Agnico-Eagle reports strong quarterly cash flows and earnings; 23% increase in gold reserves with successful offer for Cumberland Resources



    Stock Symbols: AEM (NYSE and TSX)

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

    TORONTO, April 26 /CNW/ - Agnico-Eagle Mines Limited today reported first
quarter earnings of $24.9 million, or $0.21 per share and first quarter cash
provided by operating activities of $56.1 million. This compares to net
earnings of $37.2 million, or $0.35 per share, and cash provided by operating
activities of $19.7 million, in the first quarter of 2006.
    Although cash provided by operating activities saw a significant increase
of $36.4 million in the first quarter of 2007, net earnings were lower than in
the first quarter of 2006, which included an after tax gain of $15.4 million,
or $0.15 per share, from the sale of marketable securities.
    The first quarter 2007 earnings were also adversely affected by a
non-cash derivative loss of $6.1 million, or $0.05 per share. This loss was
due to the derivative position put in place to effectively extinguish the gold
hedge position held by Cumberland Resources Ltd.
    With a 184% increase in operating cash flows in the first quarter of
2007, period over period, the Company's financial position remains strong with
cash and cash equivalents of $427.6 million at March 31, 2007. The cash
position was drawn down from $458.6 million at December 31, 2006, primarily to
pay the annual dividend and expenditures related to the Cumberland
transaction.
    Payable gold production in the first quarter of 2007 was 58,588 ounces at
total cash costs per ounce(1) of minus $332. This compares with payable gold
production of 64,235 ounces at total cash costs per ounce of minus $241 in the
first quarter of 2006.
    Payable gold production for the first quarter of 2007 was slightly lower
than the same period in the prior year largely due to an expected reduction in
gold grade (down 9% period over period) during the quarter. The reduction in
total cash costs per ounce in the first quarter of 2007 is mainly due to
higher byproduct metals prices prevailing during the period.

    
    2007 highlights to date include:

    -   Record gold reserves of 15.4 million ounces, an increase of 23% over
        the December 2006 level, as a result of the successful acquisition of
        Cumberland
    -   A 184% increase in cash provided by operating activities to
        $56.1 million
    -   Strong earnings of $24.9 million, or $0.21 per share
    -   Low total cash costs per ounce at LaRonde of minus $332
    -   A record 26 consecutive months without a lost time accident
        underground at LaRonde
    

    "With another strong quarter of cash flows and earnings, and the recent
success of our offer for Cumberland, Agnico-Eagle remains solidly positioned
to deliver significant growth in gold output and gold reserves, while still
maintaining our low political risk profile, strong balance sheet and
significant exploration upside." said Sean Boyd, Vice-Chairman and Chief
Executive Officer. "Over the next 24 months, we anticipate gold reserves at
our existing projects to grow from the current 15.4 million ounces to 18 to
20 million ounces. By 2010, we anticipate our annual gold production to expand
by five times to over 1.2 million ounces, with five new gold mines in
production." added Mr. Boyd.

    Shareholders' Meeting Tomorrow

    The Company will host its Annual and Special Meeting of Shareholders on
Friday, April 27, 2007 at 11:00 a.m. (E.S.T.) at the King Edward Hotel,
37 King St. E., in Toronto, Canada. Management will review the Company's
financial results for the first quarter 2007 and provide an update of its
exploration and development activities.

    Via Telephone:

    To listen on the telephone, please dial (416) 644-3414 or
    1 (800) 733-7571 toll free, at least five minutes before the scheduled
    start of the presentation.

    Via Webcast:

    Additionally, a live audio webcast of the presentation will be available
    on the Company's website homepage at www.agnico-eagle.com. The webcast
    along with presentation slides will be archived for 180 days on the
    website.

    Replay archive:

    The access phone number for the archived audio replay is
    1 (877) 289-8525, passcode 21225741 followed by the number sign. It will
    be available from Friday, April 27, 2007 at 1:00 pm until Saturday,
    May 5, 2007 at 11:59pm.

