Agnico-Eagle reports record fourth quarter 2007 results



    Stock Symbol: AEM (NYSE and TSX)

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

    TORONTO, Feb. 20 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") today reported record quarterly net income of $65.2 million, or
$0.46 per share for the fourth quarter of 2007. This result includes a gain of
$29.8 million, or $0.21 per share, on the reduction of income tax rates. In
the fourth quarter of 2006, the Company reported net income of $41.9 million,
or $0.35 per share. Earnings per share in the fourth quarter of 2007 were
diluted by the issuance of approximately 6.9 million common shares on the
exercise of the Company's outstanding warrants and the issuance of
13.8 million shares earlier in the year in connection with the acquisition of
Cumberland Resources Ltd.
    Fourth quarter cash provided by operating activities decreased to
$43.3 million from $84.5 million in the fourth quarter of 2006, due to lower
byproduct metal prices and working capital movements.
    "Record financial results were achieved this quarter as we prepare to
open the first of our five new gold mines in April," said Sean Boyd,
Vice-Chairman and Chief Executive Officer. "In addition, with our Kittila mine
in Finland set to open this September, our gold output in 2008 is expected to
rise more than 50% from the 2007 level," added Mr. Boyd.
    Fourth quarter 2007 highlights include:

    
    -  Strong Operating Results - steady metal output and cost control
       contributed to record operating earnings and strong cash flow
    -  Low Costs - Low total cash costs per ounce(1) at LaRonde of minus $184
    -  Progress On Gold Production Growth - new gold mines, Goldex and
       Kittila, on track for 2008 openings
    -  Significant Exploration Upside - continuing to receive ore-grade
       intersections over mineable widths outside of currently known
       reserve/resource envelopes at Pinos Altos, Kittila, and Meadowbank
    -  Rewarding Shareholders - 50% increase to annual dividend announced
    

    For the full year 2007, the Company recorded net income of
$139.3 million, or $1.05 per share. In 2006, Agnico-Eagle recorded net income
of $161.3 million, or $1.40 per share.
    Full year 2007 earnings were negatively affected by lower realized prices
for zinc and copper, and lower payable production for gold, silver and zinc.
The lower production rates were largely the result of the mining of additional
tonnes of low-grade zinc ore during the year due to historically high zinc
prices. The resulting deferral of ore has resulted in an extension of the mine
life by at least two years. Full year 2007 earnings per share were also
diluted by the previously mentioned 13.8 million shares issued to acquire
Cumberland Resources Ltd. and the 6.9 million shares issued in connection with
the warrant exercise.
    For 2007, the Company recorded cash provided by operating activities of
$229.2 million. This is substantially the same as 2006 when cash provided by
operating activities totaled $226.3 million. The small increase in cash
provided by operating activities was due to working capital movements, offset
partly by lower realized byproduct metal prices.
    The Company's financial position remains strong with cash and cash
equivalents of $396.0 million at December 31, 2007 and a substantially
undrawn, unsecured, $300 million five year credit facility. The Company's cash
position decreased $31.6 million in the fourth quarter largely due to the
$197.6 million invested in the Company's gold growth projects.
    Payable gold production(2) in the fourth quarter of 2007 was 60,183
ounces at total cash costs per ounce of minus $184. This compares with payable
gold production of 66,022 ounces, at total cash costs per ounce of minus $868,
in the fourth quarter of 2006. The increase in total cash costs per ounce in
the fourth quarter of 2007 versus the prior period is mainly due to a stronger
Canadian dollar, lower byproduct zinc revenues and increased minesite costs.

    Conference Call Tomorrow

    The Company's senior management will host a conference call on Thursday,
February 21, 2008 at 11:00AM (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 416-644-3415 or
Toll-free 800-732-9307. To ensure your participation, please call
approximately five minutes prior to the scheduled start of the call.

    Replay archive:

    Please dial the 416-640-1917, passcode 21259713 followed by the number
sign or Toll-free access number 877-289-8525, passcode 21259713 followed by
the number sign.
    The conference call will be replayed from Thursday, February 21, 2008 at
1:30 PM (E.S.T.) to Thursday, February 28, 2008 11:59 PM (E.S.T.).
    The webcast along with presentation slides will be archived for 180 days
on the website.

