's operating cash flow and a portion of its existing cash balances were used to reinvest in its gold growth projects and to return cash to the shareholders in the form of a dividend payment. Agnico-Eagle has now paid a dividend for 28 consecutive years.

Capital expenditures in the first quarter of 2010 were $112.6 million, including $39.7 million at Meadowbank, $24.8 million at LaRonde, $19.8 million at Pinos Altos, $15.6 million at Kittila, $7.9 million at Lapa and $4.8 million on Goldex.

For 2010, there is no change to the capital expenditure estimates which are expected to total approximately $478 million. With its cash balances, anticipated cash flows, available bank lines and increased debt capacity, Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.

Subsequent to the end of the first quarter, the Company closed a private placement of $600 million of guaranteed senior unsecured notes due 2017, 2020 and 2022. The notes have a weighted average maturity of 9.84 years and weighted average yield of 6.59%. All of the proceeds were used to reduce the amount outstanding under its credit lines. Available credit lines are now more than $750 million.

LaRonde Mine - Steady State Mine Continues With Strong Production and Cost Control Performance

The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Proven and probable gold reserves at LaRonde total approximately 4.8 million ounces from 34.4 million tonnes grading 4.4 grams per tonne ("g/t").

The LaRonde mill processed an average of 7,372 tonnes per day ("tpd") of ore in the first quarter of 2010, compared with an average of 7,203 tpd in the corresponding period of 2009. LaRonde has been operating at a steady state of approximately 7,000 tpd for approximately seven years, since its last expansion in 2003.

Minesite costs per tonne(3) were approximately C$71 in the first quarter, in line with the C$72 per tonne experienced in the first quarter of 2009. The consistent minesite cost performance is particularly noteworthy given that it was achieved despite industry cost pressures on labour and chemical reagents.

Net of byproduct credits, LaRonde's total cash costs per ounce were $167 in the first quarter on production of 45,036 ounces of gold. This compares favourably with the first quarter of 2009, when total cash costs per ounce were $294 on production of 51,339 ounces of gold. The decrease in total cash costs is largely due to significantly higher byproduct metal prices, offset somewhat by a stronger Canadian dollar and lower gold production. The decrease in ounces produced is due to lower grades mined to date in 2010, as expected.

Gold production in 2010 at LaRonde is expected to be approximately 180,000 ounces. Post-2010, LaRonde is expected to produce an average of 324,000 ounces of gold per year through 2023, reflecting the higher gold grades at depth, where the deposit remains open.

Goldex Mine - Steady State Mine Continues Strong Performance

The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 24.7 million tonnes grading 2.0 g/t.

The Goldex mill processed an average of 7,410 tpd in the first quarter of 2010, continuing to exceed the design capacity for the plant of approximately 6,900 tpd. During the first quarter of 2009, the plant processed 6,770 tpd.

Minesite costs per tonne at Goldex were approximately C$24 in the first quarter of 2010, slightly lower than the C$25 achieved in the first quarter of 2009 and reflecting continued optimization at this steady-state mine. Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world on a minesite cost per tonne basis.

Payable gold production in the first quarter of 2010 was 42,269 ounces at total cash costs per ounce of $375. This compares to the first quarter of 2009 when gold production was 35,959 ounces at total cash costs per ounce of $338. The increase in production is mainly due to improved mill recoveries and higher throughput. The negative impact of the stronger Canadian dollar more than offset higher gold production and led to higher total cash costs in the 2010 period relative to the comparable period in 2009.

Gold production for 2010 is expected to be 164,000 ounces. Life of mine average annual gold production is expected to be approximately 168,000 ounces per year through 2017.

The expansion of the mine from 6,900 tpd to at least 8,000 tpd was approved in 2009. This project required additional infrastructure primarily in the crushing circuit, and minor additions to the mining fleet. Installation of the permanent surface crusher is complete and the increased mining rate is expected to be realized in early 2011 as the underground mining advances enough to consistently provide sufficient ore to support the higher throughput.

Kittila Mine - Undergoing final mill optimization

The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009. Proven and probable gold reserves total approximately 4.0 million ounces from 26.0 million tonnes grading 4.8 g/t.

The Kittila mill processed an average of 2,419 tpd in the first quarter of 2010. As the mine achieved commercial production in May 2009, there is no comparable year-over-year period. In the fourth quarter of 2009, Kittila processed an average of 2,728 tpd, with the lower production in the current quarter being primarily a result of a scheduled maintenance shutdown in the processing plant. The shutdown lasted approximately two weeks longer than expected with the mill restarting on April 10, 2010.

