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AGNICO-EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS; NEW MINES CONTRIBUTE TO RECORD FINANCIAL RESULTS; FULL YEAR EARNINGS UP 284%; RECORD GOLD RESERVES UP 16%

February 16, 2011

Stock Symbol:   AEM (NYSE and TSX)

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

TORONTO, Feb. 16 /PRNewswire-FirstCall/ – Agnico-Eagle Mines Limited (“Agnico-Eagle” or the “Company”) today reported quarterly net income
of $88.0 million, or $0.53 per share for the fourth quarter of 2010. 
This result includes a non-cash foreign currency translation loss of
$10.4 million, or $0.06 per share, stock option expense of $7.2
million, or $0.04 per share, and a gain on sale of investments of $11.3
million, or $0.06 per share. In the fourth quarter of 2009, the Company
reported net income of $47.9 million, or $0.31 per share. 

Fourth quarter 2010 cash provided by operating activities was $90.6
million (a record $179.4 million before changes in non-cash components
of working capital) up from cash provided by operating activities of $53.7 million in the fourth quarter
of 2009 ($99.1 million before changes in non-cash components of working
capital), primarily due to 57% higher gold production and significantly
higher metal prices. 

“The growth plan that transformed the Company over the past several
years has resulted in record gold reserves and record annual financial
and operating results”, said Sean Boyd, Vice-Chairman and Chief
Executive Officer.  “As Agnico-Eagle begins the next five-year growth
phase from our expanded production platform, our strategy remains
unchanged.  The focus continues to be to increase our gold reserves,
gold production, earnings and cash flows, each on a per-share basis”,
added Mr. Boyd.

Fourth quarter and full year 2010 highlights include:

  • Record earnings and cash flows – annual earnings up 284%, cash provided by operating activities up
    320%, year over year
  • Record annual gold production – quarterly production of 256,469 ounces contributed to record annual
    gold production of 987,609 ounces; up 100% year over year
  • Good cost control - Full year total cash costs per ounce of $451(1).  Minesite costs per tonne(2) targets achieved at the steady state mines of LaRonde, Goldex, Lapa and
    Pinos Altos
  • Record Quarter at Pinos Altos - record quarterly gold production of 39,289 ounces at total cash costs
    of $365 per ounce.  First gold pour from Creston Mascota satellite
    project occurred in December
  • Record gold reserves - gold reserves rise 2.9 million ounces net of production, or 16%, to a
    record 21.3 million ounces(3).  Record exploration expenditure planned for 2011

For the full year 2010, the Company recorded net income of $332.1
million, or $2.05 per share.  In 2009, Agnico-Eagle recorded net income
of $86.5 million, or $0.55 per share.  Compared with the prior year,
2010 earnings were positively affected by a greater than 100% increase
in gold production as a result of a full year of production at Kittila,
Pinos Altos and Lapa, the startup of production at the Meadowbank mine
in March, combined with higher realized prices for gold, silver, copper
and zinc. 

For 2010, the Company recorded cash provided by operating activities of
$483.5 million ($581.7 million before changes in non-cash components of
working capital).  This is significantly up from 2009, when cash
provided by operating activities totaled $115.1 million ($232.5 million
before changes in non-cash components of working capital).  The
increase was primarily due to the previously mentioned increase in 2010
gold production, as well as significant increases in realized prices
for all produced metals in 2010.

Payable gold production(4) in the fourth quarter of 2010 was 256,469 ounces compared to 163,276
ounces in the fourth quarter of 2009.  A detailed description of the
production and cost performance by mine may be found in the respective
sections later in this document. 

Total cash costs for the fourth quarter of 2010, based on the Company’s
historic policy of attributing all stripping costs into current period
costs, were $485 per ounce (versus $297 per ounce for fourth quarter
2009). However, to be consistent with other gold producers, going
forward the Company will report total cash costs using the more common
industry practice of deferring certain stripping costs (which is in
line with the practice recommended by the Gold Institute) that can be
attributed to future production. Under this methodology, the Company’s
cash costs for the fourth quarter of 2010 were $462 per ounce.  This
compares with $295 per ounce in the fourth quarter of 2009, calculated
on the same basis.

The increase in total cash costs per ounce in the fourth quarter of 2010
is mainly due to higher costs at Kittila in October and November and
high costs at Meadowbank as the mine continues to ramp-up to full
production rates. 

The Company’s payable gold production for the full year 2010 was a
record 987,609 ounces at total cash costs per ounce of $451, excluding
a portion of stripping costs as described above.  The full year
production is 1.2% below the bottom end of the range of guidance
provided in December 2009.  The lower than anticipated gold production
in the year is largely due to the slower than anticipated ramp-up at
the new Meadowbank mine.  Additionally, the shortfall is partly a
result of lower than expected grades at LaRonde and Lapa in the fourth
quarter of 2010. 

The 2010 production compares to the full year 2009 level of 492,972
ounces at total cash costs per ounce of $346.  The higher production in
2010 was due to the opening and optimizing of the new mines.  The
higher total cash costs per ounce were primarily due to the impact of
Meadowbank’s higher cost start-up phase in 2010 (higher than expected
at $693 for the year mainly due to reduced throughput related to
crushing issues). 

The linked graph below presents the increase in gold production per
share over the past 10 years.  The Company believes that increasing
this metric, and thereby increasing shareholders exposure to gold on a
per share basis over time, is one of the best ways to increase
shareholder returns.

Gold Production Per 1000 Shares

Conference Call Tomorrow

The Company’s senior management will host a conference call on Thursday, February 17, 2011 at 11:00 AM (E.S.T.) to discuss financial results and provide an update of the Company’s
exploration and development activities.  A detailed mineral reserve and
resource update will also be provided.

Via Webcast:

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

Via Telephone:

For those preferring to listen by telephone, please dial 416-644-3415 or
Toll-free 800-814-4861.  To ensure your participation, please call
approximately five minutes prior to the scheduled start of the call. 

Replay archive:

Please dial 416-640-1917 or the Toll-free access number 877-289-8525,
passcode 4403795#.
The conference call replay will expire on Thursday, February 24, 2011.
The webcast along with presentation slides will be archived for 180 days on the website.

Cash Position Remains Strong

Cash and cash equivalents decreased to $104.6 million at December 31,
2010 from the September 30, 2010 balance of $148.1 million, as the
Company repaid $65 million of its long term debt during the quarter.  

Capital expenditures in the fourth quarter were $115.0 million,
including $28.2 million at Pinos Altos, $26.1 million at Meadowbank,
$23.7 million at LaRonde, $18.7 million at Kittila, $8.8 million on
Goldex and $7.3 million at Lapa.  For the full year 2010, capital
expenditures totaled $511.6 million.

With its cash balances, anticipated cash flows and available bank lines,
management believes that Agnico-Eagle remains fully funded for the
development and exploration of its current pipeline of gold projects in
Canada, Finland, Mexico and the USA.

Available bank lines as of December 31, 2010 were approximately $1.1
billion. 

Gold Reserves Rise to Record Level

At year-end 2010, the Company’s proven and probable gold reserves
totaled 21.3 million ounces, net of depletion, an increase of 2.9
million ounces (or 16%) over 2009 levels.  The largest increase (2.6
million ounces) came from the conversion of resources to reserves at
the new Meliadine project in Nunavut, Canada (acquired in July 2010).

Another large contribution to the total came from Kittila where
approximately 0.9 million ounces of reserves were added in 2010, net of
depletion.  Kittila now has the highest level of gold reserves at any
of the Company’s properties. 