    LaRonde Mine - Strong Production and Cost Control Performance Continues

    The LaRonde mill processed an average of 7,119 tonnes of ore per day in
the fourth quarter of 2007, compared with an average of 7,452 tonnes per day
in the corresponding period of 2006. Milling performance for the full year
2007 was 7,325 tonnes per day versus 7,324 tonnes per day in 2006. LaRonde has
now been operating at an average of approximately 7,300 tonnes per day for
more than four years, continuing to demonstrate the reliability of this world
class mine.
    Minesite costs per tonne(3) were approximately C$65 in the fourth
quarter. These costs are higher than the C$63 per tonne experienced in the
fourth quarter of 2006. The increase in costs was largely due to higher input
costs for consumables such as fuel and chemical reagents as seen across the
mining industry and also due to slightly lower ore throughput.
    Minesite costs per tonne for the full year 2007 were approximately C$66,
six percent higher than 2006. This increase is partly due to accelerated
underground development, but also due to industry cost escalation.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce remained very low by industry standards, at minus $184 in the
fourth quarter. This compares with the results of the fourth quarter of 2006
when total cash costs per ounce were minus $909. The increase in total cash
costs is due to a stronger Canadian dollar, increased minesite costs and lower
byproduct revenues resulting from lower realized prices.
    As a result of the historically high zinc prices, which have prevailed
over the past several quarters, it is now expected that the mine life of
LaRonde, mineable from the existing shaft and infrastructure, will be extended
by two years. This is largely due to the mining of previously sub-economic ore
adjacent to the hangingwall of the orebody. This lower grade zinc ore was not
included in the original mining plan. The effect of mining this ore is
marginally lower gold and byproduct production annually, but results in
maximizing the value of the orebody over its life.

    Cash Position Remains Strong, Despite Large Investments in Gold Growth

    Cash and cash equivalents decreased to $396.0 million at December 31,
2007 from the September 30, 2007 balance of $427.6 million. As expected, all
of the Company's operating cash flow and a portion of its existing cash
balances were reinvested in its gold growth projects. During the quarter,
Agnico-Eagle added $43.3 million of cash provided by operating activities.
Capital expenditures in the quarter totaled $197.6 million, including
$82.3 million on the construction of Meadowbank, $29.2 million on Goldex,
$29.6 million at Kittila, $10.5 million on the LaRonde Extension, $15.5
million at Pinos Altos and $13.5 million at Lapa. For the full year 2007,
capital expenditures totaled $508.7 million. Capital costs are higher than
2006 due to the acquisition of the Meadowbank project in April 2007 and the
approval of construction of the Pinos Altos project in August 2007.
    The Company's cash position is expected to decrease in 2008 as the
Company expects to spend more than $550 million on capital expenditures
related to its development projects. However, with large cash balances, strong
cash flows, no long term debt, and substantially undrawn bank lines of
$300 million, Agnico-Eagle is fully funded for the development and exploration
of its pipeline of gold projects in Canada, Finland and Mexico.

