Agnico-Eagle reports third quarter 2008 results



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

    Stock Symbol: AEM (NYSE and TSX)

    TORONTO, Oct. 29 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") today reported quarterly net income of $14.0 million, or $0.10
per share for the third quarter of 2008. This result includes a non-cash
foreign currency translation gain of $18.5 million, or $0.13 per share, partly
offset by a net loss on investments of $10.4 million, or $0.07 per share and
non-cash stock option expense of $2.3 million, or $0.02 per share. In the
third quarter of 2007, the Company reported net income of $11.5 million, or
$0.08 per share. The increase in net income, when compared to the third
quarter of 2007, was due to higher gold production and prices and the foreign
currency translation gain, partly offset by the net loss on investments and
substantially lower byproduct zinc and copper prices.
    Third quarter 2008 cash provided by operating activities was
$17.9 million, compared with $54.9 million in the third quarter of 2007, as
higher gold production and prices were more than offset by lower byproduct
zinc and copper prices.

    
    Third quarter 2008 highlights include:

    -   Strong Operating Results - good metal output and cost control
        contributed to solid operating earnings and cash flow as gold
        production increased 23% to 68,753 ounces when compared to the third
        quarter of 2007
    -   Low Costs - Low total cash costs per ounce(1) at LaRonde of $135.
        Good cost control at LaRonde with C$71 minesite costs per tonne(2) in
        the third quarter
    -   Progress On Gold Production Growth - new Goldex mine achieved
        commercial production August 1, 2008. Mining and processing
        operations are underway at the new Kittila gold mine in Finland
    -   Expanding Gold Deposits - preliminary exploration results demonstrate
        the potential to continue to grow the gold deposits at Kittila, Pinos
        Altos and Meadowbank. Scoping studies are underway on potential
        expansions at these sites and also on the Goldex mine
    -   Financial Position Strengthened - credit facilities doubled to
        $600 million. Flow-through issuance of approximately C$55 million
        subsequent to quarter end.
    

    Payable gold production(3) in the third quarter of 2008 was 68,753 ounces
at weighted average total cash costs per ounce of $240. This compares with
payable gold production of 55,830 ounces, at total cash costs per ounce of
minus $307, in the third quarter of 2007 when only LaRonde was operating, and
zinc prices were much higher. For the full year, gold production from LaRonde,
Goldex and Kittila is now forecast to be approximately 300,000 ounces.
    "Agnico-Eagle showed strong growth in gold production in the third
quarter with the achievement of commercial production at Goldex", said Sean
Boyd, Vice-Chairman and Chief Executive Officer. "With the Kittila mine now in
the commissioning phase, we are poised to deliver record gold production in
the fourth quarter," added Mr. Boyd.
    The Company is undertaking its annual life of mine planning exercise
based on its most recently published mineral reserves (February 2008). The
results are expected to be released in December 2008. As previously announced,
considering industry-wide cost escalation, capital expenditures for the 2008
through 2010 period could be approximately $1.4 billion, as described in
Agnico-Eagle's press release of July 23, 2008. Of this amount, approximately
$680 million had been spent at September 30, 2008. Approximately 70% of the
remaining amount is committed.
    For the first nine months of 2008, net income was $51.3 million, or $0.36
per share, versus $74.2 million, or $0.57 per share, in the first nine months
of 2007. The decrease was largely due to 37% lower realized zinc prices
between the comparative periods, higher non-cash stock-based compensation
expenses and net investment losses, offset partially by a 10% increase in gold
production and increased gold prices and a foreign currency translation gain.
    For the first nine months of 2008, cash provided by operating activities
was $164.5 million, down from $196.7 million in the first nine months of 2007.
The decrease was largely due to the aforementioned decrease in zinc prices,
offset partly by increased gold production and prices and changes in working
capital.

    Conference Call Tomorrow

    The Company will host its quarterly conference call on Thursday,
October 30, 2008 at 11:00 a.m. (E.D.T.). Management will review the Company's
financial results for the third quarter 2008 and provide an update of its
exploration and development activities.

    Via Webcast:

    A live audio webcast of the meeting will be available on the Company's
website homepage at www.agnico-eagle.com.

    Via Telephone:

    For those preferring to listen by telephone, please dial 416-644-3414 or
Toll-free 800-733-7571. To ensure your participation, please call
approximately five minutes prior to the scheduled start of the call.

    Replay archive:

    Please dial the 416-640-1917 or Toll-free access number 877-289-8525,
passcode 21259722 followed by the number sign.
    The conference call will be replayed from Thursday, October 30, 2008 at
1:30 PM (E.S.T.) to Thursday, November 6, 2008 11:59 PM (E.S.T.).
    The webcast along with presentation slides will be archived for 180 days
on the website.

