AEM Exploration Update and Upside: A projection in …...2012/06/26 · Person and the Company’s...

AEM Exploration Update and Upside:

A projection in the future June 26th, 2012

Agnico-Eagle Mines Limited

2

The information in this document has been prepared as at June 26, 2012. Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information.

Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's mine sites and statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; 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 that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Company's Annual Report on Form 20-F for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information. Marc Legault, a Qualified Person and the Company’s Senior Vice-President, Project Evaluations, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 15, 2012 press release on the Company’s website. That press release also lists the Qualified Persons for each project.

Forward Looking Statements

3

Note Regarding The Use Of Non-GAAP Financial Measures This document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognized measures under United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of operations is set forth in the notes to the financial statements included in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the SEC. Note Regarding Production Guidance The gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.

Notes To Investors

4

Agenda

■ Exploration Budget

■ Kittila Mine

■ Abitibi Mines ■ Lapa Mine ■ LaRonde Mine

■ Mexico Mine & Projects ■ Mascota ■ LaIndia & Tarachi Project

■ Meliadine Project

■ Appendix: AEM Reserve & Resource

5

2012 Exploration Budget

Project Drill program (M) Budget (‘000 US$) Greenfield Exploration

Finland 16,100 5,079

Eastern Canada 23,500 8,082

Western Canada 1,565

USA 24,800 12,890

Mexico 12,800 4,499

Total 77,200 $32,115

Minesite Exploration

Total Exploration Drilling 74,500 15,537

Total Conversion Drilling 24,300 6,279

Total Drilling 98,800 21,816

Total Development 750 4,673

Total 98,800 $26,489

Advanced Exploration projects

Meliadine 115,000 30,300

La India / Tarachi 45,000 10,500

Goldex (1st Quarter) 8,000 + 150 (Development) 2,900

Corporate Development - 3,700

Total 168,000 $47,400

Grand Total 344,000 $106,000

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Kittila Exploration Key Facts

Location: Lapland, Northern Finland, 900 km north of Helsinki and 150 km north of Arctic Circle Property: 10,652 ha Proven and probable gold reserves*: 5.2 million ounces (35 million tonnes at 4.7 g/t) Indicated resource*: 1.0 million ounces (13 million tonnes at 2.5 g/t) Inferred resource*: 1.2 million ounces (8.0 million tonnes at 4.6 g/t) Stage: Operational mine since 2009 Secondary metals: none Type of mine: open-pit and underground mining, transitioning to underground only; Mill capacity: 3,000 tonnes/day Estimated mine life: 2009- Date acquired: In 2004 Agnico-Eagle became largest shareholder in Riddarhyttan Resources (which owned the property); acquired 100% interest in Riddarhyttan in November 2005 Percent ownership: 100%

Current work: exploration and conversion drilling from surface and starting in 2013 from exploration ramp; focus on Rimpi zone (north of current mining at Suuri and Roura), where mineralization seems to be thicker and higher grade than Suuri zone. Could increase northern resources. Feasibility study for 25% expansion underway; expected for completion end of 2012 Production forecast in 2012: mining 1,045,000 tonnes to produce 155,000 ounces gold * Source: Kittila December 31, 2011 Reserves and Resources

Hanhimaa

7

Kittila Mine Finland/Sweden Exploration Properties & 2012 budget

Project Mining District Area

Kittilä Kittilä, northern Finland 107 km2

Central Lapland Sodankylä, northern Finland 7 km2

Oijärvi Oijärvi, Oulu, central Finland 4 km2

Solvik Värmland, southern Sweden 28 km2

Total 146 km2

Hanhimaa

Project 2012 Finland/Sweden Exploration Budget

Actual Exploration (January-May 2012)

$ millions Drilling or

ramp (metres)

$ millions

Drilling (metres)

Kittilä mine-site drilling

$11.5 39,700 $4.6 15,141

Kittila ramp development

$2.8 620 $0.6 134

Kittilä regional drilling

$2.9 10,900 $1.8 8,197

Kittilä total exploration

$17.2 drilling 50,600 $7.0 drilling 23,338

Finland other grassroots drilling

$1.2 2,000 $0.1 0

Sweden grassroots drilling

$0.9 3,200 $0.5

0

Total (Finland and Sweden)

