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Agnico-Eagle reports second quarter 2011 results; Provides exploration update on Goldex and Kittila; Announces strategic investment in Rubicon Minerals Corporation

July 27, 2011

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

Stock Symbol:   AEM (NYSE and TSX)

TORONTO, July 27, 2011 /PRNewswire/ – Agnico-Eagle Mines Limited (“Agnico-Eagle” or the “Company”) today reported quarterly net income
of $68.8 million, or $0.41 per share for the second quarter of 2011. 
This result includes a non-cash foreign currency translation loss of
$2.7 million, or $0.02 per share and stock option expense of $8.3
million, or $0.05 per share.  Excluding these items would result in
adjusted net income of $79.4 million, or $0.47 per share.  In the
second quarter of 2010, the Company reported net income of $100.4
million, or $0.64 per share.

The lower net income in 2011 was largely due to a return to normal
levels of tax expense and a foreign currency translation loss versus a
large tax recovery and a large foreign currency translation gain in the
second quarter of 2010.

Second quarter 2011 cash provided by operating activities was $162.8
million ($161.7 million before changes in non-cash components of
working capital), up from cash provided by operating activities of $161.6 million in the second quarter
of 2010 ($138.9 million before changes in non-cash components of
working capital).

The higher cash provided by operating activities in 2011 was primarily
due to a 25% higher realized gold price and significantly higher
byproduct metal prices when compared to those realized in the second
quarter of 2010.

“With the installation of the permanent secondary crusher at Meadowbank,
we have seen a significant improvement in our production rates.  Steady
state throughput is now allowing us to focus on cost cutting through
optimization. The Company expects to deliver a strong second half
operationally, with gold production anticipated to increase
approximately 20% over the first half of 2011″, said Sean Boyd,
Vice-Chairman and Chief Executive Officer.  “Overall, our corporate
strategy, which created significant value over the past five years,
remains unchanged.  Over the next several quarters, we expect to be
able to lay out a new plan which will keep Agnico-Eagle at the
forefront of growth in the gold industry.  To that end, we have made a
C$70 million strategic investment in Rubicon Minerals today, and also
plan to enter into a technical services agreement to help advance their
high grade Phoenix deposit in Red Lake, Ontario”, added Mr. Boyd.

Second quarter 2011 highlights include:

        --  Strong Cash Generation- quarterly cash provided by operating
            activities of $163 million, or $0.96 per share
        --  Record gold production at Pinos Altos- 51, 066 ounces at $299
            total cash costs per ounce
        --  Secondary Crusher Operating at Meadowbank- installation
            complete in June.  Mill operating at approximately 9,250 tonnes
            per day in July
        --  One of the Best Drillholes from Kittila's Rimpi Zone -Hole
            RIE-11-008 returned 7.1 grams per tonne gold over 21.0 metres
            true width at 850 metres below surface, approximately 200
            metres below the current resource envelope
        --  Gold Mineralization Extended at Goldex's D Zone- Intersection
            of 3.0 grams per tonne gold over 117.0 metres core length at
            1,100 metres depth confirms similarity of D Zone to current
            Goldex orebody

Payable gold production(1) in the second quarter of 2011 was 239,328 ounces compared to 257,728
ounces in the second quarter of 2010.  A description of the production
and cost performance for each mine is set out further below.

The lower level of production in the 2011 period was largely due to
issues in April relating to the March 2011 fire at the Meadowbank mine
and also due to higher than expected levels of dilution in its pit
during the second quarter of 2011.

Total cash costs for the second quarter of 2011 were $565 per ounce(2).  This compares with $482 per ounce in the second quarter of 2010.  The
higher cost in 2011 was largely attributable to the issues at
Meadowbank that more than offset the positive impact of higher
byproduct metals prices. Additionally, higher than expected costs have
persisted at Kittila as two shutdowns for maintenance on the autoclave
(one unplanned), higher fuel and electricity prices and high levels of
labour expense (as the mine transitions from contractor to self
mining), offset increased gold production.

For the first six months of 2011, the Company produced 491,690 ounces of
gold at total cash costs per ounce of $548.  This compares with the
first half of 2010 when gold production was 445,960 ounces at total
cash costs of $464 per ounce.  The higher gold production in 2011 is
mainly due to stronger performances from Kittila (much higher mill
recoveries following a process breakthrough) and Pinos Altos (much
higher mill throughput following the installation of two more tailings
filters).  The higher total cash costs are largely a result of high
costs at Meadowbank and Kittila, as previously discussed.

As announced in the June 27, 2011 news release, Agnico-Eagle expects
production of approximately 1.08 million ounces of gold for the full
year 2011 at total cash costs per ounce of approximately $495.

Second Quarter 2011 Results Conference Call and Webcast Tomorrow

The Company’s senior management will host a conference call on Thursday,
July 28, 2011 at 11:00 AM (E.D.T.) to discuss financial results and
provide an update of the Company’s exploration and development
activities.


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

        Via Telephone:
        For those preferring to listen by telephone, please dial
        416-644-3416 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 Toll-free 877-289-8525, access code
        4403802#.
        The conference call replay will expire on August 28, 2011.

The webcast along with presentation slides will be archived for 180
dayson the website.

Cash Position Remains Strong

Cash and cash equivalents increased to $139.0 million at June 30, 2011,
up from the March 31, 2011 balance of $114.8 million.

Capital expenditures in the second quarter of 2011 were $114.4 million,
including $31.1 million at Meadowbank, $22.6 million at LaRonde, $18.9
million at Kittila, $14.3 million on Goldex, $9.7 million at Pinos
Altos and $4.4 million at Lapa.

Full year 2011 capital expenditures are expected to total $423 million,
up from the December 15, 2010 estimate of $313 million.  Major
components of the increase include:

        --  The impact of foreign exchange movements - $25 million
        --  Change in dyke design at Meadowbank - $21 million
        --  Soil settlement remediation at Goldex - $19 million

The remaining amounts are largely accelerated capital previously
expected to be spent in 2012 and amounts relating to the Meadowbank
fire (of which approximately $10 million may be recovered through
insurance).

With its current 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 June 30, 2011 were approximately $1.2
billion.

Agnico-Eagle today agreed to invest C$70 million in the common shares of
Rubicon Minerals Corporation (“Rubicon”) in a non-brokered private
placement.  As a result of the transaction, Agnico-Eagle will own
21,671,827 shares of Rubicon, or approximately 9.2% of the basic shares
outstanding.  Additionally, the Company plans to enter into a technical
services agreement with the goal of advancing Rubicon’s Phoenix gold
project in Red Lake, Ontario.

LaRonde Mine – Strong Cash Flow Generation Continues

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 6,587 tonnes per day (“tpd”) in
the second quarter of 2011, compared with an average of 7,254 tpd in
the corresponding period of 2010.  The lower throughput was largely due
to a planned five day maintenance shutdown and also due to an unplanned
slowdown due to the declaration of force majeure by the mine’s cyanide
supplier.  While the supply contract remains under force majeure,
alternative suppliers have been contracted and the mine is no longer
impacted.