    LaRonde Mine - Strong Production and Cost Control Performance Continues

    The LaRonde mill processed an average of 7,105 tonnes of ore per day in
the third quarter of 2008, compared with an average of 7,252 tonnes per day in
the third quarter of 2007.
    Minesite costs per tonne were C$71 in the third quarter. These costs are
higher than the C$66 per tonne experienced in the third quarter of 2007,
largely due to cost increases for consumables, primarily steel, fuel and
chemical reagents and slightly lower tonnage being processed.
    For the first nine months of 2008, the minesite costs per tonne were    
C$68, as compared to the first nine months of 2007 when the minesite costs per
tonne were $67. The slightly higher cost is largely due to the higher
consumable costs.
    On a per ounce basis, net of byproduct credits, LaRonde's total cash
costs per ounce remained very low by industry standards, at $135 in the third
quarter. This compares with the results of the third quarter of 2007 when
total cash costs per ounce were minus $307. The increase in total cash costs
is due to much lower byproduct revenues resulting mainly from lower realized
prices for zinc.
    For the first nine months of 2008, LaRonde's total cash costs per ounce
were minus $41, as compared to the first nine months of 2007 when the total
cash costs per ounce were minus $430. The higher unit costs are largely due to
lower byproduct prices.

    
    Goldex Mine Begins Commercial Production; Continues Ramp-Up to Full
    Capacity
    

    The new Goldex mine achieved commercial production as of August 1, 2008.
Gold production in the third quarter 2008 was 17,159 ounces (including 15,375
ounces since the start of commercial production) at total cash costs per ounce
of $620. Since the beginning of August, the mill has continued to improve its
throughput and averaged approximately 4,700 tonnes per day to the end of the
third quarter. Peak capacity is expected to be 6,900 tonnes per day and is
expected to be achieved by year end 2008.
    Since the start of commercial production, minesite cost per ton averaged
C$34 but is expected to decline to C$20 to C$25 per tonne as peak capacity is
reached. Mill recoveries continue to improve as well. Currently they are 85%
compared to estimated feasibility study rates of 93%.
    A total of 56,840 metres of production drilling, representing 1.1 million
tonnes of ore, were completed during the third quarter. A total of 2.5 million
tonnes have been drilled so far in 2008. Approximately 54,800 tonnes of ore
have been broken and are in the storage facilities on surface and underground.

    
    Cash Position Remains Strong, Despite Large Investments in Gold Growth;
    Bank Facility Doubled to $600 million
    

    Cash and cash equivalents decreased to approximately $112.2 million at
September 30, 2008 from the June 30, 2008 balance of $150.0 million. During
the quarter, Agnico-Eagle added $17.9 million of cash provided by operating
activities. Capital expenditures in the quarter totaled $253.7 million,
including $125.5 million on the construction of Meadowbank, $54.2 million at
Kittila, $29.3 million at Pinos Altos and $24.5 million at Lapa, $9.5 million
on the LaRonde Extension, and $1.8 million on Goldex.
    During the quarter, the Company tendered its Gold Eagle shares for cash
proceeds of approximately $40 million and over 760,000 shares of Goldcorp Inc.
Also in the quarter, the Company invested approximately $47 million to
increase its ownership position in Comaplex Minerals Inc. to 15.6%.
    During the quarter, the Company doubled its credit lines to $600 million
and drew $225 million. Debt drawn under these lines now totals approximately
$366 million, including $66 in letters of credit. Subsequent to quarter end,
the Company raised approximately C$55 million through the issuance of 779,250
flow-through common shares at a price of C$70 per share, further strengthening
its financial position.

