Agnico-Eagle reports strong third quarter 2007 results and steady progress at development projects



    Stock Symbol: AEM (NYSE and TSX)

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

    TORONTO, Oct. 24 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") today reported third quarter net income of $11.5 million, or
$0.08 per share, which was net of a non-cash foreign currency translation loss
of $25.2 million, or $0.19 per share. This accounting translation loss arises
from the weakened US dollar and its effect on the US dollar conversion of our
European and Canadian accounts. In the comparable 2006 quarter, the Company
reported net income of $45.2 million, or $0.38 per share.
    Earnings for the third quarter 2007 fell by approximately $10 million,
net of the translation loss, period over period. This was largely due to the
impact of a stronger Canadian dollar on operating costs and lower realized
byproduct zinc prices, offset partly by a higher gold price. Earnings per
share were also diluted by the issuance of approximately 13.8 million common
shares upon the acquisition of Cumberland Resources Ltd. in 2007.
    Third quarter cash provided by operating activities decreased to
$49.9 million from $73.9 million in the comparable 2006 quarter, largely due
to normal working capital movements.
    "Another strong operating quarter at LaRonde, combined with steady
construction progress at our development projects, keeps us on track to
deliver on our plans for significant gold production growth", said Sean Boyd,
Vice-Chairman and Chief Executive Officer. "Exploration success at many of our
development projects also puts us in a strong position to add to our already
large gold reserve base over the next year", added Mr. Boyd.

    
    Third quarter 2007 highlights include:

    -  Strong Operating Results - steady metal output and excellent cost
       control led to solid operating earnings and strong cashflow
    -  Low Costs - Low total cash costs per ounce(1) at LaRonde of minus $307
    -  Gold Production Growth - first of five new mines, Goldex, ahead of
       schedule
    -  Safe Workplace - Record 33 consecutive months without a lost time
       accident underground at LaRonde
    -  Significant Exploration Upside - continued to receive ore-grade
       intersections over mineable widths outside of currently known
       reserve/resource envelope at Pinos Altos, Kittila, and Meadowbank
    

    In the first nine months of 2007, the Company recorded net income of
$74.2 million, or $0.57 per share. In the corresponding period in 2006,
Agnico-Eagle recorded net income of $119.5 million, or $1.05 per share.
    Year to date earnings were negatively affected by a non-cash foreign
currency translation loss of $32.0 million or $0.25 per share. Net of the
translation loss, earnings fell by approximately $23 million due to the impact
of a stronger Canadian dollar on operating costs, offset partly by a higher
gold price. Year to date earnings per share were also diluted by the shares
issued to acquire Cumberland.
    In the first nine months of 2007, the Company recorded cash provided by
operating activities of $185.8 million. This compares favourably to the prior
period when cash provided by operating activities was $141.8 million. The
increase in cash provided by operating activities was due almost entirely to
working capital movements.
    The Company's financial position remains strong with cash and cash
equivalents of $427.6 million at September 30, 2007. The Company's cash
position decreased $67.7 million in the third quarter as $141.7 million was
invested in the Company's gold growth projects. However, Agnico-Eagle's cash
position is expected to increase in the fourth quarter as the expiry of
warrants in November should result in further proceeds of approximately $122
million.
    Payable gold production(2) in the third quarter of 2007 was 55,830 ounces
at total cash costs per ounce of minus $307. This compares with payable gold
production of 59,603 ounces, at total cash costs per ounce of minus $709, in
the third quarter of 2006. The increase in total cash costs per ounce in the
third quarter of 2007 versus the prior period is mainly due to a stronger
Canadian dollar, increased minesite costs and lower byproduct zinc revenues.

    Forecast and Dividend Announcement

    On December 10, 2007, the 2008 production and cost forecast is expected
to be announced. At this time, the Company expects to provide an update on the
six development projects including updated capital expenditure estimates
incorporating more recent exchange rates. The Board of Directors is expected
to make a decision regarding the 2007 dividend at that time. Exploration
updates are also expected for several of the development projects prior to the
February reserve and resource update.

    Conference Call Tomorrow

    The Company will host its quarterly conference call tomorrow, Thursday
October 25 at 11:00am E.D.T. Management will review the Company's operating
and financial results for the third quarter of 2007 and provide an update of
its exploration and development activities.

    Via Telephone:
    To listen on the telephone, please dial (416) 644-3415 or 1 (800)
732-9307 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 21248116 followed by the number sign. It will be available
from Thursday, October 25, 2007 at 1:30 pm until Thursday, November 1, 2007
11:59 pm.