This exploration success continues Agnico-Eagle’s track record of
increasing its shareholders exposure to gold.  During the year, the
number of shares outstanding increased by approximately 8%, while the
gold reserves increased by approximately 16%.  A graph showing the
increase in reserves per share over the past 10 years is linked below.

Gold Reserves Per 1000 Shares

In 2011, it is expected that Agnico-Eagle’s overall mineral reserves
will continue to grow as the Company continues to convert its resources
to reserves and continues the exploration of its properties outside of
the currently known resource.  Agnico-Eagle’s goal is to increase gold
reserves from its existing portfolio of mines and projects to more than
22 million ounces by year-end 2011.  During 2011, the Company expects
to invest approximately $145 million in exploration.

The Company’s year-end 2010 gold reserves, net of 987,609 ounces of gold
production, is set out below:

Gold Reserves By Mine Proven & Probable Reserve (000s ounces)
  2010 2009
LaRonde

Goldex

Lapa

Kittila

Pinos Altos

Meadowbank

Meliadine

4,818

1,566

677

4,880

3,271

3,486

2,600

4,849

1,630

843

4,025

3,396

3,655

-

Total 21,298 18,398

Amounts presented in the table and in this press release have been
rounded to the nearest thousand. See attached table “Detailed Mineral
Reserve and Resource Data (as at December 31, 2010)” for detailed
breakdown of the Company’s reserves and resources.

Agnico-Eagle’s byproduct proven and probable reserves include
approximately 124 million ounces of silver, 404,000 tonnes of zinc and
95,000 tonnes of copper.

The metals prices and exchange rates used in the reserve and resource
calculation are the trailing three-year averages for such prices or
rates, as mandated by the U.S. Securities and Exchange Commission (the
“SEC”).  The assumptions used in calculating the 2010 reserves and
resources were $1024 per ounce gold, $16.62 per ounce silver, $0.86 per
pound zinc, $2.97 per pound copper, $0.90 per pound lead, a C$/US$
exchange rate of 1.08, a US$/Euro exchange rate of 1.40, and a Mexican
Peso/US$ exchange rate of 12.43.  For a 10% change in the gold price
(leaving all other assumptions unchanged), there would be an estimated
3% change in proven and probable reserves. 

The byproduct reserves and resources for silver, zinc, copper and lead
contained in the LaRonde orebody, and the silver reserves contained at
Pinos Altos, are presented in the “Detailed Mineral Reserve and
Resource Data” section set out near the end of this news release. 
These byproduct reserves are not included in Agnico-Eagle’s gold
reserve and resource totals.

Large Conversion of Gold Resources to Reserves in 2010

Exploration drilling during 2010 resulted in 2.9 million ounces of gold
being converted from the resource category into the reserve category. 
In spite of this conversion, the resources continued to grow at several
of the mines and projects.

In 2010, the Company’s indicated mineral resources increased marginally
over 2009 levels, largely due to the addition of indicated mineral
resource at the Meliadine property.  The Company’s inferred resources
as at the end of 2010 increased significantly over the 2009 level, with
the largest contribution to this increase coming from the Meliadine and
Bousquet properties.

However, these increases take into account a restatement of the 2009
resource at Meadowbank.  Approximately 2.0 million ounces of indicated
resource (19,763,101 tonnes grading 3.19 g/t) and 0.2 million ounces of
inferred resource (2,431,310 tonnes grading 2.66 g/t) were overstated
due to an arithmetic error.  These resources were not within planned
pit limits and were not part of the life of mine plan.

LaRonde Mine - Steady 2010 Performance As Expected

The 100% owned LaRonde mine in northwestern Quebec, Canada, began
operation in 1988.  Overall, proven and probable gold reserves at
LaRonde contain approximately 4.8 million ounces from 34.7 million
tonnes grading 4.3 grams per tonne (“g/t”).

The LaRonde mill processed an average of 6,918 tonnes per day (“tpd”) in
the fourth quarter of 2010, compared with an average of 6,983 tpd in
the corresponding period of 2009.  Milling performance for the full
year 2010 was approximately 7,102 tpd versus 6,975 tpd in 2009. 
LaRonde has been operating at a steady state of approximately 7,000
tonnes per day for more than seven years, since its final expansion in
2003.

Minesite costs per tonne were approximately C$79 in the fourth quarter
of 2010.  These costs are higher than the C$69 per tonne experienced in
the fourth quarter of 2009.  The increase is largely due to higher
costs for labour, chemical reagents and fuel.  Additionally, a higher
proportion of ore from the lower levels was mined in 2010 leading to
higher haulage costs.

Minesite costs per tonne for the full year 2010 were on budget at
approximately C$75, approximately 4% higher than in 2009 (C$72) mainly
due to cost pressures as discussed above.   

On a per ounce basis, net of byproduct credits, LaRonde’s total cash
costs per ounce were minus $250 in the fourth quarter on production of 38,405 ounces of gold. 
This compares with the fourth quarter of 2009 when total cash costs per
ounce were minus $84 on production of 46,397 ounces of gold.  The decrease in total cash
costs is largely due to significantly higher byproduct metal prices.
The lower gold production in the 2010 period is largely related to
lower grades as the mine extracted some lower grade tonnage which had
become economic due to higher zinc and gold prices.

For the full year 2010, LaRonde’s total cash costs per ounce were minus $7 on gold production of 162,806 ounces, placing it among the lowest
cash cost gold mines in the industry.  This compares to total cash
costs per ounce of $103 on gold production of 203,494 in 2009, as lower
gold production in 2010 (lower grades extracted as mentioned above) was
more than offset by stronger byproduct metals prices.

The total cash cost per ounce performance of Agnico-Eagle’s three Quebec
mines is particularly noteworthy in light of the relative strength of
the Canadian dollar in 2010 (up 6% versus the US dollar). 

Gold production in 2011 at LaRonde is expected to be approximately
157,000 ounces as the gold grade of the stopes scheduled to be mined
does not increase until late in the year, when the deeper, gold rich,
ore is accessed via the new internal shaft of the LaRonde Extension.
Post-2011, LaRonde is expected to ramp up to an average life of mine
production of 338,000 ounces of gold per year, reflecting the higher
gold grades at depth. This project remains on time and on budget.

Goldex Mine – Achieves Record Annual Gold Production

The 100% owned Goldex mine in northwestern Quebec began operation in
2008.  Proven and probable gold reserves total 1.6 million ounces from
27.8 million tonnes grading 1.8 g/t. 

The Goldex mill processed an average of 7,844 tpd in the fourth quarter
of 2010. During the fourth quarter of 2009, the plant processed 7,655
tpd.  Milling performance for the full year 2010 was 7,621 tpd compared
to 7,164 tpd in 2009.  This strong tonnage performance was largely due
to the full year operation of the permanent secondary crushing unit,
which has resulted in an increase to the capacity of the mill.

Minesite costs per tonne at Goldex were approximately C$21 in the fourth
quarter of 2010, down from C$23 in the fourth quarter of 2009. For the
full year 2010, minesite costs per tonne were approximately C$22,
slightly below the C$23 per tonne in 2009, largely due to the strong
tonnage performance which more than offset industry wide cost
pressures.  Agnico-Eagle believes this is one of the lowest cost hard
rock underground mines in the world on a minesite cost per tonne basis.

Payable gold production in the fourth quarter of 2010 was 43,110 ounces
at total cash costs per ounce of $370. This compares to fourth quarter
2009 gold production of 46,075 ounces at total cash costs per ounce of
$338.  The decrease in gold production is due to the scheduled mining
of lower grade during the 2010 period which also negatively impacted
the cost per ounce. 