    Five New Gold Mines Under Construction

    At the 100% owned Goldex mine project in northwestern Quebec,
Agnico-Eagle commenced construction in July 2005. Proven and probable reserves
of 1.6 million ounces of gold (23.1 million tonnes grading 2.2 grams per
tonne. For each property all reserve and resource data are presented in the
Detailed Mineral Reserve and Resource Data - December 31, 2007 table in this
press release) are estimated to be sufficient for a ten year mine life with
annual production averaging 175,000 ounces. With a large additional resource,
the deposit remains open for expansion.
    The Goldex production shaft was completed in November 2007. Approximately
27,000 tonnes of ore were extracted and stockpiled on surface during the
fourth quarter. The total proven reserves in the surface stockpile now stand
at approximately 249,000 tonnes, grading 2.2 grams per tonne, from this
development ore. Overall, construction is ahead of schedule and the mine is
expected to begin production during April 2008.
    Construction commenced at the 100% owned Kittila mine project in northern
Finland in the second quarter of 2006. The project is expected to produce an
average of 150,000 ounces of gold per year over its estimated mine life of 13
years. Kittila has probable gold reserves of 3.0 million ounces (18.2 million
tonnes grading 5.1 grams per tonne). With a large additional resource, the
deposit remains open for expansion.
    Drilling from surface is ongoing to convert resources to reserves and to
extend the overall envelope. Deeper exploration drilling from the new decline
began in the fourth quarter of 2007, opening up the entire area below the main
Suuri zone with results discussed in the February 15, 2008 press release.
    During the fourth quarter of 2007, underground development exposed the
Rouravaara Zone on the 150 Level. Grades are pending, however the location and
thicknesses were as predicted by surface diamond drilling.
    Surface overburden stripping for the main open pit was advanced with
approximately 181,000 cubic metres moved in the quarter, contributing to
approximately 263,000 cubic metres stripped during the year. Overall, pit
stripping, infrastructure construction and equipment delivery at Kittila are
on schedule for the September 2008 mine start up.
    At the 100% owned Lapa mine project in northwestern Quebec, the final
phase of construction commenced in the second quarter of 2006. Proven and
probable gold reserves of 1.1 million ounces (3.8 million tonnes grading 8.9
grams per tonne) are expected to support estimated annual production of
125,000 ounces per year over an estimated mine life of seven years.
    The shaft at Lapa has reached its final depth of 1,370 metres. Lateral
mine development began in November 2007 with advance of more than 400 metres
by year end. Construction of the surface service facilities is well underway.
Initial production from Lapa is expected to begin in mid-2009.
    At the 100% owned LaRonde mine in northwestern Quebec, construction
commenced in the second quarter of 2006 on the infrastructure extension at
depth. Proven and probable reserves of 5.0 million ounces (34.9 million tonnes
grading 4.4 grams per tonne) are expected to support a mine life through 2021.
Annual gold production is anticipated to average 340,000 ounces over the
remaining 14 year mine life.
    The focus during the fourth quarter was on underground infrastructure
construction and detailed engineering. Shaft sinking for the new internal
shaft began before year end. The same shaft sinking crews that successfully
developed Lapa and Goldex transitioned to LaRonde for this project.
    At the 100% owned Pinos Altos mine project in northern Mexico, the
property has probable gold reserves of 2.5 million ounces (24.7 million tonnes
grading 3.2 grams per tonne). Additionally, the property contains a large
silver reserve of over 73.1 million ounces (the same 24.7 million tonnes
grading 92.2 grams per tonne). The project was approved for construction in
August 2007. Average annual production is expected to be approximately 190,000
ounces of gold over an estimated 12 year mine life.
    Construction of the permanent camp is progressing as expected. The
construction of a 2,800 metre underground exploration ramp commenced in March
2007 and has advanced approximately 1,000 metres. Additionally, the
development of the production decline is underway as well as site preparation
for the start of construction.
    Deeper exploration drilling began from the decline in the fourth quarter
of 2007, targeting the area below the main Santo Nino zone. With a large gold
and silver resource outside of the reserve envelope, the deposit remains open
for expansion.
    Exploration drilling continues on the Creston/Mascota area. This region,
to the northwest of Santo Nino, is now being studied on the merits of being a
separate mining operation, based on the assumption of a rapid definition of
near surface gold reserves. The current inferred gold resource is 0.4 million
ounces of gold and 4.0 million ounces of silver from 7.7 million tonnes
grading 1.4 grams per tonne gold and 16.2 grams per tonne silver,
respectively. The gold could possibly be processed via heap leach although a
milling option is also being contemplated. An initial scoping study is
expected to be completed in 2008.
    All the necessary land agreements with the four local ejidos have been
established. Negotiations for additional surface rights with the underlying
royalty holder are ongoing. If these negotiations are not successful,
modifications to the proposed mine plan contained in the base case feasibility
study may be implemented.
    Agnico-Eagle's 100% owned Meadowbank project in Nunavut has probable gold
reserves of 3.5 million ounces (29.3 million tonnes grading 3.7 grams per
tonne). With a large additional gold resource, the deposit remains open for
expansion. Initial gold production is anticipated by January 2010. Annual gold
production is estimated to average 360,000 ounces over the nine year life of
the mine.
    The exploration focus on Meadowbank in 2007 was resource to reserve
conversion in the vicinity of the open pit reserves, and resource exploration
around the Goose South, Goose Island, Portage, Cannu and Vault zones. Further
grassroots exploration, prospecting and diamond drilling will be performed on
the large property position in 2008.
    The all-weather road from the deep-water port at Baker Lake will be
completed in the first quarter 2008. Detailed engineering, sourcing and
acquisition of the major capital equipment are ongoing. The first pieces of
the major capital equipment have already been delivered to the site.

    About Agnico-Eagle

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


    
                         AGNICO-EAGLE MINES LIMITED
                          SUMMARIZED QUARTERLY DATA
     (thousands of United States dollars except where noted, unaudited)