    LaRonde Mine - Strong Production and Cost Control Performance Continues

    The LaRonde mill processed an average of 7,250 tonnes of ore per day in
the third quarter of 2007, compared with an average of 7,270 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 almost four years, continuing to
demonstrate the reliability of this world class mine.
    Minesite costs per tonne(3) were C$66 in the third quarter. These costs
are higher than the C$63 per tonne experienced in the third quarter of 2006.
The increase in costs was again partly due to accelerated lateral development
and higher input costs for fuel, labour, chemical reagents, etc. as seen
across the mining industry.
    Minesite costs per tonne for the full year 2007 are expected to be on
budget at approximately C$65, five percent higher than 2006. This increase is
partly due to the accelerated development, but also due to industry cost
escalation, offset somewhat by lower reagent consumption in the mill due to
improvements in the copper-zinc circuit. Fourth quarter 2007 minesite costs
per tonne are expected to decrease somewhat, compared to the third quarter of
2007, as the benefit of the accelerated development undertaken 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 $307 in the
third quarter. This compares with the results of the third quarter of 2006
when total cash costs per ounce were minus $709. The increase in total cash
costs is due to a stronger Canadian dollar, increased minesite costs and lower
byproduct revenues.
    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 a year or more. 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 to postpone the mining of gold-rich ore resulting in marginally
lower gold and byproduct production annually, but 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 $427.6 million at September 30,
2007 from the June 30, 2007 balance of $495.3 million. As expected, all of the
Company's operating cash flow and a portion of its existing cash balance were
reinvested in its gold growth projects. During the quarter, Agnico-Eagle added
$49.9 million of cash provided by operating activities. Capital expenditures
in the quarter totaled $141.7 million, including $56.0 million on the
construction of Meadowbank, $28.6 million on Goldex, $16.8 million at Kittila,
$15.5 million on the LaRonde Extension, $9.7 million at Pinos Altos and $6.5
million at Lapa. For the full year 2007, capital expenditures are expected to
be approximately $450 million. Capital costs are higher than 2006 and higher
than previous guidance 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 cash position is expected to increase in the fourth quarter as the
expiry of warrants in November should result in further proceeds of
approximately $122 million. With a large cash balance, 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 1.7 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. With a large additional resource, the deposit
remains open for expansion.
    The Goldex production shaft is expected to be completed in November 2007.
Approximately 35,000 tonnes of ore were extracted and stockpiled on surface
during the third quarter. The total proven reserves in the surface stockpile
now stand at approximately 222,000 tonnes, grading 2.0 grams per tonne from
development ore. Overall, construction is ahead of schedule and the mine is
expected to begin production during the second quarter of 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. The mine life is estimated to be
13 years. Kittila has probable gold reserves of 2.6 million ounces
(16.0 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 is expected to begin
from the new decline in the fourth quarter of 2007, opening up the entire area
below the main Suuri zone for detailed exploration.
    Surface overburden stripping for the main open pit is advanced with
approximately 99,000 cubic metres moved in the quarter. Construction of the
underground decline is on schedule and had advanced approximately 1,800 metres
by the end of September 2007, including some other associated lateral
development. The mining fleet has been ordered and foundation work in the
processing plant is underway. Key components such as the SAG mill and
autoclave are on schedule for delivery. Production is expected to begin in the
third quarter of 2008.
    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.
    The shaft at Lapa has reached its final depth of 1,370 metres. The
project is in changeover from shaft sinking to the permanent shaft facilities
with lateral mine development scheduled to start within a month. Construction
of the surface service facilities is underway.
    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 5.2 million ounces (35.6 million tonnes
grading 4.5 grams per tonne) are expected to support a mine life through 2021.
Annual gold production post-2011, when the deeper ore is mined, is anticipated
to average 320,000 ounces.
    Mechanical installation for the internal hoist is well underway with the
service hoist completed and the production hoist approximately 40% complete.
The focus during the fourth quarter continues to be on underground
infrastructure construction and detailed engineering. Shaft sinking for the
new internal shaft is expected to begin this quarter. The same shaft sinking
crews that successfully developed Lapa and Goldex are currently transitioning
to LaRonde for this project.
    At the 100% owned Pinos Altos mine project in northern Mexico, the
property has probable gold reserves of 2.2 million ounces (20.0 million tonnes
grading 3.5 grams per tonne). Additionally, the property contains a large
silver reserve of over 65 million ounces (the same 20.0 million tonnes grading
102 grams per tonne). The project was approved for construction in August
2007. Average annual production is expected to be approximately 150,000 ounces
of gold and over 2.0 million ounces of silver over an 11 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 630 metres, while construction of a 900 metre light
aircraft airstrip is complete.
    Deeper exploration drilling is expected to begin 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 Mascota zone. 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 accumulation of
near surface gold reserves. The ore would possibly be processed via heap
leach.
    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 will be implemented.
    With the completion of the acquisition of Cumberland, Agnico-Eagle owns
100% of the Meadowbank project in Nunavut. 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. Initial gold production is anticipated by 2010. Annual gold
production is estimated to average 400,000 ounces for the first four years and
average 350,000 ounces per year over the life of the mine.
    The exploration focus on Meadowbank during 2007 has been 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 has
been performed on the large property position, largely to the north of the
existing resource. An update on the most recent results will be disclosed
before the end of the year.
    The all-weather road construction is scheduled for completion before the
end of this year. Approximately 80 kilometres of the 110 kilometre total have
been completed to date. Detailed engineering and 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.