    Gold Reserves at Record Level

    At year end 2006, the Company's gold reserves totaled 12.5 million
ounces, an increase of 19% over 2005 levels. Subsequently, Agnico-Eagle
successfully acquired control of Cumberland adding a further 2.9 million
ounces from its Meadowbank gold project, or 23%, in the process bringing total
gold reserves to 15.4 million ounces, a level amongst the highest in the
intermediate gold sector.
    In 2007 and 2008, it is expected that the overall gold reserve figure for
Agnico-Eagle will continue to grow as the Company continues to convert its
resource to reserves. The Company's overall gold reserve target, from its
current projects, is now 18 million to 20 million ounces by the end of 2008.
    Additionally, Agnico-Eagle's proven and probable byproduct reserves
currently total approximately 105 million ounces of silver, 730,000 tonnes of
zinc and 111,000 tonnes of copper.

    LaRonde Mine - Strong Performance Continues

    The LaRonde mine processed an average of 7,461 tonnes of ore per day in
the first quarter of 2007, compared with an average of 7,350 tonnes per day in
the corresponding period of 2006. LaRonde has now been operating at an average
of approximately 7,300 tonnes per day for over three years, continuing to
demonstrate the reliability of this world class mine.
    Minesite costs per tonne(2) were C$64 in the first quarter, as expected.
These costs are higher than the C$57 per tonne experienced in the first
quarter of 2006. The increase in costs were primarily a result of accelerated
lateral development and industry-wide cost escalation for inputs including
fuel, reagents, steel, and cement.
    Minesite costs per tonne are expected to be approximately C$63 for the
full year 2007, two percent higher than 2006 due to expected cost escalation
as mentioned above, offset somewhat by lower reagent consumption in the mill
due to improvements in the copper-zinc circuit. Second half 2007 minesite
costs are expected to decrease somewhat as the benefit of the accelerated
development achieved over the past several quarters is realized.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce remained very low by industry standards, at minus $332 in the
first quarter. This compares favourably with the results of the first quarter
of 2006 when total cash costs per ounce were minus $241. The main reason for
the decrease in total cash costs per ounce is the significantly higher
byproduct metal prices realized in 2007.
    As previously disclosed, LaRonde's full year 2007 production forecast
remains at an estimated 240,000 ounces of gold, 4.7 million ounces of silver,
76,000 tonnes of zinc, and 8,700 tonnes of copper. Total cash costs per ounce
of gold production for the year are expected to be significantly less than
nil, at current byproduct metal prices.

    Cash Position Remains Strong, Despite Large Investments in Gold Growth

    Cash and cash equivalents declined to $427.6 million at March 31, 2007
from the December 31, 2006 balance of $458.6 million, as the strong cash
generating performance from the LaRonde mine largely funded capital
investments of $63.0 million at the Company's development projects. The
Company incurred approximately $18 million in transaction costs related to the
Cumberland acquisition and paid $13.4 million in dividends as well. The
Company was proud to pay a cash dividend for the 25th consecutive year.
    Acquiring control of Cumberland has added approximately $100 million to
the cash and equivalents balance of Agnico-Eagle bringing the current balance
to approximately $525 million. The Company maintains substantially undrawn
bank lines of $300 million.
    During the quarter, Agnico-Eagle added $56.1 million of cash provided by
operating activities. Major capital expenditures in the quarter included
$20.0 million on the construction of Goldex, $19.1 million at Kittila,
$11.0 million on the extension at LaRonde and $4.5 million at Lapa.
    For the full year 2007, capital expenditures are expected to total over
$400 million as the Company takes control of the construction program at
Meadowbank. Additionally, a construction decision is anticipated to be made on
the Pinos Altos project mid-year, which would increase the expected 2007
capital expenditures.
    With a large cash balance, strong cash flows, no long term debt, and
excellent financial flexibility, Agnico-Eagle is well funded for the
development and exploration of its pipeline of gold projects in Canada,
Finland and Mexico.