$19.3 drilling 55,800 $7.6 drilling 23,338

8

Hanhimaa Project Location

Option Agreement:

Acquire an interest and ownership rights in the Hanhimaa

51% interest: €5M/3 years

Add19% interest: €4M/3 years

Total: 70% interest €9M/6 years

AEM is the operator

Ready to drill

6728.92 hectares – exploration license

5222.4 hectares – claim reservation area

Total area 11,951 hectares

9

Kittila Mine

Suuri Pit

Roura Pit

Rimpi

Kittila mine Au (M oz)

Tonnes ('000)

Au (g/t)

Proven Reserves 0.11 702 5.09

Probable Reserves 5.06 33,862 4.65

P & P Reserves 5.18 34,564 4.66

Indicated Resources 1.03 12,978 2.46

Inferred Resources 1.16 7,953 4.55

Suuri trend

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Gold reserves (m oz) 5.2

Average reserve gold grade (g/t) 4.7

Measured & Indicated gold resource (m oz) 1.0

Inferred gold resource (m oz) 1.2

Est. LOM (years) 32

Estimated average production, 2012-2014 (k oz/yr) 160

2012 exploration budget (m US$) $16.4

Kittila Mine

Suuri Roura

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RIE11012 4.8 g/t Au / 10.7 m SCON11511

6.6 g/t Au / 3.9 m

ROU11004 12.2 g/t Au / 5.1 m

RIE11010B 6.6 g/t Au / 10.0 m

3.0 g/t Au / 7.6 m

SCON11510 5.2 g/t Au / 13.0 m

SCON11518 5.6 g/t Au / 4.0 m

SCON11507 3.7 g/t Au / 10.8 m 7.2 g/t Au / 12.4 m

SCON11506 5.7 g/t Au / 8.6 m

SCON11501 6.9 g/t Au / 6.0 m

RIE11019 7.6 g/t Au/ 3.8 m 7.2 g/t Au/ 6.4 m

Incl. 10.7 g/t Au / 3.8 m

Finland - Kittila Composite Longitudinal Section

2012 Kittila Exploration Budget Actual Kittila Exploration (January-May 2012)

$17.2 million $7.0 million

50,600 metres DDH 23,338 metres DDH

12

ROU11004 12.2 g/t Au / 5.1 m

RIE11010B 6.6 g/t Au / 10.0 m

3.0 g/t Au / 7.6 m

RIE11012 4.8 g/t Au / 10.7 m

RIE11019 7.6 g/t Au/ 3.8 m 7.2 g/t Au/ 6.4 m

Incl. 10.7 g/t Au / 3.8 m

2012 Exploration Program - $17.2 M Deep exploration ramp

continues northward 620 metres; drilling from ramp begins

Exploration success at Rimpi

and Roura Deep

Drilling underway to expand resources on property (32K metres), convert resources to reserves (8K metres) and for grassroots exploration 11K metres)

25% expansion feasibility study expected Q4 2012

Larger expansion being considered, possibly with shaft; dependent on exploration results

ROU11005 4.22 g/t Au / 8.5 m

ROU10036E 6.98 g/t Au / 10.1 m

ROU11001H 8.46 g/t Au / 4.5 m

RIM10004 14.94 g/t Au / 3.5 m 6.03 g/t Au / 11.8 m

RIE11017 8.27g/t Au / 3.5 m

RIE11017B 7.67 g/t Au / 17.9 m

RIE11010 6.00g/t Au / 14.7 m 6.58 g/t Au / 7.5 m

Composite Longitudinal Section

Kittila - Rimpi

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Lapa Mine

Project 2012 Lapa Budget and supplement Actual Exploration (January-May 2012)

$ millions Drilling/development (metres) $ millions Drilling/ development (metres)

Lapa mine-site exploration drilling $2.64 28,600 $0.80 10,358

Lapa exploration drift development (east and west)

$2.32 637 $1.21 453

Lapa regional drilling $0.27 2,500 $0.15 1,166

Total $5.23 31,100 m drilling; 637 m drift development $2.15 11,523 m drilling; 453 m drift development