    
    ---------------------------------------
    (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.
    

    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 October 24,
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; and other statements and information
regarding anticipated trends with respect to the Company's capital resources
and results of operations. 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. 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. 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; the completion of successful negotiations with the royalty
holder on certain surface rights and other interests relating to the Pinos
Altos property; 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 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.

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

    This press release presents certain measures, including "total cash cost
per ounce" and "minesite cost per tonne", that are not recognized measures
under United States generally accepted accounting principals ("US GAAP"). This
data may not be comparable to data presented by other gold producers. For a
reconciliation of these measures to the figures presented in the consolidated
financial statements prepared in accordance with US GAAP see Note 1 to the
financial statements attached to this press release and "Item 5. Operating and
Financial Review and Prospects - Results of Operations - Production Costs" in
the Company's Annual Report on Form 20-F filed with securities regulators in
Canada and the United States. The Company believes that these generally
accepted industry measures are realistic indicators of operating performance
and useful in allowing 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.

    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 and Pinos Altos 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. Further
information regarding the Pinos Altos mine project can be found in the Pinos
Altos Gold-Silver Project, Chihuahua State, Mexico 2007 Technical Report on
the Mineral Resources and Reserves filed with the Canadian securities
regulators on September 24, 2007. Further information regarding the Meadowbank
mine project can be found in the Meadowbank Gold Project Nunavut Technical
Report filed with the Canadian securities regulators on March 31, 2005 (see
www.sedar.com under "Cumberland Resources Limited").
    Refer to the Company's press release dated February 21, 2007 for other
information applicable to written disclosure of mineral reserves and
resources.

    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.

    
    Detailed Mineral Reserve and Resource Data

    -------------------------------------------------------------------------
                                                              Au
    Category                                                (000's    Tonnes
     and Zone       Au(g/t)   Ag(g/t)     Cu(%)     Zn(%)     oz.)    (000's)
    -------------------------------------------------------------------------
    Proven Mineral
     Reserve
    -------------------------------------------------------------------------
    LaRonde           2.76     80.96      0.36      4.06       513     5,779
    -------------------------------------------------------------------------
    Goldex            2.25                                       7        97
    -------------------------------------------------------------------------
    Meadowbank         4.8                                     470     3,020
    -------------------------------------------------------------------------
    Bousquet          6.30                                      17        86
    -------------------------------------------------------------------------
    Subtotal Proven
     Mineral Reserve  3.49                                   1,007     8,982
    -------------------------------------------------------------------------
    Probable Mineral
     Reserve
    -------------------------------------------------------------------------
    LaRonde           2.53     63.53      0.29      3.38       814    10,003
    -------------------------------------------------------------------------
    LaRonde
     Extension        5.99     21.73      0.31      0.79     3,824    19,860
    -------------------------------------------------------------------------
    Kittila           5.08                                   2,616    16,022
    -------------------------------------------------------------------------
    Pinos Altos       3.47    102.33                         2,224    19,957
    -------------------------------------------------------------------------
    Lapa              9.08                                   1,152     3,944
    -------------------------------------------------------------------------
    Goldex            2.29                                   1,682    22,813
    -------------------------------------------------------------------------
    Meadowbank        4.11                                   2,420    18,300
    -------------------------------------------------------------------------
    Subtotal
     Probable
     Mineral Reserve  4.13                                  14,732    99,962
    -------------------------------------------------------------------------
    Total Proven and
     Probable
     Mineral
     Reserves         4.08                                  15,739   115,004
    -------------------------------------------------------------------------
    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. The effective dates (with the exception of
    Pinos Altos and Meadowbank) is February 21, 2007. The effective date of
    the Pinos Altos's reserve is August 9, 2007. The effective date of the
    Meadowbank reserve is December, 2005.