    Four New Gold Mines Under Construction, Board Decision on Pinos Altos
    Mid-Year

    A detailed review of the Company's exploration activities and recent
exploration results is scheduled for early May 2007. Agnico-Eagle is
undertaking its largest ever exploration program in 2007 with expenditures
expected to total approximately $40 million.
    At the 100% owned Goldex mine project in northwestern Quebec,
Agnico-Eagle commenced construction in July 2005. Proven and probable reserves
of 1.7 million ounces of gold (22.9 million tonnes grading 2.3 grams per
tonne) are estimated to be sufficient for a ten year mine life with annual
production averaging 170,000 ounces at total cash costs of approximately $225
per ounce. First gold production is expected in the second quarter of 2008.
    The construction of the surface facilities is advancing well with the
mechanical installation of the production hoist completed. The production
shaft had reached a depth of 435 metres at the end of March 2007, towards a
final planned depth of 857 metres. Approximately 55,000 tonnes of ore were
extracted and stockpiled on surface in the quarter. The total proven reserves
in the surface stockpile now stand at approximately 156,000 tonnes, grading
1.9 grams per tonne.
    Construction commenced at the 100% owned Kittila mine project in northern
Finland in the second quarter of 2006 with first production expected in the
second half of 2008. The project is expected to produce an average of 150,000
ounces of gold per year at total cash costs of approximately $250 per ounce,
over an estimated 13 year mine life. Kittila has probable gold reserves of
2.6 million ounces (16.0 million tonnes grading 5.1 grams per tonne).
    Surface overburden stripping for the open pits is well advanced with
approximately 230,000 cubic metres removed to date. Approximately 1.3 million
tonnes of waste rock has been excavated as well. Much of this rock will be
used in road and tailings dam construction. The underground decline had
advanced approximately 600 metres by the end of March 2007.
    At the 100% owned Lapa mine project in northwestern Quebec the final
phase of construction commenced in the second quarter of 2006. Probable gold
reserves of 1.2 million ounces (3.9 million tonnes grading 9.1 grams per
tonne) are expected to support estimated annual production of 125,000 ounces
per year at total cash costs per ounce of approximately $210. Gold production
at Lapa is expected to begin in the late fourth quarter of 2008.
    The shaft at Lapa reached a depth of 1,148 metres below surface at
March 31, 2007, towards the currently planned depth of 1,370 metres, expected
to be completed by the third quarter of 2007. The development of the
underground shaft stations continues as planned, and lateral development is
anticipated to begin in the fourth quarter of 2007. Construction of the
surface service facilities is underway and the ordering of the major capital
equipment is well advanced.
    At the 100% owned LaRonde mine in northwestern Quebec, construction
commenced in the second quarter of 2006 on the infrastructure extension at
depth (previously referred to as the LaRonde II project). Proven and probable
reserves of 5.2 million ounces (35.6 million tonnes grading 4.5 grams per
tonne) are expected to support a mine life through 2020. Annual gold
production post-2011, when the deeper ore is mined, is anticipated to average
320,000 ounces at total cash costs per ounce of approximately $230.
    The focus during the quarter continues to be on underground
infrastructure construction and detailed engineering. Excavations and
foundations for the winze sinking hoist are complete and mechanical
installation has begun.
    At the 100% owned Pinos Altos mine project in northern Mexico, the
property has probable gold reserves of 1.8 million ounces (18.6 million tonnes
grading 3.1 grams per tonne). Additionally, the property contains a large
silver reserve of over 55 million ounces (18.6 million tonnes grading
92.8 grams per tonne). The feasibility study has been completed, and a Board
decision regarding production is expected by the middle of this year. Gold and
silver production at Pinos Altos could begin in the first half of 2009.
    Construction of the permanent camp is progressing as expected. The
construction of a 2,800 metre underground exploration ramp commenced in March
2007, while construction of a 900 metre airstrip is nearing completion.
    With the recent increase in the share ownership in Cumberland (now
81.1%), and the acquisition of the remainder expected in the near term,
Agnico-Eagle is advancing on Cumberland's 100% owned Meadowbank project
immediately. Meadowbank has proven and probable gold reserves of 2.9 million
ounces (21.3 million tonnes grading 4.2 grams per tonne). With a large
additional gold resource, the deposit remains open for expansion. First gold
production is expected at Meadowbank in early 2010.
    The exploration focus on Meadowbank during 2007 will be resource to
reserve conversion in the vicinity of the open pit reserves, and resource
exploration around the Goose South and Goose Island zones. Further grassroots
exploration and diamond drilling will be performed on the large property
position, largely to the north of the existing resource.
    Hiring of senior staff, road construction, detailed engineering and
sourcing and acquisition of major capital equipment are ongoing.