Minesite costs per tonne(3) were approximately C$84 in the second quarter of 2011.  These costs are
higher than the C$79 per tonne experienced in the second quarter of
2010.  The increase is largely due to the 9% lower throughput in 2011,
as discussed above.

On a per ounce basis, net of byproduct credits, LaRonde’s total cash
costs per ounce were $231 in the second quarter of 2011 on production
of 27,525 ounces of gold.  This compares with the second quarter of
2010 when total cash costs per ounce were $270 on production of 41,533
ounces of gold.  The decrease in total cash costs is largely due to
significantly higher byproduct metal prices which more than offset
lower byproduct metal production. The lower gold production in the 2011
period is largely related to planned mining of lower grade areas for
much of the year and also due to lower second quarter throughput, as
discussed above.  Higher grades are scheduled for the fourth quarter of
2011 with the first production of the higher grade LaRonde Extension.

Considering currently high byproduct metals prices, the mine is expected
to maximize the contribution of its zinc and silver ores.  This may
extend the mine’s life and benefit the total cash cost per ounce.

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.

Goldex Mine – Low Cost Underground Mine

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 8,448 tpd in the second quarter
of 2011. During the second quarter of 2010, the plant processed 7,327
tpd.  The mill has now demonstrated that it can sustain approximately
8,000 tonnes per day following the installation of a permanent
secondary crusher and additional tailings pump capacity in the first
quarter of 2010.

Minesite costs per tonne at Goldex were approximately C$20 in the second
quarter of 2011, lower than the C$24 incurred in the second quarter of
2010. These lower unit costs were largely related to the 15% higher
throughput in the mill.

Payable gold production in the second quarter of 2011 was 41,998 ounces
at total cash costs per ounce of $385. This compares to second quarter
2010 gold production of 48,334 ounces at total cash costs per ounce of
$325.  The decrease in gold production is due to the mining of lower
grade material during the 2011 period which also negatively impacted
the total cash costs per ounce. The higher total cash costs are largely
due to the  lower gold production.

Grouting of a shear zone is underway to reduce the water inflow to the
underground mine.  This water flow has caused soil settlement issues at
the minesite as previously saturated soils around the minesite are
draining. However, flow rates have been controlled as remediation
continues.

Goldex’s D Zone Continues to Grow

Ongoing exploration at Goldex has resulted in significant success from
the D Zone, the large mineralized body directly below the current
mining operation.  The initial gold resource at the D Zone is 14.4
million tonnes grading 1.62 g/t in the inferred category (or 746,000
ounces of gold), as of December 31, 2010. 

Incorporating recent results, the top of the D Zone is now approximately
840 metres below surface, and it has been traced to a depth of 1,350
metres below surface.  The zone is estimated to be approximately 350
metres wide and between 60 metres and 120 metres thick, as shown on the
linked Goldex longitudinal section.

[Goldex - Composite Longitudinal section] Link to image

The present dimensions and grade of the D Zone appear to be similar to
the Goldex orebody.

The 2011 exploration program at Goldex includes a 300-metre exploration
ramp and 12,000 metres of drilling from the ramp. Ramp construction
began in April 2011 and should be completed by the end of this year. 
Drilling from the ramp is expected to begin in the third quarter.

Drilling in 2011 has located mineralization outside of the resource
envelope and the deposit remains open at depth.  Twenty-one holes
(11,272 metres) were drilled in the D Zone during the second quarter. 
Selected results are shown in the table below, with the pierce points
of these drill holes shown on the longitudinal section for the Goldex
Mine.

Significant recent Goldex D Zone drill results

     _____________________________________________________________________
    |Drill Hole|Zone|   Purpose |  From  |   To   |Core length*|Gold grade|
    |          |    |           |(metres)|(metres)|  (metres)  |  (g/t)   |
    |          |    |           |        |        |            | (uncut)  |
    |__________|____|___________|________|________|____________|__________|
    |73-426    |  D |exploration|   496.5|   613.5|       117.0|      3.02|
    |__________|____|___________|________|________|____________|__________|
    |73-427    |  D |exploration|   525.0|   637.5|       112.5|      1.84|
    |__________|____|___________|________|________|____________|__________|
    |73-429    |  D |exploration|   634.5|   711.0|        76.5|      1.48|
    |__________|____|___________|________|________|____________|__________|
    |84-023    |  D |exploration|   285.0|   463.5|       178.5|      1.32|
    |__________|____|___________|________|________|____________|__________|
    |  incl    |  D |           |   394.5|   463.5|        69.0|      1.70|
    |__________|____|___________|________|________|____________|__________|
    |84-067    |  D |exploration|   337.5|   457.5|       120.0|      1.50|
    |__________|____|___________|________|________|____________|__________|
    |  incl    |  D |           |   337.5|   399.0|        61.5|      2.40|
    |__________|____|___________|________|________|____________|__________|
    |76-013**  |  D |exploration|   511.5|   751.5|       240.0|      2.47|
    |__________|____|___________|________|________|____________|__________|
    |  incl    |    |           |   613.5|   733.5|       120.0|      3.09|
    |__________|____|___________|________|________|____________|__________|
    |76-014**  |  D |exploration|   655.5|   847.5|       192.0|      2.17|
    |__________|____|___________|________|________|____________|__________|
    |  incl    |    |           |   655.5|   753.0|        97.5|      3.07|
    |__________|____|___________|________|________|____________|__________|

*Cannot determine true width yet, as the geometry of the D Zone not fully understood.
** Holes 76-013 and 76-014 were previously released in the April 28, 2011 press release.

Several recent holes confirm the strong continuity of mineralization
within the resource envelope.  Hole 73-426 intersected 117.0 metres
core length grading 3.0 g/t gold, which is one of the highest grade
intercepts in the D Zone.  Hole 73-427 intersected 112.5 metres grading
1.8 g/t gold at 1,056 metres below surface, showing broad
mineralization up to the western limit of the zone.

Three recent holes located thick mineralization outside of the current D
Zone resource envelope, some with grades higher than those from past
holes within the D Zone.  Twenty-five metres east of the current
resource, hole 84-067 had an intercept of 61.5 metres grading 2.4 g/t
gold at 1,115 metres depth.  Hole 73-429, 70 metres west of the current
resource, at 1,170 metres depth returned 76.5 metres of core length
grading 1.5 g/t gold. Holes 76-013 and 76-014, which were previously
released, showed that the mineralization continues below the current
resource envelope in thick widths and higher grade.

The success of the exploration program to date has the potential to
significantly increase the reserves and mine life at Goldex.  The
Company is considering extending the underground ramp beyond the
currently planned 300 metres to provide additional drill platforms. 
The Company will also conduct a preliminary assessment during the
second half of 2011 regarding the viability of mining the D Zone and to
guide exploration in 2012.

Kittila Mine – Cost Reduction the Focus

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.

The Kittila mill processed an average of 2,561 tpd in the second quarter
of 2011 as compared to its 3,000 tpd design rate.  In the second
quarter of 2010, the Kittila mill processed 2,412 tpd.  The mill
throughput was below design rate largely due to two maintenance
shutdowns (totaled 15 days) for work on the autoclave. The mine is
systematically upgrading and modifying the agitator mechanisms to
reduce the possibility of future failures. The mill has been operating
normally at approximately 3,200 tpd and recoveries have averaged 83%
since the repairs were completed on June 14th.

