Agnico Eagle Reports First Quarter 2015 Operating and Financial Results – Strong Operational Performance Drives Record Gold Production and Low Costs - Amaruq and Kittila Drill Programs Yield Positive Results

Stock Symbol: AEM (NYSE and TSX)

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

AGNICO EAGLE REPORTS FIRST QUARTER 2015 OPERATING AND FINANCIAL RESULTS – STRONG OPERATIONAL PERFORMANCE DRIVES RECORD GOLD PRODUCTION AND LOW COSTS - AMARUQ AND KITTILA DRILL PROGRAMS YIELD POSITIVE RESULTS

Toronto (April 30, 2015) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported quarterly net income of $28.7 million, or net income of $0.13 per share for the first quarter of 2015. This result includes a noncash foreign currency translation loss on deferred tax liabilities of $23.3 million ($0.11 per share), various mark-to-market and other adjustment gains of $22.7 million ($0.11 per share), unrealized losses on financial instruments of $13.6 million ($0.06 per share), noncash foreign currency translation gains of $11.7 million ($0.05 per share), non-cash stock option expense of $7.8 million ($0.04 per share) and non-recurring gains of $7.6 million ($0.03). Excluding these items would result in adjusted net income of $31.4 million ($0.15 per share) for the first quarter of 2015. In the first quarter of 2014, the Company reported net income of $97.1 million or net income of $0.56 per share.

First quarter 2015 cash provided by operating activities was $143.5 million ($176.8 million before changes in non-cash components of working capital). This compares to cash provided by operating activities of $250.4 million in the first quarter of 2014 ($207.2 million before changes in non-cash components of working capital). The decrease in cash provided by operating activities before changes in working capital during the current period was largely due to lower realized gold and silver prices (down 8% and 17% respectively, period over period) and timing of sales which resulted in lower sales volumes relative to the ounces produced during the quarter.

"The year is off to a good start with continued strong operating performance from all of our mines. This performance coupled with lower fuel prices and weaker local currencies, has also resulted in better than expected operating costs", said Sean Boyd, Chief Executive Officer. “This year is also shaping up to be an exciting time on the exploration front, as we have drills operating at most of our mines and development projects. Drilling at Kittila has potentially outlined a new zone parallel to the main mineralized trend, and infill drilling is underway at Amaruq, with initial results suggesting good potential to expand the resource base and ultimately enhance our Nunavut platform", added Mr. Boyd

First Quarter 2015 highlights include:

• Record quarterly gold production – Payable gold production¹ in Q1 2015 was 404,210 ounces of gold at total cash costs² per ounce on a by-product basis of $588 and all-in sustaining costs³ (“AISC”) of $804 per ounce
• Record quarterly precious metal production in Mexico - In Q1 2015, payable gold and silver production was 89,077 ounces and 663,000 ounces respectively. Total cash costs per ounce of gold on a by-product basis from our Mexico operations averaged $387
• 2015 guidance reiterated – Expected production for 2015 is maintained at approximately 1.6 million ounces with total cash costs on a by-product basis of $610 to $630 per ounce and AISC of approximately $880 to $900 per ounce
• Infill drilling at Amaruq continues to yield positive results – Drilling resumed in late March, and holes drilled from the ice on Whale Lake have yielded promising results including 14.0 grams per tonne (“g/t”) gold over 18.9 meters, in one of four

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

2 Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine” below. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See “Note Regarding Certain Measures of Performance”. For information about the Company’s total cash costs per ounce on a co-product basis please see “Reconciliation of Non-GAAP Performance Measures”.