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

                                 Three months ended      Nine months ended
                                    September 30,           September 30,
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------
    Income and cash flows
    LaRonde Mine
    Revenues from
     mining operations.......   $104,812    $108,798    $323,477    $326,251
    Production costs.........     44,936      36,456     123,924     105,210
                              ----------- ----------- ----------- -----------
    Gross profit (exclusive
     of amortization
     shown below)............    $59,876     $72,342    $199,553    $221,041
    Amortization.............      7,578       6,119      21,600      18,224
                              ----------- ----------- ----------- -----------
    Gross profit.............    $52,298     $66,223    $177,953    $202,817
                              ----------- ----------- ----------- -----------
    Net income for the
     period..................    $11,452     $45,203     $74,183    $119,485
    Net income per share
     (basic).................      $0.08       $0.38       $0.57       $1.05
    Net income per share
     (diluted)...............      $0.08       $0.37       $0.55       $1.02
    Cash provided by
     operating activities....    $49,946     $73,945    $185,844    $141,751
    Cash provided by
     (used in) investing
     activities..............  $(144,428)   $(61,531)  $(248,964)  $(125,907)
    Cash provided by
     (used in) financing
     activities..............    $15,361      $2,268      $6,551    $294,173
    Weighted average number
     of common shares
     outstanding - basic
     (in thousands)..........    135,509     120,386     130,151     113,649
    Tonnes of ore milled.....    667,238     669,026   2,018,487   1,987,456
    Head grades:
      Gold (grams per
       tonne)................       2.85        3.01        2.89        3.07
      Silver (grams per
       tonne)................      75.00       75.90       76.00       77.00
      Zinc...................      3.80%       4.43%       3.65%       4.16%
      Copper.................      0.32%       0.39%       0.34%       0.37%
    Recovery rates:
      Gold...................     91.58%      92.34%      91.25%      91.88%
      Silver.................     88.10%      88.30%      87.65%      87.50%
      Zinc...................     86.20%      87.70%      86.30%      87.30%
      Copper.................     84.90%      81.70%      85.30%      82.30%
    Payable production:
      Gold (ounces)..........     55,830      59,603     170,810     179,804
      Silver (ounces
       in thousands).........      1,222       1,233       3,754       3,707
      Zinc (tonnes)..........     18,609      22,068      54,015      61,318
      Copper (tonnes)........      1,647       1,884       5,327       5,527
    Payable metal sold:
      Gold (ounces)..........     55,797      57,326     170,400     187,969
      Silver (ounces
       in thousands).........      1,192       1,137       3,957       3,512
      Zinc (tonnes)..........     19,487      20,541      53,714      59,340
      Copper (tonnes)........      1,644       1,880       5,310       5,534
    Realized prices:
      Gold (per ounce).......       $748        $600        $697        $632
      Silver (per ounce).....     $12.79      $12.39      $13.39      $12.09
      Zinc (per tonne).......     $2,838      $3,525      $3,165      $3,345
      Copper (per tonne).....     $7,910      $6,843      $7,342      $8,818
    Total cash costs
     (per ounce):
    Production costs.........       $804        $612        $726        $585
    Less: Net byproduct
     revenues................     (1,131)     (1,340)     (1,198)     (1,224)
      Inventory
       adjustments...........         25          21          47          16
      Accretion expense
       and other.............         (5)         (2)         (5)         (2)
                              ----------- ----------- ----------- -----------
    Total cash costs
     (per ounce).............      $(307)      $(709)      $(430)      $(625)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Minesite costs per
     tonne milled (C$).......        $66         $63         $67         $61
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    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
                                                       September    December
                                                        30, 2007    31, 2006
                                                      ----------- -----------
    ASSETS
    Current
      Cash, cash equivalents and short
       term investments..............................   $427,594    $458,617
      Trade receivable...............................     74,619      84,987
      Inventories:
        Ore stockpiles...............................      5,023       2,330
        Concentrates.................................      3,727       3,794
        Supplies.....................................     15,010      11,152
      Other current assets...........................     77,322      61,953
                                                      ----------- -----------