    ------------------------------
    (1) Total cash costs per ounce is a non-GAAP measure. For a
    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

    (2) Minesite costs per tonne is a non-GAAP measure. For a reconciliation
    of this measure to production costs as reported in the financial
    statements, see Note 1 to the financial statements


    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 25 consecutive years.

    Forward-Looking Statements

    The information in this press release has been prepared as at April 26,
2007. Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward looking information under
the provisions of Canadian provincial securities laws. When used in this
document, the words "anticipate", "expect", "estimate", "forecast", "planned",
"projected" and similar expressions are intended to identify forward-looking
statements or information.
    Such statements and information include without limitation: statements
regarding timing and amounts of capital expenditures and other assumptions;
estimates of future reserves, resources, mineral production and sales;
estimates of mine life; estimates of future mining costs, total cash costs per
ounce, minesite costs and other expenses; estimates of future capital
expenditures and other cash needs, and expectations as to the funding thereof;
statements and information as to the projected development of certain ore
deposits, including estimates of exploration, development and production and
other capital costs, and estimates of the timing of such exploration,
development and production or decisions with respect to such exploration,
development and production; estimates of reserves and resources, and
statements and information regarding anticipated future exploration and
feasibility study results; the anticipated timing of events with respect to
the Company's minesites; statements and information regarding the sufficiency
of the Company's cash resources; statements and information relating to the
Company's bid for Cumberland; other statements and information regarding
anticipated trends with respect to the Company's capital resources and results
of operations; and statements regarding the benefits of the Company's
acquisition of Cumberland. Such statements and information reflect the
Company's views as at the date of this press release and are subject to
certain risks, uncertainties and assumptions, and undue reliance should not be
placed on such statements and information. Many factors, known and unknown,
could cause the actual results to be materially different from those expressed
or implied by such statements and information. Such risks include, but are not
limited to: the Company's dependence on the LaRonde mine, the volatility of
prices of gold and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates; uncertainty of
future production, capital expenditures, and other costs; currency
fluctuations; financing of additional capital requirements; cost of
exploration and development programs; mining risks; risks associated with
foreign operations; governmental and environmental regulation; the volatility
of the Company's stock price; and risks associated with the Company's
byproduct metal derivative strategies. Moreover the acquisition of Cumberland
involves risks and uncertainties relating to acquisitions, including, without
limitation: problems may arise with the ability to successfully integrate the
businesses of Agnico-Eagle and Cumberland; Agnico-Eagle may not be able to
achieve the benefits from the acquisition or it may take longer than expected
to achieve those benefits; and the acquisition may involve unexpected costs or
unexpected liabilities. For a more detailed discussion of such risks and other
factors that may affect the Company's ability to achieve the expectations set
forth in the forward-looking statements contained in this document, see
Company's Annual Report on Form 20-F for the year ended December 31, 2006, as
well as the Company's other filings with the Canadian Securities
Administrators and the U.S. Securities and Exchange Commission. The Company
does not intend, and does not assume any obligation, to update these
forward-looking statements and information.
    Without limiting the foregoing, 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, and location of surface infrastructure and actual
results and final decisions may be materially different from those currently
anticipated.