3All-in-sustaining costs is a non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to All-In Sustaining costs” below. The Company calculates All-in sustaining costs per ounce of gold produced as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the amount of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The Company's methodology for calculating all-in sustaining costs may not be similar to the methodology used by other producers that disclose all-in sustaining costs. See "Note Regarding Certain Measures of Performance". The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.

lenses cut by the same drill hole (AMQ15-168), as well as 15.3 g/t gold over 8.9 meters in another hole (AMQ15-172)

• Drilling at Kittila yields deepest Suuri Trend intersection to date and indications of a new parallel zone – Drilling of the Suuri Trend below the Roura area has returned 5.3 g/t gold over 10 meters at a vertical depth of approximately 1.6 km (ROD14-004F). Drilling has also shown indications of a new parallel zone 150 meters east of the main zone with intersections including 7.0 g/t gold over 7.0 meters at almost 1.3 km depth (ROD14-005)
• Continued focus on a strong balance sheet – In Q1 2015, $100 million was repaid under the Company’s credit facility
• A quarterly dividend of $0.08 per share declared

First Quarter Financial and Production Highlights

In the first quarter of 2015, strong operational performance continued at the Company's mines, which led to record quarterly production.

Payable gold production in the first quarter of 2015 was a record 404,210 ounces compared to 366,421 ounces in the first quarter of 2014. The higher level of production in the 2015 period was primarily due to the inclusion of Canadian Malartic, a full quarter of production at La India, increased throughput levels at Goldex, increased mill capacity at Kittila and higher grades and better recoveries at Pinos Altos. A detailed description of the production and cost performance of each mine is set out below.

Total cash costs per ounce on a by-product basis for the first quarter of 2015 were higher at $588 versus $537 per ounce for the first quarter 2014. Total cash costs per ounce on a by-product basis in the first quarter of 2015 were negatively impacted by lower zinc and copper production and lower realized silver and copper prices (down 17% and 21%, respectively, period over period) which were slightly offset by higher production levels at most of the Company’s mines and weaker local currencies (C$ 2% lower, EURO 4% lower and MXP 15% lower when compared to the 2015 currency price assumptions, see February 11, 2015 news release) compared to the first quarter of 2014.

Costs in the 2014 period were positively affected by record production and lower costs at Meadowbank (which processed the remaining high grade ore at the Portage and Goose deposits) and higher grades at LaRonde compared to the current period.

AISC for the first quarter of 2015 was $804 per ounce on a by-product basis, which is below 2015 guidance of $880 to $900 per ounce on a by-product basis. The lower AISC is primarily due to lower than forecast total cash costs per ounce on a by-product basis in 2015 and timing of capital expenditures.

Cash Position Remains Strong and Debt Levels Reduced

Cash and cash equivalents and short term investments decreased to $172.1 million at March 31, 2015, from the December 31, 2014 balance of $215.3 million. The outstanding balance on the $1.2 billion credit facility was reduced from $500 million at December 31, 2014 to $400 million at March 31, 2015.

Total capital expenditures made by the Company in the first quarter of 2015 were $82.9 million, including $16.6 million at LaRonde, $12.0 million at Pinos Altos, $10.7 million at Canadian Malartic, $10.4 million at Kittila, $10.0 million at Goldex, $9.4 million at Meadowbank, $8.4 million at Meliadine, $2.8 million at Lapa, $2.3 million at La India and $0.3 million at Creston Mascota.

Sustaining capital expenditures made by the Company in the first quarter were $60.8 million, including $16.6 million at LaRonde, $9.4 million at Meadowbank, $9.2 million at Canadian Malartic, $8.9 million at Kittila, $7.0 million at Pinos Altos, $4.3 million at Goldex, $2.8 million at Lapa, $2.3 million at La India and $0.3 million at Creston Mascota.

The Company has adopted a phased approach to capital and exploration spending in 2015 and anticipates the potential for increased expenditures on select projects (if merited based on positive results). Projects that may warrant additional spending include Amaruq, El Barqueno, Goldex and Meliadine.

As of March 31, 2015, the Company had drawn down $400 million on its $1.2 billion credit facility. This results in available lines of approximately $800 million, excluding another $300 million available in an accordion feature.

First Quarter 2015 Results Conference Call and Webcast Tomorrow

The Company's senior management will host a conference call on Friday, May 1, 2015 at 8:30 AM (E.D.T.) to discuss financial results and provide an update of the Company’s operating activities.

Via Webcast:

A live audio webcast of the meeting will be available on the Company's website www.agnicoeagle.com.

Via Telephone:

For those preferring to listen by telephone, please dial 1-416-260-0113 or Toll-free 1-800- 524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 1-647-436-0148 or Toll-free 1-888-203-1112, access code 6926383. The conference call replay will expire on June 1, 2015.