Gold recoveries in the first quarter of 2010 averaged approximately 71%, down from the 76% achieved in the fourth quarter of 2009. The lower recoveries were largely due to a series of process changes which were implemented in the first quarter of 2010. The result of these changes are expected to lead to improving recoveries over the next several quarters as further optimization is achieved in the plant.

The current plan for improvement of the mill recoveries includes further ore characterization and blending, in coordination with additional laboratory testing. The design rate of 83% mill recovery is expected to be achieved by the end of 2010.

Minesite costs per tonne at Kittila were approximately (euro)64 in the first quarter, higher than the (euro)46 achieved in the fourth quarter of 2009. The cost performance in the current quarter was negatively impacted by the extended maintenance shutdown.

First quarter gold production at Kittila was 24,547 ounces at total cash costs per ounce of $735, compared to 35,270 ounces at cash costs per ounce of $464 in the fourth quarter of 2009. The gold production was lower, largely due to the maintenance shutdown. With lower production of gold, total cash costs per ounce rose accordingly.

Gold production in 2010 is expected to be approximately 147,000 ounces. Life of mine average gold production is expected to be approximately 150,000 ounces per year through 2024.

A study is underway examining the possibility of increasing the production rate at Kittila reflecting the continued growth of the reserve base. Results of the study are expected to be released in 2011.

Lapa - Strong Tonnage And Cost Performance

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009. Proven and probable gold reserves total approximately 0.8 million ounces from 3.2 million tonnes grading 8.2 g/t.

The Lapa circuit, located at the LaRonde mill, processed an average of 1,432 tpd, which was a higher rate than expected (there is no corresponding year-over-year period for 2009 as the mine became commercial in May 2009). This rate is approximately 20% higher than the 1,188 tpd achieved in the fourth quarter of 2009. The design rate for the mill is 1,500 tpd and is expected to be achieved in the second quarter of 2010.

Minesite costs per tonne were C$123 in the first quarter of 2010, significantly lower than the C$148 achieved in the fourth quarter of 2009, due to the increased production tonnage.

Payable production in the first quarter of 2010 was 31,553 ounces of gold at total cash costs per ounce of $489. This compares to 22,590 ounces of gold in the fourth quarter of 2009 at total cash cost per ounce of $608. Like minesite costs, total cash costs have declined as operating efficiencies are achieved through optimization, offset somewhat by a stronger Canadian dollar.

Payable production in 2010 is expected to be approximately 116,000 ounces of gold, approximately the same rate as expected annually over the life of mine through 2015.

Pinos Altos - Ramp-up Continues With Improved Results. Additional Filter Capacity Expected in Q3

The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009. Proven and probable reserves, including the stand-alone Creston Mascota deposit, total 3.4 million ounces of gold and 94 million ounces of silver from 42.0 million tonnes of ore grading 2.5 g/t of gold and 69 g/t silver.

The Pinos Altos mill processed an average of 2,418 tpd in the first quarter of 2010, representing a significant improvement over the prior quarter (1,863 tpd) as the ramp up to the design rate of 4,000 tpd continues. Mill throughput improved every month in the first quarter and the mill averaged more than 4,000 tpd in the first three weeks of April 2010.

Additional tailings filtration capacity is expected to be installed during the third quarter of 2010 which should further de-bottleneck the system and provide additional capacity for a proposed increase in throughput.

Minesite costs per tonne were $34 in the first quarter of 2010, compared to $28 in the fourth quarter of 2009. These fourth quarter 2009 costs were unusually low, mainly due to stockpile adjustments prior to the declaration of commercial production in November 2009. The life of mine minesite costs are expected to be approximately $40 per tonne reflecting the increasing contribution from the higher cost underground mine. The first underground stopes are expected to be extracted in the second quarter of 2010. Accelerated stripping of waste in the open pit mine will commence in the second quarter of 2010 resulting in higher expenses for the balance of the year.

Payable production in the first quarter of 2010 was 26,228 ounces of gold at total cash costs per ounce of $436. This compares favourably with the prior quarter which had payable gold production of 12,944 ounces (9,565 ounces commercial) at total cash costs per ounce of gold of $596.

Payable production in 2010 is expected to be 151,000 ounces of gold and 1.6 million ounces of silver.

Life of mine average gold production is expected to be approximately 170,000 ounces per year through 2028, including production from Creston Mascota. Over this period, annual silver production is expected to average 2.5 million ounces.

Site clearing, basic engineering, and early construction activities have commenced at the nearby Creston Mascota project which is expected to achieve commercial production in the first quarter of 2011.

Further exploration is underway and the Company is anticipating the eventual development of several other satellite deposits on the Pinos Altos concession package including the Sinter, Cubiro and San Eligio zones.

Meadowbank - Sixth Mine Achieves Commercial Production

The 100% owned Meadowbank mine project in Nunavut, Canada, achieved commercial production in March 2010. Proven and probable gold reserves total 3.7 million ounces from 32.2 million tonnes grading 3.5 g/t.