Gold recoveries in the second quarter of 2011 were 82.7%, essentially at
the design rate of 83%.  This compares with the second quarter of 2010
when the recoveries were approximately 68%.  This improvement in mill
recovery was largely due to a change in the process that improved the
feed to the autoclave.

Minesite costs per tonne at Kittila were approximately EUR79 in the second
quarter of 2011, compared to EUR64 in the second quarter of 2010.  The
increase in minesite costs was largely due to low mill availability and
mill production because of unplanned maintenance shutdowns and a
significant draw-down of the ore stockpile due to a slowdown in mining
of the Suuri pit during remediation of the east wall (the Suuri pit is
back to normal operations).  Additionally, the minesite costs were high
due industry-wide cost pressure on items such as fuel and
electricity costs, material costs underground and high contractor
costs.

Now that the mine is operating at steady state, the focus going forward
will be on reducing the minesite costs.  Changes in the mining
operation and some specific measures that are expected to contribute to
lower costs going forward include:

        --  mill efficiencies and increased throughput
        --  eliminating or significantly decreasing the use of contractors
        --  other optimization and efficiencies

These factors and initiatives are expected to reduce the ongoing
minesite cost per tonne at Kittila between EUR10 and EUR20 in the next
twelve months.

Second quarter 2011 gold production at Kittila was 30,811 ounces with a
total cash cost per ounce of $850. In the second quarter of 2010 the
mine produced 31,593 ounces at total cash costs per ounce of $607. The
lower gold production and higher costs were largely the result of lower
throughput in the second quarter of 2011 combined with the cost issues
mentioned above. Total cash costs per ounce were also unfavorably
impacted by a weaker US dollar (USD per Euro of 1.27 in Q2 2010 vs 1.44
in Q2 2011)

Drill Intersections Continue to Indicate Reserve Growth

Recent exploration drilling at Kittila has resulted in one of the best
intercepts ever reported from the property, showing that the Rimpi zone
could become a significant source of gold reserves in the future.

Hole RIE-11-008 returned 7.1 g/t gold over 21.0 metres true width at 850
metres below surface.  This hole is located approximately 200 metres
beneath the current resource envelope at Rimpi and approximately 1.4
kilometres north of the current resource envelope at this depth.  The
Rimpi deposit is open at depth and along strike.  Other drilling such
as holes RIM-10-003B, RIM-10-009 and RIM-10-010 show that the Rimpi
Zone continues to grow at shallower depths as well.  The focus of the
exploration program at Rimpi for the rest of the year will be to
continue to define and expand this zone of high grade mineralization.

Rimpi – Deep Drill Results

     ___________________________________________________________________
    |           |     |           |    From|   To   |Estimated|Gold(g/t)|
    |Drill Hole |Lens |   Purpose |(metres)|(metres)|  True   |(uncut*) |
    |           |     |           |        |        | Width   |         |
    |           |     |           |        |        |(metres) |         |
    |___________|_____|___________|________|________|_________|_________|
    |RIM-10-003B|Rimpi|exploration|     679|     685|      4.0|     3.64|
    |           |South|           |        |        |         |         |
    |___________|_____|___________|________|________|_________|_________|
    |RIM-10-010 |Rimpi| conversion|     606|   615.2|      6.2|     9.93|
    |           |South|           |        |        |         |         |
    |___________|_____|___________|________|________|_________|_________|
    |RIM-100-09 |Rimpi| conversion|     474|     485|      5.7|     6.28|
    |           |South|           |        |        |         |         |
    |___________|_____|___________|________|________|_________|_________|
    |RIE-110-08 |Rimpi|exploration|     909|     916|      4.1|     3.23|
    |___________|_____|___________|________|________|_________|_________|
    |  and      |     |           |     949|    1007|     21.0|     7.10|
    |___________|_____|___________|________|________|_________|_________|

*Note: all drill results at Kittila are reported as uncut gold grades

[Kittila long section] Link to image

Recently, there are also strong drill results within and nearby the
Roura resources, including hole ROU-09-002F that yielded 9.3 g/t gold
over 11.2 metres, and hole ROU-10-036D that yielded 6.0 g/t gold over
7.8 metres.  These results are expected to increase the mineral
resources from Kittila.

Roura Drill Results

     ____________________________________________________________________
    |           |       |           |From    |To      |Estimated |Gold   |
    |Drill Hole |Lens   |Purpose    |(metres)|(metres)|True Width|(g/t)  |
    |           |       |           |        |        |(metres)  |(uncut)|
    |___________|_______|___________|________|________|__________|_______|
    |ROU-09-002F|  Roura|exploration|     697|     719|      11.2|   9.32|
    |           |Central|           |        |        |          |       |
    |___________|_______|___________|________|________|__________|_______|
    |  and      |  Roura|           |     756|     768|       6.2|   3.47|
    |           |Central|           |        |        |          |       |
    |___________|_______|___________|________|________|__________|_______|
    |ROU-100-36D|  Roura|exploration|    1074|    1091|       7.8|   5.98|
    |           |  North|           |        |        |          |       |
    |___________|_______|___________|________|________|__________|_______|

The Kittila exploration program will be accelerated with the addition of
a 2,400-metre exploration ramp built over a three-year period from the
Suuri zone to the Roura zone between 500 metres and 800 metres depth. 
This ramp will improve access for deep drilling in the Suuri, Roura and
Rimpi zones.  Underground ramp development began in early April and
drilling from the ramp is expected to begin later this year.

A feasibility study regarding a 50% increase in mill throughput at
Kittila is expected to be reviewed in the fourth quarter of 2011.  The
exploration results from the first half of 2011, particularly the
downward extension of the Rimpi zone, could enhance the economics for
the study.  With the continued success expanding the mineralization to
the north and at depth, the Company is already considering a second
expansion, likely involving the sinking of a shaft.  This study for
this expansion opportunity is expected to begin in 2012.

Lapa – Record Quarterly Throughput

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 1,763 tpd,
a quarterly record, in the second quarter of 2011.  This compares with
an average of 1,523 tonnes per day in the second quarter of 2010 as
Lapa continues to exceed its design throughput of 1,500 tpd.

Minesite costs per tonne were C$102 in the second quarter of 2011,
compared to C$118 in the second quarter of 2010.  The lower cost is
largely due to the increased throughput, as discussed above.

Payable production in the second quarter of 2011 was 28,552 ounces of
gold at total cash costs per ounce of $599. This compares with the
second quarter of 2010, when production was 28,927 ounces of gold at
total cash costs per ounce of $545.  The decrease in gold production
and increase in costs is largely due to the decrease in grade, partly
offset by the increase in mill throughput.  The lower grade was largely
due to lower grades in the 2011 mineral reserve model.  The lower
grades in the model largely reflect a higher gold price and therefore a
lower cut off grade for reserves (reserve grade dropped to 7.4 g/t for
year-end 2010 versus 8.2 g/t for year-end 2009).

