Agnico Eagle Reports Third Quarter 2014 Results – 2014 Gold Production Expected to Exceed Top End of Forecast, 2015 Guidance Increased on the Back of Strong Operating Performance

Stock Symbol: AEM (NYSE and TSX)

For further information: Investor Relations (416) 947-1212

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

AGNICO EAGLE REPORTS THIRD QUARTER 2014 RESULTS – 2014 GOLD PRODUCTION EXPECTED TO EXCEED TOP END OF FORECAST, 2015 GUIDANCE INCREASED ON THE BACK OF STRONG OPERATING PERFORMANCE

Toronto (October 29, 2014) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported a quarterly net loss of $15.1 million, or a net loss of $0.07 per share for the third quarter of 2014. This result includes a noncash foreign currency translation loss on deferred tax liabilities of $11.3 million ($0.05 per share), other non-recurring losses of $4.9 million ($0.02 per share), various mark-tomarket adjustment losses of $4.3 million ($0.02 per share), non-cash stock option expense of $3.5 million ($0.02 per share) and non-cash foreign currency translation gains of $4.7 million ($0.02 per share). Excluding these items would result in an adjusted net income of $4.2 million, or $0.02 per share. In the third quarter of 2013, the Company reported net income of $74.9 million, or $0.43 per share.

Earnings during the quarter were affected by: additional amortization expenses resulting from the increase in the net book value of depreciable assets under International Financial Reporting Standards (“IFRS”); increased exploration expenses at the new Amaruq project and at the Canadian Malartic Partnership; and lower realized gold prices on timing of sales (approximately 3% lower than the average London PM gold fix for the quarter).

The Company adopted IFRS as of July 1, 2014 and all financial results herein, including those for prior periods, have been calculated in accordance with IFRS.

For the first nine months of 2014, the Company reported net income of $104.3 million, or $0.55 per share. This compares with the first nine months of 2013 when net income was $93.6 million, or $0.54 per share. Financial results in the 2014 period were positively affected by significantly higher gold production (1,041,753 ounces as opposed to 776,892 ounces) due primarily to higher grades at Meadowbank, the acquisition of Canadian Malartic and contributions from commercial production at Goldex and La India.

Third quarter 2014 cash provided by operating activities was $71.2 million ($129.2 million before changes in non-cash components of working capital), compared to cash provided by operating activities of $88.4 million in the third quarter of 2013 ($176.1 million before changes in non-cash components of working capital).

For the first nine months of 2014, cash provided by operating activities was $504.4 million ($472.8 million before changes in non-cash components of working capital), as compared with the first nine months of 2013 when cash provided by operating activities was $340.3 million ($415.2 million before changes in non-cash components of working capital).

The higher net income and cash provided by operating activities in the first nine months of 2014 was in spite of lower realized metal prices and is a result of significantly higher gold production, as described above.

“In 2014, we have strengthened our businesses in each of our four principal operating regions, and we anticipate continued strong production performance in the fourth quarter of 2014 and for 2015 as a number of our key mines continue to expand and ramp up their output. As such, we are pleased to provide increased production guidance of approximately 1.6 million ounces for 2015”, said Sean Boyd, President and Chief Executive Officer. “With the pending closure of the Cayden acquisition and a maiden resource expected at Amaruq by early next year, Agnico is well positioned to drive further growth on both our Northern and Southern business platforms well into the future”, added Mr. Boyd.

Third quarter 2014 highlights include:

• Continued strong operating performance in the third quarter 2014 – Payable production¹ of 349,273 ounces at total cash costs² per ounce on a by-product basis of $716
• Canadian Malartic mine achieves record quarterly mill throughput and productivity – Mill processes an average of 52,539 tonnes per day (“tpd”) with cost per tonne below budget and top end of 2014 production guidance expected to be achieved

1Payable 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.

2Total 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”.

• Upper end of 2014 guidance projected to be exceeded – Production for 2014 is expected to be approximately 1.4 million ounces with total cash costs on a byproduct basis of $650 to $675 per ounce
• Updated 2015 guidance – Production for 2015 is now expected to be approximately 1.6 million ounces as a result of expected increased production at Meadowbank, Kittila and the Mexican operations
• Initial resource expected at Amaruq project by early 2015 – 31,400 metre drill program completed in October 2014, final assays are being compiled, resource estimation in progress
• Cayden acquisition receives overwhelming securityholder approval – Acquisition expected to be completed by late 2014 or early 2015 pending Mexican regulatory approval. A $15 million exploration program has been proposed for 2015 after the acquisition closes
• Conversion to IFRS completed – 2013 and 2014 financials have been restated to reflect the conversion

Payable gold production in the third quarter of 2014 was 349,273 ounces (including 64,761 ounces from the Canadian Malartic mine) compared to 315,828 ounces (including 1,505 ounces of pre-commercial production from Goldex) in the third quarter of 2013. A description of the production and cost performance for each mine is set out below.