For the month of March 2010, the Meadowbank mill processed an average of 6,397 tpd. Gold recovery in the plant averaged approximately 85% for the month. Recoveries are expected to average 93% in 2010. Minesite costs per tonne were C$93 and are expected to decline and average C$68 for 2010 as the mine continues to ramp up to its design production rate of 8,500 tpd in the second quarter of 2010. A portable crusher will be installed in the second quarter which will facilitate the higher throughput.

Payable production during the first quarter of 2010 was 18,599 ounces of gold, of which 1,084 ounces were non-commercial. Total cash costs per ounce were $840 and are expected to decline as the mine and mill operations are optimized and production increases.

Gold production in 2010 is expected to be approximately 300,000 ounces. Life of mine average annual gold production is expected to be approximately 350,000 ounces through 2019.

A study is underway to examine the possibility of increasing the production rate at Meadowbank from 8,500 tpd to 10,000 tpd. The study is scheduled to be completed mid-year 2010. If the Company proceeds with the expansion, it is expected that the increased rate could be achieved by year end 2012.

Mine Tour and Grand Opening Ceremony

Agnico-Eagle will be hosting a day trip for analysts and investors to Meadowbank, located in Nunavut in the Canadian Arctic, on June 17 2010. 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.

New Investor and Analyst Tool

Agnico-Eagle is pleased to announce a new interactive research tool on the Company's website, called "Financial and Operating Database". It is located under the Investor Centre area of the Agnico-Eagle website.

The purpose of the tool is to provide investors, analysts and other stakeholders with greater, more efficient access to Agnico-Eagle's financial and operating figures, all in a centralized location.

    
    With this tool users can:
    -   View financial and operating figures for the past 5 years in a single
        stream of data
    -   Information can be viewed on a quarterly and annual basis
    -   Operating metrics include key supplementary information such as
        production, grades, cash costs, reserves, capital expenditures, etc.
    -   To facilitate analysis of the data, the ratios tab provides a large
        set of generally accepted financial ratios, as well as their
        definitions
    -   Most ratios and fundamental data can be graphed within the investor
        tool, giving the user the ability to combine numerous relevant
        metrics on a single scale
    -   All data can be exported to Excel for further analysis
    

User feedback, as well as data specific enquiries should be directed to Dmitry Kushnir at dkushnir@agnico-eagle.com, or 416-847-8665.

About Agnico-Eagle

Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, 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 28 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
                                                        ------------------
                                                             March 31,
                                                             ---------
                                                         2010         2009
                                                         ----         ----
    Gross mine profit (exclusive of amortization
     shown below) (Note 1)
    LaRonde........................................     $45,387      $37,647
    Goldex.........................................      26,423       18,466
    Lapa...........................................      21,273            -
    Kittila........................................      11,470            -
    Pinos Altos....................................      12,631            -
    Meadowbank (Note 2)............................       2,171            -
                                                     -----------  -----------
    Total gross mine profit........................     119,355       56,113
    Amortization...................................      30,503       12,130
    Corporate......................................      47,578       14,647
                                                     -----------  -----------
    Income before tax..............................      41,274       29,336
    Tax provision..................................      18,942      (25,005)
                                                     -----------  -----------
    Net earnings...................................     $22,332      $54,341
                                                     -----------  -----------
                                                     -----------  -----------
    Net earning per share..........................       $0.14        $0.35
                                                     -----------  -----------
                                                     -----------  -----------
    Operating cash flow............................     $92,531      $48,823
    Realized price per sales volume (US$):
      Gold (per ounce).............................      $1,111         $969
      Silver (per ounce)...........................      $17.87       $13.53
      Zinc (per tonne).............................      $2,235       $1,213
      Copper (per tonne)...........................      $7,288       $4,110
    Payable production:
      Gold (ounces)................................
      LaRonde......................................      45,036       51,339
      Goldex.......................................      42,269       35,959
      Lapa.........................................      31,553            -
      Kittila......................................      24,547        4,514
      Pinos Altos..................................      26,228            -
      Meadowbank (Note 2)..........................      18,599            -
                                                     -----------  -----------
      Total gold (ounces)..........................     188,232       91,812
                                                     -----------  -----------
                                                     -----------  -----------
      Silver (000s ounces).........................
      LaRonde......................................         875        1,029
      Pinos Altos..................................         222            -
      Meadowbank (Note 2)..........................           2            -
                                                     -----------  -----------
      Total silver (000s ounces)...................       1,099        1,029
                                                     -----------  -----------
                                                     -----------  -----------
      Zinc (tonnes)................................      14,224       13,291
      Copper (tonnes)..............................       1,052        1,682
    Payable metal sold:
      Gold (ounces - LaRonde)......................      45,240       53,516
      Gold (ounces - Goldex).......................      37,863       30,901
      Gold (ounces - Lapa).........................      34,193            -
      Gold (ounces - Kittila)......................      30,674            -
      Gold (ounces - Pinos Altos)..................      20,965            -
      Gold (ounces - Meadowbank) (Note 2)..........       7,103            -
      Silver (000s ounces - LaRonde)...............         775        1,012
      Silver (000s ounces - Pinos Altos)...........         221            -
      Zinc (tonnes)................................      14,529       17,057
      Copper (tonnes)..............................       1,047        1,686
    Total cash costs per ounce of gold (Note 3):
    LaRonde........................................        $167         $294
    Goldex.........................................        $375         $338
    Lapa...........................................        $489            -
    Kittila........................................        $735            -
    Pinos Altos....................................        $436            -
    Meadowbank (Note 2)............................        $840            -
                                                     -----------  -----------
    Weighted average total cash costs per ounce....        $443         $312
                                                     -----------  -----------
                                                     -----------  -----------