Project Township Area

Lapa mine Cadillac 8 km2

Exploration property & 2012 budget

14

Lapa Exploration Key Facts

Location: near the town of Cadillac, 11 kilometres east of LaRonde mine, Abitibi region, northwest Quebec, Canada Property: 796 ha Proven and probable gold reserve*: 0.5 million ounces (2.4 million tonnes at 6.5 g/t) Indicated gold resource*: 0.3 million ounces (2.0 million tonnes at 4.1 g/t) Inferred gold resource*: 0.1 million ounces (0.7 million tonnes at 4.7 g/t) Stage: Commercial mining operations since May 2009 Secondary metals: none Type of mining: underground Mill Capacity: 1,500 tonnes/day Date acquired: Initial option acquired in 2002; property purchased in 2003. Percent ownership: 100% Current work: Exploring property to east and west of the mine workings, drilling from an exploration drift that is being driven at about 1 kilometre depth. Production forecast in 2012: mining 600,000 tonnes to produce 100,000 ounces gold

*Source: Lapa December 31, 2011 Reserves and Resources

15

Lapa

LA10-101-39 14.8 g/t Au / 4.9 m

LA11-101-54A 9.3 g/t Au / 2.8 m

LA10-98-19 12.6 g/t Au / 2.8 m

LA11-98-48 27.5 g/t Au / 2.8 m

Priority Infill Drilling

Lapa Eastern zone

Au (M oz)

Tonnes ('000)

Au (g/t)


Indicated Resources 0.04 287 4.07


New budget - $2.8M

West 101 Level - $1.3M

Eastern Infill program in two zones - $1.5M

Possibility to expand by 1 -2 years

Easy access by shaft

16

LaRonde Exploration Key Facts

Location: halfway between the cities of Rouyn-Noranda and Val d’Or, Abitibi region, northwest Quebec, Canada Property: LaRonde: 1,826 ha; Bousquet: 465 ha; Ellison: 101 ha Proven and probable gold reserve*: LaRonde: 4.7 million ounces (33 million tonnes at 4.4 g/t); Bousquet: 0.2 million ounces (3.2 million tonnes at 1.9 g/t gold) Indicated gold resource*: LaRonde: 0.4 million ounces (7.2 million tonnes at 1.8 g/t); Bousquet: 0.8 million ounces (9.8 million tonnes at 2.4 g/t gold); Ellison: 0.1 million ounces (0.4 million tonnes at 5.7 g/t gold) Inferred gold resource*: LaRonde: 1.3 million ounces (11.4 million tonnes at 3.7 g/t); Bousquet: 0.6 million ounces (4.6 million tonnes at 4.0 g/t gold); Ellison: 0.1 million ounces (0.8 million tonnes at at 5.8 g/t gold) Stage: LaRonde mining operations since 1988; Bousquet 2011 scoping study being optimized in 2012; ongoing exploration Secondary metals: silver, zinc, copper, lead Type of mining: underground at LaRonde; potential open pit and underground at Bousquet Zone 5 Mill Capacity: 7,200 tonnes/day Date acquired: Agnico-Eagle acquired the remaining 57% interest in Dumagami Mines Ltd. not already owned by it in 1989. In 1992, Dumagami transferred all of its property and assets to Agnico-Eagle, including the LaRonde mine. Percent ownership: 100% Current work: Exploration focused on converting resources to reserves, and systematically exploring at depth to the east and west along the LaRonde horizon — part of a five-year plan. Near-surface exploration at Bousquet’s Zone 5 (3 kilometres west of LaRonde’s Penna shaft), and optimization of a 2011 scoping study. Production forecast in 2012: mining 2,300,000 tonnes to produce 157,500 ounces gold *Source: LaRonde December 31, 2011 Reserves and Resources

17

LaRonde Mine

Project Township Area

LaRonde mine Cadillac /Bousquet 18 km2

Bousquet Bousquet 5 km2

Ellison Bousquet 1 km2

Total 24 km2

Project 2012 LaRonde Area Mine-site

Budget Actual Mine-site Exploration

(January-May 2012)

$ millions Drilling (metres) $ millions Drilling (metres)