Total cash costs per ounce of gold produced on a by-product basis for the third quarter of 2014 were $716. This compares with $591 per ounce on a by-product basis in the third quarter of 2013. The higher cash costs per ounce in the 2014 period were due primarily to lower production of gold at Meadowbank with the completion of mining in the higher grade Goose Pit, scheduled and unscheduled shutdowns at the LaRonde mill to upgrade the production and service hoist drives, and a two week tie-in shutdown for the mill expansion at Kittila.

Payable gold production for the first nine months of 2014 was 1,041,753 ounces (including 76,639 ounces from the Canadian Malartic mine) compared to payable gold production of 776,892 ounces (including 8,801 ounces of production from Kittila, Creston Mascota, and Goldex that were not included in the total cash cost calculation) in the comparable 2013 period.

For the first nine months of 2014, total cash costs on a by-product basis were $627 per ounce. This compares with total cash costs of $659 per ounce on a by-product basis in the first nine months of 2013. The higher production and lower total cash costs in 2014 are due to a strong first half contribution (higher production and lower costs) from Meadowbank and reflects contributions from Goldex, La India and Canadian Malartic.

Strong Operational Performance Across all Regions Drives Increased Production Guidance for 2014 and 2015

Over the course of 2014, the Company has strengthened its businesses in all four of its principal operating regions, which has resulted in an increase to both the 2014 and 2015 production guidance.

In the Abitibi region, the LaRonde, Goldex, and Canadian Malartic mines are positioned for improved operating performance moving through 2014 and beyond. The upgrading of the hoist drives at LaRonde in the third quarter of 2014 provides the mine better access to the higher grade, deeper portions of the orebody, which is expected to drive higher future production rates, anticipated to exceed 300,000 ounces per year by mid-2016.

At Goldex, lower than expected operating costs has allowed for the potential development of other satellite orebodies, which is expected to enhance the production profile and reduce costs. Development of an exploration ramp into the Deep zone is being advanced to facilitate drilling to delineate mineable reserves by late 2015 or early 2016. Given the strong operational performance achieved to date, the Goldex mining approach may also open up other mining opportunities in the Abitibi region.

At the Canadian Malartic mine, record quarterly mill and mine throughput levels have led to lower than expected costs and 2014 production is now forecast to come in at the higher end of the guidance range of 510,000 to 530,000 ounces (on a 100% basis). Ongoing optimization efforts are expected to result in further production and cost improvements in 2015.

The tie-in of the Kittila plant expansion led to lower than expected production in the third quarter of 2014. Production in the fourth quarter is expected to return to more normal levels, and the plant expansion (to approximately 4,000 tpd) is expected to result in increased production levels starting next year. Ramp development in the Rimpi zone is expected to provide future feed to the mill and enhance Kittila’s production profile.

Given its strong mill and mine performance, Meadowbank is on track for a record production year in 2014. These operating efficiencies are expected to continue to drive strong production in 2015 as well. Impressive exploration results from an expanded 2014 exploration program at the new Amaruq discovery (approximately 50 km from the mine) appears to have the potential to extend the current Meadowbank mine life. A maiden resource is expected in early 2015 (just over a year from the time of the initial discovery at Amaruq) and studies are currently underway to evaluate how Amaruq can be incorporated into the Meadowbank mine plan with possible synergies to the Meliadine project.

The securityholders of Cayden Resources Inc. (“Cayden”) voted 99.0% in favour of the plan of arrangement under which Agnico Eagle would acquire Cayden. On the closing of this acquisition Agnico Eagle will gain access to the El Barqueño property in Jalisco State, Mexico. The Company believes that this property has the potential to develop into a significant production asset, which could drive additional growth on the Southern Business platform. Once Cayden is acquired, the Company expects to commence exploration activities at El Barqueño with a budget of $15 million proposed for 2015.