    Note 1
    ------
    Gross mine profit is calculated as total revenues from all metals, by
    mine, minus total production costs, by mine.

    Note 2
    ------
    Meadowbank achieved commercial production as of March 1, 2010. Payable
    production includes commercial production ounces of 17,515 since March 1,
    2010 and non-commercial production was 1,084 ounces.

    Note 3
    ------
    Total cash costs per ounce of gold is calculated net of silver, copper,
    zinc and other byproduct credits. The weighted average total cash cost
    per ounce is based on commercial production ounces. Total cash costs per
    ounce is a non-GAAP measure. For a reconciliation to production costs,
    see Note 1 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,
                                                     ---------   ------------
                                                        2010         2009
                                                        ----         ----
    ASSETS
    Current
      Cash and cash equivalents....................    $118,052     $163,593
      Trade receivables............................      73,181       93,570
      Inventories:
        Ore stockpiles.............................      65,299       41,286
        Concentrates...............................      47,413       31,579
        Supplies...................................      92,559      100,885
      Other current assets.........................     192,720      173,127
                                                     -----------  -----------
    Total current assets...........................     589,224      604,040
    Other assets...................................      39,522       33,641
    Future income and mining tax assets............      27,705       27,878
    Property, plant and mine development...........   3,653,294    3,581,798
                                                     -----------  -----------
                                                     $4,309,745   $4,247,357
                                                     -----------  -----------
                                                     -----------  -----------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities.....    $136,751     $155,432
      Dividends payable............................           -       28,198
      Interest payable.............................       1,327        1,666
      Income taxes payable.........................       8,425        4,501
                                                     -----------  -----------
    Total current liabilities......................     146,503      189,797
                                                     -----------  -----------
    Long term debt.................................     735,000      715,000
    Fair value of derivative
     financial instruments.........................         549          663
    Reclamation provision and other liabilities....     100,652       96,255
    Future income and mining tax liabilities.......     521,908      493,881

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 156,806,040 (December 31, 2009 -
       156,655,056)................................   2,382,168    2,378,759
    Stock options..................................      84,155       65,771
    Warrants.......................................      24,858       24,858
    Contributed surplus............................      15,166       15,166
    Retained earnings..............................     238,490      216,158
    Accumulated other comprehensive income.........      60,296       51,049
                                                     -----------  -----------

    Total shareholders' equity.....................   2,805,133    2,751,761
                                                     -----------  -----------
                                                     $4,309,745   $4,247,357
                                                     -----------  -----------
                                                     -----------  -----------


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

                                                        Three months ended
                                                        ------------------
                                                             March 31,
                                                             ---------
                                                         2010         2009
                                                         ----         ----

    REVENUES
    Revenues from mining operations................    $237,583     $105,831
    Interest and sundry income                              827        4,693
    Gain on sale of available-for-sale securities..         346          194
                                                     -----------  -----------
                                                        238,756      110,718
    COSTS AND EXPENSES
    Production.....................................     118,227       49,718
    Exploration and corporate development..........       7,504        6,249
    Amortization...................................      30,503       12,130
    General and administrative.....................      28,430       18,800
    Provincial capital tax.........................        (587)       1,109
    Interest.......................................       4,504          869
    Foreign currency loss (gain)...................       8,901       (7,493)
                                                     -----------  -----------
    Income before income, mining and
     federal capital taxes.........................      41,274       29,336
    Income and mining tax expense (recovery).......      18,942      (25,005)
                                                     -----------  -----------

    Net income for the period......................     $22,332      $54,341
                                                     -----------  -----------
                                                     -----------  -----------