    Gold Growth Projects Progressing

    Construction commenced at the 100% owned Kittila mine project in northern
Finland in the second quarter of 2006. The project is expected to produce an
average of 150,000 ounces of gold per year over its estimated mine life of
13 years. Initial start-up is expected in the fourth quarter of 2008. Kittila
has probable gold reserves of 3.0 million ounces (18.2 million tonnes grading
5.1 grams per tonne).
    Pit blasts in ore began in May and the first gold concentrate was
produced in September. There are currently 1,800 tonnes of concentrate
awaiting processing through the autoclave. The first concentrate is expected
to be fed into the autoclave in early November, as commissioning is currently
underway.
    A further 127,000 tonnes of ore were extracted from the pit during the
third quarter of 2008. At September 30, 2008, the ore stockpiles totaled
192,575 tonnes with an average grade of 4.3 grams of gold per tonne, based on
muck sampling.
    Gold production at Kittila in 2008 is now expected to be approximately
20,000 ounces.
    As announced on September 4, 2008, 1.0 million ounces of gold were added
to the inferred resource category at Kittila. This brings the total mineral
inventory at Kittila to 3.0 million ounces of probable reserves grading
5.1 grams per tonne from 18.2 million tonnes, 5.4 million tonnes grading
3.0 grams per tonne, or 0.5 million ounces, of indicated resources and a
further 15.7 million tonnes grading 4.34 grams per tonne, or 2.2 million
ounces, of inferred resources. Considering the growth in reserves and
resources to date, the Company is contemplating future increases to the
production rate and also methods to access the deeper mineralization at
Kittila.
    At the 100% owned Lapa mine project in northwestern Quebec, the final
phase of construction commenced in the second quarter of 2006. Proven and
probable gold reserves of 1.1 million ounces (3.8 million tonnes grading
8.9 grams per tonne) are expected to support estimated annual production of
125,000 ounces over an anticipated mine life of seven years.
    Lateral and vertical raise development is well underway with a lateral
advance of more than 2,000 metres, and raise development of approximately
1,000 metres completed during the third quarter. Also, the ore has been
exposed on Level 77. Currently, approximately 8,600 tonnes of ore are
stockpiled on surface, grading 10.4 grams per tonne.
    Construction of the surface service facilities is also proceeding well.
Initial production from Lapa is expected to begin in mid-2009.
    At the 100% owned LaRonde mine in northwestern Quebec, construction
commenced in the second quarter of 2006 on the new infrastructure to access
the deep ore (the LaRonde Extension). Proven and probable reserves of
5.0 million ounces (34.9 million tonnes grading 4.4 grams per tonne) are
expected to support a mine life through 2021. Annual gold production is
anticipated to average 340,000 ounces over the remaining 14 year mine life,
with the LaRonde Extension contributing to production beginning in 2011.
    During the second quarter of 2007, sinking of the internal shaft for the
LaRonde Extension began. At the end of the third quarter, approximately 330
metres of advance had been achieved.
    At the 100% owned Pinos Altos mine project in northern Mexico, the
property has probable gold reserves of 2.5 million ounces (24.7 million tonnes
grading 3.2 grams per tonne). Additionally, the property contains a large
silver reserve of over 73.1 million ounces (from the same 24.7 million tonnes
grading 92.2 grams per tonne). The project was approved for construction in
August 2007. Average annual production is expected to be approximately 190,000
ounces of gold over an estimated 12 year mine life with start-up expected in
the third quarter of 2009.
    Open pit mining has commenced and pre-production development has exceeded
plan with more than six million tonnes of waste pre-stripping completed to
date. Total underground ramp development now exceeds three kilometres. A small
quantity of open pit ore will be mined and stockpiled in the fourth quarter of
2008.
    Mill construction began in the third quarter of 2008. Significant
completion of earthworks for the leach pad, process plant, and other
facilities, the erection of steel for the truck shop and warehouse facilities,
the first major concrete pours including the ball mill and SAG mill
foundations and several tank foundations, the installation and commissioning
of the construction camp, and the 33 kV power line were all accomplished
during the quarter.
    Three surface exploration drills and two underground exploration drills
are currently operating at Pinos Altos. Favorable results from the on site
drilling campaign are expected to produce new resources and reserves at Santo
Nino, extensions of the mineralized zone laterally and at depth in Oberon de
Weber, extensions of the resource and reserve potential at Cerro Colorado and
Cerro Colorado West, and infill results which should allow conversion of
resources at San Eligio.
    Exploration drilling also continues on the Creston/Mascota area. This
region, approximately 10 kilometres northwest of the main Santo Nino deposit
at Pinos Altos, currently has an inferred gold resource of 7.7 million tonnes
grading 1.4 grams per tonne gold and 16.2 grams per tonne silver. Baseline
engineering, community and environmental work has commenced. An initial
scoping study, on what could be a stand-alone mining operation, is expected to
be completed by the end of 2008.
    Agnico-Eagle's 100% owned Meadowbank project in Nunavut has probable gold
reserves of 3.5 million ounces (29.3 million tonnes grading 3.7 grams per
tonne). With a large additional gold resource, the project remains open for
expansion. Initial gold production is anticipated in the first quarter of
2010. Annual gold production is currently estimated to average 360,000 ounces
over the estimated nine year life of the mine.
    During the quarter, mine crews worked on dike preparation and the
airstrip. The first rock for the East Dike was placed in the water on
July 30th and it was completed one month later. The East Dike cut off wall was
closed and the West Channel Dike was completed in September. During the last
three months, 957,464 tonnes of rock were blasted from the different pits and
quarries.
    At quarter end, the cladding of the mill building was approximately 60%
complete. The foundations for the power plant are complete and the erection of
the steel is approximately 90% finished with cladding to begin in October. All
of the main buildings are expected to be fully enclosed before year end 2008.
    The new exploration camp, located approximately 10 kilometres south of
the main camp at Meadowbank, is now fully functional. Five new drill rigs have
arrived at the exploration camp in preparation for the winter drilling season.
As soon as possible, drilling will begin from the ice on condemnation holes
and the deep drilling program on Goose Island.

    About Agnico-Eagle

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

    
    -------------------------
    (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) 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.
    (3) 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.



                         AGNICO-EAGLE MINES LIMITED
               SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
    (thousands of United States dollars, except where noted, US GAAP basis)
                                 (Unaudited)