Pinos Altos – Record Gold Production at Low Costs

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

The Pinos Altos mill processed an average of 4,711 tpd in the second
quarter of 2011.  This compares favourably with 3,575 tonnes per day in
the second quarter of 2010.  The mill is now routinely performing at
process rates above the initial design capacity of 4,000 tpd following
the installation of two additional tailings filters in the third
quarter of 2010.

Minesite costs per tonne were $28 in the second quarter of 2011,
compared to $28 in the second quarter of 2010. 

Payable production in the second quarter of 2011 was a record 51,066
ounces of gold at total cash costs per ounce of $299, including the
satellite Creston Mascota operation.  This compares with production of
29,665 ounces at a total cash cost of $365 in the second quarter of
2010.  The higher gold production and lower costs are largely due to
the inclusion of Creston Mascota and the increased mill throughput.

The first gold production from Creston Mascota occurred during the
fourth quarter of 2010.  In the second quarter of 2011, payable gold
production from this heap leach operation was 9,449 ounces (included in
the Pinos Altos total above).  Commercial production at Creston Mascota
was achieved on March 1, 2011.

Due to the improved mill capacity and the increased underground ore
reserve tonnage at Pinos Altos, the Company is evaluating alternatives
with respect to increasing the underground mine capacity either through
an additional production ramp or via a production shaft.  The study is
expected to be completed near the end of 2011.

Meadowbank – Permanent Secondary Crusher Now Operating

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

The Meadowbank mill processed an average of 7,332 tpd in the second
quarter of 2011 despite the March 2011 fire which impacted operations
through April.  This compares with the second quarter of 2010 when the
mine processed approximately 6,262 tpd.  The increase in throughput was
largely due to the fact that the second quarter of 2010 was the mine’s
first full quarter of production and it was still undergoing normal
ramp up at that time.

Minesite costs per tonne were C$81 in the second quarter of 2011 as
compared to the second quarter of 2010 when minesite costs per tonne
were C$94.  The lower costs in the 2011 period are largely due to the
increase in the mill throughput and increased productivity in the pit.

Payable production in the second quarter of 2011 was 59,376 ounces of
gold at total cash costs per ounce of gold of $910.  This compares with
payable production of 77,676 ounces at total cash costs of $663 per
ounce in the second quarter of 2010.  The decrease in gold ounces and
increase in cost was largely due to the mining of 34% lower grades in
the 2011 period.  Part of the reason for lower grades was the scheduled
mining of lower grade mining blocks, but also partly due to dilution
issues identified during the second quarter of 2011.

These costs are expected to decline dramatically in 2011 as throughput
has improved significantly with the installation of the permanent
secondary crusher in June, 2011.  The design rate of 8,500 tpd is
expected to be achieved on a steady state basis going forward.  In
fact, to date in July the mill has averaged 9,257 tpd at head grades of
3.08 g/t (reserve grade of 3.2 g/t) and costs have declined
accordingly.

Additionally, changes to the blasting techniques have already improved
the dilution situation at the mine. While it is still early,
significant improvement in blast displacement has been observed. As a
result, actual grades are currently closer to what was predicted in the
reserve model. Further refinement of blasting procedures and
reconciliation is ongoing.

Dividend Record and Payment Dates for the Remainder of 2011

     ________________________
    |Record Date|Payment Date|
    |___________|____________|
    |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.  The Company has full exposure to higher gold prices
consistent with its policy of no forward gold sales and maintains a
corporate strategy based on increasing shareholder’s exposure to gold,
on a per share basis.  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 Six months ended June 30,
                                  June 30,

                           2011     2010      2011           2010

    Gross mineprofit
    (exclusive of
    amortization shown
    below) (Note 1)

    LaRonde              $46,017   $43,614   95,000          $89,001

    Goldex                46,739    42,635   87,072           69,059

    Lapa                  27,737    20,204   46,915           41,477

    Kittila               18,934    16,625   46,765           28,095

    Pinos Altos (Note     52,568    22,626   99,827           35,257
    2) 

    Meadowbank            28,942    35,179   58,859           37,350

    Total gross mine     220,937   180,883  434,438          300,239
    profit 

    Amortization          59,235    44,003  121,164           74,506

    Corporate             56,936    28,331  131,146           75,910

    Income before tax    104,766   108,549  182,128          149,823

    Tax provision         35,941     8,189   68,039           27,131

    Net earnings         $68,825  $100,360 $114,089         $122,692

    Net earning per        $0.41     $0.64    $0.68            $0.78
    share 

    Operating cash      $162,821  $161,574 $333,864         $236,065
    flow 

    Realized price per
    sales volume (US$):

      Gold (per ounce)    $1,530    $1,222   $1,466           $1,168

      Silver (per         $38.50    $19.29   $37.31           $18.94
      ounce) 

      Zinc (per tonne)    $2,257    $1,890   $2,340           $2,057

      Copper (per         $8,565    $6,581   $9,377           $6,934
      tonne) 

    Payable production:                                             

      Gold (ounces)                                                 

      LaRonde             27,525    41,533   64,418           86,569

      Goldex              41,998    48,334   80,498           90,603

      Lapa                28,552    28,927   55,466           60,480

      Kittila             30,811    31,593   71,128           56,140

      Pinos Altos (Note   51,066    29,665   99,067           55,893
      2)  

      Meadowbank          59,376    77,676  121,113           96,275

      Total gold         239,328   257,728  491,690          445,960
      (ounces)

      Silver (000s
      ounces)

      LaRonde                736       860    1,416            1,735

      Pinos Altos (Note      452       248      858              470
      2) 

      Meadowbank              13        12       26               14

      Total silver         1,201     1,120    2,300            2,219
      (000s ounces)

      Zinc (tonnes)       14,678    18,465   26,619           32,689

      Copper (tonnes)        666     1,056    1,483            2,108

    Payable metal sold:                                             

      Gold (ounces -      28,589    41,666   66,048           86,906
      LaRonde) 

      Gold (ounces -      41,564    48,310   83,459           86,173
      Goldex) 

      Gold (ounces -      29,749    31,920   55,525           66,113
      Lapa) 

      Gold (ounces -      29,794    28,588   70,492           59,262
      Kittila) 

      Gold (ounces -      48,847    30,634   94,331           51,599
      Pinos Altos)
      (Note 2) 

      Gold (ounces -      58,767    70,182  120,695           77,285
      Meadowbank) 

      Total gold         237,310   251,300  490,550          427,338
      (ounces)

      Silver (000s           726       884    1,405            1,659
      ounces -
      LaRonde) 

      Silver (000s           428       267      837              487
      ounces - Pinos
      Altos) (Note 2) 

      Silver (000s            14        14       35               14
      ounces -
      Meadowbank) 

      Total silver         1,168     1,165    2,277            2,160
      (ounces)

      Zinc (tonnes)       16,649    15,437   24,951           29,966

      Copper (tonnes)        658     1,043    1,478            2,090

    Total cash costs
    per ounce of gold
    (Note 3):

    LaRonde                 $231      $270      $92             $216

    Goldex                  $385      $325     $407             $348

    Lapa                    $599      $545     $614             $516

    Kittila                 $850      $607     $758             $663

    Pinos Altos             $299      $365     $306             $384

    Meadowbank              $910      $663     $927             $695

    Weighted average        $565      $482     $548             $464
    total cash costs
    per ounce 

Note 1

Gross mine profit is calculated as total revenues from all metals, by
mine, minus total production costs, by mine.