    Net income per share - basic...................       $0.14        $0.35
                                                     -----------  -----------
                                                     -----------  -----------
    Net income per share - diluted.................       $0.14        $0.35
                                                     -----------  -----------
                                                     -----------  -----------

    Weighted average number of shares
     outstanding (in thousands)
      Basic........................................     156,692      155,184
      Diluted......................................     159,093      157,196



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

                                                        Three months ended
                                                        ------------------
                                                             March 31,
                                                             ---------
                                                         2010         2009
                                                         ----         ----
    Operating activities
    Net income for the period......................     $22,332      $54,341
    Add (deduct) items not affecting cash:
      Amortization.................................      30,503       12,130
      Future income and mining taxes...............      13,095      (25,138)
      Gain on sale of available-for-sale
       securities..................................        (346)        (194)
      Amortization of deferred costs and other.....      26,947           36
    Changes in non-cash working capital balances
      Trade receivables............................      20,389      (15,197)
      Income taxes payable.........................       3,924         (593)
      Inventories..................................     (25,542)       1,923
      Other current assets.........................      (2,686)      29,920
      Interest payable.............................        (339)         402
      Accounts payable and accrued liabilities.....     (13,786)      (8,807)
                                                     -----------  -----------
    Cash provided by operating activities..........      74,491       48,823
                                                     -----------  -----------

    Investing activities
    Additions to property,
     plant and mine development....................    (112,563)    (155,347)
    Acquisition, investments and other.............      (5,642)         490
                                                     -----------  -----------
    Cash used in investing activities..............    (118,205)    (154,857)
                                                     -----------  -----------

    Financing activities
    Dividends paid.................................     (26,830)     (27,132)
    Repayment of capital lease and other...........      (1,539)        (362)
    Long term debt.................................      20,000      215,000
    Sales-leaseback financing......................       3,005            -
    Proceeds from common shares issued.............       3,718       28,941
                                                     -----------  -----------
    Cash provided by (used in)
     financing activities..........................      (1,646)     216,447
                                                     -----------  -----------

    Effect of exchange rate changes on
     cash and cash equivalents.....................        (181)      (1,419)
                                                     -----------  -----------

    Net increase (decrease) in cash and cash
     equivalents during the period.................     (45,541)     108,994
    Cash and cash equivalents,
     beginning of period...........................     163,593       99,381
                                                     -----------  -----------

    Cash and cash equivalents, end of period.......    $118,052     $208,375
                                                     -----------  -----------
                                                     -----------  -----------
    Other operating cash flow information:
    Interest paid during the period................      $8,722       $1,522
                                                     -----------  -----------
                                                     -----------  -----------
    Income, mining and capital taxes
     paid during the period........................      $1,497        1,747
                                                     -----------  -----------
                                                     -----------  -----------


    Note 1  The following tables provide a reconciliation, on an individual
    mine basis, of the total cash costs per ounce of gold produced and
    minesite costs per tonne to production costs as set out the interim
    consolidated financial statements:


    Total Cash Costs per
    Ounce of Gold By Mine
    ----------------------
                                                          Three        Three
                                                         months       months
                                                          ended        ended
                                                       March 31,    March 31,
    (thousands of dollars, except where noted)             2010         2009
    ------------------------------------------        ----------   ----------
    Total Production costs per Consolidated
     Statements of Income                              $118,227      $49,718

    Attributable to LaRonde                              45,482       38,247
    Attributable to Goldex                               13,800       11,471
    Attributable to Lapa                                 16,379            -
    Attributable to Kittila                              23,018            -
    Attributable to Pinos Altos                          13,849            -
    Attributable to Meadowbank                            5,699            -
                                                      ----------   ----------
                                                      ----------   ----------
      Total........................                    $118,227      $49,718
                                                      ----------   ----------
                                                      ----------   ----------

    LaRonde
    -------
    Production costs                                    $45,482      $38,247
    Adjustments:
      Byproduct revenues                                (38,391)     (24,046)
      Inventory adjustment(i)                               763        1,192
      Non-cash reclamation provision                       (335)        (274)
                                                      ----------   ----------
    Cash operating costs                                 $7,519      $15,119
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             45,036       51,339
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $167         $294
                                                      ----------   ----------
                                                      ----------   ----------

    Goldex
    ------
    Production costs                                    $13,800      $11,471
    Adjustments:
      Inventory adjustment(i)                             2,102          743
      Non-cash reclamation provision                        (54)         (47)
                                                      ----------   ----------
    Cash operating costs                                $15,848      $12,167
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             42,269       35,959
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $375         $338
                                                      ----------   ----------
                                                      ----------   ----------