                                                  Three
                                                  -----
                                                 months
                                                 ------
                            Three months ended    ended    Nine Months ended
                            ------------------    -----    -----------------
                               September 30,     June 30     September 30
                               -------------     -------     ------------
                                2008      2007      2008      2008      2007
                                ----      ----      ----      ----      ----
    Gross profit (exclusive
     of amortization shown
     below)
    LaRonde................  $37,190   $59,876   $39,357  $152,030  $199,553
    Goldex.................    3,456         -         -     3,456         -
                             -------   -------   -------   -------   -------
    Operating margin.......   40,646    59,876    39,357   155,486   199,553
    Amortization...........    9,049     7,578     7,516    23,595    21,600
    Corporate..............   10,929    31,394    18,488    46,696    65,217
                             -------   -------   -------   -------   -------
    Income before tax......   20,668    20,904    13,353    85,195   112,736
    Tax provision..........    6,630     9,452     5,006    33,902    38,553
                             -------   -------   -------   -------   -------
    Net earnings...........  $14,038   $11,452    $8,347   $51,293   $74,183
                             -------   -------   -------   -------   -------
                             -------   -------   -------   -------   -------
    Net earning per share..    $0.10     $0.08     $0.06     $0.36     $0.57
                             -------   -------   -------   -------   -------
                             -------   -------   -------   -------   -------
    Operating cash flow....  $17,908   $54,941   $92,792  $164,524  $196,683
    Realized price per
     sales volume (US$):
      Gold (per ounce).....     $903      $748      $804      $926      $697
      Silver (per ounce)...   $13.87    $12.79    $16.56    $16.72    $13.39
      Zinc (per tonne).....   $1,667    $2,838    $1,728    $2,005    $3,165
      Copper (per tonne)...   $6,732    $7,910    $8,534    $8,598    $7,342
    Payable production:
      Gold (ounces)
      LaRonde..............   51,594    55,830    59,452   161,938   170,810
      Goldex (Note 1)......   17,159         -     8,305    25,464         -
                             -------   -------   -------   -------   -------
      Total gold (ounces)..   68,753    55,830    67,757   187,402   170,810
                             -------   -------   -------   -------   -------
                             -------   -------   -------   -------   -------
      Silver (000's ounces)    1,167     1,222       956     3,149     3,754
      Zinc (tonnes)........   18,040    18,609    13,863    51,731    54,015
      Copper (tonnes)......    1,567     1,647     2,165     5,185     5,327
    Payable metal sold:
      Gold
       (ounces - LaRonde)..   48,517    55,797    56,650   156,763   170,400
      Gold
       (ounces - Goldex)...   13,860         -         -    13,860         -
      Silver (000's ounces)    1,085     1,192       955     3,058     3,957
      Zinc (tonnes)........   16,541    19,487    15,260    50,512    53,714
      Copper (tonnes)......    1,421     1,644     2,108     4,950     5,310
    Total cash costs per
     ounce (Note 2):
    Gold
    LaRonde................ $    135  $   (307) $    113  $    (41) $   (430)
    Goldex (Note 1)........      620         -         -       620         -
                             -------   -------   -------   -------   -------
    Weighted average total.
     cash costs per ounce.. $    240  $   (307) $    113  $     15  $   (430)
                             -------   -------   -------   -------   -------
                             -------   -------   -------   -------   -------

    Notes

    (1) Includes commercial production of 15,375 ounces since August 1, 2008;
        Non commercial production of 1,784 ounces in Q3 and 10,089 ounces
        YTD.
    (2) Total cash costs per ounce, net of copper, zinc and other byproduct
        credits. Total is weighted average based on commercial production
        ounces. Total cash costs per ounce is a non-GAAP measure. For a
        reconciliation to the financial statements, see Note 3 to the
        financial statements. See also "Note Regarding Certain Measures of
        Performance"



                         AGNICO-EAGLE MINES LIMITED
                         CONSOLIDATED BALANCE SHEETS
             (thousands of United States dollars, US GAAP basis)
                                 (Unaudited)

                                                         As at         As at
                                                  September 30,  December 31,
                                                          2008          2007
                                                    ----------    ----------
    ASSETS
    Current
      Cash and cash equivalents..................  $   112,209   $   396,019
      Trade receivables..........................       60,811        79,419
      Inventories:
        Ore stockpiles...........................       20,163         5,647
        Concentrates.............................        5,431         1,913
        Supplies.................................       39,807        15,637
      Other current assets.......................      158,711        91,125
                                                    ----------    ----------
    Total current assets.........................      397,132       589,760

    Other assets.................................        8,944        16,436
    Future income and mining tax assets..........       23,165         5,905
    Property, plant and mine development.........    2,792,623     2,123,397
                                                    ----------    ----------
                                                   $ 3,221,864   $ 2,735,498
                                                    ----------    ----------
                                                    ----------    ----------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
      Accounts payable and accrued liabilities...  $   191,529   $   108,227
      Dividends payable..........................          438        26,280
      Interest payable...........................          458             -

    Total current liabilities....................      192,425       134,507
                                                    ----------    ----------

    Bank debt....................................      300,000             -
                                                    ----------    ----------

    Reclamation provision and other liabilities..       64,567        57,941
                                                    ----------    ----------

    Future income and mining tax liabilities.....      501,305       484,116
                                                    ----------    ----------

    Shareholders' equity
    Common shares
      Authorized - unlimited
      Issued - 143,874,312 (December 31, 2007
       - 142,403,379)............................    1,982,427     1,931,667
    Stock options................................       36,995        23,573
    Contributed surplus..........................       15,166        15,166
    Retained earnings............................      163,533       112,240
    Accumulated other comprehensive loss.........      (34,554)      (23,712)
                                                    ----------    ----------

    Total shareholders' equity...................    2,163,567     2,058,934
                                                    ----------    ----------
                                                   $ 3,221,864   $ 2,735,498
                                                    ----------    ----------
                                                    ----------    ----------