                                 Three months ended         Year ended
                                    December 31,            December 31,
                                    ------------            ------------
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------
    Income and cash flows
    LaRonde Mine
    Revenues from mining
     operations..............  $ 108,728   $ 138,381   $ 432,205   $ 464,632
    Production costs.........     42,180      38,543     166,104     143,753
                              ----------- ----------- ----------- -----------
    Gross profit (exclusive
     of amortization shown
     below)..................  $  66,548   $  99,838   $ 266,101   $ 320,879
    Amortization.............      6,157       7,031      27,757      25,255
                              ----------- ----------- ----------- -----------
    Gross profit.............  $  60,391   $  92,807   $ 238,344   $ 295,624
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Net income for the
     period..................  $  65,162   $  41,852   $ 139,345   $ 161,337
    Net income per share
     (basic).................  $    0.46   $    0.35   $    1.05   $    1.40
    Net income per share
     (diluted)...............  $    0.46   $    0.34   $    1.04   $    1.35
    Cash provided by
     operating activities....  $  43,345   $  84,501   $ 229,189   $ 226,252
    Cash provided by
     (used in) investing
     activities..............  $(200,036)  $ (63,601)  $(449,000)  $(189,508)
    Cash provided by
     (used in) financing
     activities..............  $ 124,181   $   4,406   $ 130,732   $ 298,579
    Weighted average number
     of common shares
     outstanding - basic
     (in thousands)..........    140,618     120,987     132,768     115,461
    Tonnes of ore milled.....    654,976     685,624   2,673,463   2,673,080
    Head grades:
      Gold (grams per
       tonne)................       3.14        3.31        2.95        3.13
      Silver (grams per
       tonne)................      73.50       75.26       75.40       76.58
      Zinc...................       3.59%       4.06%       3.63%       4.13%
      Copper.................       0.40%       0.34%       0.36%       0.37%
    Recovery rates:
      Gold...................      91.11%      90.51%      91.21%      91.51%
      Silver.................      86.70%      87.30%      87.51%      87.53%
      Zinc...................      88.20%      88.50%      86.80%      87.60%
      Copper.................      88.40%      83.00%      86.20%      82.40%
    Payable production:
      Gold (ounces)..........     60,183      66,022     230,992     245,826
      Silver (ounces in
       thousands)............      1,166       1,249       4,920       4,955
      Zinc (tonnes)..........     17,563      20,865      71,577      82,183
      Copper (tonnes)........      2,156       1,762       7,482       7,289
    Payable metal sold:
      Gold (ounces)..........     58,917      68,993     229,316     256,961
      Silver (ounces in
       thousands)............      1,214       1,227       5,171       4,739
      Zinc (tonnes)..........     19,191      22,348      72,905      81,689
      Copper (tonnes)........      2,157       1,769       7,466       7,302
    Realized prices:
      Gold (per ounce).......  $     895   $     594   $     748   $     622
      Silver (per ounce).....  $   14.40   $   13.38   $   13.63   $   12.42
      Zinc (per tonne).......  $   2,313   $   4,640   $   2,941   $   3,699
      Copper (per tonne).....  $   6,134   $   6,059   $   6,994   $   8,186
    Total cash costs
     (per ounce):
    Production costs.........  $     701   $     584   $     719   $     585
    Less: Net byproduct
     revenues................       (850)     (1,475)     (1,082)     (1,240)
      Inventory adjustments..        (28)         33           4         (31)
      Accretion expense
       and other.............         (7)        (10)         (6)         (4)
                              ----------- ----------- ----------- -----------
    Total cash costs
     (per ounce)(*)..........  $    (184)  $    (868)  $    (365)  $    (690)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite costs per
     tonne milled (C$)(*)....  $      65   $      63   $      66   $      62
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    (*) Total cash costs (per ounce) and minesite costs per tonne milled are
    non-GAAP measures. For a reconciliation of these measures to the
    financial statements, see note 1 to these financial statements.


                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATON
               (thousands of United States dollars, unaudited)

                                                      As at         As at
                                                   December 31,  December 31,
                                                       2007          2006
                                                       ----          ----
    ASSETS
    Current
      Cash, cash equivalents and short
       term investments..........................  $   396,019   $   458,617
      Trade receivables..........................       79,419        84,987
      Inventories:
        Ore stockpiles...........................        5,647         2,330
        Concentrates.............................        1,913         3,794
        Supplies.................................       15,637        11,152
      Other current assets.......................      107,459        61,953
                                                  ------------- -------------

    Total current assets.........................      606,094       622,833
    Other assets.................................       16,436         7,737
    Future income and mining tax assets..........       17,805        31,059
    Property, plant and mine development.........    2,107,063       859,859
                                                  ------------- -------------

                                                   $ 2,747,398   $ 1,521,488
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued
       liabilities...............................  $   108,227   $    42,538
      Dividends payable..........................       26,280        15,166
      Income taxes payable.......................            -        14,231
                                                  ------------- -------------

    Total current liabilities....................      134,507        71,935
                                                  ------------- -------------

    Reclamation provision and other
     liabilities.................................       57,941        27,457
                                                  ------------- -------------

    Future income and mining tax liabilities.....      496,016       169,691
                                                  ------------- -------------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 142,403,379 (December 31, 2006
       - 121,025,635)............................    1,931,667     1,230,654
    Stock options................................       23,573         5,884
    Warrants.....................................            -        15,723
    Contributed surplus..........................       15,166        15,128
    Retained earnings............................      112,240         3,015
    Accumulated other comprehensive loss.........      (23,712)      (17,999)
                                                  ------------- -------------

    Total shareholders' equity...................    2,058,934     1,252,405
                                                  ------------- -------------

                                                   $ 2,747,398   $ 1,521,488
                                                  ------------- -------------
                                                  ------------- -------------


                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATION
       (thousands of United States dollars, except share and per share
                             amounts, unaudited)

                                 Three months ended         Year ended
                                    December 31,            December 31,
                                    ------------            ------------
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------

    REVENUES
    Revenues from mining
     operations..............  $ 108,728   $ 138,381   $ 432,205   $ 464,632
    Interest and sundry
     income..................      6,349       5,153      25,142      21,797
    Gain on sale of
     available-for-sale
     securities..............          -       1,143       4,088      24,118
                              ----------- ----------- ----------- -----------