For the full year 2010, Goldex’s payable gold production was a record
184,386 ounces at total cash costs per ounce of $335. This compares
favourably to full year 2009 production of 148,849 ounces at total cash
costs per ounce of $366. The improved performance at Goldex is
reflective of the ongoing optimization efforts at the mine and improved
throughput. 

Gold production for 2011 is expected to be approximately 183,500 ounces.

Due to exploration success in 2010, it is expected that the mine life of
Goldex may be extended as the deeper D Zone is explored and
quantified.  Beginning in 2011, it is expected that a ramp will be
driven below the current workings to facilitate additional drilling
which would be incorporated in a feasibility study considering the
extraction of this zone. The study is expected to be completed in
mid-2013. 

Goldex Longitudinal Section

Kittila Mine – Growing Reserves and Record Mill Recoveries

The 100% owned Kittila mine in northern Finland achieved commercial
production in May 2009.  Proven and probable gold reserves total
approximately 4.9 million ounces from 32.7 million tonnes grading 4.6
g/t.  This is up approximately 21%, or 0.9 million ounces, from the
2009 level largely as a result of successful resource to reserve
conversion drilling below the Suuri and Roura orebodies. 

The following link shows a Kittila longitudinal section and the area of
new reserves.

Kittila Longitudinal Section

The Kittila mill processed an average of 2,619 tonnes per day in the
fourth quarter of 2010, compared with its 3,000 tonne per day design
rate. A two week maintenance shutdown in early October was largely
responsible for the lower-than-design throughput.  In the fourth
quarter of 2009, the Kittila mill processed 2,728 tonnes per day. 

Gold recoveries in the fourth quarter of 2010 were a quarterly record of
81.8%, nearing the design rate of 83%.  This compares with the fourth
quarter of 2009 when the recoveries were 76.2%.  This improvement in
mill recovery was largely due to a mid-year 2010 breakthrough in the
process which resulted in the ability to lower the chloride levels in
the feed to the autoclave. Recoveries in excess of 85% have been
recently achieved.

Minesite costs per tonne at Kittila were approximately EUR79 in the fourth
quarter 2010, compared to EUR46 in the fourth quarter of 2009.  The
increase in minesite costs was largely due to ore re-handling
(blending) as the mine dealt with high sulphur ore for the first time. 
Higher costs associated with the start-up phase and commercial
production in the underground mine also negatively impacted the 2010
costs.  Additionally, costs were affected by high maintenance costs
(and reduced equipment availability) and unbudgeted contractor costs. 

In December, operations and costs at Kittila stabilized significantly as
the mill gained experience with the high sulphur ore and the
underground mine nears its design throughput.  For the month,
throughput in the mill averaged approximately 3,200 tpd, mill
recoveries were 82.5%, minesite costs per tonne were EUR72 and total cash
costs per ounce were $685. 

This improved performance has extended into January and February, as
Kittila has continued to exceed its design throughput,  while minesite
costs per tonne and total cash costs per ounce continue to decrease
from the December level.

For the full year 2010, the minesite costs per tonne were EUR66, compared
to EUR54 in 2009.  This increase is largely attributable to the
above-mentioned cost pressures. 

Fourth quarter 2010 gold production at Kittila was below expectations at
29,721 ounces with a total cash cost per ounce of $832.  In the fourth
quarter of 2009 the mine produced 35,270 ounces at total cash costs per
ounce of $464. The lower production and higher cost were the result of
the previously discussed factors.

For the full year 2010, payable gold production from Kittila was 126,205
ounces at total cash costs of $657 per ounce.  In 2009, the mine
produced 71,838 ounces of gold at total cash costs of $668 per ounce. 
The higher production and lower cost in 2010 was largely due to a
combination of 28% higher throughput and 27% higher mill recovery in
2010 as optimization efforts in the mill succeeded.  These factors were
partly offset by much higher minesite costs as discussed above. 

The Company believes that it has now achieved steady state production at
Kittila, with recoveries consistently above the design rate of 83%.  As
a result, minesite costs and total cash costs per ounce are expected to
decline significantly in 2011. Gold production in 2011 is expected to
be 147,100 ounces.   

A study is underway examining the possibility of increasing the
production rate at Kittila.  Results of the study are expected to be
completed in the third quarter of 2011. A third quarter reserve and
resource update is expected as well.

Lapa – Steady Performance During 2010

The 100% owned Lapa mine in northwestern Quebec achieved commercial
production in May 2009.  Proven and probable gold reserves total
approximately 0.7 million ounces from 2.8 million tonnes grading 7.4
g/t. 

The Lapa circuit, at the LaRonde mill, processed an average of 1,517 tpd
in the fourth quarter of 2010.  This compares with an average of 1,191
tonnes per day in the fourth quarter of 2009 as Lapa successfully
achieved its design rate of 1,500 tpd.  For the full year 2010, Lapa
averaged 1,512 tpd compared with 1,090 tpd in 2009, the mine’s first
year of operation. 

Minesite costs per tonne were C$115 in the fourth quarter of 2010, 22%
below the C$148 in the fourth quarter of 2009.  The lower cost is
largely due to good cost control and the increased throughput, as
mentioned above.

Full-year minesite costs in 2010 were C$114 per tonne, significantly
below C$140 achieved in 2009.  The improved operating performance is
attributable to realized efficiencies as the Company gained valuable
experience with the orebody.

Payable production in the fourth quarter of 2010 was 29,288 ounces of
gold at total cash costs per ounce of $564. This compares favourably
with the fourth quarter of 2009, when production was 22,590 ounces of
gold at total cash cost per ounce of $608.  The improvements were
largely due to improved throughput, but also higher grade as dilution
was reduced in 2010 through optimization of drilling, blasting and
support patterns.

For the full year 2010, payable production was 117,456 ounces of gold at
total cash costs of $529 per ounce.  As Lapa came into commercial
production partway through 2009, prior year production was 52,602
ounces of gold at total cash costs of $751 per ounce.

Payable production in 2011 is expected to be approximately 125,000
ounces of gold.

During 2011, an exploration drift will facilitate drilling along the
trend to the east and at depth.  These areas have not previously been
explored.  The drilling is intended to investigate the possibility of 
extending the mine life. 

Pinos Altos – Record Gold Production at Low Costs

The 100% owned Pinos Altos mine in northern Mexico achieved commercial
production in November 2009.  For 2010, proven and probable reserves,
including the stand-alone Creston Mascota deposit, total 3.3 million
ounces of gold and 92.0 million ounces of silver from 44.2 million
tonnes grading 2.3 g/t of gold and 64.8 g/t silver.   

The Pinos Altos mill processed an average of 4,501 tpd in the fourth
quarter of 2010.  This compares favourably with 1,863 tonnes per day in
the fourth quarter of 2009 (its first quarter of operation).  Previous
issues with tailings filter capacity were eliminated in the second half
of 2010 with the installation of two additional filter banks.  The mill
is now routinely performing at process rates above the initial design
capacity of 4,000 tpd including a one week period during November 2010
when it operated at a rate of 5,300 tpd. Higher throughput has been
observed in each consecutive quarter at Pinos Altos since startup in
the last quarter of 2009.

Minesite costs per tonne were $35 in the fourth quarter of 2010,
compared to $27 in the partial fourth quarter of 2009.  In the fourth
quarter of 2009, a greater proportion of lower cost heap leach tonnes
were processed. For the full year 2010, minesite costs per tonne were
$35. With commercial production achieved at November 1, 2009, there is
no comparable period in that year.  The minesite costs at Pinos Altos
for Q4 and full year 2010 were lower than forecast.

Payable production in the fourth quarter of 2010 was a record 39,289
ounces of gold at total cash costs per ounce of $365.  This compares
with production of 12,944 ounces at a total cash cost of $570 in the
partial quarter of 2009. 