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

                                    Three months ended     Nine months ended
                                    ------------------     -----------------
                                       September 30,         September 30,
                                       -------------         -------------
                                       2008       2007       2008       2007
                                       ----       ----       ----       ----
    REVENUES
    Revenues from mining
     operations.................  $  91,171  $ 104,812  $ 295,703  $ 323,477
    Interest and sundry income..      2,568      7,448      9,326     18,793
    Write-down on sale of
     available-for-sale
     securities.................    (35,588)         -    (35,588)         -
    Gain on sale of
     available-for-sale
     securities.................     25,219        886     25,626      4,088
                                    -------    -------    -------    -------
                                     83,370    113,146    295,067    346,358

    COSTS AND EXPENSES
    Production..................     50,525     44,936    140,217    123,924
    Loss on derivative financial
     instruments................          -          -          -      5,829
    Exploration and corporate
     development................      8,325      3,792     26,163     18,658
    Amortization................      9,049      7,578     23,595     21,600
    General and administrative..     10,829      7,744     40,456     24,420
    Provincial capital tax......      1,439      2,008      3,314      4,508
    Interest....................      1,038        941      2,356      2,662
    Foreign currency loss
     (gain).....................    (18,503)    25,243    (26,229)    32,021
                                    -------    -------    -------    -------
    Income before income, mining
     and federal capital taxes..     20,668     20,904     85,195    112,736
    Income and mining tax
     expense....................      6,630      9,452     33,902     38,553
                                    -------    -------    -------    -------

    Net income for the period...  $  14,038  $  11,452  $  51,293  $  74,183
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------

    Net income per share
     - basic....................  $    0.10  $    0.08  $    0.36  $    0.57
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------

    Net income per share
     - diluted..................  $    0.10  $    0.08  $    0.35  $    0.55
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------

    Weighted average number of
     shares outstanding
     (in thousands)
      Basic.....................    143,831    135,509    143,641    130,151
      Diluted...................    144,975    140,223    144,785    134,866



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

                                    Three months ended     Nine months ended
                                    ------------------     -----------------
                                       September 30,         September 30,
                                       -------------         -------------
                                       2008       2007       2008       2007
                                       ----       ----       ----       ----
    Operating activities
    Net income for the period...  $  14,038  $  11,452  $  51,293  $  74,183
    Add (deduct) items not
     affecting cash:
      Amortization..............      9,049      7,578     23,595     21,600
      Future income and mining
       taxes....................      6,468      7,960     33,342     30,221
      Unrealized loss on
       derivative contracts.....          -          -          -      5,018
      Gain on sale of
       available-for-sale
       securities...............     10,369       (886)     9,962     (4,088)
      Amortization of deferred
       costs and other............  (17,325)    25,888     (8,736)    49,410
    Changes in non-cash working
     capital balances
      Trade receivables.........     20,453      1,892     18,608     10,368
      Income taxes payable......          -    (17,121)         -    (14,231)
      Other taxes recoverable...    (16,606)         -    (32,067)         -
      Inventories...............    (39,885)     3,959    (43,248)    (2,049)
      Other current assets......     11,341     (7,590)    39,568    (13,779)
      Interest payable..........        458          -        458          -
      Accounts payable and
       accrued liabilities......     19,549     21,809     71,749     40,030
                                    -------    -------    -------    -------
    Cash provided by operating
     activities.................     17,908     54,941    164,524    196,683
                                    -------    -------    -------    -------
    Investing activities
    Additions to property, plant
     and mine development.......   (253,684)  (146,716)  (678,307)  (321,950)
    Acquisition, investments
     and other..................     (8,119)    (2,707)   (60,333)   (22,060)
    Cash acquired upon
     acquisition of Cumberland
     Resources Ltd..............          -          -          -     84,207
                                                                      ------
    Cash used in investing
     activities                    (261,803)  (149,423)  (738,640)  (259,803)
                                    -------    -------    -------    -------

    Financing activities
    Dividends paid..............          -          -    (23,779)   (13,406)
    Repayment of capital lease..    (15,423)         -    (15,423)         -
    Bank debt...................    225,000          -    300,000          -
    Proceeds from common shares
     issued.....................      4,597     15,361     38,353     19,957
                                    -------    -------    -------    -------
    Cash provided by (used in)
     financing activities.......    214,174     15,361    299,151     6,551
                                    -------    -------    -------    -------

    Effect of exchange rate
     changes on cash and cash
     equivalents................     (8,023)    11,381     (8,845)   25,546
                                    -------    -------    -------    -------

    Net increase in cash and
     cash equivalents during
     the period.................    (37,744)   (67,740)  (283,810)  (31,023)
    Cash and cash equivalents,
     beginning of period........    149,953    495,334    396,019    458,617
                                    -------    -------    -------    -------

    Cash and cash equivalents,
     end of period..............  $ 112,209  $ 427,594  $ 112,209  $ 427,594
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------