Note 2

Creston Mascota achieved commercial production as of March 1, 2011. All
payable production ounces are post commercial production as they were
sold after March 1, 2011.

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”.


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

                                             As at             As at
                                          June30, 2011   December 31, 2010

    ASSETS                                                                

    Current                                                               

      Cash and cash equivalents               $138,959            $104,645

      Trade receivables                         64,821             112,949

      Inventories:                                                        

                    Ore stockpiles              66,130              67,764

                    Concentrates                66,905              50,332

                    Supplies                   186,852             149,647

      Other current assets                     202,131             188,885

    Fair value of derivative                     2,148                   -
    assets 

    Total current assets                       727,946             674,222

    Other assets                                63,295              61,502

    Future income and mining tax                 2,771                   -
    assets 

    Goodwill                                   200,064             200,064

    Property, plant and mine                 4,647,580           4,564,563
    development 

                                            $5,641,656          $5,500,351

    LIABILITIES AND
    SHAREHOLDERS'EQUITY

    Current                                                               

      Accounts payable and accrued            $222,007            $170,967
      liabilities 

      Dividends payable                         53,964             108,009

      Interest payable                           9,808               9,743

      Income taxes payable                       8,028              14,450

      Fair value of                                  -                 142
      derivative
      financial
      instruments 

    Total current liabilities                  293,807             303,311

    Long term debt                             600,000             650,000

    Reclamation provision and other            150,033             145,536
    liabilities 

    Future income and mining tax               770,832             736,054
    liabilities 

    Shareholders' equity                                                  

    Common shares                                                         

      Authorized -- unlimited                                        

      Issued -- 169,207,761             3,102,141           3,078,217
      (December 31, 2010 --
      168,763,496) 

    Stock options                              103,139              78,554

    Warrants                                    24,858              24,858

    Contributed surplus                         15,166              15,166

    Retained earnings                          554,354             440,265

    Accumulated other comprehensive             27,326              28,390
    income  

    Total shareholders' equity               3,826,984           3,665,450

                                            $5,641,656          $5,500,351

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

                             Three months ended     Six months ended  June
                             June 30,               30,

                                2011       2010        2011         2010

    REVENUES                                                              

    Revenues from            $433,691    $347,456   $845,759      $585,039
    mining operations 

    Interest and                  757       6,488      2,356         7,315
    sundry income 

    Gain on sale of               420     --      4,814           346
    available-for-sale
    securities 

                                          353,944    852,929       592,700
                              434,868

    COSTS AND EXPENSES                                                    

    Production                212,754     166,573    411,321       284,800

    Exploration                17,289      12,955     34,267        20,459
    and corporate
    development 

    Amortization               59,235      44,003    121,164        74,506

    General and                24,122      23,240     59,274        51,670
    administrative 

    Provincial capital              -         742          -           155
    tax 

    Interest                   13,989      15,309     27,997        19,813

    Foreign currency            2,713    (17,427)     16,778       (8,526)
    loss (gain) 

    Income before             104,766     108,549    182,128       149,823
    income, mining and
    federal capital
    taxes 

    Income and mining          35,941       8,189     68,039        27,131
    tax expense
    (recovery) 

    Net income for the        $68,825    $100,360   $114,089      $122,692
    period 

    Net income per              $0.41       $0.64      $0.68         $0.78
    share --
    basic 

    Net income per              $0.40       $0.63      $0.66         $0.77
    share --
    diluted 

    Weighted average
    number of shares
    outstanding
    (in thousands)

      Basic                   169,029     156,899    168,949       156,789

      Diluted                 172,448     159,920    172,632       159,585

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

                               Three months ended June   Six monthsended June
                               30,                       30,

                                  2011          2010        2011          2010

    Operating activities                                                        

    Net income for the           $68,825      $100,360    $114,089      $122,692
    period 

    Add (deduct) items
    not affecting cash:

      Amortization                59,235        44,003     121,164        74,506

      Future income and           17,035           431      25,914        13,526
      mining taxes 

      Gain on sale of
      available-for-sale
      securities and
      derivative
      financial
      instruments                  (534)       (3,716)     (6,962)       (4,175)

      Amortization of             17,135       (2,179)      54,438        24,881
      deferred costs and
      other 

    Changes in non-cash
    working capital
    balances

      Trade receivables            6,745         7,826      48,128        28,216

      Income taxes                   550        10,771    (12,507)        14,695
      payable 

      Inventories               (37,667)      (16,068)    (54,262)      (41,610)

      Other current              (9,525)      (16,903)     (5,059)      (20,785)
      assets 

      Interest payable          (10,705)         8,562          65         8,223

      Accounts payable            51,727        28,487      48,856        15,896
      and accrued
      liabilities 

    Cash provided by             162,821       161,574     333,864       236,065
    operating
    activities 

    Investing activities                                                        

    Additions to               (114,402)     (117,017)   (211,251)     (229,580)
    property, plant and
    mine development 

    Acquisition,                 (2,154)           733       2,045       (4,909)
    investments and
    other 

    Cash used in               (116,556)     (116,284)   (209,206)     (234,489)
    investing
    activities 

    Financing activities                                                        

    Dividends paid              (23,313)       --    (49,133)      (26,830)

    Repayment of capital         (4,186)       (8,573)     (7,239)      (10,112)
    lease and other 

    Proceeds from long            80,000     1,101,000      80,000     1,201,000
    term debt 

    Repayment of long           (80,000)   (1,101,000)   (130,000)   (1,181,000)
    term debt 

    Sales-leaseback              --       --     --         3,005
    financing  

    Credit facility              --      (12,488)     --      (12,488)
    financing cost  

    Proceeds from common           5,319        10,639      15,350        14,357
    shares issued 

    Cash provided by            (22,180)      (10,422)    (91,022)      (12,068)
    (used in) financing
    activities 

    Effect of exchange
    rate changes on cash
    and cash
    equivalents                       49         (134)         678         (315)

    Net increase
    (decrease) in cash
    and cash equivalents
    during the period             24,134        34,734      34,314      (10,807)

    Cash and cash                114,825       118,052     104,645       163,593
    equivalents,
    beginning of period 

    Cash and cash               $138,959      $152,786    $138,959      $152,786
    equivalents, end of
    period 

    Other operating cash
    flow information:

    Interest paid during         $23,075        $4,708     $26,304       $13,430
    the period 

    Income, mining and           $14,537      $--     $49,756        $1,497
    capital taxes paid
    during the period 

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

                                                                          Six
                           Threemonths    Three months     Sixmonths     months
    (thousands of             ended          ended           ended       ended
    dollars, except          June 30,       June 30,        June 30,    June 30,
    where noted)               2011           2010            2011        2010

    Total Production
    costs per
    Consolidated
    Statements of
    Income                     $212,754       $166,573       $411,321   $284,800

    Attributable to              54,457         46,605        102,342     92,087
    LaRonde

    Attributable to              16,357         16,469         34,231     30,269
    Goldex

    Attributable to Lapa         17,333         17,830         34,084     34,209

    Attributable to              25,961         18,100         54,461     41,118
    Kittila