The first gold production occurred at the satellite Creston Mascota
project during the fourth quarter of 2010 with 666 ounces of payable
gold production being reported from this heap leach operation (included
in the Pinos Altos total).  Commercial production at Creston Mascota is
expected to be achieved in the second quarter of 2011.

Full year 2010 production was 131,097 ounces at total cash cost per
ounce of gold of $425.  There is no comparable period in 2009.

Payable production in 2011 (including Creston Mascota) is expected to be
199,000 ounces of gold and approximately 2.2 million ounces of silver.

The Company is evaluating alternatives with respect to increasing the
underground mine capacity either through an additional production ramp
or a production shaft.  The study is expected to be completed near the
end of 2011.

Meadowbank – Optimization Ongoing

The 100% owned Meadowbank mine project in Nunavut, northern Canada,
achieved commercial production in March 2010.  Proven and probable gold
reserves total 3.5 million ounces from 34.1 million tonnes grading 3.2
g/t.  An additional 0.3 million ounces of indicated gold (9.1 million
tonnes grading 1.0 g/t) resources are within the currently contemplated
pit limits.

The Meadowbank mill processed an average of 6,659 tpd in the fourth
quarter of 2010, essentially unchanged from the third quarter of 2010
as the new mine continues with a temporary secondary crushing
arrangement.  The permanent secondary crushing facility is anticipated
to be operational in the third quarter of 2011.  The design rate of
8,500 tpd is expected to be achieved at this time.

Minesite costs per tonne were C$91 in the fourth quarter and C$95 for
the full year of 2010. With commercial production achieved in March
2010, there is no comparable period in 2009.  These costs were higher
than the C$82 per tonne which is expected in 2011.

The higher costs in 2010 are largely due to lower than planned
throughput in the mill (approximately 19% lower than budget in the
fourth quarter) largely due to the temporary crushing issues. 

Payable production in the fourth quarter of 2010 was 75,990 ounces of
gold at total cash cost per ounce of gold of $745.  Full year 2010
production was 265,659 ounces of gold at total cash costs per ounce of
gold of $693.  These costs are expected to decline dramatically in 2011
as throughput improves. 

Payable production in 2011 is expected to be 362,000 ounces of gold.

During the 2011 drilling season, conversion and expansion of the 0.3
million ounces (2.3 million tonnes grading 4.4 g/t) off indicated
resource and 0.2 million ounces (0.8 million tonnes grading 5.6 g/t)
off inferred resource around the southern end of the deposit will
remain a priority.  A study considering an underground exploration ramp
to examine this resource is expected to be presented to the Board in
the second quarter of 2011.

Meliadine – Initial Gold Reserve Established, Gold Resource Expands

In July 2010, Agnico-Eagle completed the acquisition of the Meliadine
project near Rankin Inlet, Nunavut.

The initial reserve estimate is 2.6 million ounces of gold from 9.5
million tonnes grading 8.5 g/t.  It is expected that this reserve will
continue to grow rapidly as the large gold resource is drilled
extensively over the next 12 months.  Approximately $65 million is
expected to be spent on Meliadine exploration in 2011.

In addition to the initial gold reserve, the Meliadine project contains
1.5 million ounces of indicated gold resource from 8.8 million tonnes
grading 5.2 g/t.  It also includes approximately 2.6 million ounces of
inferred gold resource from 11.8 million tonnes grading 6.9 g/t.

The following link shows the reserve and resource outlines for the main
Tiriganiaq deposit.

Tiriganiaq Longitudinal Section

The Company is  evaluating the possibility of accelerating underground
ramp development at Meliadine to facilitate exploration and development
of the growing deposit.  The ramp study, and a reserve and resource
update, are expected to be completed in the third quarter of 2011. 

It is anticipated that the final feasibility will be presented to the
Board for a production decision in 2013.  Earliest gold production is
expected to be late 2015.

Depreciation Guidance

Agnico-Eagle expects 2011 amortization on its income statement to amount
to $200 to $250 per reserve ounce.  This amount was approximately $195
in 2010 and $151 in 2009.

Please see the supplemental financial data section of the Financial and
Operating Database on the Company’s website for the adjusted plant,
property and mine development totals by mine at December 31, 2010.

Mine Tour Meadowbank and Meliadine

Agnico-Eagle will be hosting a trip for equity analysts and buy-side
investors on June 28, 2011 to Meadowbank.  The tour will include a
project review of Meliadine while at the Meadowbank site. The tour will
be a day trip via chartered airplane from Toronto.  Interested parties
should contact Hazel Winchester at hwinchester@agnico-eagle.com, or 416-847-3717.  All presentation materials will also be posted on
the Company’s website.

Annual General Meeting

Friday April 29, 2011 at 11:00am
Vanity Fair Ballroom
Le Meridien King Edward Hotel
37 King Street East
Toronto, ON M5C 1E9

Dividend Record and Payment Dates for the Remainder of 2011

Record Date Payment Date
March 1 March 15
June 1 June 15
September 1 September 15
December 1 December 15

Dividend Reinvestment Program

Please follow the link below for information on the Company’s dividend
reinvestment program.

DividendReinvestmentPlan

About Agnico-Eagle

Agnico-Eagle is a long established, Canadian headquartered, gold
producer with operations located in Canada, Finland and Mexico, and
exploration and development activities in Canada, Finland, Mexico and
the United States.  Agnico-Eagle’s LaRonde mine is Canada’s largest
operating gold mine in terms of reserves.  The Company has full
exposure to higher gold prices consistent with its policy of no forward
gold sales.  It has paid a cash dividend for 29 consecutive years.  www.agnico-eagle.com

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

  Three months ended

December 31,

Year ended

December 31,

  2010 2009 2010 2009
Gross mine profit (exclusive of amortization shown below) (Note 1)        
LaRonde  $65,517 $59,425 $203,240 $188,000
Goldex  50,121 33,891 163,529 88,151
Lapa  25,477 8,019 84,718 9,937
Kittila  17,467 14,964 72,400 18,993
Pinos Altos  34,998 2,363 85,344 2,363
Creston Mascota 
Meadowbank (Note 2)  49,426 135,818
Total gross mine profit  243,006 118,662 745,049 307,444
Amortization  69,835 21,661 192,486 72,461
Corporate  51,268 30,275 117,360 126,945
Income before tax  121,903 66,726 435,203 108,038
Tax provision  33,940 18,790 103,087 21,500
Net earnings   $87,963 $47,936 $332,116 $86,538
Net earning per share  $0.53 $0.31 $2.05 $0.55
Operating cash flow  $90,575 $53,701 $483,470 $115,106
Realized price per sales volume (US$):        
Gold (per ounce)  $1,387 $1,153 $1,250 $1,024
Silver (per ounce)  $31.96 $19.17 $22.56 $15.54
Zinc (per tonne)  $2,391 $2,506 $2,165 $1,808
Copper (per tonne)  $10,311 $7,469 $8,182 $6,140
Payable production:        
Gold (ounces)        
LaRonde  38,405 46,397 162,806 203,494
Goldex  43,110 46,075 184,386 148,849
Lapa   29,288 22,590 117,456 52,602
Kittila   29,721 35,270 126,205 71,838
Pinos Altos   39,289 12,944 130,431 16,189
Creston Mascota   666 666
Meadowbank (Note 2)  75,990 265,659
Total gold (ounces) 256,469 163,276 987,609 492,972
Silver (000s ounces)        
LaRonde  766 860 3,581 3,919
Pinos Altos  427 100 1,185 116
Creston Mascota   493 493
Meadowbank (Note 2)  14 46
Total silver (000s ounces) 1,700 960 5,305 4,035
Zinc (tonnes)  14,939 15,450 62,544 56,186
Copper (tonnes)  935 1,523 4,224 6,671
Payable metal sold:        
Gold (ounces – LaRonde)  39,896 44,453 163,781 206,536
Gold (ounces – Goldex)  48,067 47,208 183,357 144,182
Gold (ounces – Lapa)  31,177 23,885 123,136 41,721
Gold (ounces – Kittila)  28,722 30,659 129,639 59,385
Gold (ounces – Pinos Altos)  39,157 12,529 122,514 12,529
Gold (ounces – Creston Mascota) 
Gold (ounces – Meadowbank) (Note 2)  79,849 250,629
Total gold (ounces) 266,868 158,734 973,056 464,353
Silver (000s ounces – LaRonde)  828 801 3,539 3,833
Silver (000s ounces – Pinos Altos)  406 38 1,137 38
Silver (000s ounces -Creston Mascota) 
Silver (000s ounces – Meadowbank)  14 46
Total silver (ounces) 1,248 839 4,722 3,871
Zinc (tonnes)  15,212 13,951 59,566 58,391
Copper (tonnes)  941 1,532 4,223 6,689
Total cash costs per ounce of gold (Note 3,4):        
LaRonde  $(250) $(84) $(7) $103
Goldex   $370 $338 $335 $366
Lapa   $564 $608 $529 $751
Kittila   $832 $464 $657 $668
Pinos Altos   $365 $570 $425 $570
Creston Mascota  
Meadowbank (Note 2)  $745 $693
Weighted average total cash costs per ounce  $462 $295 $451 $346