The webcast, along with presentation slides, will be archived for 180 days on www.agnicoeagle.com.

Annual and Special General Meeting (“AGM”)

The AGM will begin on Friday, May 1, 2015 at 11:00 AM (E.D.T.). The meeting will be held at the Sheraton Centre Hotel (Dominion Ballroom) located at 123 Queen Street West, Toronto, ON. For those unable to attend in person, the meeting will be accessible on the internet or by telephone, as set out below.

Via Webcast:

A live audio webcast of the AGM will be available on the Company's website www.agnicoeagle.com.

Via Telephone:

For those preferring to listen by telephone, please dial 1-416-260-0113 or Toll-free 1-800- 524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the AGM.

Replay Archive:

Please dial 1-647-436-0148 or Toll-free 1-888-203-1112, access code 7989565. The conference call replay will expire on June 1, 2015.

The webcast, along with presentation slides, will be archived for 180 days on www.agnicoeagle.com.

Northern Business Operating Review

LaRonde Mine – Strong Development Performance Supports 2015 Production Levels

The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.

The LaRonde mill processed an average of 6,203 tonnes per day (“tpd”) in the first quarter of 2015, compared with an average of 6,192 tpd in the corresponding period of 2014. Minesite costs per tonne⁴ were approximately C$104 in the first quarter of 2015, higher than the C$99 per tonne experienced in the first quarter of 2014. The increased costs in the 2015 period were primarily due to temporary issues with the paste fill piping network, and higher drilling costs associated with increased ore hardness in some of the production stopes in March compared to the prior-year period.

LaRonde's total cash costs per ounce on a by-product basis were $703 in the first quarter of 2015 on payable production of 58,893 ounces of gold. This compares with the first quarter of 2014 when total cash costs per ounce on a by-product basis were $574 on production of 59,352 ounces of gold. Cash costs and production in the 2015 period were negatively impacted by higher minesite costs per tonne (see above), slightly lower gold grades and lower by-product revenues as a consequence of stope re-sequencing in the upper mine. The stope re-sequencing led to overall lower zinc grades and recoveries than expected. These stopes have been rescheduled for mining in the second and third quarters of 2015.

Work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level. This new conveyor, which is expected to be commissioned by the end of September 2015, should help mining flexibility and reduce congestion in the deeper portions of the mine.

Studies are progressing to assess the potential to extend the reserve base and carry out mining activities between the 311 and 371 levels at LaRonde. At present, the reserve base extends to the 311 level, which is 3.1 kilometers below the surface. In 2014, conversion drilling added approximately 444,000 ounces of gold (2.6 million tonnes at 5.33 g/t gold) to the indicated resources between the 311 and 341 levels. Two drill holes are underway to extend the mineralization to the 371 level (a depth of 3.7 km below the surface).

Canadian Malartic Mine – Record Gold Production in March

In June 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana") acquired all of the issued and outstanding common shares of Osisko Mining Corporation and created the Canadian

4 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see “Reconciliation of Non-GAAP Financial Performance Measures

• Reconciliation of Production Costs to Minesite Costs per Tonne by Mine” below. See also “Note

Regarding Certain Measures of Performance”.

Malartic General partnership (the “Partnership”) that now owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana have an indirect 50% ownership interest in the Partnership.

During the first quarter of 2015, the Canadian Malartic mill (on a 100% basis) processed an average of 51,988 tpd. Mill throughput levels in January averaged 48,629 tpd which was below budget largely due to difficult winter conditions. Throughput returned to normal levels in February and March, averaging 53,753 tpd.

Minesite costs per tonne were approximately C$20 (C$23 including royalties), which was in line with guidance. The average stripping ratio in the first quarter of 2015 was 2.0 to 1.0.

For the first three months of 2015, Agnico Eagle’s share of production at the Canadian Malartic mine was 67,893 ounces of gold at total cash costs per ounce of $632 on a byproduct basis. Production in March was a record 54,013 ounces (100% basis), largely driven by higher grade ore from the North Zone.