Given the strong operating results over the first nine months, the 2014 production forecast has been increased for a second time and is now expected to be approximately 1.4 million ounces, exceeding the previously announced second quarter 2014 guidance range of 1.35 to 1.37 million ounces, while total cash costs on a by-product basis are expected to remain in the range of $650 to $675 per ounce. Expected all-in sustaining cost³ (“AISC”) guidance calculated on a by-product basis for 2014 is unchanged at $990 per ounce.

Given the favorable developments in the Company’s four principal operating regions, production for 2015 is now expected to be approximately 1.6 million ounces as a result of increased production forecasts at Meadowbank, Kittila and the Mexican operations. Prior 2015 guidance (see the news release dated February 12, 2014) was 1.25 million ounces (excluding Canadian Malartic). Detailed guidance for 2015, 2016 and 2017 will be included in Agnico Eagle’s regular three-year guidance news release to be provided in February 2015.

Quarterly Dividend Declared

The Board of Directors has approved the next quarterly dividend of 8 cents per share to be paid on December 15, 2014 to shareholders of record as of December 1, 2014. Agnico Eagle has paid a dividend every year since 1983.

Conversion to International Financial Reporting Standards

Effective as of the third quarter 2014, the Company converted its basis of accounting from US GAAP to IFRS with a transition date of January 1, 2013. Agnico Eagle is now reporting under IFRS for interim and annual periods, with comparative information restated under IFRS. Additional disclosure regarding the IFRS conversion will be included in the Company's Management's Discussion and Analysis in respect of the third quarter of 2014, which is expected to be filed in November 2014.

As a result of the conversion to IFRS, the Company’s cost base for property, plant and equipment has been adjusted. For new depreciable asset balances by mine, see the financial statements at the back of this news release.

3 All-in sustaining costs is a Non-GAAP measure and is used to show the full cost of gold production from current operations. 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 options) and reclamation expenses divided by the amount of gold produced. 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.

The measurement of deferred taxes under IFRS differs from US GAAP such that additional deferred tax expense in the amount of $10.3 million was recognized in the third quarter of 2014 due to the weakening of the Mexican peso and Euro relative to the US dollar during this period. The Company's expected overall tax rate for 2014 remains at 35% to 40%.

Cayden Resources Acquisition – Securityholders Approve Transaction, Mexican Regulatory Approval Pending

Securityholders of Cayden have overwhelmingly approved the acquisition by Agnico Eagle of all of the outstanding shares of Cayden. Mexican regulatory approval is pending and the Company expects to complete the transaction by late 2014 or early 2015.

The maximum number of shares issuable by Agnico Eagle for the acquisition of Cayden will be approximately 4.86 million, or approximately 2.3% of Agnico Eagle's outstanding shares (on a fully-diluted basis).

Cayden owns, has options to acquire or has staked, concessions constituting a 100% interest in the El Barqueño property, which covers approximately 41,000 hectares in the Guachinango gold district in Jalisco State, Mexico. El Barqueño hosts a significant epithermal bonanza type gold vein and disseminated stockwork system. Several gold bearing zones have been identified by drilling and trenching in an area approximately 13.5 km long by 4.7 km wide.

Cayden also owns a 100% interest in the Morelos Sur property, which covers approximately 13,000 hectares in the Guerrero gold belt in Guerrero State, Mexico. Morelos Sur consists of three properties (La Magnetita, Tenantla and Las Calles) and exploration by Cayden has outlined a 25 km² gold soil anomaly at La Magnetita, and Tenantla.

The Cayden acquisition is consistent with Agnico Eagle’s long-term strategy of acquiring early stage projects where the Company believes it can add further value through focused exploration and mine building. A $15 million exploration budget has been proposed for the El Barqueño property in 2015.

Third Quarter 2014 Results Conference Call and Webcast Tomorrow

Agnico Eagle’s senior management will host a conference call on Thursday, October 30, 2014 at 11:00 AM (E.D.T.) to discuss the Company’s financial and operating results.

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 in by telephone, please dial 416-847-6330 or Toll-free 1- 866-530-1553. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 647-436-0148 or Toll-free 1-888-203-1112, access code 9653906. The conference call replay will expire on November 30, 2014 at 2:00 PM (E.S.T.).