    Other operating cash flow
     information:
    Interest paid during the
     period.....................  $   2,667  $     509  $   3,369  $   1,638
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------
    Income, mining and capital
     taxes paid during the
     period.....................  $   3,854  $  20,407  $   3,854  $  23,544
                                    -------    -------    -------    -------
                                    -------    -------    -------    -------

    Note 3

    The following tables provide a reconciliation of the total cash costs per
    ounce of gold produced and mine site costs per tonne to the interim
    consolidated financial statements:

                                   Three months ended     Nine months ended
                                      September 30,         September 30,
    (thousands of dollars,        ---------------------  --------------------
     except where noted)               2008       2007       2008       2007
    ----------------------------  ---------- ----------  --------- ----------
    Production costs per
     Consolidated Statements
     of Income..................    $50,525    $44,936   $140,217   $123,924
    Adjustments:
      Byproduct revenues........    (34,867)   (63,175)  (137,672)  (204,653)
      Inventory adjustment(i)...        767      1,396      1,124      8,078
      Non-cash reclamation
       provision................       (326)      (293)      (938)      (837)
                                  ---------- ----------  --------- ----------
    Cash operating costs........    $16,099  $ (17,126)    $2,731   $(73,488)
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Gold production (ounces)....     66,969     55,830    177,313    170,810
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Total cash costs
     (per ounce)(ii)............       $240      $(307)       $15      $(430)
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------

                                   Three months ended     Nine months ended
                                      September 30,         September 30,
    (thousands of dollars,        ---------------------  --------------------
     except where noted)               2008       2007       2008       2007
    ----------------------------  ---------- ----------  --------- ----------
    Production costs per
     Consolidated Statements
      of Income.................    $50,525    $44,936   $140,217   $123,924

    Attributable to LaRonde.....     42,393     44,936    132,085    123,924
    Attributable to Goldex......      8,132          -      8,132          -
                                  ---------- ----------  --------- ----------
    Total.......................    $50,525    $44,936   $140,217    123,924
                                  ---------- ----------  --------- ----------

    LaRonde Cost per Tonne
    ----------------------
    Production costs............    $42,393    $44,936   $132,085   $123,924
    Adjustments:
    Inventory adjustments (iii).      2,364     (2,576)     1,462      2,319
    Non-cash reclamation
     provision..................       (293)      (293)      (906)      (837)
                                  ---------- ----------  --------- ----------
    Minesite operating
     costs (US$)................    $44,464    $42,067   $132,641   $125,406
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Minesite operating
     costs (C$).................    $46,592    $44,138   $135,374   $134,857
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Tonnes of ore milled
     (000's tonnes).............        653        667      1,992      2,018
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Minesite costs per
     tonne (C$) (iv)............        $71        $66        $68        $67
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------

    Goldex Cost per Tonne
    ---------------------
    Production costs............     $8,132         $-     $8,132         $-
    Adjustments:
    Inventory adjustments (iii)       1,434          -      1,434          -
    Non-cash reclamation
     provision..................        (33)         -        (33)         -
                                  ---------- ----------  --------- ----------
    Minesite operating
     costs (US$)................     $9,533         $-     $9,533         $-
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Minesite operating
     costs (C$).................     $9,761         $-     $9,761         $-
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Tonnes of ore milled
     (000's tonnes).............        286          -        286          -
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------
    Minesite costs per
     tonne (C$) (iv)............        $34         $-        $34         $-
                                  ---------- ----------  --------- ----------
                                  ---------- ----------  --------- ----------

    Notes:

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

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

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

    (iv)   Minesite costs per tonne is not a recognized measure under US GAAP
           and this data may not be comparable to data presented by other
           gold producers. As illustrated in the table above, this measure is
           calculated by adjusting Production Costs as shown in the
           Consolidated Statements of Income and Comprehensive Income for
           inventory and asset retirement provisions and then dividing by
           tonnes processed through the mill. Since total cash costs data can
           be affected by fluctuations in byproduct metal prices and exchange
           rates, management believes minesite costs per tonne provides
           additional information regarding the performance of mining
           operations and allows management to monitor operating costs on a
           more consistent basis as the per tonne measure eliminates the cost
           variability associated with varying production levels. Management
           also uses this measure to determine the economic viability of
           mining blocks. As each mining block is evaluated based on the net
           realizable value of each tonne mined, in order to be economically
           viable the estimated revenue on a per tonne basis must be in
           excess of the minesite costs per tonne. Management is aware that
           this per tonne measure is impacted by fluctuations in production
           levels and thus uses this evaluation tool in conjunction with
           production costs prepared in accordance with US GAAP. This measure
           supplements production cost information prepared in accordance
           with US GAAP and allows investors to distinguish between changes
           in production costs resulting from changes in production versus
           changes in operating performance.