LaRonde $1.1 7,700 $0.51 1,528

Bousquet $0.30 3,000 $0.25 689

Total $1.45 10,700 $0.76 2,217

Exploration property & 2012 budget

18

Ellison-Bousquet- LaRonde – Exploration Targets 2012 Composite Regional Longitudinal Section

19

LaRonde Composite Longitudinal Section

Budget - Deep Exploration Program

Below 3,100 m

Evaluate 2 distinct gold trends

Zone 6 and zone 7

Zone 21 and zone 21

20

LaRonde – Zone 6 Composite Cross Section – 6340E

Section influence over 1km

21

LaRonde - Bousquet Composite Longitudinal Section

Resource Zone 5

Scoping study

Open pit or underground scenario

Bousquet Zone 5 Au (M oz)

Tonnes ('000)

Au (g/t)




22

Mexico Exploration Key Facts Pinos Altos / Creston Mascota

Location: Chihuahua State, Northern Mexico Property: 31,863 ha Proven and probable gold reserves*: 3.1 million ounces gold and 89 million ounces silver (47 million tonnes at 2.1 g/t gold and 58.9 g/t silver) Indicated resource*: 0.8 million ounces gold and 18.6 million ounces silver (20.6 million tonnes at 1.3 g/t gold and 28.1 g/t silver) Inferred resource*: 0.8 million ounces gold and 16.8 million ounces silver (23 million tonnes at 1.1 g/t gold and 22.7 g/t silver) Stage: Pinos Altos mine commercial since 2009; Creston Mascota satellite mine commercial since 2011 Secondary metal: silver Type of mine: Pinos Altos open-pit and underground mining, transitioning to mainly underground; Mascota open-pit mining Mill Capacity: 4,000 tonnes/day Estimated mine life: 2009-2029 at Pinos Altos and 2011-2017 at Creston Mascota Date acquired: Purchased in 2006 Percent ownership: 100%

Current work: Exploration work converting resources to reserves. Bravo deposit a focus; also expanding Cubiro, Sinter, Reyna de Plata and Creston Mascota zones. Production forecast in 2012: mining 4,200,000 tonnes to produce 205,000 ounces gold * Source: Pinos Altos December 31, 2011 Reserves and Resources including Creston Mascota

Creston Mascota

Pinos Altos

23

Mexico - Pinos Altos

Project 2012 Pinos Altos Exploration Budget Actual Exploration (January-May 2012)

$ millions

Drilling (metres) $ millions Drilling (metres)

Pinos Altos mine-site exploration $4.7 16,800 $1.3 7,832

Pinos Altos / Mascota regional exploration $1.1 3,000 $2.0 5,641

Total $5.8 19,800 $3.3 13,473

Pinos Altos mine including Mascota Au (M oz)

Ag (M oz)

Tonnes ('000)

Au (g/t)

Ag (g/t)

Proven Reserves 0.12 3.30 1,987 1.83 51.59

Probable Reserves 2.99 85.21 44,792 2.07 59.17

P & P Reserves 3.10 88.51 46,779 2.06 58.85

Indicated Resources 0.84 18.61 20,576 1.27 28.13

Inferred Resources 0.78 16.83 23,113 1.05 22.65

2012 Exploration Program - $5.8 M Large land package, with exploration

focus on the Creston Mascota area, including considering Bravo and Veta Flor as potential ore suppliers to the Mascota heap leach operations

Drilling underway to convert resources to reserves (12K metres) and to explore outside the current resources (5K metres)

Regional drill program (3K metres) focusing on expanding resources at Cubiro, Sinter and Reyna de Plata zones

Sinter being examined as possible source of ore for Pinos Altos mill

$106-million, four-year production shaft project recently begun to increase underground mining capacity

Mineral Reserves and Mineral Resources

24

Exploration properties and 2012 budget Mexico Exploration

Project Mining district Area

Pinos Altos mine

Pinos Altos 319 km2

El Aguila Ocampo-Moris 265 km2

PDG Plomosas 43 km2

Los Hilos Uruachi 6 km2

Pitaya Caborca 66 km2

La India / Tarachi

Mulatos 560 km2

Total 1,258 km2

Project 2012 Mexico

Exploration Budget

Actual Exploration Spending (January-May

2012)

$ millions Drilling

(metres) $ millions

Drilling (metres)