    Total current assets.............................    603,295     622,833
    Other assets.....................................     15,494       7,737
    Future income and mining tax assets..............     19,131      31,059
    Property, plant and mine development.............  1,893,634     859,859
                                                      ----------- -----------

                                                      $2,531,554  $1,521,488
                                                      ----------- -----------
                                                      ----------- -----------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities.......    $92,596     $42,538
      Dividends payable..............................        647      15,166
      Income taxes payable...........................          -      14,231
                                                      ----------- -----------

    Total current liabilities........................     93,243      71,935
                                                      ----------- -----------
    Reclamation provision and other liabilities......     36,727      27,457
                                                      ----------- -----------

    Future income and mining tax liabilities.........    507,660     169,691
                                                      ----------- -----------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 135,893,339 (December 31, 2006
       - 121,025,635)................................  1,791,777   1,230,654
    Stock options....................................     22,374       5,884
    Warrants.........................................     14,653      15,723
    Contributed surplus..............................     15,128      15,128
    Retained earnings................................     72,711       3,015
    Accumulated other comprehensive loss.............    (22,719)    (17,999)
                                                      ----------- -----------

    Total shareholders' equity.......................  1,893,924   1,252,405
                                                      ----------- -----------

                                                      $2,531,554  $1,521,488
                                                      ----------- -----------
                                                      ----------- -----------



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

                                 Three months ended      Nine months ended
                                    September 30,           September 30,
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------
    REVENUES
    Revenues from mining
     operations..............   $104,812    $108,798    $323,477    $326,251
    Interest and sundry
     income..................      7,448      12,039      18,793      16,644
    Gain on sale of
     available-for-sale
     securities..............        886       1,062       4,088      22,975
                              ----------- ----------- ----------- -----------

                                 113,146     121,899     346,358     365,870
    COSTS AND EXPENSES
    Production...............     44,936      36,456     123,924     105,210
    Loss on derivative
     financial instruments...          -         967       5,829      13,012
    Exploration and
     corporate development...      3,792       8,154      18,658      20,806
    Amortization.............      7,578       6,119      21,600      18,224
    General and
     administrative..........      7,744       5,853      24,420      16,672
    Provincial capital tax...      2,008         729       4,508       1,626
    Interest.................        941         349       2,662       1,923
    Foreign currency
     translation loss........     25,243       1,037      32,021       9,555
                              ----------- ----------- ----------- -----------

    Income before income,
     mining and federal
     capital taxes...........     20,904      62,235     112,736     178,842
    Income and mining
     tax expense.............      9,452      17,032      38,553      59,357
                              ----------- ----------- ----------- -----------

    Net income for the
     period..................    $11,452     $45,203     $74,183    $119,485
                              ----------- ----------- ----------- -----------

    Net income per share
     - basic.................      $0.08       $0.38       $0.57       $1.05
                              ----------- ----------- ----------- -----------

    Net income per share
     - diluted...............      $0.08       $0.37       $0.55       $1.02
                              ----------- ----------- ----------- -----------

    Weighted average number
     of shares outstanding
     (in thousands)
      Basic..................    135,509     120,386     130,151     113,649
      Diluted................    140,280     123,822     134,922     117,086



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

                                Three months ended      Nine months ended
                                    September 30,           September 30,
                                  2007        2006        2007        2006
                              ----------- ----------- ----------- -----------

    Operating activities
    Net income for the
     period..................    $11,452     $45,203     $74,183    $119,485
    Add (deduct) items
     not affecting cash:
      Amortization...........      7,578       6,119      21,600      18,224
      Future income and
       mining taxes..........      7,960      13,275      30,221      45,109
      Unrealized loss on
       derivative
       contracts.............          -      (3,545)      5,018       4,571
      Gain on sale of
       available-for-sale
       securities............       (886)     (1,062)     (4,088)    (22,975)
      Gain on Contact
       Diamond Corporation...          -      (7,361)          -      (7,361)
      Amortization of
       deferred costs and
       other.................     25,888       5,150      49,410      24,706
    Changes in non-cash
     working capital
     balances
      Trade receivables......      1,892      16,782      10,368     (23,778)
      Income taxes
       payable...............    (17,121)      4,216     (14,231)     14,474
      Other taxes
       recoverable...........     (5,524)        415      (8,731)      4,355
      Inventories............      3,959        (871)     (2,049)     (3,260)
      Other current
       assets................     (7,061)     (6,344)    (15,887)    (22,335)
      Accounts payable and
       accrued liabilities...     21,809       1,968      40,030      (7,221)
      Interest payable.......          -           -           -      (2,243)
                              ----------- ----------- ----------- -----------