                                 115,077     144,677     461,435     510,547

    COSTS AND EXPENSES
    Production...............     42,180      38,543     166,104     143,753
    Loss on derivative
     financial instruments...          -       2,136       5,829      15,148
    Exploration and corporate
     development.............      6,849      10,271      25,507      31,077
    Amortization.............      6,157       7,031      27,757      25,255
    General and
     administrative..........     13,747       9,503      38,167      25,884
    Provincial capital tax...     (1,306)      2,132       3,202       3,758
    Interest.................        632         688       3,294       2,902
    Foreign currency
     translation loss
     (gain)..................        276      (7,428)     32,297       2,127
                              ----------- ----------- ----------- -----------

    Income before income,
     mining and federal
     capital taxes...........     46,542      81,801     159,278     260,643
    Income and mining tax
     expense (recovery)......    (18,620)     39,949      19,933      99,306
                              ----------- ----------- ----------- -----------

    Net income for the
     period..................  $  65,162   $  41,852   $ 139,345   $ 161,337
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Net income per share
     - basic.................  $    0.46   $    0.35   $    1.05   $    1.40
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Net income per share
     - diluted...............  $    0.46   $    0.34   $    1.04   $    1.35
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Weighted average number
     of shares outstanding
     (in thousands)
      Basic..................    140,618     120,897     132,768     115,461
      Diluted................    141,808     124,578     133,958     119,142


                         AGNICO-EAGLE MINES LIMITED
                 COMPARATIVE CONDENSED FINANCIAL INFORMATION
               (thousands of United States dollars, unaudited)

                                 Three months ended         Year ended
                                    December 31,            December 31,
                                    ------------            ------------
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------
    Operating activities
    Net income for the
     period..................  $  65,162   $  41,852   $ 139,345   $ 161,337
    Add (deduct) items not
     affecting cash:
      Amortization...........      6,157       7,031      27,757      25,255
      Future income and mining
       taxes.................    (13,841)     36,884      16,380      81,993
      Unrealized loss on
       derivative contracts..          -       3,545       5,018           -
      Gain on sale of
       available-for-sale
       securities............          -      (1,143)     (4,088)    (24,118)
      Gain on sale of Contact
       Diamond Corporation             -           -           -      (7,361)
      Amortization of deferred
       costs and other.......      4,945     (14,416)     54,355         288
    Changes in non-cash
     working capital balances
      Trade receivables......     (4,800)     (4,905)      5,568     (28,683)
      Income taxes
       payable/recoverable...          -       3,342     (14,231)     22,171
      Inventories............        862         767      (1,187)     (2,493)
      Other current assets...    (30,771)       (422)    (55,389)     (4,639)
      Accounts payable and
       accrued liabilities...     15,631      11,966      55,661       4,745
      Interest payable.......          -           -           -      (2,243)
                              ----------- ----------- ----------- -----------

    Cash provided by
     operating  activities...     43,345      84,501     229,189     226,252
                              ----------- ----------- ----------- -----------

    Investing activities
    Additions to property,
     plant and mine
     development.............   (197,590)    (53,282)   (508,701)   (149,185)
    Acquisition of Cumberland
     Resources Ltd., net of
     cash acquired
     of $96,043..............          -           -      84,207           -
    Acquisitions, investments
     and other...............     (2,446)    (10,319)    (24,506)    (40,323)
                              ----------- ----------- ----------- -----------

    Cash provided by (used)
     in investing
     activities..............   (200,036)    (63,601)   (449,000)   (189,508)
                              ----------- ----------- ----------- -----------

    Financing activities
    Dividends paid...........          -           -     (13,406)     (3,166)
    Proceeds from common
     shares issued...........    124,181       4,406     144,138     301,745
                              ----------- ----------- ----------- -----------

    Cash provided by
     financing activities....    124,181       4,406     130,732     298,579
                              ----------- ----------- ----------- -----------

    Effect of exchange rate
     changes on cash and cash
     equivalents.............        935       2,428      26,481       2,312
                              ----------- ----------- ----------- -----------

    Net increase in cash and
     cash equivalents during
     the period..............    (31,575)     27,734     (62,598)    337,635
    Cash and cash
     equivalents, beginning
     of period...............    427,594     430,883     458,617     120,982
                              ----------- ----------- ----------- -----------

    Cash and cash
     equivalents, end of
     period..................  $ 396,019   $ 458,617   $ 396,019   $ 458,617
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Other operating cash flow
     information:
    Interest paid during
     the period..............  $     768   $     487   $   2,406   $   4,214
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Income, mining and
     capital taxes paid
     during the period.......  $  (1,406)  $     173   $  22,138   $   1,405
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------



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

                             Three months Three months    Year        Year
                                 ended       ended       ended       ended
    (thousands of dollars,      December    December    December    December
     except where noted)        31, 2007    31, 2006    31, 2007    31, 2006
                              ----------- ----------- ----------- -----------
    Production costs per
     Consolidated Statements
     of Income...............  $  42,180   $  38,543   $ 166,104   $ 143,753
    Adjustments:
      Byproduct revenues.....    (56,022)    (97,399)   (260,668)   (304,817)
      Inventory
       adjustment(i).........      3,194       2,161      11,528      (7,607)
      Non-cash reclamation
       provision.............       (427)       (603)     (1,264)       (936)
                              ----------- ----------- ----------- -----------