Note 1
Gross mine profit is calculated as total revenues from all metals
produced by a mine minus total production costs related to that mine.

Note 2
Meadowbank achieved commercial production as of March 1, 2010.  Payable
production includes commercial production of 264,575 ounces since March
1, 2010 and pre-March 1, 2010 production of 1,084 ounces.

Note 3
Total cash costs per ounce of gold is calculated net of silver, copper,
zinc and other byproduct credits. The weighted average total cash cost
per ounce is based on commercial production ounces.  Total cash costs
per ounce is a non-GAAP measure.  For a reconciliation to production
costs, see Note 1 to the financial statements.  See also “Note
Regarding Certain Measures of Performance”.

Note 4
Certain measures have been reclassified in prior periods to conform to
the current periods’ presentation.  The aggregate effect of the changes
are immaterial in nature. As of February 16, 2011, the Company reports
total cash costs per ounce and minesite costs per tonne using the more
common industry practice of deferring certain stripping costs
attributable to future production.  This methodology is in line with
the Gold Institute Production Cost Standard.  The purpose of adjusting
for these stripping costs is to enhance the comparability of cash costs
to the majority of the Company’s peers within the mining industry.  The
previous period’s cash costs have been adjusted accordingly.

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

  As at

December 31,    2010

As at

December 31, 2009

ASSETS    
Current    
  Cash and cash equivalents  $104,645 $163,593
  Trade receivables  112,949 93,570
  Inventories:    
    Ore stockpiles  67,764 41,286
    Concentrates  50,332 31,579
    Supplies  149,647 100,885
  Other current assets  188,885 173,127
Total current assets  674,222 604,040
Other assets  61,502 33,641
Future income and mining tax assets  1,647 27,878
Goodwill 200,064 -
Property, plant and mine development  4,564,563 3,581,798
  $5,501,998 $4,247,357
LIABILITIES AND SHAREHOLDERS’ EQUITY    
Current    
  Accounts payable and accrued liabilities  $170,967 $155,432
  Dividends payable  108,009 28,198
  Interest payable  9,743 1,666
  Income taxes payable  14,450 4,501
Total current liabilities  303,169 189,797
Long term debt  650,000 715,000
Fair value of derivative financial instruments  142 663
Reclamation provision and other liabilities  145,536 96,255
Future income and mining tax liabilities  737,701 493,881
     
Shareholders’ equity    
Common shares    
  Authorized – unlimited    
  Issued – 168,763,496 (December 31, 2009 – 156,655,056)  3,078,217 2,378,759
Stock options  78,554 65,771
Warrants  24,858 24,858
Contributed surplus  15,166 15,166
Retained earnings  440,265 216,158
Accumulated other comprehensive income   28,390 51,049
     
Total shareholders’ equity  3,665,450 2,751,761
  $5,501,998 $4,247,357

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

(Unaudited)

  Three months ended

December 31,

Year ended

December 31,

  2010 2009 2010 2009
         
REVENUES        
Revenues from mining operations  $439,004 $225,597 $1,422,521 $613,762
Interest and sundry income  1,209 2,713 75,392 16,172
Gain on sale of available-for-sale securities  11,302 3,667 19,487 10,142
  451,515 231,977 1,517,400 640,076
COSTS AND EXPENSES        
Production  195,998 106,935 677,472 306,318
Exploration and corporate development  15,008 7,561 54,958 36,279
Amortization  69,835 21,661 192,486 72,461
General and administrative  22,732 17,864 94,327 63,687
Provincial capital tax  704 849 (6,075) 5,014
Interest  14,958 2,596 49,493 8,448
Foreign currency loss  10,377 7,785 19,536 39,831
Income before income, mining and federal capital taxes  121,903 66,726 435,203 108,038
Income and mining tax expense   33,940 18,790 103,087 21,500
         
Net income for the period  $87,963 $47,936 $332,116 $86,538
         
Net income per share – basic  $0.53 $0.31 $2.05 $0.55
Net income per share – diluted  $0.51 $0.30 $2.00 $0.55
         
Weighted average number of shares outstanding (in thousands)        
Basic  168,342 156,570 162,386 155,942
Diluted  172,856 159,939 165,842 158,621

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

  Three months ended

December 31,

Year ended

December 31,

  2010 2009 2010 2009
Operating activities        
Net income for the period  $87,963 $47,936 $332,116 $86,538
Add (deduct) items not affecting cash:        
Amortization  69,835 21,661 192,486 72,461
Future income and mining taxes  20,226 18,422 66,928 20,309
Gain on sale of available-for-sale securities  (11,302) (3,667) (19,487) (10,142)
Reversal of mark-to-market gain – Comaplex  (64,508)
Amortization of deferred costs and other  12,688 14,699 74,186 63,370
Changes in non-cash working capital balances        
Trade receivables  (29,135) (21,923) (19,379) (47,930)
Income taxes payable  9,697 (1,273) 9,949 (313)
Inventories  (19,392) 1,227 (91,305) (90,772)
Other current assets  (3,314) (14,469) (29,278) 4,834
Interest payable  (9,838) 197 8,077 1,520
Accounts payable and accrued liabilities  (36,853) (9,109) 23,685 15,231
Cash provided by operating activities  90,575 53,701 483,470 115,106
         
Investing activities        
Additions to property, plant and mine development  (114,985) (173,994) (511,641) (657,175)
Acquisition, investments and other  (6,206) 7,181 (5,893) 41,878
Cash used in investing activities  (121,191) (166,813) (517,534) (615,297)
         
Financing activities        
Dividends paid  (26,830) (27,132)
Repayment of capital lease and other  (3,243) (5,064) (16,019) (13,177)
Proceeds from notes  40,000 1,311,000
Repayment of long term debt  (105,000) 30,000 (1,376,000) 515,000
Sales-leaseback financing   7,156 7,861 14,017 21,389
Credit facility financing cost   (97) (9) (12,772) (4,784)
Proceeds from common shares issued  50,776 4,746 84,659 68,522
Cash provided by (used in) financing activities  (10,408) 37,534 (21,945) 559,818
         