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

Capital Expenditures

Capital expenditures in the third quarter of 2014 were $125.4 million, including $29.2 million at Kittila, $19.0 million at Meadowbank, $18.5 million at LaRonde, $14.0 million at Pinos Altos, $6.5 million at Goldex, $5.0 million at Lapa, $4.8 million at La India and $1.4 million at Creston Mascota. Capital expenditures at development projects included $10.8 million at Meliadine.

On a 100% basis, capital expenditures at the Canadian Malartic mine in the third quarter of 2014 were C$39.2 million (approximately C$106.3 million for the first nine months of 2014).

Capital expenditures for the first nine months of 2014 were $342.1 million. For 2014, capital expenditures are expected to total approximately $499 million, representing a $31 million increase from the previously announced figure of $468 million which is due primarily to the capitalization of deferred stripping expenses as a result of the conversion of the Company’s accounting basis from US GAAP to IFRS and additional expenditures at Goldex to accelerate the exploration ramp development into the top of the deeper D zone.

Liquidity – Positive Amendments to Revolving Credit Facility

Cash and cash equivalents and short-term investments totaled $165.6 million at September 30, 2014, down from the June 30, 2014 balance of $265.4 million. The decrease in the cash balance is largely due to expenditures related to the seasonal sealift program at Meadowbank and the partial repayment of the Company’s bank credit facility (the “Credit Facility”). The outstanding balance on the Credit Facility was $500 million at September 30, 2014 which decreased from the June 30, 2014 balance of $520 million. Available bank lines as of September 30, 2014 are approximately $700 million.

Agnico Eagle’s share of the debt obligations associated with the Canadian Malartic GP (the “Partnership”), which operates the Canadian Malartic mine, are now consolidated on the Company’s balance sheet.

As at September 30, 2014, the Partnership (on a 100% basis) had C$46.3 million of cash and cash equivalents, C$122.4 million in long-term debt, C$75 million of convertible debentures and C$78.9 million of capital lease obligations.

In addition to the Credit Facility, the Company’s debt has five separate series of notes outstanding, with maturities spread out over a seven-year period, with the earliest maturity of $115 million due in 2017.

On September 8, 2014, the Company amended the Credit Facility to extend the maturity date from June 22, 2017 to June 22, 2019 and improved the pricing terms.

Northern Business Operating Review

LaRonde – Hoist Upgrade Complete, Q4 Production to Increase Significantly

The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Current mine life is estimated to be through 2025.

The LaRonde mill processed an average of 4,634 tpd in the third quarter of 2014, compared to an average of 5,946 tpd in the corresponding quarter of 2013. The lower mill throughput in the current period was largely the result of a planned three week shutdown in July to upgrade the production and service hoist drives at the Penna shaft, and an unscheduled five day shutdown due to an electrical issue with the service hoist drive discovered during the commissioning phase.

During the shutdowns, adjustments were made to the mining sequence in the third quarter of 2014. As a result, less ore was mined from the deeper portion of the LaRonde mine with more ore coming from upper level stopes, which had lower gold grades.

With the hoist drive upgrade complete, production is expected to return to more normal levels (approximately 55,000 to 60,000 ounces) in the fourth quarter of 2014. Production is also expected to benefit from the mining of higher grade ore as the Level 293 pyramid advances to maturity. The mined gold grade (3.10 grams per tonne, year-to-date) is expected to continue to increase towards the average reserve grade (5.0 grams per tonne) over the next several years.

Minesite costs per tonne⁴ were approximately C$111 in the third quarter of 2014 compared to C$107 per tonne in the third quarter of 2013. The higher cost in the 2014 period is largely due to lower throughput related to the shutdowns described above.

For the first nine months of 2014, the LaRonde mill processed an average of 5,668 tpd, compared to 6,228 tpd in the first nine months of 2013. Minesite costs per tonne were approximately C$100, compared to C$102 per tonne in the first nine months of 2013. Costs were lower primarily due to reduced labour costs, and lower material costs (electricity and consumables), which more than offset the impact of the shutdowns in the third quarter of 2014.

4 Minesite costs per tonne is a Non-GAAP measure. For reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to Minesite Costs per Tonne by Mine” contained herein. See also “Note Regarding Certain Measures of Performance”.

On a per ounce basis, LaRonde’s total cash costs per ounce were $861 on a by-product basis in the third quarter of 2014 on production of 37,490 ounces of gold. This compares with the third quarter of 2013 when total cash costs per ounce were $772 on a by-product basis on production of 45,253 ounces of gold. The decreased production in the third quarter of 2014 is due to lower mill throughput that resulted from the shutdowns which also resulted in an increase of total cash costs per ounce. In addition, there was also less by-product (silver and zinc) revenue in the third quarter of 2014 compared to the third quarter of 2013, as a result of lower quantities produced and a reduction in the realized price of silver, offset in part by an increase in the price of zinc.