    Cash operating costs.....  $ (11,075)  $ (57,298)  $ (84,300)  $(169,607)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Gold production
     (ounces)................     60,183      66,022     230,992     245,826
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Total cash costs
     (per ounce)(ii).........  $    (184)  $    (868)  $    (365)  $    (690)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


                             Three months Three months    Year        Year
                                 ended       ended       ended       ended
    (thousands of dollars,      December    December    December    December
     except where noted)        31, 2007    31, 2006    31, 2007    31, 2006
                              ----------- ----------- ----------- -----------
    Production costs per
     Consolidated Statements
     of Income...............  $  42,180   $  38,543   $ 166,104   $ 143,753
    Adjustments:
      Inventory
       adjustment(iii).......     (1,660)       (318)        916       2,494
      Non-cash reclamation
       provision.............       (427)       (603)     (1,264)       (936)
                              ----------- ----------- ----------- -----------

    Minesite operating
     costs (US$).............     40,093   $  37,622     165,756   $ 145,311
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Minesite operating
     costs (C$)..............     42,878   $  42,868     177,735   $ 164,459
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Tonnes of ore milled
     (000's tonnes)..........        655         686       2,673       2,673
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Minesite costs per
     tonne (C$)(iv)..........  $      65   $      63   $      66   $      62
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------


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

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

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

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

    (iv)   Minesite costs per tonne is not a recognized measure under US GAAP
           and this data may not be comparable to data presented by other
           gold producers. As illustrated in the table above, this measure is
           calculated by adjusting Production Costs as shown in the
           Consolidated Statements of Income and Comprehensive Income for
           inventory and hedging adjustments 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.

    (v)    Payable gold production means the quantity of gold produced during
           a period contained in products that are or will be sold by the
           Company, whether such products are sold during the period or held
           as inventory at the end of the period.


    Detailed Mineral Reserve and Resource Data - December 31, 2007

    -------------------------------------------------------------------------
                                                              Au
    Category                                                (000's    Tonnes
     and Zone       Au(g/t)   Ag(g/t)     Cu(%)     Zn(%)     oz.)    (000's)
    -------------------------------------------------------------------------
    Proven Mineral
     Reserve
    -------------------------------------------------------------------------
    Goldex            2.23                                     18        250
    -------------------------------------------------------------------------
    Lapa             10.65                                      1        2.8
    -------------------------------------------------------------------------
    LaRonde           2.77     73.80      0.33      3.81      416      4,672
    -------------------------------------------------------------------------
    Subtotal Proven
     Mineral Reserve  2.75                                    435      4,924
    -------------------------------------------------------------------------
    Probable Mineral
     Reserve
    -------------------------------------------------------------------------
    Goldex            2.20                                  1,616     22,849
    -------------------------------------------------------------------------
    Kittila           5.12                                  2,996     18,205
    -------------------------------------------------------------------------
    Lapa              8.86                                  1,070      3,756
    -------------------------------------------------------------------------
    LaRonde           4.67     34.61      0.30      1.67    4,542     30,225
    -------------------------------------------------------------------------
    Meadowbank        3.67                                  3,453     29,261
    -------------------------------------------------------------------------
    Pinos Altos       3.21     92.21                        2,547     24,657
    -------------------------------------------------------------------------
    Subtotal Probable
     Mineral Reserve  3.91                                 16,224    128,952
    -------------------------------------------------------------------------
    Total Proven and
     Probable Mineral
     Reserves         3.87                                 16,659    133,877
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                                              Au
    Category                                                (000's    Tonnes
     and Zone       Au(g/t)   Ag(g/t)     Cu(%)     Zn(%)     oz.)    (000's)
    -------------------------------------------------------------------------
    Indicated
     Mineral
     Resource
    -------------------------------------------------------------------------
    Bousquet          5.63                                    309      1,704
    -------------------------------------------------------------------------
    Ellison           5.68                                     76        415
    -------------------------------------------------------------------------
    Goldex            2.75                                     27        304
    -------------------------------------------------------------------------
    Kittila           3.03                                    527      5,416
    -------------------------------------------------------------------------
    Lapa              4.48                                    124        865
    -------------------------------------------------------------------------
    LaRonde           2.14     25.33      0.14      1.70      388      5,643
    -------------------------------------------------------------------------
    Meadowbank        2.30                                  1,078     14,582
    -------------------------------------------------------------------------
    Pinos Altos       1.36     49.88                          270      6,182
    -------------------------------------------------------------------------
    Total Indicated
     Resource         2.48                                  2,799     35,111
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
                                                              Au
    Category                                                (000's    Tonnes
     and Zone       Au(g/t)   Ag(g/t)     Cu(%)     Zn(%)     oz.)    (000's)
    -------------------------------------------------------------------------
    Inferred Mineral
     Resource
    -------------------------------------------------------------------------
    Bousquet          7.45                                    399      1,667
    -------------------------------------------------------------------------
    Ellison           5.81                                    147        786
    -------------------------------------------------------------------------
    Goldex            2.35                                    897     11,889
    -------------------------------------------------------------------------
    Kittila           3.39                                  1,181     10,832
    -------------------------------------------------------------------------
    Lapa              8.96                                    219        759
    -------------------------------------------------------------------------
    LaRonde           6.26     22.65      0.47      1.07      950      4,723
    -------------------------------------------------------------------------
    Meadowbank        3.49                                    385      3,434
    -------------------------------------------------------------------------
    Pinos Altos       1.44     24.08                          568     12,237
    -------------------------------------------------------------------------
    Total Inferred
     Resource         3.19                                  4,747     46,326
    -------------------------------------------------------------------------
    Tonnage amounts and contained metal amounts presented in the tables in
    this news release have been rounded to the nearest thousand. Reserves are
    not a sub-set of resources.
    