Effect of exchange rate changes on cash and cash equivalents  (2,447) 139 (2,939) 4,585
         
Net increase (decrease) in cash and cash equivalents during the period  (43,471) (75,439) (58,948) 64,212
Cash and cash equivalents, beginning of period  148,116 239,032 163,593 99,381
         
Cash and cash equivalents, end of period  $104,645 $163,593 $104,645 $163,593
Other operating cash flow information:        
Interest paid during the period  $24,465 $8,810 $41,429 $18,535
Income, mining and capital taxes paid during the period  $7,674 $1,049 $25,199 $8,792

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

           
Total Cash Costs per Ounce of Gold By Mine        
(thousands of dollars, except where noted) Three months ended

December 31, 2010

Three months ended

December 31, 2009

Year ended

December 31, 2010

Year ended

December 31, 2009

Total Production costs per Consolidated Statements of Income  $195,998 $106,935 $677,472 $306,318
         
Attributable to LaRonde 49,739 41,117 189,146 164,221
Attributable to Goldex 16,774 16,462 61,561 54,342
Attributable to Lapa 17,692 18,250 66,199 33,472
Attributable to Kittila 22,235 19,287 87,740 42,464
Attributable to Pinos Altos 29,206 11,819 90,293 11,819
Attributable to Meadowbank 60,352 - 182,533 -
Total  $195,998 $106,935 $677,472 $306,318
         
LaRonde        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended

December 31, 2010

Year ended

December 31, 2009

Production costs  $49,739 $41,117 $189,146 $164,221
Adjustments:        
  Byproduct revenues  (59,376) (41,878) (192,155) (138,262)
  Inventory and other adjustment((i))  372 (2,837) 3,287 (3,809)
  Non-cash reclamation provision  (337) (320) (1,344) (1,198)
Cash operating costs  $(9,602) $(3,918) $(1,066) $20,952
Gold production (ounces)  38,405 46,397 162,806 203,494
Total cash costs (per ounce)((iii))  $(250) $(84) $(7) $103
         
Goldex        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended

December 31, 2010

Year ended

December 31, 2009

Production costs  $16,774 $16,462 $61,561 $54,342
Adjustments:        
  Byproduct revenues  748 - 727 -
  Inventory and other adjustment((i))  (1,519) (831) (253) 383
  Non-cash reclamation provision  (54) (47) (216) (196)
Cash operating costs  $15,949 $15,584 $61,819 $54,529
Gold production (ounces)  43,110        46,075 184,386 148,849
Total cash costs (per ounce)(()(iii)())  $370 $338 $335 $366
         
Lapa        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended

December 31, 2010

Year ended

December 31, 2009

Production costs  $17,692 $18,250 $66,199 $33,472
Adjustments:        
  Byproduct revenues  682 - 644 -
  Inventory and other adjustment((i))  (1,830) (4,514) (4,683) 6,072
  Non-cash reclamation provision  (14) (12) (57) (25)
Cash operating costs  $16,530 $13,724 $62,103 $39,519
Gold production (ounces)  29,288 22,590 117,456 52,602
Total cash costs (per ounce)((iii))  $564 $608 $529 $751
         
Kittila        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended

December 31, 2010

Year ended

December 31, 2009

Production costs  $22,235 $19,287 $87,740 $42,464
Adjustments:        
  Byproduct revenues 332 - 252 -
  Inventory and other adjustment((i))  2,252 (2,813) (4,774) 1,565
  Non-cash reclamation provision  (78) (93) (334) (254)
Cash operating costs  $24,741 $16,381 $82,884 $43,775
Gold production (ounces)  29,721 35,270 126,205 65,547
Total cash costs (per ounce)(()(iii))  $832 $464 $657 $668
         
Pinos Altos        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended

December 31, 2010

Year ended

December 31, 2009

Production costs  29,206 $11,819 90,293 $11,819
Adjustments:        
  Byproduct revenues  (10,054) (625) (25,052) (625)
  Inventory and other adjustment((i))  296 (5,356) 2,925 (5,356)
  Non-cash reclamation provision  (214) (100) (858) (100)
  Stripping costs (if portion capitalized vs expensed) ((ii))  (4,921) (253) (11,857) (253)
Cash operating costs  $14,313 $5,485 $55,451 $5,485
Gold production (ounces)  39,289 9,634 130,431 9,634
Total cash costs (per ounce)((iii))  $365 $570 $425 $570
         
Meadowbank        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs  60,352 $- 182,533 $-
Adjustments:        
  Byproduct revenues 8 - (584) -
  Inventory and other adjustment((i))  (2,432) - 6,911 -
  Non-cash reclamation provision  (437) - (1,315) -
  Stripping costs (if portion capitalized vs expensed) ((ii))  (842) - (4,321) -
Cash operating costs  $56,649 $- $183,224 $-
Gold production (ounces)  75,990 - 264,576 -
Total cash costs (per ounce)((iii))  $745 $- $693 $-
Minesite Cost per Tonne        
LaRonde        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $49,739 $41,117 $189,146 $164,221
Adjustments:

Inventory and other adjustments (iv)

372 1,370 3,287 234
Non-cash reclamation provision  (337) (320) (1,344) (1,198)
Minesite operating costs (US$)  $49,774 $42,167 $191,089 $163,257
Minesite operating costs (C$)  $50,416 $44,455 $194,993 $184,233
Tonnes of ore milled (000s) 637 642 2,592 2,546
Minesite cost per tonne (C$) (v) $79 $69 $75 $72
         
         
Goldex        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $16,774 $16,462 $61,561 $54,342
Adjustments:

Inventory and other adjustments (iv) 

(1,519) (831) (253) 383
Non-cash reclamation provision  (54) (47) (216) (196)
Minesite operating costs (US$)  $15,201 $15,584 $61,092 $54,529
Minesite operating costs (C$)  $15,397 $16,304 $62,545 $60,986
Tonnes of ore milled (000s) 722 704 2,782 2,615
Minesite cost per tonne (C$) (v) $21 $23 $22 $23
Lapa        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $17,692 $18,250 $66,199 $33,472
Adjustments:

Inventory and other adjustments (iv) 

(1,830) (4,514) (4,683) 6,072
Non-cash reclamation provision  (14) (12) (57) (26)
Minesite operating costs (US$)  $15,848 $13,724 $61,459 $39,518
Minesite operating costs (C$)  $16,053 $16,262 $62,771 $42,055
Tonnes of ore milled (000s) 140 110 552 299
Minesite cost per tonne (C$) (v) $115 $148 $114 $140
         
Kittila        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $22,235 $19,287 $87,740 $42,464
Adjustments:

Inventory and other adjustments (iv) 

2,252 (2,813) (4,774) 1,565
Non-cash reclamation provision  (78) (93) (334) (254)
Minesite operating costs (US$)  $24,409 $16,381 $82,632 $43,775
Minesite operating costs (EUR)  EUR19,035 EUR11,467 EUR63,464 EUR30,568
Tonnes of ore milled (000s) 241 251 960 563
Minesite cost per tonne (EUR) (v) EUR79 EUR46 EUR66 EUR54
         
Pinos Altos        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $29,206 $11,819 $90,293 $11,819
Adjustments:

Inventory and other adjustments (iv) 

296 (5,356) 2,925 (5,356)
Non-cash reclamation provision  (214) (100) (858) (100)
Stripping costs (if portion capitalized vs expensed) ((ii)) (4,921) (253) (11,857) (253)
Minesite operating costs (US$)  $24,367 $6,110 $80,503 $6,110
Tonnes of ore processed (000s) 699 227 2,318 227
Minesite cost per tonne (US$) (v) $35 $27 $35 $27
         