Since acquiring the mine in June 2014, the Partnership has been looking at a variety of ways to optimize the operations. The current crushing and grinding circuit has a nameplate capacity of 55,000 tpd. Optimization efforts are ongoing with a focus on modification of the SAG mill liners and certain components of the crushing system. In addition, the Partnership is looking at opportunities to reduce the number of annual planned shutdowns.

In February 2015, the Partnership announced that throughput levels were forecast to be approximately 52,500 tpd in the first half of 2015, increasing to approximately 55,000 tpd in the second half of 2015. The potential second half increase in throughput in 2015 was partly contingent upon updating the existing operating permits. Discussions are ongoing with permitting authorities in regards to pre-crushing activities. Currently, crushing levels are expected to remain in a range of 53,000 to 55,000 tpd through 2016. For the full year 2015, Agnico Eagle’s estimated share of production from Canadian Malartic remains unchanged at 280,000 ounces.

Permitting activities for the Barnat Extension and deviation of Highway 117 are continuing. An Environmental Impact Assessment (“EIA”) was submitted in February 2015, and the first series of questions was received from permitting authorities in mid- April. The process continues as planned.

In March 2015, the Partnership acquired an additional 30% interest in Malartic CHL property from Abitibi Royalties Inc. (RZZ:TSX-V) in exchange for 459,197 Agnico Eagle common shares and 3,549,695 Yamana common shares for aggregate consideration of approximately C$35.0 million and a 3% net smelter return royalties to each of Abitibi Royalties Inc. and Osisko Gold Royalties (OR:TSX). The Partnership now owns a 100% interest in the Malartic CHL property.

The Malartic CHL property adjoins the Canadian Malartic mine to the east and hosts in part the Odyssey North discovery, the Jeffrey gold deposit and the eastern nose of the Barnat gold deposit.

Drilling has resumed on the Odyssey North and South Zones and to date, two holes have been drilled. Data from these two holes is currently being compiled and interpreted. In 2015, drilling is planned on the Odyssey zones with a proposed budget of $3.0 million.

Exploration Update on Pandora and Kirkland Lake Projects

In addition to joint, indirect ownership of the Canadian Malartic mine, through the Partnership, Canadian Malartic Corporation, a company in which each of Agnico Eagle and Yamana have an indirect 50% interest is exploring a portfolio of properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec.

At the Upper Beaver property in Kirkland Lake, a resource update is currently underway. Data from this update are planned to be incorporated in a new technical study.

Elsewhere in the Kirkland Lake region, data review is underway on the Upper Canada property. A hole was recently drilled on the property to test the extension of the C Zone, and assay results are pending. Additional exploration work may be carried out after the data review is completed.

At Pandora, eight holes were drilled to test the North and South Branch zones near the surface, and the data are being integrated with previous drill results.

Underground development on the 101-W Exploration drift at the adjacent Lapa mine commenced in February and approximately 149 meters of drifting was completed during the quarter. In 2015, approximately 950 meters of drifting is scheduled to be carried out. In early Q3 2015, a drill program is expected to commence to test the mineralization at the South Branch target from underground.

Lapa – Higher grades and recoveries continue from Zulapa Z7 Zone

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.

The Lapa circuit, located at the LaRonde mill, processed an average of 1,690 tpd in the first quarter of 2015. This compares with an average of 1,749 tpd in the first quarter of 2014. The lower throughput in the 2015 period was largely due to a reduction in the number of stopes available for mining during the quarter and the complexity of mining at greater depths compared to the 2014 period.

Minesite costs per tonne were C$119 in the first quarter of 2015, compared to the C$108 realized in the first quarter of 2014. Costs in the 2015 period were higher due to higher labour and maintenance costs compared to the same period in 2014.

Payable production in the first quarter of 2015 was 25,920 ounces of gold at a total cash costs per ounce on a by-product basis of $568. This compares with the first quarter of 2014, when production was 23,409 ounces of gold at total cash costs per ounce on a byproduct basis of $662. In the 2015 period, production was higher and costs were lower due to higher gold grades, better recoveries and favourable foreign exchange rates.