    Note to Investors Regarding the Use of Non-GAAP Financial Measures

    This press release presents estimates of future "total cash cost per
ounce" and "minesite cost per tonne" that are not recognized measures under
United States generally accepted accounting principles ("US GAAP"). This data
may not be comparable to data presented by other gold producers. These future
estimates are based upon the total cash costs per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at the applicable
projects and do not include production costs attributable to accretion expense
and other asset retirement costs, which will vary over time as each project is
developed and mined. It is therefore not practicable to reconcile these
forward-looking non-GAAP financial measures to the most comparable GAAP
measure. A reconciliation of the Company's total cash cost per ounce and
minesite cost per tonne to the most comparable financial measures calculated
and presented in accordance with US GAAP for the Company's historical results
of operations is set forth in the notes to the financial statements attached
hereto and in the Company's Annual Report on Form 20-F for the year ended
December 31, 2006 filed with the Canadian Securities Administrators and the
United States Securities and Exchange Commission.

    Detailed Mineral Reserve and Resource 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. Further information
regarding the Company's mineral reserve and mineral resource estimates (other
than in respect of the Meadowbank mine project) can be found in the Company's
Annual Report on Form 20-F for the year ended December 31, 2006 filed with
Canadian securities regulators and with the United States Securities and
Exchange Commission on March 30, 2007. Marc Legault, Agnico-Eagle's Vice
President, Project Development, a qualified person for the purposes of the
Canadian Securities Administrators' National Instrument 43-101, is the
qualified person that supervised the preparation of the material that forms
the basis for the disclosure of scientific and technical information set out
in this press release.

    
    -------------------------------------------------------------------------
    Category and Zone        Au      Ag      Cu      Zn        Au     Tonnes
                           (g/t)   (g/t)     (%)     (%)  (000's oz.) (000's)
    -------------------------------------------------------------------------
    Proven Mineral
     Reserve
    -------------------------------------------------------------------------
    LaRonde                2.76    80.96    0.36    4.06       513     5,779
    -------------------------------------------------------------------------
    Goldex                 2.25                                  7        97
    -------------------------------------------------------------------------
    Bousquet               6.30                                 17        86
    -------------------------------------------------------------------------
    Subtotal Proven
     Mineral Reserve       2.80                                537     5,962
    -------------------------------------------------------------------------
    Probable Mineral
     Reserve
    -------------------------------------------------------------------------
    LaRonde                4.83    35.73    0.30    1.66     4,638    29,863
    -------------------------------------------------------------------------
    Kittila                5.08                              2,616    16,022
    -------------------------------------------------------------------------
    Pinos Altos            3.07    92.77                     1,837    18,608
    -------------------------------------------------------------------------
    Lapa                   9.08                              1,152     3,944
    -------------------------------------------------------------------------
    Goldex                 2.29                              1,682    22,813
    -------------------------------------------------------------------------
    Subtotal Probable
     Mineral Reserve       4.06                             11,924    91,250
    -------------------------------------------------------------------------
    Total Proven and
     Probable Mineral
     Reserves              3.99                             12,462    97,213
    -------------------------------------------------------------------------


    Meadowbank Project - Reserves

    Open Pit Mineral Reserve (Proven & Probable) (Fourth Quarter 2005)
    -------------------------------------------------------------------------
    Category                                Tonnes    Grade (g/t)    Ounces
    -------------------------------------------------------------------------
    Proven                                3,020,000       4.8        470,000
    -------------------------------------------------------------------------
    Probable                             18,300,000       4.1      2,420,000
    -------------------------------------------------------------------------
    Proven & Probable                    21,320,000       4.2      2,890,000
    -------------------------------------------------------------------------