Meadowbank        
(thousands of dollars, except where noted) Three months ended December 31, 2010 Three months ended December 31, 2009 Year ended December 31, 2010 Year ended December 31, 2009
Production costs $60,352 $- $182,533 $-
Adjustments:

Inventory and other adjustments (iv) 

(2,432) - 6,911 -
Non-cash reclamation provision  (437) - (1,315) -
Stripping costs (if portion capitalized vs expensed) ((ii)) (842) - (4,321) -
Minesite operating costs (US$)  $56,641 $- $183,808 $-
Minesite operating costs (C$)  $57,373 $- $190,980 $-
Tonnes of ore milled (000s) 631 - 2,001 -
Minesite cost per tonne (C$) (v) $91 $- $95 $-
(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)  In this report, and going forward, the Company will report total cash
costs using the more common industry practice of deferring certain
stripping costs that can be attributed to future production.  The
methodology is in line with the Gold Institute Production Cost
Standard.  The purpose of adjusting for these stripping costs is to
enhance the comparability of cash costs to the majority of the
Company’s peers within the mining industry.  The previous period’s cash
costs have been calculated accordingly.  In addition, the Company has
applied this methodology to the minesite cost per tonne calculation as
well.
(iii)   Total cash cost per ounce is not a recognized measure under US GAAP and
this data may not be comparable to data presented by other gold
producers. The Company believes that this generally accepted industry
measure is a realistic indication of operating performance and is
useful in allowing year over year comparisons. As illustrated in the
table above, this measure is calculated by adjusting production costs
as shown in the Consolidated Statements of Income and Comprehensive
Income for net byproduct revenues, royalties, inventory adjustments,
certain stripping costs 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.
(iv)   This inventory adjustment reflects production costs associated with
unsold concentrates.
(v)   Minesite costs per tonne is not a recognized measure under US GAAP and
this data may not be comparable to data presented by other gold
producers. As illustrated in the table above, this measure is
calculated by adjusting production costs as shown in the Consolidated
Statements of Income and Comprehensive Income for inventory and asset
retirement provisions and then dividing by tonnes processed through the
mill. Since total cash costs data can be affected by fluctuations in
byproduct metal prices and exchange rates, management believes minesite
costs per tonne provides additional information regarding the
performance of mining operations and allows management to monitor
operating costs on a more consistent basis as the per tonne measure
eliminates the cost variability associated with varying production
levels. Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated based on
the net realizable value of each tonne mined, in order to be
economically viable the estimated revenue on a per tonne basis must be
in excess of the minesite costs per tonne. Management is aware that
this per tonne measure is impacted by fluctuations in production levels
and thus uses this evaluation tool in conjunction with production costs
prepared in accordance with US GAAP. This measure supplements
production cost information prepared in accordance with US GAAP and
allows investors to distinguish between changes in production costs
resulting from changes in production versus changes in operating
performance.

Detailed Mineral Reserve and Resource Data (as at December 31, 2010)

Category and Operation Au

(g/t)

Ag

(g/t)

Cu

(%)

Zn

(%)

Pb

(%)

Au

(000s oz.)

Tonnes

(000s)

Proven Mineral Reserve
Goldex (underground) 1.87         890 14,804
  Kittila (open pit) 4.19         53 395
  Kittila (underground) 6.00         2 8
Kittila total proven 4.23         55 403
Lapa (underground) 7.24         261 1,122
LaRonde (underground) 2.36 55.17 0.26 2.78 0.32 366 4,838
Meadowbank (open pit) 3.13         85 839
Pinos Altos (open pit) 0.89 13.26       31 1,078
Pinos Altos (underground) 2.52 78.68       144 1,786
Pinos Altos total proven 1.90 54.06       175 2,864
Subtotal Proven Mineral Reserve 2.29         1,832 24,869
Probable Mineral Reserve
Goldex (underground) 1.62         676 12,990
  Kittila (open pit) 5.28         281 1,657
  Kittila (underground) 4.61         4,544 30,672
Kittila total probable 4.64         4,826 32,329
Lapa (underground) 7.56         416 1,709
LaRonde (underground) 4.63 23.99 0.28 0.90 0.07 4,452 29,892
Meadowbank (open pit) 3.18         3,402 33,259
  Meliadine (open pit) 6.91         953 4,287
  Meliadine (underground) 9.89         1,647 5,180
Meliadine total probable 8.54         2,600 9,467
  Pinos Altos (open pit) 1.98 45.34       1,083 16,987
  Pinos Altos (underground) 2.58 79.64       2,013 24,311
Pinos Altos total probable 2.33 65.53       3,096 41,298
Subtotal Probable Mineral Reserve 3.76          19,467  160,944
Total Proven and Probable Mineral Reserves 3.57          21,299  185,813
Category and Operation Au

(g/t)

Ag

(g/t)

Cu

(%)

Zn

(%)

Pb

(%)

Tonnes

(000s)

Indicated Mineral Resource            
Bousquet (underground) 5.63         1,704
Ellison (underground) 5.68         415
Goldex (underground) 1.77         8,273
Kittila (underground) 2.41         15,348
Lapa (underground) 4.10         1,770
LaRonde (underground) 1.89 23.96 0.12 1.36 0.13 6,933
  Meadowbank (open pit) 1.40         23,441
  Meadowbank (underground) 4.39         2,318
Meadowbank total indicated 1.67         25,759
  Meliadine (open pit) 5.25         1,968
  Meliadine (underground) 5.20         6,839
Meliadine total indicated 5.21         8,807
  Pinos Altos (open pit) 0.88 12.42       15,832
  Pinos Altos (underground) 1.25 35.76       9,789
Pinos Altos total indicated 1.02 21.34       25,621
Swanson (open pit) 1.93         504
Total Indicated Resource 2.10          95,135
Category and Operation Au

(g/t)

Ag

(g/t)

Cu

(%)

Zn

(%)

Pb

(%)

Tonnes

(000s)

Inferred Mineral Resource            
  Bousquet (open pit) 1.87         18,798
  Bousquet (underground) 7.45         1,667
Bousquet total inferred 2.32         20,464
Ellison (underground) 5.81         786
Goldex (underground) 1.67         25,813
  Kittila (open pit) 3.71         362
  Kittila (underground) 2.44         7,958
Kittila total inferred 2.50         8,320
Kuotko, Finland (open pit) 3.24         1,116
Kylmakangas, Finland (underground) 4.07         1,924
Lapa (underground) 8.27         454
LaRonde (underground) 3.72 12.24 0.27 0.48 0.05 11,526
  Meadowbank (open pit) 1.85         9,393
  Meadowbank (underground) 5.62         824
Meadowbank total inferred 2.15         10,218
  Meliadine (open pit) 4.86         2,388
  Meliadine (underground) 7.47         9,446
Meliadine total inferred 6.94         11,834
  Pinos Altos (open pit) 0.87 17.34       21,913
  Pinos Altos (underground) 2.38 59.24       3,744
Pinos Altos total inferred 1.09 23.46       25,657
Total Inferred Resource 2.59          118,111

Tonnage amounts and contained metal amounts presented in this table have
been rounded to the nearest thousand. Reserves are not a sub-set of
resources.  No measured resources were estimated.

Forward-Looking Statements
The information in this news release has been prepared as at February
16, 2011. Certain statements contained in this press release constitute
“forward-looking statements” within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and “forward looking
information” under the provisions of Canadian provincial securities
laws and are referred to herein as “forward-looking statements”. When
used in this document, words such as “anticipate”, “expect”,
“estimate”, “forecast”, “planned”, “will”, “likely”, “schedule” and
similar expressions are intended to identify forward-looking
statements.