At Lapa, 2015 is the last full year of production based on the current life of mine plan. In 2016, production is expected to exhibit a decline from the current level. Additional exploration drilling in the Zulapa Z7 zone at depth and on the adjoining Pandora property could potentially extend the mine life (see discussion under the “Exploration Update on Pandora and Kirkland Lake Projects” above).

Goldex – Deep Zone Development Expected to Accelerate Through Year-end 2015

The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original Goldex Extension Zone (“GEZ”) orebody were suspended in October 2011 (see October 19, 2011 news release). In July 2012, the M and E satellite zones were approved for development. Mining operations at GEZ remain suspended. Mining operations resumed on the M and E satellite zones in September 2013.

The Goldex mill processed an average of 6,294 tpd in the first quarter of 2015. This compares with an average of 5,393 tpd in the first quarter of 2014. The higher throughput in the 2015 period was due to more mature mining fronts and productivity improvements compared to the 2014 period.

Minesite costs per tonne were approximately C$34 in the first quarter of 2015, higher than the C$31 per tonne experienced in the first quarter of 2014. The increase in costs over the prior-year period is partly due to accelerated mining rates and higher throughput levels.

Payable gold production in the first quarter of 2015 was 29,250 ounces of gold at a total cash costs per ounce on a by-product basis of $541. This compares with the first quarter of 2014, when production was 19,430 ounces of gold at total cash costs per ounce on a by-product basis of $762. The decrease in total cash costs in the 2015 period was largely a result of increased production (due to higher tonnage, gold grades and recoveries) and favourable foreign exchange rates, partially offset by higher consumable costs compared to the 2014 period.

The M2 and M5 zones have been added to the mine plan, conversion drilling has been completed on the M3 and M4 satellite zones, and work is underway to incorporate these zones into the reserve base later this year.

Accelerated development of the exploration ramp into the DX zone (the top of the Deep zone) continues. In the first quarter of 2015, approximately 1.2 km of development was completed below level 85. This ramp is designed to provide access for additional exploration drilling, with a goal of outlining a mineable reserve and the completion of a technical study by late 2015 or early 2016. Development of the Deep zone would have the potential to extend the mine's life past the current estimated life-of-mine of 2017.

In January 2014, Agnico Eagle acquired the Akasaba West gold-copper deposit from Alexandria Minerals (AZX:TSXV). Located less than 30 km from Goldex, the Akasaba West deposit could potentially create flexibility and synergies for the Company's operations in the Abitibi region by utilizing extra milling capacity at both Goldex and LaRonde, while reducing overall costs. Akasaba currently hosts an indicated resource of approximately 200,000 ounces (8.1 million tonnes at 0.77 g/t gold and 0.44% copper).

An EIA on the Akasaba West deposit is expected to be submitted in June, which will allow the BAP process to commence. The Company anticipates the EIA approval in the fall of 2017.

Meadowbank – Vault Optimization Studies on Track for Delivery in H2 2015

The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in March 2010.

The Meadowbank mill processed an average of 11,006 tpd in the first quarter of 2015, compared to the 11,047 tpd achieved in the first quarter of 2014. Year-over-year mill throughput levels were relatively stable due to ongoing improvements in equipment availability and maintenance which offset the fact that tonnage in the 2015 period was slightly lower due to a higher percentage of Vault ore processed (which has a higher hardness factor).

Minesite costs per tonne were a record low C$71 in the first quarter. These costs were lower than the C$76 per tonne in the first quarter of 2014. The improvement in costs per tonne was primarily due to reduced labour costs and lower reagent consumption, compared to the respective 2014 period.

Payable production in the first quarter of 2015 was 88,523 ounces of gold at total cash costs per ounce on a by-product basis of $655. This compares with the first quarter of 2014 when 156,444 ounces were produced at total cash costs per ounce on a by-product basis of $434. The lower production and higher costs in the 2015 period compared to the 2014 period are primarily due to the processing of lower grade ore (down 41%) and lower recoveries (down 3.9%). The first quarter of 2014 was the final quarter of the high grade ore from the Goose and Portage pits.

Production levels are expected to gradually decline from 2015 to 2017 due to a decline in grade as the current reserve base is depleted. In 2015, approximately 45% of the production is expected to occur in the first half of the year. Production is expected to increase in the second half of 2015 due to higher grades being mined from the Portage E3 pit.