    Forward-Looking Statements

    The information in this press release has been prepared as at
February 20, 2008. Certain statements contained in this press release
constitute "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and forward looking
information under the provisions of Canadian provincial securities laws. When
used in this document, words such as "anticipate", "expect", "estimate,"
"forecast," "planned", "will", "likely" and similar expressions are intended
to identify forward-looking statements or information.
    Such statements include without limitation: the Company's forward looking
production guidance, including estimated ore grades, metal production, life of
mine horizons, and projected exploration and capital expenditures, including
costs and other estimates upon which such projections are based; the Company's
goal to increase its mineral reserves and resources; and other statements and
information regarding anticipated trends with respect to the Company's
operations and exploration. Such statements reflect the Company's views as at
the date of this press release and are subject to certain risks, uncertainties
and assumptions. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable by
Agnico-Eagle as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The factors and assumptions of Agnico-Eagle contained in this
news release, which may prove to be incorrect, include, but are not limited
to, the assumptions set forth herein and in management's discussion and
analysis as well as: that there are no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions, damage to
equipment, natural occurrences, political changes, title issues or otherwise;
that permitting, development and expansion at each of Agnico-Eagle's
development projects proceeds on a basis consistent with current expectations,
and that Agnico-Eagle does not change its development plans relating to such
projects; that the exchange rate between the Canadian dollar, European Union
Euro Mexican peso and the United States dollar will be approximately
consistent with current levels or as set out in this news release; prices for
gold, silver, zinc and copper 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; risks related to title issues at the Pinos Altos
project; governmental and environmental regulation; the volatility of the
Company's stock price; and risks associated with the Company's byproduct metal
derivative strategies. For a more detailed discussion of such risks and other
factors, see the Company's Annual Information Form and Annual Report on Form
20-F for the year ended December 31, 2006, as well as the Company's other
filings with the Canadian Securities Administrators and the U.S. Securities
and Exchange Commission (the "SEC"). The Company does not intend, and does not
assume any obligation, to update these forward-looking statements and
information, except as required by law. Accordingly, readers are advised not
to place undue reliance on forward-looking statements. Certain of the
foregoing statements, primarily related to projects, are based on preliminary
views of the Company with respect to, among other things, grade, tonnage,
processing, mining methods, capital costs, total cash costs, minesite costs,
and location of surface infrastructure and actual results and final decisions
may be materially different from those current anticipated.

    Notes To Investors Regarding The Use Of Resources

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

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

    Cautionary Note To Investors Concerning Estimates Of Inferred Resources.

    This press release may also use the term "inferred resources". We advise
investors that while this term is recognized and required by Canadian
regulations, the SEC does not recognize it. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource exists, or is
economically or legally mineable.

    Scientific And Technical Data

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

    Cautionary Note To U.S. Investors - The SEC permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms in this press release, such as "measured", "indicated", and
"inferred", and "resources" that the SEC guidelines strictly prohibit U.S.
registered companies from including in their filings with the SEC. U.S.
Investors are urged to consider closely the disclosure in our Form 20-F, which
may be obtained from us, or from the SEC's website at:
http://sec.gov/edgar.shtml. A "final" or "bankable" feasibility study is
required to meet the requirements to designate reserves under Industry
Guide 7. Estimates were calculated using historic three-year average metals
prices and foreign exchange rates in accordance with the SEC Industry Guide 7.
Industry Guide 7 requires the use of prices that reflect current economic
conditions at the time of reserve determination which Staff of the SEC has
interpreted to mean historic three-year average prices. The assumptions used
for the mineral reserves and resources estimate reported by the Company on
February 15, 2008 were based on three-year average prices for the period
ending December 31, 2007 of $583 per ounce gold, $10.77 per ounce silver,
$1.19 per pound zinc, $2.65 per pound copper and C$/US$, US$/Euro, and MXP/US$
exchange rates of 1.14, 1.29 and 10.91, respectively.
    The Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") requires mining companies to disclose reserves and resources using
the subcategories of "proven" reserves, "probable" reserves, "measured"
resources, "indicated" resources and "inferred" resources. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
    A mineral reserve is the economically mineable part of a measured or
indicated resource demonstrated by at least a preliminary feasibility study.
This study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be justified. A mineral
reserve includes diluting materials and allows for losses that may occur when
the material is mined. A proven mineral reserve is the economically mineable
part of a measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. A probable mineral
reserve is the economically mineable part of an indicated mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
    A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the earth's crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. A measured
mineral resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape, physical characteristics, can be estimated with
a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonable assumed.
An inferred mineral resource is that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. Mineral resources which
are not mineral reserves do not have demonstrated economic viability.