Such statements include without limitation: the Company’s
forward-looking production guidance, including estimated ore grades,
project timelines, drilling results, orebody configurations, metal
production, life of mine horizons, commencement of production
estimates, the estimated timing of scoping studies, recovery rates,
mill throughput, and projected exploration and capital expenditures,
including costs and other estimates upon which such projections are
based; the Company’s goal to increase its mineral reserves and
resources; and other statements and information regarding anticipated
trends with respect to the Company’s operations, exploration and the
funding thereof. Such statements reflect the Company’s views as at the
date of this press release and are subject to certain risks,
uncertainties and assumptions. Forward-looking statements are
necessarily based upon a number of factors and assumptions that, while
considered reasonable by Agnico-Eagle as of the date of such
statements, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. The factors and
assumptions of Agnico-Eagle contained in this news release, which may
prove to be incorrect, include, but are not limited to, the assumptions
set forth herein and in management’s discussion and analysis and the
Company’s Annual Report on Form 20-F for the year ended December 31,
2010 (“Form 20-F”) as well as: that there are no significant
disruptions affecting operations, whether due to labour disruptions,
supply disruptions, damage to equipment, natural occurrences, political
changes, title issues or otherwise; that permitting, production and
expansion at each of Agnico-Eagle’s mines and growth projects proceeds
on a basis consistent with current expectations, and that Agnico-Eagle
does not change its plans relating to such projects; that the exchange
rate between the Canadian dollar, European Union euro, Mexican peso and
the United  States dollar will be approximately consistent with current
levels or as set out in this news release; that prices for gold,
silver, zinc, copper and lead will be consistent with Agnico-Eagle’s
expectations; that prices for key mining and construction supplies,
including labour costs, remain consistent with Agnico-Eagle’s current
expectations; that Agnico-Eagle’s current estimates of mineral
reserves, mineral resources, mineral grades and metal recovery are
accurate; that there are no material delays in the timing for
completion of ongoing growth projects; that the Company’s current plans
to optimize production are successful; and that there are no material
variations in the current tax and regulatory environment.  Many
factors, known and unknown, could cause the actual results to be
materially different from those expressed or implied by such
forward-looking statements. Such risks include, but are not limited to:
the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and metal recovery
estimates; uncertainty of future production, capital expenditures, and
other costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs; mining
risks; risks associated with foreign operations; governmental and
environmental regulation; the volatility of the Company’s stock price;
and risks associated with the Company’s byproduct metal derivative
strategies. For a more detailed discussion of such risks and other
factors, see the Form 20-F, as well as the Company’s other filings with
the Canadian Securities Administrators and the SEC. The Company does
not intend, and does not assume any obligation, to update these
forward-looking statements and information, except as required by law.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Certain of the foregoing statements,
primarily related to projects, are based on preliminary views of the
Company with respect to, among other things, grade, tonnage,
processing, recoveries, mining methods, capital costs, total cash
costs, minesite costs, and location of surface infrastructure.  Actual
results and final decisions may be materially different from those
currently anticipated.

Notes to Investors Regarding the Use of Resources

Cautionary Note to Investors Concerning Estimates of Measured and
Indicated Resources

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

Cautionary Note to Investors Concerning Estimates of Inferred Resources

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

Scientific and Technical Data

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

Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC,
to disclose only those mineral deposits that a company can economically
and legally extract or produce. Agnico-Eagle uses certain terms in this
press release, such as “measured”, “indicated”, and “inferred”, and
“resources” that the SEC guidelines strictly prohibit U.S. registered
companies from including in their filings with the SEC. U.S. investors
are urged to consider closely the disclosure in our Form 20-F, which
may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml.  A “final” or “bankable” feasibility study is required to meet the
requirements to designate reserves under Industry Guide 7.

Estimates for all properties were calculated using historic three-year
average metals prices and foreign exchange rates in accordance with the
SEC Industry Guide 7.  Industry Guide 7 requires the use of prices that
reflect current economic conditions at the time of reserve
determination, which the Staff of the SEC has interpreted to mean
historic three-year average prices.  The assumptions used for the
mineral reserves and resources estimates reported by the Company on
February 16, 2011 were based on three-year average prices for the
period ending December 31, 2010 of $1,024 per ounce gold, $16.62 per
ounce silver, $0.86 per pound zinc, $2.97 per pound copper, $0.90 per
pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.08,
1.40 and 12.43, 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.

Under National Instrument 43-101, 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.  All
reserves disclosed in this press release qualify as mineral reserves
under both National Instrument 43-101 and the SEC’s Industry Guide 7.

A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the Earth’s crust in
such form and quantity and of such a grade or quality that it has
reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a mineral resource
are known, estimated or interpreted from specific geological evidence
and knowledge. A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough
to confirm both geological and grade continuity. An indicated mineral
resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape and physical characteristics can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the
deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes
that are spaced closely enough for geological and grade continuity to
be reasonably assumed. An inferred mineral resource is that part of a
mineral resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity.
The estimate is based on limited information and sampling gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. Mineral resources which are
not mineral reserves do not have demonstrated economic viability.

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

A feasibility study is a comprehensive study of a mineral deposit in
which all geological, engineering, legal, operating, economic, social,
environmental and other relevant factors are considered in sufficient
detail that it could reasonably serve as the basis for a final decision
by a financial institution to finance the development of the deposit
for mineral production.

The mineral reserves presented in this disclosure are separate from and
not a portion of the mineral resources.

Property/Project name and location Qualified Person responsible for the current Mineral Resource and
Reserve Estimate and  relationship to Agnico-Eagle
Date of most recent Technical Report (NI 43-101) filed on SEDAR
LaRonde, Bousquet & Ellison, Quebec, Canada Francois Blanchet Ing., LaRonde Division Superintendent of geology March 23, 2005
Kittila, Kuotko and Kylmakangas, Finland Daniel Doucet, Ing., Corporate Director of Geology March 4, 2010
Pinos Altos, Chihuahua, Mexico.  Swanson, Quebec, Canada Dyane Duquette, P.Geo., Superintendent of geology, Technical Services
Group
March 25, 2009
Meadowbank, Nunavut, Canada Bruno Perron Ing., Meadowbank Superintendent of geology December 15, 2008
Goldex, Quebec, Canada Richard Genest, Ing., Goldex Division Superintendent of geology October 27, 2005
Lapa, Quebec, Canada Normand Bedard, P.Geo., Lapa Division Superintendent of geology June 8, 2006
Meliadine, Nunavut, Canada Dyane Duquette, P.Geo., Superintendent of geology, Technical Services
Group
February 26, 2010

The effective date for all of the Company’s mineral resource and reserve
estimates in this press release is December 31, 2010.  Additional
information about each of the mineral projects that is required by NI
43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be
found in the Technical Reports referred to above, which may be found at
www.sedar.com. Other important operating information can be found in the Company’s
Form 20-F and its news release dated December 15, 2010.

The contents of this press release have been prepared under the
supervision of, and reviewed by, Marc Legault P.Eng., Vice-President
Project Development and a “Qualified Person” for the purposes of NI
43-101.  

___________________

(1) Total cash costs per ounce is a non-GAAP measure.  For a reconciliation
to production costs, see Note 1 to the financial statements.  See also
“Note Regarding Certain Measures of Performance”.

(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) Reserves are exclusive of resources.  See attached table “Detailed
Mineral Reserve and Resource Data (as at December 31, 2010)” for
detailed breakdown of reserves and resources

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

SOURCE Agnico-Eagle Mines Limited


Source: newswire



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