    Attributable to              38,085         18,537         68,992     32,386
    Pinos Altos

    Attributable to              60,561         49,032        117,211     54,731
    Meadowbank

      Total                    $212,754       $166,573       $411,321   $284,800

    LaRonde                                                                     

                                                                          Six
                           Three months   Three months    Six months     months
    (thousands                ended          ended          ended        ended
    ofdollars,except         June 30,       June 30,       June 30,     June 30,
    where noted)               2011           2010           2011         2010

    Production costs            $54,457        $46,605       $102,342    $92,087

    Adjustments:                                                                

      Byproduct                (45,516)       (39,252)       (98,495)   (77,643)
      revenues 

      Inventory
      adjustment(i)             (1,899)          4,203          3,453      4,967

      Non-cash                    (684)          (337)        (1,384)      (672)
      reclamation
      provision 

    Cash operating               $6,358        $11,219         $5,916    $18,739
    costs 

    Gold production              27,525         41,533         64,418     86,569
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $231           $270            $92       $216

    Goldex                                                                      

                                                                          Six
                           Three months   Three months    Six months     months
                              ended          ended          ended        ended
    (thousandsofdollars,     June 30,       June 30,       June 30,     June 30,
    exceptwhere noted)         2011           2010           2011         2010

    Production costs            $16,357        $16,469        $34,231    $30,269

    Adjustments:                                                                

      Byproduct                     107            (8)            194       (14)
      revenues 

      Inventory
      adjustment(i)               (224)          (690)        (1,533)      1,411

      Non-cash                     (58)           (54)          (113)      (108)
      reclamation
      provision 

    Cash operating              $16,182        $15,717        $32,779    $31,558
    costs 

    Gold production              41,998         48,334         80,498     90,603
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $385           $325           $407       $348

    Lapa                                                                        

                                                                          Six
                           Three months                                  months
    (thousands of             ended       Three months    Six months     ended
    dollars, except          June 30,        ended          ended       June 30,
    where noted)               2011       June 30,2010   June 30,2011     2010

    Production costs            $17,333        $17,830        $34,084    $34,209

    Adjustments:                                                                

      Byproduct                     157            (7)            223       (27)
      revenues 

      Inventory
      adjustment(i)               (366)        (2,038)          (208)    (2,964)

      Non-cash                     (15)           (14)           (30)       (28)
      reclamation
      provision 

    Cash operating              $17,109        $15,771        $34,069    $31,190
    costs 

    Gold production              28,552         28,927         55,466     60,480
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $599           $545           $614       $516

    Kittila                                                                     

                                                                          Six
                                          Three months                   months
    (thousands of          Three months      ended        Six months     ended
    dollars, exceptwhere      ended         June 30,        ended       June 30,
    noted)                 June 30,2011       2010       June 30,2011     2010

    Production costs            $25,961        $18,100        $54,461    $41,118

    Adjustments:                                                                

      Byproduct revenues             15            (5)             92       (30)

      Inventory
      adjustment(i)               2,920          1,146          2,077    (3,702)

      Non-cash                     (55)           (65)          (105)      (164)
      reclamation
      provision 

      Stripping
      (capitalized vs
      expensed)(ii)             (2,643)              -        (2,643)          -

    Cash operating              $26,198        $19,176        $53,882    $37,222
    costs 

    Gold production              30,811         31,593         71,128     56,140
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $850           $607           $758       $663

    Pinos Altos
    (includes Creston
    Mascota)

                                                                          Six
                           Three months   Three months    Six months     months
    (thousands of             ended          ended          ended        ended
    dollars, exceptwhere     June 30,       June 30,       June 30,     June 30,
    noted)                     2011           2010           2011         2010

    Production costs            $38,085        $18,537        $68,992    $32,386

    Adjustments:                                                                

      Byproduct                (15,986)        (4,885)       (30,989)    (8,572)
      revenues 

      Inventory
      adjustment(i)                 292        (1,115)          5,989        378

      Non-cash                    (348)          (214)          (630)      (428)
      reclamation
      provision 

      Stripping
      (capitalized vs
      expensed)(ii)             (6,765)        (1,477)       (13,090)    (2,288)

    Cash operating              $15,278        $10,846        $30,272    $21,476
    costs 

    Gold production              51,066         29,665         99,067     55,893
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $299           $365           $306       $384

    Meadowbank                                                                  

                                                                          Six
                           Three months   Three months    Six months     months
    (thousands of             ended          ended          ended        ended
    dollars,exceptwhere      June 30,       June 30,       June 30,     June 30,
    noted)                     2011           2010           2011         2010

    Production costs            $60,561        $49,032       $117,211    $54,731

    Adjustments:                                                                

      Byproduct revenues          (395)          (232)          (844)      (258)

      Inventory
      adjustment(i)                 260          3,031          2,686     12,192

      Non-cash                    (427)          (367)          (839)      (494)
      reclamation
      provision 

      Stripping
      (capitalized vs
      expensed)(ii)             (5,950)              -        (5,950)          -

    Cash operating              $54,049        $51,464       $112,264    $66,171
    costs 

    Gold production              59,376         77,676        121,113     95,191
    (ounces) 

    Total cash costs
    (per ounce)(iii)               $910           $663           $927       $695

    Minesite
    Cost
    perTonne

    LaRonde                                                                     

    (thousands     Three months    Three months     Six months      Six months
    of dollars,        ended           ended           ended           ended
    except where   June 30, 2011   June 30,2010    June 30, 2011   June 30, 2010
    noted)

    Production           $54,457         $46,605        $102,342         $92,087
    costs

    Adjustments:                                                    

    Inventory            (2,055)           4,203           2,462           4,967
    adjustments
    (iv) 

    Non-cash               (684)           (337)         (1,384)           (672)
    reclamation
    provision 

    Minesite             $51,718         $50,471        $103,420         $96,382
    operating
    costs (US$) 

    Minesite             $50,259         $52,125        $100,616         $99,202
    operating
    costs (C$) 

    Tonnes of                599             660           1,184           1,324
    ore milled
    (000s)

    Minesite                 $84             $79             $85             $75
    cost per
    tonne (C$)
    (v)

    Goldex                                                                      

    (thousands     Three months    Three months     Six months      Six months
    ofdollars,         ended           ended           ended           ended
    except where   June 30, 2011   June 30, 2010   June 30, 2011   June 30,2010
    noted)

    Production           $16,357         $16,469         $34,231         $30,269
    costs

    Adjustments:                                                    

    Inventory               (20)           (690)         (1,181)           1,411
    adjustments
    (iv) 

    Non-cash                (58)            (54)           (113)           (108)
    reclamation
    provision 

    Minesite             $16,279         $15,725         $32,937         $31,572
    operating
    costs (US$) 

    Minesite             $15,658         $16,197         $31,985         $32,510
    operating
    costs (C$) 

    Tonnes of                769             667           1,484           1,334
    ore milled
    (000s)

    Minesite                 $20             $24             $22             $24
    cost per
    tonne (C$)
    (v)