    Detailed Mineral Reserve and Resource Data - December 31, 2007

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



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



    --------------------------------------------------------------
    Category                                               Tonnes
     and Zone       Au(g/t)   Ag(g/t)     Cu(%)     Zn(%)  (000's)
    --------------------------------------------------------------
    Inferred
     Mineral
     Resource
    --------------------------------------------------------------
    Bousquet          7.45                                  1,667
    --------------------------------------------------------------
    Ellison           5.81                                    786
    --------------------------------------------------------------
    Goldex            2.35                                 11,889
    --------------------------------------------------------------
    Kittila           4.34                                 15,736
    --------------------------------------------------------------
    Lapa              8.96                                    759
    --------------------------------------------------------------
    LaRonde           6.26     22.65      0.47      1.07    4,723
    --------------------------------------------------------------
    Meadowbank        3.49                                  3,434
    --------------------------------------------------------------
    Pinos Altos       1.44     24.08                       12,237
    --------------------------------------------------------------
    Total
     Inferred
     Resource         3.50                                 51,231
    --------------------------------------------------------------

    Tonnage amounts and contained metal amounts presented in the tables in
    this news release have been rounded to the nearest thousand.  Reserves
    are not a sub-set of resources.
    

    Forward-Looking Statements

    The information in this press release has been prepared as at October 29,
2008. Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward looking information under
the provisions of Canadian provincial securities laws. When used in this
document, words such as "anticipate", "expect", "estimate," "forecast,"
"planned", "will", "likely" and similar expressions are intended to identify
forward-looking statements or information. Such statements include without
limitation: the Company's estimates of production, including estimated ore
grades, metal production, mine start-up dates, life of mine horizons, forecast
total cash costs and minesite costs, actual production estimates and projected
exploration and capital expenditures, including costs and other estimates upon
which such projections are based; sufficiency of capital; the Company's cash
position and other statements and information regarding anticipated trends
with respect to the Company's operations and exploration. Such statements
reflect the Company's views as at the date of this press release and are
subject to certain risks, uncertainties and assumptions. Forward-looking
statements are necessarily based upon a number of factors and assumptions
that, while considered reasonable by Agnico-Eagle as of the date of such
statements, are inherently subject to significant business, economic and
competitive uncertainties and contingencies. The factors and assumptions of
Agnico-Eagle contained in this news release, which may prove to be incorrect,
include, but are not limited to, the assumptions set forth herein: that there
are no significant disruptions affecting operations, whether due to labour
disruptions, supply disruptions, damage to equipment, natural occurrences,
political changes, title issues or otherwise; that permitting, development and
expansion at each of Agnico-Eagle's development projects proceeds on a basis
consistent with current expectations, and that Agnico-Eagle does not change
its development plans relating to such projects; that the exchange rate
between the Canadian dollar, European Union Euro, Mexican peso and the United
States dollar will be approximately consistent with current levels or as set
out in this press release or the Company's Form 20-F referred to below; prices
for gold, silver, zinc and copper will be consistent with Agnico-Eagle's
expectations; that prices for key mining and construction supplies, including
labour costs, remain consistent with Agnico-Eagle's current expectations; that
production meets expectations; that Agnico-Eagle's current estimates of
mineral reserves, mineral resources, mineral grades and mineral recovery are
accurate; that there are no material delays in the timing for completion of
ongoing development projects; and that there are no material variations in the
current tax and regulatory environment. Many factors, known and unknown, could
cause the actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks include, but are not
limited to: the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral recovery
estimates; uncertainty of future production, delays in equipment delivery and
installation, capital expenditures, and other costs; currency fluctuations;
financing of additional capital requirements; cost of exploration and
development programs; mining risks; risks associated with foreign operations;
governmental and environmental regulation; the volatility of the Company's
stock price; and risks associated with the Company's byproduct metal
derivative strategies. For a more detailed discussion of such risks and other
factors, see the Company's Annual Information Form and Annual Report on Form
20-F for the year ended December 31, 2007, as well as the Company's other
filings with the Canadian Securities Administrators and the U.S. Securities
and Exchange Commission (the "SEC"). The Company does not intend, and does not
assume any obligation, to update these forward-looking statements and
information, except as required by law. Accordingly, readers are advised not
to place undue reliance on forward-looking statements. Certain of the
foregoing statements, primarily related to projects, are based on preliminary
views of the Company with respect to, among other things, grade, tonnage,
processing, mining methods, capital costs, total cash costs, minesite costs,
and location of surface infrastructure and actual results and final decisions
may be materially different from those currently anticipated.

    Notes To Investors Regarding The Use Of Resources

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

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

    Cautionary Note To Investors Concerning Estimates Of Inferred Resources.