Pinos Altos / Mascota

$5.8 19,800 $3.3

13,473

La India / Tarachi $10.5

45,000

$4.2

24,965

Other grassroots $3.4 9,800 $0.9

2,927

Total $19.7 74,600 $8.4 41,365

25

Mexico Exploration

Pinos Altos Program Metres 2012 Budget (‘000’s)

Conversion Program 11,800 $2,936

Minesite Exploration 5,000 $1,566

Regional Exploration 12,800 $4,557

Total 29,600 $9,059

Zone M oz Au M oz Ag tonnes g/t Au g/t Ag Indicated Resources Total Sinter indicated o/p 0.25 3.44 7,404,504 1.07 14.46 Cubiro u/g 0.17 1.08 2,002,682 2.57 16.72 Total indicated 0.42 4.52 9,407,186 1.39 14.94

Zone M oz Au M oz Ag tonnes g/t Au g/t Ag Inferred Resources Total Sinter inferred o/p 0.09 1.27 2,894,211 0.97 13.64 Mina Bravo (North of 5000N) 0.12 1.72 5,009,338 0.75 10.65 Total Reyna de Plata o/p 0.28 7.84 9,509,296 0.93 25.66 Cubiro zone u/g 0.10 0.67 1,237,056 2.58 16.80 Total inferred 0.60 11.50 18,649,901 0.99 19.17

Exploration properties and 2012 budget

26

Pinos Altos including Creston Mascota

Bravo

Creston Mascota

New Pit Design

A

A’

Previous Pit Design

Veta Flor

Project 2012 Pinos Altos Exploration Budget

Actual Exploration (January-May 2012)

$ millions Drilling (metres)

$ millions Drilling (metres)

Pinos Altos mine-site exploration

$4.7 16,800 $1.3 7,832

Pinos Altos / Mascota regional exploration

$1.1 3,000 $2.0 5,641

Total $5.8 19,800 $3.3 13,473

2012 Exploration Program - $5.8 M Large land package, with exploration

focus on the Creston Mascota area, including considering Bravo and Veta Flor as potential ore suppliers to the Mascota heap leach operations

Drilling underway to convert resources to reserves (12K metres) and to explore outside the current resources (5K metres)

Regional drill program (3K metres) focusing on expanding resources at Cubiro, Sinter and Reyna de Plata zones

Sinter being examined as possible source of ore for Pinos Altos mill

$106-million, four-year production shaft project recently begun to increase underground mining capacity

Exploration properties and 2012 budget

27

CM-12-350 1.6 g/t Au / 10.6 g/t Ag / 37.5 m

0.9 g/t Au / 0.7 g/t Ag / 7.5 m

CM-12-377 2.2 g/t Au / 18.3 g/t Ag / 13.0 m

0.4 g/t Au / 7.4 g/t Ag / 4.5 m

Bravo

A

A’

Creston Mascota

CM-12-371 1.0 g/t Au / 12.1 g/t Ag / 13.0 m 2.9 g/t Au / 35.4 g/t Ag / 25.0 m

CM-12-365 1.9 g/t Au / 53.4 g/t Ag / 6.4 m

Incl. 4.5 g/t Au / 117.0 g/t Ag / 0.9 m 1.8 g/t Au / 11.2 g/t Ag / 1.5 m

Composite Longitudinal Section Mexico Exploration – Creston Mascota

Mascota Au

(000’ oz) - 2010

Tonnes ('000) – 2010

Au (g/t) - 2010

Au (000’ oz)

- 2011

Tonnes ('000) –

2011

Au (g/t) - 2011

Variance Au

(000’ oz)

P & P Reserves 365 7,605 1.49 440 12,317 1.11 75

28

Mexico Exploration Key Facts

Location: Sonora State, Mexico Property: approx. 56,000 ha Measured and indicated gold reserve*: 1.2 million ounces gold (48.2 million tonnes at 0.7 g/t) Inferred Gold resource*: 0.7 million ounces gold (32.1 million tonnes at 0.7 g/t) Stage: Advanced exploration, feasibility-level studies initiated Secondary metals: minor silver component Type of potential mining: open pit heap-leach Date acquired: Agnico-Eagle acquired the property in a friendly take-over of Grayd Resource Corporation in November 2011 Percent ownership: 100% Current work: Resource exploration and conversion drilling activities, geological mapping, and feasibility-level studies *Source: La India December 31, 2011 Resources

