Agnico Eagle Announces US$220 Million Sale of Common Shares to One Institutional Investor

(All amounts expressed in United States dollars unless otherwise noted)

AGNICO EAGLE ANNOUNCES US$220 MILLION SALE OF COMMON SHARES

TO ONE INSTITUTIONAL INVESTOR

Toronto (March 27, 2017) – Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM)

("Agnico Eagle") announced today that it has agreed to issue and sell 5,003,412

common shares of Agnico Eagle (the "Comm on Shares") directly to an institutional

investor in the United Stat es at a price of US$43.97 per Common Share, for total

consideration of approximately US$220 million (the "Offering"). The net proceeds of the

Offering will be used for general corporate pur poses. The Offering is expected to close

on or about March 31, 2017, subject to sto ck exchange approval and the satisfaction of

customary conditions.

The Common Shares were offe red and are being sold direct ly by Agnico Eagle without

an underwriter or placement agent. Maxit C apital LP and Sprott Capital Partners are

acting as financial advisors to Agnico Eagle in connection with the Offering.

"Agnico Eagle is pleased to we lcome an important new strategi c institutional investor to

our share register, and we look forward to c ontinuing to develop this relationship over

time", said Sean Boyd, Agnico Eagle's Chie f Executive Officer. "The offering also

further enhances our financial fl exibility as we build out our platform of high quality

growth projects", added Mr. Boyd.

This press release does not constitute an offer to sell or the solicitation of an offer to buy

the Common Shares, nor shall t here be any sale of these se curities in any state or

jurisdiction in which such an offer, solicit ation or sale would be unlawful prior to

registration or qualification under the securities laws of any such state or jurisdiction.

About Agnico Eagle

Agnico Eagle is a senior Canadian gold mining company that has produced precious

metals since 1957. Its eight mines are lo cated in Canada, Finl and and Mexico, with

exploration and development activi ties in each of these countries as well as in the

United States and Sweden. Agnico Eagle a nd its shareholders have full exposure to

gold prices due to its long-st anding policy of no forward gold sales. Agnico Eagle has

declared a cash dividend every year since 1983.

Other Information

The Common Shares were offered by way of a prospectus supple ment under Agnico

Eagle's shelf prospectus and registration stat ement on Form F-10 previously filed with

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the U.S. Securities and Exchange Commissi on (the "SEC") under the U.S./Canadian

multijurisdictional disclosure system. The prospectus supplement will be filed with the

securities commissions or si milar regulatory authorities in each of the provinces of

Canada and with the SEC.

Forward-Looking Statements

The information in this news release has b een prepared as at March 27, 2017. Certain

statements in this news release, referred to herein as "forward -looking statements",

constitute "forward-looking statements" withi n the meaning of the Un ited States Private

Securities Litigation Reform Act of 1995 and "forward-looking information" under the

provisions of Canadian provincial securities laws. These statements can be identified by

the use of words such as "expected", "may", "will" or similar terms.

Forward-looking statements in this news release inclu de, but are not limited to,

statements relating to Agnico Eagle's ex pected use of the net proceeds from the

Offering, the expected timing of the closing of the Offeri ng and the filing by Agnico

Eagle of a prospectus supplement relating to the Offering.

Forward-looking statements are necessarily based upon a number of factors and

assumptions that, while considered reasonable by Agnico Eagle as of the date of such

statements, are inherently subject to signi ficant business, economic and competitive

uncertainties and contingencies. Many factors, known and unknown, could cause actual

results to be materially different from t hose expressed or implied by such forward-

looking statements. Readers are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date made. Other than as

required by law, Agnico Eagle does not in tend, and does not assume any obligation, to

update these forward-looking statements

For further information: Investor Relations

(416) 947-1212