    Lapa
    ----
    Production costs                                    $16,379           $-
    Adjustments:
      Inventory adjustment(i)                              (926)           -
      Non-cash reclamation provision                        (14)           -
                                                      ----------   ----------
    Cash operating costs                                $15,439           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             31,553            -
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $489           $-
                                                      ----------   ----------
                                                      ----------   ----------

    Kittila
    -------
    Production costs                                    $23,018           $-
    Adjustments:
      Byproduct revenues                                    (25)           -
      Inventory adjustment(i)                            (4,849)           -
      Non-cash reclamation provision                        (99)           -
                                                      ----------   ----------
    Cash operating costs                                $18,045           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             24,547            -
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $735           $-
                                                      ----------   ----------
                                                      ----------   ----------

    Pinos Altos
    -----------
    Production costs                                    $13,849           $-
    Adjustments:
      Byproduct revenues                                 (3,687)           -
      Inventory adjustment(i)                             1,493            -
      Non-cash reclamation provision                       (214)           -
                                                      ----------   ----------
    Cash operating costs                                $11,441           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             26,228            -
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $436           $-
                                                      ----------   ----------
                                                      ----------   ----------

    Meadowbank
    ----------
    Production costs                                     $5,699           $-
    Adjustments:
      Byproduct revenues                                    (26)           -
      Inventory adjustment(i)                             9,161            -
      Non-cash reclamation provision                       (127)           -
                                                      ----------   ----------
    Cash operating costs                                $14,707           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Gold production (ounces)                             17,515            -
                                                      ----------   ----------
                                                      ----------   ----------
    Total cash costs (per ounce)(ii)                       $840           $-
                                                      ----------   ----------
                                                      ----------   ----------


    Minesite Cost per Tonne
    ------------------------
                                                          Three        Three
                                                         months       months
                                                          ended        ended
                                                       March 31,    March 31,
    (thousands of dollars, except where noted)             2010         2009
    ------------------------------------------        ----------   ----------
    LaRonde
    -------
    Production costs                                    $45,482      $38,247
    Adjustments:
    Inventory adjustments(iii)                              763       (1,028)
    Non-cash reclamation provision...................      (335)        (274)
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $45,910      $36,945
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite operating costs (C$)....................   $47,078      $46,495
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore milled (000s)                             664          648
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite cost per tonne (C$)(iv)                        $71          $72
                                                      ----------   ----------
                                                      ----------   ----------
    Goldex
    ------
    Production costs                                    $13,800      $11,471
    Adjustments:
    Inventory adjustments(iii)                            2,102          743
    Non-cash reclamation provision...................       (54)         (47)
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $15,848      $12,167
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite operating costs (C$)....................   $16,313      $15,193
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore milled (000s)                             667          609
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite cost per tonne (C$)(iv)                        $24          $25
                                                      ----------   ----------
                                                      ----------   ----------
    Lapa
    ----
    Production costs                                    $16,379           $-
    Adjustments:
    Inventory adjustments(iii)                             (926)           -
    Non-cash reclamation provision...................       (14)           -
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $15,439           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite operating costs (C$)....................   $15,832           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore milled (000s)                             129            -
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite cost per tonne (C$)(iv)                       $123           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Kittila
    -------
    Production costs                                    $23,018           $-
    Adjustments:
    Inventory adjustments(iii)                           (4,849)           -
    Non-cash reclamation provision...................       (99)           -
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $18,070           $-
                                                      ----------   ----------
                                                      ----------   ----------
                                                          (euro)       (euro)
    Minesite operating costs (EUR)...................    13,915            -
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore milled (000s)                             218            -
                                                      ----------   ----------
                                                      ----------   ----------
                                                          (euro)       (euro)
    Minesite cost per tonne (EUR)(iv)                        64            -
                                                      ----------   ----------
                                                      ----------   ----------
    Pinos Altos
    -----------
    Production costs                                    $13,849           $-
    Adjustments:
    Inventory adjustments(iii)                            1,493            -
    Non-cash reclamation provision...................      (214)           -
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $15,128           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore processed (000s)                          450            -
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite cost per tonne (US$)(iv)                       $34           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Meadowbank
    ----------
    Production costs                                     $5,699           $-
    Adjustments:
    Inventory adjustments(iii)                            9,161            -
    Non-cash reclamation provision...................      (127)           -
                                                      ----------   ----------
    Minesite operating costs (US$)...................   $14,733           $-
                                                      ----------   ----------
                                                      ----------   ----------

    Minesite operating costs (C$)....................   $15,117           $-
                                                      ----------   ----------
                                                      ----------   ----------
    Tonnes of ore milled (000s)                             163            -
                                                      ----------   ----------
                                                      ----------   ----------
    Minesite cost per tonne (C$)(iv)                        $93           $-
                                                      ----------   ----------
                                                      ----------   ----------