La India

29

Mexico - La India & Tarachi Project

Measured & Indicated gold resource (m oz) 1.2

Inferred gold resource (m oz) 0.7 2012 exploration budget (m US$) $10.5

La Amargosa Camp June 2012

30

Mexico - La India

La India property Au (M oz)

Tonnes ('000)

Au (g/t)

Measured Resources 0.13 3,730 1.06


M & I Resources 1.15 48,226 0.74


2012 Exploration Program - $10.5 M

Highly prospective land package, with exploration focus in 2012 on the Tarachi discovery

Drilling underway to expand resources at Tarachi (20K metres) and La India (4K metres), and to convert resources to reserves at La India (21K metres)

70 kilometres between two properties

Ongoing evaluation of La India’s potential as low-cost open pit heap leach mine

Additional $13 million in predevelopment work at La India, advancing engineering study and permitting process

Goal is initial production by late 2014

Project 2012 La India Property Budget Actual Exploration (January-May 2012)

$ millions Drilling (metres) $ millions Drilling (metres)

La India mine-site exploration $5.5 25,000 $1.9

14,004

Tarachi regional exploration $5.0

20,000

$2.3

10,961

Total $10.5 45,000 $4.2 24,965

31

Mexico - La India & Tarachi Project

Project Pipeline La India

Planned 100k oz per year production Cash cost $500/oz

La India

Tarachi Chivitas

El Pilar

Tarachi Mexico's first gold porphyry discovery Maiden resource early 2012 [email protected] g/t Au Including: [email protected] g/t

Chivitas Newest discovery (Nov 2011) 5 km from Tarachi

El Pilar 3 km Au soil anomaly Never drill tested

5km

Salto Colorado

San Javier Never drill tested

Never drill tested

San Javier

Salto Colorado

Aster alteration zones

Exploration targets

Deposits with resources estimated

Exploration Target Areas

32

Mexico - La India

Resource Zone

100 m

0 m

Dacite

DDH-11-200 [email protected]/t Au

RC-11-265 [email protected]/t Au

33

Las Huejas

El Llano

Llano Grande

500 m

Resource Estimate (December 31, 2011)

Tonnes (000’s )

Gold Grade

g/t

Gold (ounces)

Indicated gold resource (m oz)

21,456 0.57 390,000

Inferred gold resource (m oz)

12,.395 0.52 208,000

Cut off grade 0.4 g/t

2012 DDH & RC Drilling Mexico - Tarachi

34

Llano

Las Huejas Llano Grande

Initial Resource Area

Mexico - Tarachi Exploration Zones

35

Mexico - Tarachi

36

Meliadine Project

37

Meliadine Exploration Key Facts

Location: 25 km north of Rankin Inlet, 290 km southeast of Meadowbank mine in Nunavut, Canada Property: 55,603 ha Proven and probable gold reserve*: 2.9 million ounces (12.5 million tonnes at 7.2 g/t) Indicated gold resource*: 1.7 million ounces gold (12.6 million tonnes at 4.1 g/t) Inferred gold resource*: 2.4 million ounces gold (12.7 million tonnes at 6.0 g/t) Stage: Advanced exploration, feasibility study underway Secondary metals: none Type of potential mining: open pit and underground Date acquired: Agnico-Eagle purchased 16% interest in July 2008; acquired 100% interest in July 2010 Percent ownership: 100% Current work: surface exploration drilling and permitting, access road construction underway; initial feasibility study completed March 2011; scoping study has begun using larger reserves & resources. *Source: Meliadine December 31, 2011 Reserves and Resources

38

Meliadine Property mineral rights Area

Crown Land

mining claims 8.9 km2

mineral leases 512.8 km2

Subsurface NTI concessions – ANT 1, ANT 3, TAN 1, FAY 1B, FAY 2, FAY 3, FELSIC 1 34.3 km2

Total 556.0 km2

Meliadine Project – Location Map

39

Meliadine Exploration Upside

Pump Au (M oz)

Tonnes ('000)

Au (g/t)