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

    A feasibility study is a comprehensive study of a mineral deposit in
which all geological, engineering, legal, operating, economic, social,
environmental and other relevant factors are considered in sufficient detail
that it could reasonably serve as the basis for a final decision by a
financial institution to finance the development of the deposit for mineral
production.
    The mineral reserves presented in this disclosure are exclusive of
mineral resources.
    A Qualified Person, Dyane Duquette P.Geo., Assistant Superintendent of
Technical Services for the Goldex project, was responsible for the mineral
reserve and mineral resource estimate at the Goldex project. Required
information for the Goldex mineral resource and mineral reserve that is set
out in Canadian Securities Administrators' National Instrument 43-101 Sections
3.2 and 3.4 (a), (c) and (d) can be found in the Company's Technical Report
for the Goldex Project that was disclosed on SEDAR on October 27, 2005 and in
the Company's press release dated February 15, 2008.
    The Kittila mine project mineral resource and mineral reserve estimate
was prepared by Jyrki Korteniemi, the Superintendent of Geology for the
Kittila Project under the supervision of a Qualified Person, Marc Legault
P.Eng., the Company's Vice-President, Project Development. Required
information for the Kittila mineral resource and mineral reserve that is set
out in Canadian Securities Administrators' National Instrument 43-101 Sections
3.2 and 3.4 (a), (c) and (d) can be found in the Company's Technical Report
for the Kittila Project that was disclosed on SEDAR on March 14, 2006 and in
the Company's press release dated February 15, 2008.
    The Qualified Person responsible for the Lapa mineral reserve and mineral
resource estimate is Normand Bédard P.Geo., the Superintendent of Geology for
the Lapa mine project. Required information for the Lapa mineral resource and
mineral reserve that is set out in Canadian Securities Administrators'
National Instrument 43-101 Sections 3.2 and 3.4 (a), (c) and (d) can be found
in the Company's Technical Report for the Lapa Project that was disclosed on
SEDAR on June 8, 2006 and in the Company's press release dated February 15,
2008.
    The Qualified Person responsible for the LaRonde mineral reserve and
resource estimate is François Blanchet Ing., Superintendent of Geology for the
LaRonde Division. The effective date of the estimate is December 31, 2007.
Required information for the LaRonde mineral resource and mineral reserve that
is set out in Canadian Securities Administrators' National Instrument 43-101
Sections 3.2 and 3.4 (a), (c) and (d) can be found in the Company's Technical
Report for the LaRonde Mine that was disclosed on SEDAR on March 23, 2005 and
in the Company's press release dated February 15, 2008.
    The Qualified Person responsible for the Meadowbank mineral resource
estimate is Daniel Doucet Ing., Principal Engineer Geology for the Company's
Technical Services Group, Abitibi Regional Office. Required information for
the Meadowbank mineral resource and mineral reserve that is set out in
Canadian Securities Administrators' National Instrument 43-101 Sections 3.2
and 3.4 (a), (c) and (d) can be found in the Technical Report for the
Meadowbank Project that was disclosed by Cumberland Resources Ltd. on SEDAR on
March 31, 2005 and in the Company's press release dated February 15, 2008.
    The Qualified Person responsible for the Pinos Altos mineral resource and
reserve estimate is Daniel Doucet, Ing., Principal Engineer Geology for the
Company's Technical Services Group, Abitibi Regional Office. Required
information for the Pinos Altos mineral resource and mineral reserve that is
set out in Canadian Securities Administrators' National Instrument 43-101
Sections 3.2 and 3.4 (a), (c) and (d) can be found in the Company's Technical
Report for the Pinos Altos Project that was disclosed on SEDAR on September
24, 2007 and in the Company's press release dated February 15, 2008.
    The contents of this press release have been prepared under the
supervision of, and reviewed by, Marc Legault, the "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.

    
    --------------------
    (1) Total cash costs per ounce is a non-GAAP measure. For
        reconciliation of total cash costs per ounce to production costs, as
        reported in the financial statements, see Note 1 to the financial
        statements at the end of this news release.

    (2) Payable gold production means the quantity of a mineral produced
        during a period contained in products that are sold by the Company,
        whether such products are sold during the period or held as inventory
        at the end of the period.

    (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.
    





For further information:

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


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