In the first nine months of 2014, LaRonde produced 145,336 ounces of gold at total cash costs per ounce of $701 on a by-product basis. This is in contrast with the first nine months of 2013 when the mine produced 130,445 ounces of gold at total cash costs per ounce of $812 on a by-product basis. The higher production is due to the proportion of higher grade ore being mined from the deeper portion of the mine which has been increasing towards the average reserve grade. The lower total cash costs in 2014 are largely related to increased gold production. An approximate increase of 19.7% in gold grade, period over period, more than offset the impact of the 2014 shutdowns.

After 2014, LaRonde is expected to increase production to an average life of mine production of more than 300,000 ounces of gold per year, reflecting the higher gold grades expected at depth.

Installation of a coarse ore conveyor system, which will extend from the 293 level to the crusher on the 280 level, remains on schedule and budget for start-up in the second half of 2015. The new conveyor is expected to minimize the impact on trucking capacity and reduce congestion in the deeper portions of the mine. Studies are also underway to investigate the potential to define reserves and carry out mining activities below a depth of 3.1 km (the current lower limit of the LaRonde reserve base).

Canadian Malartic General Partnership – Quarterly Records for Mill Throughput and Mine Productivity

In June 2014, Agnico Eagle and Yamana Gold Inc. (“Yamana”) acquired all issued and outstanding common shares of Osisko Mining Corporation, and created the 50:50 Partnership that owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee.

During the third quarter of 2014, the Canadian Malartic mill (on a 100% basis) processed an average of 52,539 tpd, which was a new quarterly record. Minesite costs per tonne were lower than budget at approximately C$19.60 (excluding royalties) as throughput improves and optimization efforts continue. The third quarter included a five day scheduled shutdown for mill maintenance. The average stripping ratio was 2.6 to 1.0.

For the first nine months of 2014, the Canadian Malartic (on a 100% basis) mill processed an average of 50,580 tpd, with minesite costs per tonne of approximately C$20 (excluding royalties). Minesite costs per tonne have been better than the guidance of C$21 per tonne (excluding royalties) that was issued on July 30, 2014, largely due to better productivity.

For the third quarter of 2014, production at the Canadian Malartic mine (on a 100% basis) was 129,521 ounces of gold at a total cash cost per ounce of $735 on a byproduct basis.

In the first nine months of 2014, the Canadian Malartic mine produced 402,732 ounces of gold (on a 100% basis). Canadian Malartic’s total cash costs per ounce were $650 on a by-product basis in the first nine months of 2014. Given the strong operational performance this quarter, it is expected that gold production (on a 100% basis) will be near the upper end of the guidance forecast range of 510,000 ounces to 530,000 ounces for the full year 2014.

Since acquiring its interest in the Canadian Malartic mine on June 16, 2014, Agnico Eagle’s share of production is 76,639 ounces at a total cash cost per ounce of $717 on a by-product basis.

The Partnership filed a NI 43-101 report on the Canadian Malartic mine on August 13, 2014 (for details please see the news release dated August 13, 2014).

In Agnico Eagle’s second quarter news release, total capital costs for 2014 at the Canadian Malartic mine (on a 100% basis) were estimated at approximately C$169.3 million. Capital costs are now expected to be reduced to approximately C$154.6 million. The change is largely due to optimization of the Gouldie pit and minor deferrals into 2015.

Canadian Malartic Mine Optimization Update – Several Initiatives are Underway

The Partnership is looking at a variety of ways to optimize operations at the Canadian Malartic mine. The current crushing circuit has a nameplate capacity of 55,000 tpd. Although this rate has been exceeded on a daily basis and monthly basis, throughput levels are forecast to be 51,000 to 52,000 tpd for the next six to twelve months, with a ramp up to full capacity of 55,000 tpd over a one to two year timeframe. Various options are being evaluated to reach the design capacity.

Ounce reconciliation with the block model continues to be positive (3% to 4% higher), and could have a favourable impact on the quantity of gold produced going forward.