    (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, 2009)

    -------------------------------------------------------------------------
    Category                                                   Au
     and                  Au      Ag      Cu      Zn   Pb    (000s    Tonnes
     Operation          (g/t)   (g/t)     (%)     (%)  (%)     oz.)    (000s)
    -------------------------------------------------------------------------
    Proven Mineral
     Reserve
    Goldex
     (underground)       2.02                                   339    5,217
    -------------------------------------------------------------------------
      Kittila
       (open pit)        3.71                                    30      255
    -------------------------------------------------------------------------
      Kittila
       (underground)     3.81                                     0        1
    -------------------------------------------------------------------------
    Kittila total
     proven              3.71                                    31      257
    -------------------------------------------------------------------------
    Lapa (underground)   8.33                                   240      897
    -------------------------------------------------------------------------
    LaRonde
     (underground)       2.34   61.95    0.26   3.31  0.39      358    4,755
    -------------------------------------------------------------------------
    Meadowbank
     (open pit)          4.57                                    88      600
    -------------------------------------------------------------------------
    Pinos Altos
     (open pit)          1.51   26.35                            43      880
    -------------------------------------------------------------------------
    Subtotal Proven
     Mineral Reserve     2.71                                 1,098   12,605
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Probable Mineral
     Reserve
    -------------------------------------------------------------------------
    Goldex
     (underground)       2.06                                 1,291   19,524
    -------------------------------------------------------------------------
      Kittila
       (open pit)        5.05                                   496    3,053
    -------------------------------------------------------------------------
      Kittila
       (underground)     4.80                                 3,499   22,651
    -------------------------------------------------------------------------
    Kittila total
     probable            4.83                                 3,994   25,704
    -------------------------------------------------------------------------
    Lapa (underground)   8.09                                   603    2,319
    -------------------------------------------------------------------------
    LaRonde
     (underground)       4.72   27.89    0.29   1.16  0.09    4,492   29,625
    -------------------------------------------------------------------------
    Meadowbank
     (open pit)          3.51                                 3,567   31,600
    -------------------------------------------------------------------------
      Pinos Altos
       (open pit)        2.05   49.30                         1,195   18,101
    -------------------------------------------------------------------------
      Pinos Altos
       (underground)     2.92   86.87                         2,158   22,979
    -------------------------------------------------------------------------
    Pinos Altos total
     probable            2.54   70.31                         3,353   41,080
    -------------------------------------------------------------------------
    Subtotal Probable
     Mineral Reserve     3.59                                17,300  149,852
    -------------------------------------------------------------------------
    Total Proven and
     Probable Mineral
     Reserves            3.52                                18,398  162,458
    -------------------------------------------------------------------------


    -----------------------------------------------------------------
    Category
     and                  Au      Ag      Cu      Zn   Pb     Tonnes
     Operation          (g/t)   (g/t)     (%)     (%)  (%)    (000s)
    -----------------------------------------------------------------
    Indicated Mineral
     Resource
    -----------------------------------------------------------------
    Bousquet
     (underground)       5.63                                  1,704
    -----------------------------------------------------------------
    Ellison
     (underground)       5.68                                    415
    -----------------------------------------------------------------
    Goldex
     (underground)       1.79                                    220
    -----------------------------------------------------------------
    Kittila
     (underground)       2.19                                 20,550
    -----------------------------------------------------------------
    Lapa (underground)   4.63                                  1,672
    -----------------------------------------------------------------
    LaRonde
     (underground)       1.85  24.94    0.13    1.52  0.15     6,482
    -----------------------------------------------------------------
      Meadowbank
       (open pit)        2.34                                 40,981
    -----------------------------------------------------------------
      Meadowbank
       (underground)     5.23                                  1,388
    -----------------------------------------------------------------
    Meadowbank total
     indicated           2.43                                 42,369
    -----------------------------------------------------------------
      Pinos Altos
       (open pit)        0.67   8.30                           6,990
    -----------------------------------------------------------------
      Pinos Altos
       (underground)     1.11  41.78                           8,679
    -----------------------------------------------------------------
    Pinos Altos total
     indicated           0.91  26.84                          15,668
    -----------------------------------------------------------------
    Swanson (open pit)   1.93                                    504
    -----------------------------------------------------------------
    Total Indicated
     Resource            2.18                                 89,584
    -----------------------------------------------------------------