    Cash provided by
     operating activities....     49,946      73,945     185,844     141,751
                              ----------- ----------- ----------- -----------

    Investing activities
    Additions to property,
     plant and mine
     development.............   (141,721)    (41,395)   (311,111)    (95,903)
    Acquisition of
     Cumberland Resources
     Ltd., net of cash
     acquired of $96,043
     (note 9)................          -           -      84,207           -
    Acquisitions,
     investments and other...     (2,707)    (20,136)    (22,060)    (30,004)
                              ----------- ----------- ----------- -----------

    Cash provided by
     (used) in investing
     activities..............   (144,428)    (61,531)   (248,964)   (125,907)
                              ----------- ----------- ----------- -----------

    Financing activities
    Dividends paid...........          -           -     (13,406)     (3,166)
    Short-term debt..........          -      (7,232)          -
    Proceeds from common
     shares issued...........     15,361       9,649      19,957     312,105
    Share issue costs........          -        (149)          -     (14,766)
                              ----------- ----------- ----------- -----------

    Cash provided by
     (used in) financing
     activities..............     15,361       2,268       6,551     294,173
                              ----------- ----------- ----------- -----------

    Effect of exchange
     rate changes on
     cash and cash
     equivalents.............     11,381         730      25,546        (116)
                              ----------- ----------- ----------- -----------

    Net increase in cash
     and cash equivalents
     during the period.......    (67,740)     15,412     (31,023)    309,901
    Cash and cash
     equivalents,
     beginning of period.....    495,334     415,471     458,617     120,982
                              ----------- ----------- ----------- -----------

    Cash and cash
     equivalents,
     end of period...........   $427,594    $430,883    $427,594    $430,883
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Other operating
     cash flow information:
    Interest paid during
     the period..............       $509        $117      $1,638      $3,436
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------
    Income, mining and
     capital taxes paid
     during the period.......    $20,407        $264     $23,544      $1,232
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------



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

    Total Cash Costs Per Ounce

                                 Three       Three       Nine        Nine
                                 months      months      months      months
                                 ended       ended       ended       ended
    (thousands of dollars,     September   September   September   September
     except where noted)        30, 2007    30, 2006    30, 2007    30, 2006
    ------------------------- ----------- ----------- ----------- -----------
    Production costs per
     Consolidated
     Statements of Income....    $44,936     $36,456    $123,924    $105,210
    Adjustments:
      Byproduct revenues.....    (63,165)    (74,192)   (204,653)   (207,419)
      Inventory
       adjustment(i).........      1,396      (4,430)      8,078      (9,767)
      Non-cash reclamation
       provision.............       (293)       (116)       (837)       (333)
                              ----------- ----------- ----------- -----------

    Cash operating costs.....   $(17,126)   $(42,282)   $(73,488)  $(112,309)
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Gold production
     (ounces)................     55,830      59,603     170,810     179,804
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Total cash costs
     (per ounce)(ii).........      $(307)      $(709)      $(430)      $(625)
                              ----------- ----------- ----------- -----------


    Minesite Costs Per Tonne

                                 Three       Three       Nine        Nine
                                 months      months      months      months
                                 ended       ended       ended       ended
    (thousands of dollars,     September   September   September   September
     except where noted)        30, 2007    30, 2006    30, 2007    30, 2006
    ------------------------- ----------- ----------- ----------- -----------
    Production costs per
     Consolidated
     Statements of Income....    $44,936     $36,456    $123,924    $105,210
    Adjustments:
      Inventory
       adjustments(iii)......     (2,576)      1,250       2,319       2,812
      Non-cash reclamation
       provision.............       (293)       (116)       (837)       (333)
                              ----------- ----------- ----------- -----------

    Minesite operating
     costs (US$).............     42,067     $37,590     125,406    $107,689
                              ----------- ----------- ----------- -----------

    Minesite operating
     costs (C$)..............     44,138     $42,153     134,857    $121,591
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Tonnes of ore milled
     (000's tonnes)..........        667         669       2,018       1,987
                              ----------- ----------- ----------- -----------
                              ----------- ----------- ----------- -----------

    Minesite costs per
     tonne (C$)(iv)..........        $66         $63         $67         $61
                              ----------- ----------- ----------- -----------

    ---------
    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 indicator 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 sold by the Company,
           whether such products are sold during the period or held as
           inventory at the end of the period.
    





For further information:

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


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