Inferred Resources 0.13 775 5.34

Tiriganiaq Au (M oz)

Tonnes ('000)

Au (g/t)





Discovery Au (M oz)

Tonnes ('000)

Au (g/t)


Inferred Resources 0.19 763 7.68

Wolf Au (M oz)

Tonnes ('000)

Au (g/t)

Indicated Resources 0.03 289 3.60


F zone Au (M oz)

Tonnes ('000)

Au (g/t)

Probable Reserves 0.10 613 4.91



Wesmeg Au (M oz)

Tonnes ('000)

Au (g/t)



2012 budget $82 million for drilling, feasibility and infrastructure Resource to reserve conversion drilling (90K metres)

underway at Tiriganiaq /Wesmeg

Construction of access road underway

Study into accelerating underground ramp development expected in Q3 2012

Aggressive regional exploration includes 25K metres drilling

Production decision expected in late 2013

2012 Exploration Budget Actual Exploration (January-May 2012) $30.3 million $15.8 million

115,000 metres DDH 71,967 metres DDH

80 kilometres strike length

40

Meliadine Project – Geology Plan Map

41

Meliadine Project – Tiriganiaq

Largest deposit at Meliadine Resource expansion and resource-to-reserve

conversion drilling underway

Underground bulk sample project results Q2 2012

Accelerated ramp study underway

Tiriganiaq Au (M oz)

Tonnes ('000)

Au (g/t)





M11-1314 14.4 g/t Au / 4.3 m

M12-1504 9.3 g/t Au / 5.4 m

Incl. 15.9 g/t Au / 2.8 m

M11-1370 10.4 g/t Au / 12.1 m

Incl. 18.6 g/t Au / 5.0 m

M11-1364 7.7 g/t Au / 9.6 m

Incl. 10.9 g/t Au / 5.1 m

M11-1304 13.5 g/t Au / 10.9 m

Incl. 36.1 g/t Au / 3.8 m


42

M12-1405 5.4 g/t Au / 4.6 m

M12-1489 8.4 g/t Au / 12.9 m Incl. 10.4 g/t Au / 9.9 m

M12-1518 5.8 g/t Au / 13.5 m Incl. 8.5 g/t Au / 8.4 m M12-1474

4.8 g/t Au / 8.9 m Incl. 6.3 g/t Au / 5.5 m

M12-1412 6.2 g/t Au / 8.0 m

Incl. 10.8 g/t Au / 2.9 m

M11-1314 5.1 g/t Au / 6.8 m

M12-1405 7.7 g/t Au / 4.2 m

Normeg Wesmeg 1.5 km

M12-1514 10.0 g/t Au / 6.2 m Incl. 14.2 g/t Au / 4.0 m

Composite Longitudinal Section Meliadine Project – Wesmeg & Normeg

Gold reserves (m oz) 2.9 Average reserve gold grade (g/t) 7.2 Measured & Indicated gold resource (m oz) 1.7 Inferred gold resource (m oz) 2.4 2012 exploration budget (m US$) $30.3

Wesmeg’s initial indicated resource in Dec’ 2011

Exploration success extends Wesmeg open pit potential more than 3.3 kilometres; Underground potential also developing

New horizon discovered between Wesmeg and Tiriganiaq highlights exploration potential of property

Growing Wesmeg resource enhances feasibility of mining at Tiriganiaq

Wesmeg Au (M oz)

Tonnes ('000)

Au (g/t)



43

Tiriganiaq Schematic Cross Section

2012 Exploration Program at Tiriganiaq

Results of 2011 underground bulk sampling released in Q2 2012 to refine feasibility resource model

Resource-to-reserve conversion drilling

Resource expansion drilling

Study into acceleration of exploration ramp program to be complete in Q3 2012 to facilitate further exploration and the eventual development of the growing Tiriganiaq and Wesmeg deposits

44

Bulk Sampling Program Meliadine Project

Lode & Level Block Model Bulk Sample

Drill holes Tonnes Gold grade (g/t)

Gold (oz) Tonnes Gold grade

(g/t) Gold (oz)

1000 Lode (9,950 L.) 20 2,391 9.4 720 2,158 10.0 691 1100 Lode (10,000 L.) 13 2,555 14.0 1,149 2,415 16.7 1,298 Total 33 4,946 11.8 1,869 4,573 13.5 1,989