    Notes: Meadowbank open pit mineral reserves (Q4/2005) have been prepared
    in accordance with NI 43-101. Dr. Mike Armitage, Managing Director of SRK
    Consulting (UK) Limited, is the independent Qualified Person responsible
    for preparation of stated reserves. To the best of Agnico-Eagle's
    knowledge, the Cumberland estimate is relevant and reliable. A 95% mining
    recovery and contact dilution has been applied. Reserves are a subset of
    Measured and Indicated Resources. Grade rounded to nearest 0.1 g/t.
    Numbers may not add due to rounding. Further information regarding the
    mineral reserve and mineral resource estimates regarding the Meadowbank
    mine project can be found in Cumberland's Annual Information Form for the
    year ended December 31, 2006 filed with Canadian securities regulators on
    March 30, 2007.



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

                                                        Three months ended
                                                        ------------------
                                                            March 31,
                                                            ---------
                                                        2007         2006
                                                    ------------ ------------
    Income and cash flows
    LaRonde Division
    Revenues from mining operations................  $  100,730   $   90,581
    Production costs...............................      36,178       33,187
                                                    ------------ ------------
    Gross profit (exclusive of amortization
     shown below)..................................  $   64,552   $   57,394
    Amortization...................................       6,928        5,997
                                                    ------------ ------------
    Gross profit...................................  $   57,624   $   51,397
                                                    ------------ ------------
                                                    ------------ ------------

    Net income for the period......................  $   24,922   $   37,190
    Net income per share (basic)...................  $     0.21   $     0.35
    Net income per share (diluted).................  $     0.20   $     0.34
    Cash provided by operating activities..........  $   56,066   $   19,711
    Cash used in investing activities..............  $  (79,294)  $  (31,206)
    Cash provided by (used in) financing
     activities....................................  $  (10,663)  $   45,456
    Weighted average number of common
     shares outstanding - basic (in thousands).....     121,159      106,127
    Tonnes of ore milled...........................     671,484      661,528
    Head grades:
      Gold (grams per tonne).......................        3.00         3.30
      Silver (grams per tonne).....................       84.40        77.00
      Zinc.........................................        3.71%        3.79%
      Copper.......................................        0.39%        0.41%
    Recovery rates:
      Gold.........................................       90.66%       91.91%
      Silver.......................................       87.40%       86.50%
      Zinc.........................................       85.30%       86.70%
      Copper.......................................       84.80%       83.80%
    Payable production:
      Gold (ounces)................................      58,588       64,235
      Silver (ounces in thousands).................       1,397        1,227
      Zinc (tonnes)................................      17,944       18,462
      Copper (tonnes)..............................       1,990        2,053
    Payable metal sold:
      Gold (ounces)................................      56,758       69,677
      Silver (ounces in thousands).................       1,624        1,190
      Zinc (tonnes)................................      17,767       18,179
      Copper (tonnes)..............................       1,978        2,038
    Realized prices:
      Gold (per ounce).............................  $      669   $      611
      Silver (per ounce)...........................  $    13.82   $    10.83
      Zinc (per tonne).............................  $    2,798   $    2,640
      Copper (per tonne)...........................  $    6,090   $    5,812
    Total cash costs (per ounce):
    Production costs...............................  $      617   $      517
    Less: Net byproduct revenues...................      (1,071)        (748)
      Inventory adjustments........................         126           (8)
      Accretion expense and other..................          (4)          (2)
                                                    ------------ ------------
    Total cash costs per ounce(3)..................  $     (332)  $     (241)
                                                    ------------ ------------
                                                    ------------ ------------
    Minesite costs per tonne milled C$(3)                  C$64         C$57
                                                    ------------ ------------
                                                    ------------ ------------
    (3) 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 INFORMATION
               (thousands of United States dollars, unaudited)