In 2013, approximately 246,000 ounces were removed from reserves at the Vault deposit due to a change in the gold price assumption used to calculate reserves at December 31, 2013. Considering the currently favourable US to Canadian dollar foreign exchange rate and lower fuel costs, the Company is evaluating the potential for a portion of these ounces to be added back into the mine plan at Meadowbank starting in 2017 which would extend the mine life. This decision may lead to revisions in the previously announced Meadowbank guidance. An infill drilling program is planned to better define the Vault resources, and a decision whether to proceed with the extraction of these additional ounces will likely be made in the second half of 2015.

Kittila – Drilling Extends Resources to Depth and Outlines a New Parallel Zone

The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.

The Kittila mill processed an average of 3,836 tpd in the first quarter of 2015 compared to the 3,414 tpd in the first quarter of 2014. The higher throughput in the 2015 period is a reflection of the mill expansion completed in the fourth quarter of 2014, offset in part by a 10-day scheduled maintenance shutdown at the end of March. A second maintenance shutdown is scheduled for October 2015.

Minesite costs per tonne at Kittila were approximately €77 in the first quarter of 2015, compared to €73 in the first quarter of 2014. Costs increased in the first quarter of 2015 due to the increased usage of contractors in the underground portion of the mine and during the mill shutdown, when compared with the 2014 period.

With the expansion, the mill has shown potential to operate in excess of 4,000 tpd and efforts are ongoing to assess the optimal throughput rate. In conjunction, the Company is also working to optimize underground mining rates. Unit costs are expected to improve once steady state operations are achieved.

First quarter 2015 payable gold production at Kittila was 44,654 ounces with a total cash costs per ounce on a by-product basis of $681. In the first quarter of 2014, the mine produced 38,552 ounces at total cash costs per ounce on a by-product basis of $795. The higher production in the 2015 period is related to the increased mill capacity compared to the 2014 period. Costs decreased in the first quarter of 2015 primarily due to lower costs for consumables, energy and a favourable foreign exchange rate.

Drilling from the main exploration ramp at Kittila has outlined a significant zone of mineralization with potentially wider widths and better grades than those currently being mined. The main underground ramp at Kittila is being extended to reach the Rimpi Zone and a new surface ramp is also being developed to access the shallower portions of the Rimpi deposit. The surface ramp had advanced 587 meters to the 89 level by the end of March.

At the Kuotko deposit, located approximately 15 kilometers north of Kittila, drilling is underway to infill and expand the existing approximately 170,000 ounce inferred resource (1.8 million tonnes at 2.9 g/t gold). Upon completion of the drilling, studies will be carried out to assess the viability of mining the deposit via an open pit. If the studies are positive, permit applications would then be expected to be submitted by the end of 2015.

Deep drilling along the Suuri Trend continues to yield positive results and confirm the downward extension of mineralization. Recent deep drilling (see composite longitudinal section below) has intersected 5.3 g/t gold over 10 meters at a depth of approximately 1,550 meters below surface in hole ROD14-004F. This is the deepest intersection drilled to date at Kittila, and is approximately 100 meters below the current resource envelope.

[Kittila Composite longitudinal section]

Drilling has also indicated the potential for a new parallel lens of mineralization approximately 1.3 kilometers below surface and 150 meters east of the main Kittila ore zone and within the sheared and altered structure that hosts the known Kittila deposits (see cross section below). A recent hole in this area (ROD14-005) yielded 7.0 g/t gold (uncapped) over 7.0 meters (estimated true width) at 1,258 meters below surface. Hole ROU10-37 previously drilled from surface in 2011 intersected this lens, yielding 10.2 g/t gold (uncapped) over 5.6 meters (estimated true width) at a depth of almost 1,200 meters below surface and 500 meters south of hole ROD14-005.

This new lens is near the proposed Kittila shaft location, and could provide additional tonnage, should further drilling confirm the continuity of the mineralization. A second underground heavy drill rig will be added to further assess the extent of this new parallel zone.

Details on this new drilling at Kittila are provided in the tables below.