    Lapa                                                                        

    (thousands     Three months    Three months     Six months      Six months
    of dollars,        ended           ended           ended           ended
    exceptwhere    June 30,2011    June 30, 2010   June 30, 2011   June 30, 2010
    noted)

    Production           $17,333         $17,830         $34,084         $34,209
    costs

    Adjustments:                                                    

    Inventory              (274)         (2,038)              32         (2,964)
    adjustments
    (iv) 

    Non-cash                (15)            (14)            (30)            (28)
    reclamation
    provision 

    Minesite             $17,044         $15,778         $34,086         $31,217
    operating
    costs (US$) 

    Minesite             $16,289         $16,347         $32,929         $32,179
    operating
    costs (C$) 

    Tonnes of                160             139             302             267
    ore milled
    (000s)

    Minesite                $102            $118            $109            $120
    cost per
    tonne (C$)
    (v)

    Kittila                                                                     

    (thousands     Three months    Three months     Six months      Six months
    of dollars,        ended           ended           ended           ended
    except where   June 30, 2011   June 30, 2010   June 30, 2011   June 30, 2010
    noted)

    Production           $25,961         $18,100         $54,461         $41,118
    costs

    Adjustments:                                                    

    Inventory              2,920           1,146           2,077         (3,702)
    adjustments
    (iv) 

    Non-cash                (55)            (65)           (105)           (164)
    reclamation
    provision

    Stripping            (2,643)               -         (2,643)               -
    (capitalized
    vs expensed)
    (ii)

    Minesite             $26,183         $19,181         $53,790         $37,252
    operating
    costs (US$) 

    Minesite       EUR18,395   EUR14,111   EUR38,105   EUR28,026
    operating
    costs (EUR) 

    Tonnes of                233             220             495             437
    ore milled
    (000s)

    Minesite           EUR79       EUR64       EUR77       EUR64
    cost per
    tonne (EUR)
    (v)

    Pinos Altos
    (includes
    Creston
    Mascota)

    (thousands     Three months    Three months     Six months      Six months
    of dollars,        ended           ended           ended           ended
    except where   June 30, 2011   June 30, 2010   June 30,2011    June 30, 2010
    noted)

    Production           $38,085         $18,537         $68,992         $32,386
    costs

    Adjustments:                                                    

    Inventory              (181)         (1,115)           4,883             378
    adjustments
    (iv) 

    Non-cash               (348)           (214)           (630)           (428)
    reclamation
    provision 

    Stripping            (6,765)         (1,477)        (13,090)         (2,288)
    (capitalized
    vs expensed)
    (ii)

    Minesite             $30,791         $15,731         $60,155         $30,048
    operating
    costs (US$) 

    Tonnes of              1,114             553           2,147           1,004
    ore
    processed
    (000s)

    Minesite                 $28             $28             $28             $30
    cost per
    tonne (US$)
    (v)

    Meadowbank                                                                  

    (thousands     Three months    Three months     Six months      Six months
    of dollars,        ended           ended           ended           ended
    except where   June 30, 2011   June 30, 2010   June 30, 2011   June 30, 2010
    noted)

    Production           $60,561         $49,032        $117,211         $54,731
    costs

    Adjustments:                                                    

    Inventory              1,193           3,031           3,965          12,192
    adjustments
    (iv) 

    Non-cash               (427)           (367)           (839)           (494)
    reclamation
    provision 

    Stripping            (5,950)               -         (5,950)               -
    (capitalized
    vs expensed)
    (ii)

    Minesite             $55,377         $51,696        $114,387         $66,429
    operating
    costs (US$) 

    Minesite             $53,939         $53,642        $112,181         $68,759
    operating
    costs (C$) 

    Tonnes of                667             570           1,296             733
    ore milled
    (000s)

    Minesite                 $81             $94             $87             $94
    cost per
    tonne (C$)
    (v)


    (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)         The Company has decided to 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 adjusted accordingly also.

    (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 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.

Note Regarding Certain Measures of Performance

This press release presents measures including “total cash costs per
ounce” and “minesite costs 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, these measures, taken by
themselves, are not necessarily indicative of operating costs or cash
flow measures prepared in accordance with US GAAP. 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 of the
Company for the period ended December 31, 2010 contained herein.

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.

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

     _____________________________________________________________________
    |              |Au    |Ag     |Cu    |Zn    |Pb    |Au         |Tonnes|
    |Category and  |(g/t) |(g/t)  |(%)   |(%)   |(%)   |(000s oz.) |(000s)|
    |Operation     |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Proven Mineral Reserve                                               |
    |_____________________________________________________________________|
    |Goldex        |1.87  |       |      |      |      |        890|14,804|
    |(underground) |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |  Kittila     |4.19  |       |      |      |      |         53|   395|
    |(open pit)    |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |  Kittila     |6.00  |       |      |      |      |          2|     8|
    |(underground) |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Kittila total |4.23  |       |      |      |      |         55|   403|
    |proven        |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Lapa          |7.24  |       |      |      |      |        261| 1,122|
    |(underground) |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |LaRonde       |2.36  |55.17  |0.26  |2.78  |0.32  |        366| 4,838|
    |(underground) |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Meadowbank    |3.13  |       |      |      |      |         85|   839|
    |(open pit)    |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Pinos Altos   |0.89  |13.26  |      |      |      |         31| 1,078|
    |(open pit)    |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Pinos Altos   |2.52  |78.68  |      |      |      |        144| 1,786|
    |(underground) |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Pinos Altos   |1.90  |54.06  |      |      |      |        175| 2,864|
    |total proven  |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
    |Subtotal      |2.29  |       |      |      |      |      1,832|24,869|
    |Proven Mineral|      |       |      |      |      |           |      |
    |Reserve       |      |       |      |      |      |           |      |
    |______________|______|_______|______|______|______|___________|______|
     _____________________________________________________________________
    |Probable Mineral Reserve                                             |
    |_____________________________________________________________________|
    |Goldex          |1.62  |       |      |      |      |    676|  12,990|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Kittila (open |5.28  |       |      |      |      |    281|   1,657|
    |pit)            |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Kittila       |4.61  |       |      |      |      |  4,544|  30,672|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Kittila total   |4.64  |       |      |      |      |  4,826|  32,329|
    |probable        |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Lapa            |7.56  |       |      |      |      |    416|   1,709|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |LaRonde         |4.63  |23.99  |0.28  |0.90  |0.07  |  4,452|  29,892|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Meadowbank (open|3.18  |       |      |      |      |  3,402|  33,259|
    |pit)            |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Meliadine     |6.91  |       |      |      |      |    953|   4,287|
    |(open pit)      |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Meliadine     |9.89  |       |      |      |      |  1,647|   5,180|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Meliadine total |8.54  |       |      |      |      |  2,600|   9,467|
    |probable        |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Pinos Altos   |1.98  |45.34  |      |      |      |  1,083|  16,987|
    |(open pit)      |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |  Pinos Altos   |2.58  |79.64  |      |      |      |  2,013|  24,311|
    |(underground)   |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Pinos Altos     |2.33  |65.53  |      |      |      |  3,096|  41,298|
    |total probable  |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Subtotal        |3.76  |       |      |      |      | 19,467| 160,944|
    |Probable Mineral|      |       |      |      |      |       |        |
    |Reserve         |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
    |Total Proven and|3.57  |       |      |      |      | 21,299| 185,813|
    |Probable Mineral|      |       |      |      |      |       |        |
    |Reserves        |      |       |      |      |      |       |        |
    |________________|______|_______|______|______|______|_______|________|
     _____________________________________________________________________
    |Category and Operation   |Au    |Ag     |Cu    |Zn    |Pb    |Tonnes |
    |                         |(g/t) |(g/t)  |(%)   |(%)   |(%)   |(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             |4.39  |       |      |      |      |  2,318|
    |(underground)            |      |       |      |      |      |       |
    |_________________________|______|_______|______|______|______|_______|
    |Meadowbank total         |1.67  |       |      |      |      | 25,759|
    |indicated                |      |       |      |      |      |       |
    |_________________________|______|_______|______|______|______|_______|
    |  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            |1.25  |35.76  |      |      |      |  9,789|
    |(underground)            |      |       |      |      |      |       |
    |_________________________|______|_______|______|______|______|_______|
    |Pinos Altos total        |1.02  |21.34  |      |      |      | 25,621|
    |indicated                |      |       |      |      |      |       |
    |_________________________|______|_______|______|______|______|_______|
    |Swanson (open pit)       |1.93  |       |      |      |      |    504|
    |_________________________|______|_______|______|______|______|_______|
    |Total Indicated Resource |2.10  |       |      |      |      | 95,135|
    |_________________________|______|_______|______|______|______|_______|
     _____________________________________________________________________
    |                        |Au    |Ag     |Cu    |Zn    |Pb    |Tonnes  |
    |Category and Operation  |(g/t) |(g/t)  |(%)   |(%)   |(%)   |(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   |3.24  |       |      |      |      |   1,116|
    |pit)                    |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |Kylmäkangas, Finland    |4.07  |       |      |      |      |   1,924|
    |(underground)           |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |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            |5.62  |       |      |      |      |     824|
    |(underground)           |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |Meadowbank total        |2.15  |       |      |      |      |  10,218|
    |inferred                |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |  Meliadine (open pit)  |4.86  |       |      |      |      |   2,388|
    |________________________|______|_______|______|______|______|________|
    |  Meliadine             |7.47  |       |      |      |      |   9,446|
    |(underground)           |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |Meliadine total inferred|6.94  |       |      |      |      |  11,834|
    |________________________|______|_______|______|______|______|________|
    |  Pinos Altos (open pit)|0.87  |17.34  |      |      |      |  21,913|
    |________________________|______|_______|______|______|______|________|
    |  Pinos Altos           |2.38  |59.24  |      |      |      |   3,744|
    |(underground)           |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |Pinos Altos total       |1.09  |23.46  |      |      |      |  25,657|
    |inferred                |      |       |      |      |      |        |
    |________________________|______|_______|______|______|______|________|
    |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 July 27,
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 trends, production estimates, the estimated
timing of scoping and other studies, the methods by which ore will be
extracted or processed, 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, equipment failures, accidents, 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 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, 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.