Near-term productivity improvements include:

• Using a loader to manage the stockpile and keep the crusher full at all times, which has also led to improved haul truck cycle times
• Ongoing optimization of the blasting pattern with the objective of producing finer material to feed into the crushing and grinding circuit
• Progressive reduction in the use of blasting mats through 2015 (localized use will continue post 2015)

During the third quarter, the following programs or studies were initiated:

• Creation of a productivity/continuous improvement team with a focus on reducing operating costs
• Evaluating the potential to convert to LNG fueled trucks, which are cheaper to operate and have lower greenhouse gas emissions
• Renegotiation of major contracts on fuel and consumables (evaluating potential synergies with other Agnico Eagle Abitibi operations)
• Program to review manpower requirements (including contractors)
• Optimization of the maintenance program for mobile equipment
• Optimization of liner wear in all major crushing components
• Looking at possible modification of the SAG mill liner design to increase the grinding efficiency and expected liner life
• Potential to use larger grinding media in the SAG mill
• Initiation of projects to reduce consumables consumption
• Optimization of waste rock management plans with an aim of trying to reduce cycle times
• Optimization of the life-of-mine plan

During the third quarter of 2014, the Partnership completed the transition and optimization of the previous Osisko head office in Montreal including relocating to a smaller administration office which is expected to result in annual savings of approximately C$25 to C$30 million. The Partnership is also committed to empowering its workforce to reduce/optimize costs at all levels of the organization.

Additional details on the optimization plan, and updated three year guidance will be provided with Agnico Eagle’s year-end 2014 results in February 2015.

Exploration Activities – $8.0 million Budget Approved Through Year-End 2014

In addition to being joint operators at the Canadian Malartic mine, Agnico Eagle and Yamana are also jointly exploring a portfolio of properties in the Kirkland Lake area, and the Pandora and Wood-Pandora properties in the Abitibi region of Quebec.

Subsequent to a review of exploration work carried out earlier this year, approximately $8.0 million (on a 100% basis) has been allocated towards exploration through the balance of 2014, with a focus on the Upper Beaver project in Kirkland Lake, and the Pandora property. Activities will include the compilation of historical work at the various Kirkland Lake properties and the initiation of a technical report on the Upper Beaver project. Exploration expenditures in the third quarter of 2014 were approximately $2.8 million (on a 100% basis).

Work at Upper Beaver will focus on testing for near surface mineralization. In addition, several drill holes are planned to test for mineralization below the current intercepts that encountered high-grade intervals at depths below 1,500 metres. A technical report is expected to be completed by the end of 2014 that will evaluate the mineral potential and form the basis for a Preliminary Economic Assessment, which is expected to be completed in 2015.

At Pandora, drilling will evaluate the near surface North Branch zone, and several drill holes will also be drilled from the 101-W Exploration drift at the adjacent Lapa mine to test for mineralization at the South Branch target.

Underground drilling to test the South Branch target on the jointly owned Pandora property is currently underway from the 101–W drift. This drift may be extended onto the Pandora property depending on the success of the drill program.

Lapa – Strong Mill Performance and Continued Cost Containment

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009. Current mine life is estimated to be through 2016.

The Lapa circuit at the LaRonde mill processed an average of 1,703 tpd in the third quarter of 2014, slightly higher than the 1,675 tpd processed in the third quarter of 2013.

Minesite costs per tonne were C$104 in the third quarter of 2014, compared to C$112 in the third quarter of 2013. Despite mining at a deeper depth, the lower minesite costs in the current quarter are due to ongoing cost containment (including using less cemented backfill and ventilation automation), lower labor costs and better mine development performance versus the comparable period last year.

For the first nine months of 2014, the Lapa mill processed an average of 1,747 tpd, compared to 1,732 tpd in the first nine months of 2013. Minesite costs per tonne were approximately C$106, below the C$112 per tonne in the first nine months of 2013 for the same reasons explained above.

Payable production in the third quarter of 2014 was 24,781 ounces of gold at total cash costs per ounce of $606 on a by-product basis. This compares with the third quarter of 2013, when production was 24,361 ounces of gold at total cash cost per ounce of $686 on a by-product basis. In the current period, the slight increase in gold production and lower total cash costs per ounce were generally due to slightly increased throughput levels, the processing of higher gold grades and lower minesite costs per tonne compared to the same quarter last year.

In the first nine months of 2014, Lapa produced 67,011 ounces of gold at total cash costs per ounce of $689 on a by-product basis. This compares to the first nine months of 2013