                                                       As at        As at
                                                      March 31,  December 31,
                                                    ------------ ------------
                                                        2007         2006
                                                    ------------ ------------
    ASSETS
    Current
      Cash and cash equivalents....................  $  427,615   $  458,617
      Metals awaiting settlement...................      75,180       84,987
      Inventories:
        Ore stockpiles.............................       3,932        2,330
        Concentrates...............................       4,855        3,794
        Supplies...................................      10,970       11,152
      Fair value of derivative financial
       instruments.................................      10,152            -
      Other current assets.........................      67,314       61,953
                                                    ------------ ------------
    Total current assets...........................     600,018      622,833

    Other assets...................................      14,561        7,737
    Future income and mining tax assets............       6,141       31,059
    Property, plant and mine development...........     914,737      859,859
                                                    ------------ ------------
                                                     $1,535,457   $1,521,488
                                                    ------------ ------------
                                                    ------------ ------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities.....  $   35,594   $   42,538
      Dividends payable............................         647       15,166
      Income taxes payable.........................      17,422       14,231
                                                    ------------ ------------
    Total current liabilities......................      53,663       71,935
                                                    ------------ ------------

    Reclamation provision and other liabilities....      26,922       27,457
                                                    ------------ ------------

    Future income and mining tax liabilities.......     167,356      169,691
                                                    ------------ ------------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 121,209,748 (December 31,
       2006 - 121,025,635).........................   1,235,422    1,230,654
    Stock options..................................      10,255        5,884
    Warrants.......................................      15,717       15,723
    Contributed surplus............................      15,128       15,128
    Retained earnings..............................      23,450        3,015
    Accumulated other comprehensive loss...........     (12,456)     (17,999)
                                                    ------------ ------------

    Total shareholders' equity.....................   1,287,516    1,252,405
                                                    ------------ ------------
                                                     $1,535,457   $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
                                                        ------------------
                                                            March 31,
                                                            ---------
                                                        2007         2006
                                                    ------------ ------------

    REVENUES
    Revenues from mining operations................  $  100,730   $   90,581
    Interest and sundry income.....................       5,274        1,480
    Gain on sale of available-for-sale securities..       1,865       21,574
                                                    ------------ ------------
                                                        107,869      113,635

    COSTS AND EXPENSES
    Production.....................................      36,178       33,187
    Loss on derivative financial instruments.......       6,128        7,431
    Exploration and corporate development..........       5,829        5,517
    Equity loss in junior exploration companies....           -           84
    Amortization...................................       6,928        5,997
    General and administrative.....................       9,053        5,544
    Provincial capital tax.........................       1,062          553
    Interest.......................................         751        1,357
    Foreign currency loss (gain)...................      (1,267)       1,868
                                                    ------------ ------------
    Income before income, mining and
     federal capital taxes.........................      43,207       52,097
    Federal capital tax............................           -          204
    Income and mining tax expense..................      18,285       14,703
                                                    ------------ ------------

    Net income for the period......................  $   24,922   $   37,190
                                                    ------------ ------------
                                                    ------------ ------------

    Net income per share - basic...................  $     0.21   $     0.35
                                                    ------------ ------------
                                                    ------------ ------------

    Net income per share - diluted.................  $     0.20   $     0.34
                                                    ------------ ------------
                                                    ------------ ------------

    Weighted average number of shares
     outstanding (in thousands)
      Basic........................................     121,159      106,127
      Diluted......................................     125,649      108,598



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

                                                        Three months ended
                                                        ------------------
                                                            March 31,
                                                            ---------
                                                        2007         2006
                                                    ------------ ------------
    Operating activities
    Net income for the period......................  $   24,922   $   37,190
    Add (deduct) items not affecting cash:
      Amortization.................................       6,928        5,997
      Future income and mining taxes...............      16,329       11,702
      Unrealized loss on derivative contracts......       5,723        6,683
      Gain on sale of available-for-sale
       securities..................................      (1,864)     (21,574)
      Amortization of deferred costs and other.....       4,449        1,854
    Changes in non-cash working capital balances
      Metals awaiting settlement...................       9,807       (8,908)
      Income taxes payable.........................       3,191        3,289
      Other taxes recoverable......................       3,169        3,986
      Inventories..................................      (2,591)      (2,151)
      Other current assets.........................      (7,053)      (2,905)
      Accounts payable and accrued liabilities.....      (6,944)     (13,209)
      Interest payable.............................           -       (2,243)
                                                    ------------ ------------