    -----------------------------------------------------------------
    Category
     and                  Au      Ag      Cu      Zn   Pb     Tonnes
     Operation          (g/t)   (g/t)     (%)     (%)  (%)    (000s)
    -----------------------------------------------------------------
    Inferred Mineral
     Resource
    -----------------------------------------------------------------
    Bousquet
     (underground)       7.45                                  1,667
    -----------------------------------------------------------------
    Ellison
     (underground)       5.81                                    786
    -----------------------------------------------------------------
    Goldex
     (underground)       2.37                                 10,540
    -----------------------------------------------------------------
    Kittila
     (underground)       3.42                                  5,350
    -----------------------------------------------------------------
    Kylmakangas,
     Finland
     (underground)       4.07                                  1,924
    -----------------------------------------------------------------
    Lapa (underground)   7.90                                    393
    -----------------------------------------------------------------
    LaRonde
     (underground)       3.93  11.34    0.27    0.43  0.04    10,942
    -----------------------------------------------------------------
      Meadowbank
       (open pit)        2.54                                  9,166
    -----------------------------------------------------------------
      Meadowbank
       (underground)     6.12                                     16
    -----------------------------------------------------------------
    Meadowbank total
     inferred            2.54                                  9,182
    -----------------------------------------------------------------
      Pinos Altos
       (open pit)        1.02  15.33                          11,655
    -----------------------------------------------------------------
      Pinos Altos
       (underground)     2.42  43.41                           4,018
    -----------------------------------------------------------------
    Pinos Altos total
     inferred            1.38  22.53                          15,673
    -----------------------------------------------------------------
    Total Inferred
     Resource            2.82                                 56,457
    -----------------------------------------------------------------
    Tonnage amounts and contained metal amounts presented in this table have
    been rounded to the nearest thousand. Reserves are not a sub-set of
    resources.
    

Forward-Looking Statements

The information in this news release has been prepared as at April 29, 2010. 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 and are referred to herein as "forward-looking statements". 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.

Such statements include without limitation: the Company's forward-looking production guidance, including estimated ore grades, metal production, life of mine horizons, commencement of production estimates, the estimated timing of scoping studies, recovery rates, mill throughput, 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, 2009 ("Form 20-F") 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, production and expansion at each of Agnico-Eagle's mines and growth projects proceeds on a basis consistent with current expectations, and that Agnico-Eagle does not change its 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; that 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 Agnico-Eagle's current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Company's current plans to optimize production are successful; 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 metal 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 Form 20-F, 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, recoveries, mining methods, capital costs, total cash costs, minesite costs, and location of surface infrastructure. 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 news 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. Agnico-Eagle uses 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 the Staff of the SEC has interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates reported by the Company on February 17, 2010 were based on three-year average prices for the period ending December 31, 2009 of $848 per ounce gold, $14.35 per ounce silver, $1.03 per pound zinc, $2.91 per pound copper, $0.97 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.09, 1.41 and 11.85, 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 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, 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 separate from and not a portion of the mineral resources.

    
    -------------------------------------------------------------------------
    Property/Project      Qualified Person responsible     Date of most
    name and location     for the current Mineral          recent Technical
                          Resource and Reserve             Report
                          Estimate and relationship        (NI 43-101)
                          to Agnico-Eagle                  filed on SEDAR
    -------------------------------------------------------------------------
    LaRonde, Bousquet     François Blanchet Ing.,          March 23, 2005
    & Ellison,            LaRonde Division
    Quebec, Canada        Superintendent of geology
    -------------------------------------------------------------------------
    Kittila and           Daniel Doucet, Ing.,             March 4, 2010
    Kylmakangas, Finland  Corporate Director of Geology
    -------------------------------------------------------------------------
    Pinos Altos,          Dyane Duquette, P.Geo.,          March 25, 2009
    Chihuahua, Mexico.    Principal geologist, Abitibi
    Swanson, Quebec,      Technical Services Group
    Canada
    -------------------------------------------------------------------------
    Meadowbank,           Open Pit: Bruno Perron Ing.,     December 15, 2008
    Nunavut, Canada       Meadowbank Superintendent
                          of geology
                          Underground: Dyane Duquette,
                          P.Geo., Principal geologist,
                          Abitibi Technical Services
                          Group
    -------------------------------------------------------------------------
    Goldex, Quebec,       Richard Genest, Ing., Goldex     October 27, 2005
    Canada                Division Superintendent
                          of geology
    -------------------------------------------------------------------------
    Lapa, Quebec,         Normand Bédard, P.Geo., Lapa     June 8, 2006
    Canada                Division Superintendent
                          of geology
    -------------------------------------------------------------------------
    

The effective date for all of the Company's mineral resource and reserve estimates in this press release is December 31, 2009. 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 Form 20-F and its news release dated December 16, 2009.

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 costs 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, these measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP. 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 of the Company for the period ended March 31, 2010 contained herein.

SOURCE Agnico Eagle Mines Limited

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


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