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

    Scientific And Technical Data

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

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

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

    A feasibility study is a comprehensive study of a mineral deposit in
which all geological, engineering, legal, operating, economic, social,
environmental and other relevant factors are considered in sufficient detail
that it could reasonably serve as the basis for a final decision by a
financial institution to finance the development of the deposit for mineral
production.
    The mineral reserves presented in this disclosure are not a subset of
mineral resources.
    A Qualified Person, Dyane Duquette P.Geo., Principal Geologist for the
Company's Technical Services Group, Abitibi Regional Office, was responsible
for the mineral reserve and mineral resource estimate at the Goldex project.
Descriptions of the key assumptions, parameters and methods used to estimate
the mineral resources and reserves and of any issues which might materially
affect the latter may be found in the Technical Report on the Estimation of
Mineral Resources and Reserves for the Goldex Extension that was posted on
SEDAR on October 27, 2005. The effective date of the estimate is December 31,
2007.
    The Kittila mine project mineral resource and mineral reserve estimate
was prepared by Jyrki Korteniemi, the Superintendent of Geology for the
Kittila Project under the supervision of a Qualified Person, Marc Legault
P.Eng., the Company's Vice-President, Project Development. The effective dates
of the estimate are December 31, 2007 for the reserves and resources above
800 metres depth and July 31, 2008 for the resource below 800 metres depth.
The gold grade cut-off used to determine the mineral resources varied between
1.5 and 2.4 g/t for open pit and underground, respectively (except for the
resource estimated below 800 metres). The mineral resource estimated below 800
metres depth used a cut-off grade for gold or 3.2 g/t. A mineral reserve
cut-off based on gold grade that varied between 2.0 and 3.2 g/t was used for
open pit and underground, respectively. The other key parameters, assumptions
and methods that were used to estimate the mineral resources and reserves are
not significantly different as that found in the Technical Report on the
Suurikuusikko project (now the Kittila mine project) that was posted on SEDAR
on March 14, 2006. There are no known environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues that materially
affect the Kittila mineral resources or mineral reserves.
    The Qualified Person responsible for the Lapa mineral reserve and mineral
resource estimate is Normand Bédard P.Geo., the Superintendent of Geology for
the Lapa mine project. The effective date of the estimate is December 31,
2007. A cut-off that varied between 3.7 g/t and 4.9 g/t, depending on the
category, was used to determine the mineral resource while a cut-off of
4.8 g/t was used to determine the mining reserves. A description of the other
key assumptions, parameters and methods used to estimate the mineral resources
and reserves and any issues which might materially affect the latter may be
found in the Technical Report on the Lapa Gold Project that was posted on
SEDAR on June 8, 2006.
    The Qualified Person responsible for the LaRonde mineral reserve and
resource estimate is François Blanchet Ing., Superintendent of Geology for the
LaRonde Division. The effective date of the estimate is December 31, 2007. A
cut-off that varied between C$51 and C$55 per tonne, depending on the category
and area was used to determine the mineral resource while a cut-off that
varied between C$61 and C$73 per tonne, depending on the mining area, was used
to determine the mining reserves. The other key assumptions, parameters and
methods that were used to estimate the mineral resources and reserves are not
significantly different as that found in the Technical Report by Guy Gosselin,
P.Geo., that was posted on SEDAR on March 23, 2005. Issues that might
materially affect the LaRonde mineral resources and reserves are set out in
the same Technical Report.
    The Qualified Person responsible for the Meadowbank mineral resource
estimate is Daniel Doucet Ing., the Company's Manager Geological Services. The
effective date of the estimate is December 31, 2007. A gold grade cut-off that
varied between 0.8 and 1.1 g/t, depending on the area, was used to determine
the mineral resource while a cut-off of 1.5 g/t was used to determine the
mining reserve. Except for these differences in the resource and reserve
cut-offs, the other key assumptions, parameters and methods used to estimate
the mineral resources are essentially identical to those reported in the
Technical Report disclosed by Cumberland Resources Ltd. on SEDAR on March 31,
2005. Issues that might materially affect the Meadowbank mineral resources and
reserves are set out in the same Technical Report.
    The Qualified Person responsible for the Pinos Altos mineral resource and
reserve estimate is Daniel Doucet Ing., the Company's Manager Geological
Services. The effective date of the estimate is December 31, 2007. A cut-off
that varied between $4.56 and $28.00 per tonne, was used to determine the
mineral resource for open pit and underground, respectively. A cut-off that
varied between $6.08 and $18.69 per tonne was used to determine heap-leach and
milled reserves, respectively while a cut-off of $37.35 per tonne was used to
determine the underground mining reserve. Except for these differences in the
resource and reserve cut-offs, the other key assumptions, parameters and
methods used to estimate the mineral resources are essentially identical to
those reported in the Technical Report disclosed on SEDAR on September 24,
2007. Issues that might materially affect the Pinos Altos mineral resources
and reserves are set out in the same Technical Report.
    The contents of this press release have been prepared under the
supervision of, and reviewed by, Marc Legault P.Eng., the Company's Vice
President, Project Development, a "Qualified Person" for the purposes of
NI 43-101.

    Note Regarding Certain Measures Of Performance

    This press release presents measures including "total cash costs per
ounce" and "minesite cost per tonne" that are not recognized measures under
US GAAP. This data may not be comparable to data presented by other gold
producers. The Company believes that these generally accepted industry
measures are realistic indicators of operating performance and useful for year
over year comparisons. However, both of these non-GAAP measures should be
considered together with other data prepared in accordance with US GAAP, and
these measures, taken by themselves, are not necessarily indicative of
operating costs or cash flow measures prepared in accordance with US GAAP. The
Company provides a reconciliation of realized total cash costs per ounce and
minesite costs per tonne to the most comparable US GAAP measures in its annual
and interim filings with securities regulators in Canada and the United
States. A reconciliation of the Company's total cash cost per ounce and
minesite cost per tonne to the most comparable financial measures calculated
and presented in accordance with US GAAP for the Company's historical results
of operations is set out in Note 1 to the financial statements included
herein.





For further information:

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


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