    Cash provided by operating activities..........      56,066       19,711
                                                    ------------ ------------

    Investing activities
    Additions to property, plant and
     mine development..............................     (62,974)     (20,975)
    Acquisition, investments and other.............     (16,320)     (10,231)
                                                    ------------ ------------

    Cash used in investing activities..............     (79,294)     (31,206)
                                                    ------------ ------------

    Financing activities
    Dividends paid.................................     (13,406)      (3,166)
    Short-term debt................................           -        3,264
    Proceeds from common shares issued.............       2,743       45,358
                                                    ------------ ------------
    Cash provided by (used in)
     financing activities..........................     (10,663)      45,456
                                                    ------------ ------------

    Effect of exchange rate changes on
     cash and cash equivalents.....................       2,889          (34)
                                                    ------------ ------------

    Net increase in cash and cash equivalents
     during the period.............................     (31,002)      33,927
    Cash and cash equivalents, beginning
     of period.....................................     458,617      120,982
                                                    ------------ ------------

    Cash and cash equivalents, end of period.......  $  427,615   $  154,909
                                                    ------------ ------------
                                                    ------------ ------------
    Other operating cash flow information:
    Interest paid during the period................  $      589   $    4,681
                                                    ------------ ------------
                                                    ------------ ------------
    Income, mining and capital taxes paid
     during the period.............................  $       25   $      484
                                                    ------------ ------------
                                                    ------------ ------------



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

                                                        Three months ended
                                                        ------------------
                                                            March 31,
                                                            ---------
        (thousands of US dollars,
          except where noted)                              2007         2006
                                                    ------------ ------------
        Cost of production per Consolidated
         Statements of Income                        $   36,178   $   33,187
        Adjustments:
        Byproduct revenues                              (62,744)     (48,039)
        Inventory adjustment(i)                           7,400         (504)
        Non-cash reclamation provision                     (263)        (105)
                                                    ------------ ------------

        Cash operating costs                         $  (19,429)  $  (15,461)
                                                    ------------ ------------
                                                    ------------ ------------

        Gold production (ounces)                         58,588       64,235
                                                    ------------ ------------
                                                    ------------ ------------

        Total cash costs per ounce(ii)               $     (332)  $     (241)
                                                    ------------ ------------
                                                    ------------ ------------


                                                        Three months ended
                                                        ------------------
                                                            March 31,
                                                            ---------
        (thousands of dollars,
          except where noted)                              2007         2006
                                                    ------------ ------------

        Cost of production per Consolidated
           Statements of Income                      $   36,178   $   33,187
        Adjustments:
        Inventory adjustments(iii)                        1,001          110
        Non-cash reclamation provision                     (263)        (105)
                                                    ------------ ------------


        Minesite operating costs (US$)               $   36,916   $   33,192
                                                    ------------ ------------
                                                    ------------ ------------

        Minesite operating costs (C$)                $   42,682   $   38,005
                                                    ------------ ------------
                                                    ------------ ------------

        Tonnes of ore milled (000's tonnes)                 672          662
                                                    ------------ ------------
                                                    ------------ ------------

        Minesite costs per tonne (C$)(iv)                  C$64         C$57
                                                    ------------ ------------
                                                    ------------ ------------


    -----------------
    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 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 costs of production as shown in the Consolidated
           Statements of Income and Comprehensive Income for net byproduct
           revenues, royalties, inventory adjustments and non-cash
           reclamation 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 cost of production as shown in the
           Consolidated Statements of Income and Comprehensive Income for
           inventory and hedging adjustments and non-cash reclamation
           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
           this measure 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.
    




For further information:

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


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