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 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 technical and economic study of
the selected development option for a mineral project that includes
appropriately detailed assessments of realistically assumed mining,
processing, metallurgical, economic, marketing, legal, environmental,
social and governmental considerations together with any other relevant
operational factors and detailed financial analysis, that are necessary
to demonstrate at the time of reporting that extraction is reasonably
justified (economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development of
the project. The confidence level of the study will be higher than that
of a Pre-Feasibility Study.

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

     _____________________________________________________________________
    |Property/Project|Qualified Person|Qualified Person |Date of most     |
    |name and        |responsible for |responsible for  |recent           |
    |location        |the             |Exploration and  |Technical Report |
    |                |current Mineral |relationship to  |(NI 43-101) filed|
    |                |Resource and    |Agnico-Eagle     |on               |
    |                |Reserve Estimate|                 |SEDAR            |
    |                |and             |                 |                 |
    |                |relationship to |                 |                 |
    |                |Agnico-Eagle    |                 |                 |
    |________________|________________|_________________|_________________|
    |LaRonde,        |François        |François Blanchet|March 23, 2005   |
    |Bousquet &      |Blanchet Ing.,  |Ing., LaRonde    |                 |
    |Ellison, Quebec,|LaRonde Division|Division         |                 |
    |Canada          |Superintendent  |Superintendent of|                 |
    |                |of geology      |geology          |                 |
    |________________|________________|_________________|_________________|
    |Kittila, Kuotko |Daniel Doucet,  |Marc Legault     |March 4, 2010    |
    |and Kylmakangas,|Ing., Corporate |P.Eng., VP       |                 |
    |Finland         |Director of     |Project          |                 |
    |                |Geology         |Development      |                 |
    |________________|________________|_________________|_________________|
    |Pinos Altos,    |Dyane Duquette, |Mine site: Dyane |March 25, 2009   |
    |Chihuahua,      |P.Geo.,         |Duquette, P.Geo.;|                 |
    |Mexico.         |Superintendent  |Regional: Roger  |                 |
    |Swanson, Quebec,|of geology,     |Doucet, P.Geo.,  |                 |
    |Canada          |Technical       |Exploration      |                 |
    |                |Services Group  |manager for      |                 |
    |                |                |Mexico           |                 |
    |________________|________________|_________________|_________________|
    |Meadowbank,     |Bruno Perron    |Mine site: Bruno |December 15, 2008|
    |Nunavut, Canada |P.Eng.,         |Perron P.Eng.,   |                 |
    |                |Meadowbank      |Meadowbank       |                 |
    |                |Superintendent  |Division         |                 |
    |                |of geology      |Superintendent of|                 |
    |                |                |geology;         |                 |
    |                |                |Regional: Guy    |                 |
    |                |                |Gosselin Ing., VP|                 |
    |                |                |Exploration      |                 |
    |________________|________________|_________________|_________________|
    |Goldex, Quebec, |Richard Genest, |Richard Genest,  |October 27, 2005 |
    |Canada          |Ing., Goldex    |Ing., Goldex     |                 |
    |                |Division        |Division         |                 |
    |                |Superintendent  |Superintendent of|                 |
    |                |of geology      |geology          |                 |
    |________________|________________|_________________|_________________|
    |Lapa, Quebec,   |Normand B©dard, |Normand B©dard,  |June 8, 2006     |
    |Canada          |P.Geo., Lapa    |P.Geo., Lapa     |                 |
    |                |Division        |Division         |                 |
    |                |Superintendent  |Superintendent of|                 |
    |                |of geology      |geology          |                 |
    |________________|________________|_________________|_________________|
    |Meliadine,      |Dyane Duquette, |Denis            |March 8, 2011    |
    |Nunavut, Canada |P.Geo.,         |Vaillancourt,    |                 |
    |                |Superintendent  |P.Geo.,          |                 |
    |                |of geology,     |Exploration      |                 |
    |                |Technical       |manager for      |                 |
    |                |Services Group  |eastern Canada   |                 |
    |________________|________________|_________________|_________________|

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 releases dated December 15, 2010 and February
16, 2011.

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. 

 

SOURCE Agnico-Eagle Mines Limited


Source: newswire