Results of the Tiriganiaq 2011 bulk sample vs. the block model estimates

The Company processed approximately 4,600 tonnes of ore from an underground bulk sample during 2011. The ore was extracted from lateral development in the Tiriganiaq deposit on two levels. The areas were sampled beforehand by diamond drilling on 15-metre spicing. Each development round was also sampled individually through the on-site sampling tower and the samples were shipped to an independent laboratory for assaying. The results of the program were compared with the December 31, 2011 reserve and resource estimate. The program confirmed, within expected precision, the resource estimation model that has been developed for the two principal zones (Zones 1000 and 1100) at Tiriganiaq. In fact, the sampling results indicate approximately 6% more gold than was predicted by the block model for these areas. The 2011 bulk sample program also confirmed the previous assessment of the Company’s block model in terms of grade continuity, consistency and distribution, and the evaluation of related mining properties through geological mapping, underground chip-, channel- and muck-sampling, and geotechnical observations.

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Appendix

46

Gold Tonnes (000’s)

Gold (g/t)

Gold (ounces)

(000’s)

Proven 11,029 2.80 994

Probable 146,057 3.78 17,757

Total Reserves 157,086 3.71 18,750

Measured & Indicated 168,336 1.78 9,633

Inferred 131,216 2.30 9,712

Silver Tonnes (000’s)

Silver (g/t)

Silver (ounces)

(000’s)

Proven 7,318 45.35 10,670

Probable 72,693 45.06 105,319

Total Reserves 80,011 45.09 115,989

Measured & Indicated 27,801 27.24 24,344

Inferred 34,513 19.00 21,082

See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.

December 31, 2011 Gold and Silver Reserves and Resources

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Copper Tonnes (000’s)

Copper (%)

Copper (tonnes)

Proven 5,331 0.28 15,025

Probable 27,901 0.27 76,160

Total Reserves 33,232 0.27 91,184

Indicated 7,225 0.12 8,629

Inferred 11,400 0.26 29,664

Zinc Tonnes (000’s)

Zinc (%)

Zinc (tonnes)

Proven 5,331 2.04 108,626

Probable 27,901 0.77 215,522

Total Reserves 33,232 0.98 324,149

Indicated 7,225 1.49 107,338

Inferred 11,400 0.44 49,745

Lead Tonnes (000’s)

Lead (%)

Lead (tonnes)

Proven 5,331 0.23 12,391

Probable 27,901 0.05 13,441

Total Reserves 33,232 0.08 25,832

Indicated 7,225 0.15 11,127

Inferred 11,400 0.05 5,138

See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources

December 31, 2011 Copper, Zinc and Lead Reserves and Resources

48

Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This document 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 document 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 15, 2012 were based on three-year average prices for the period ending December 31, 2011 of $1,255 per ounce gold, $23.00 per ounce silver, $0.91 per pound zinc, $3.25 per pound copper, $0.95 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.05, 1.37 and 12.86, 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.

Notes to Investors Regarding the Use of Resources

49

A mineral reserve is the economically mineable part of a measured or indicated mineral 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 mineral resource demonstrated by at least a preliminary feasibility study. A probable mineral reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural solid fossilized organic material including base and precious metals 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 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. 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 effective date for all of the Company’s mineral resource and reserve estimates in this document is December 31, 2011. 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 Technical Reports, which may be found at www.sedar.com. Other important operating information can be found in the Company’s Form 20-F and its news release dated February 15, 2012. Marc Legault, a Qualified Person and the Company’s Senior Vice-President, Project Evaluations, reviewed the technical information disclosed herein.

Notes to Investors Regarding the Use of Resources

50

A solid financial position, low-cost structure, well-funded growth projects in regions of low political risk, and a focused, consistent strategy put Agnico-Eagle in a strong position to continue creating exceptional per share value.

Sean Boyd President and Chief Executive Officer

Ammar Al-Joundi SVP Finance and Chief Financial Officer

David Smith SVP, Strategic Planning & Investor Relations

Trading Symbol: AEM on TSX & NYSE

Investor Relations: 416-947-1212 [email protected]

Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681

agnico-eagle.com

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