Investor Relations Agnico-Eagle Reports Fourth Qu Arter and Full Yea R 2010 Results; New Mines Contribute to Record Financial Results; Full Year Earnings up 284%; Record Gold Reserves up 16%

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Investor Relations (416) 947-1212

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AGNICO-EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS; NEW MINES CONTRIBUTE TO RECORD FINANCIAL RESULTS;

FULL YEAR EARNINGS UP 284%;

RECORD GOLD RESERVES UP 16%

Toronto (February 16, 2011) – Agnico-Eagle Mines Limited ("Agnico-Eagle" or the “Company”) today reported quarterly net income of $88.0 million, or $0.53 per share for the fourth quarter of 2010. This result includes a non-cash foreign currency translation loss of $10.4 million, or $0.06 per share, stock option expense of $7.2 million, or $0.04 per share, and a gain on sale of investments of $11.3 million, or $0.06 per share. In the fourth quarter of 2009, the Company reported net income of $47.9 million, or $0.31 per share.

Fourth quarter 2010 cash provided by operating activities was $90.6 million (a record $179.4 million before changes in non-cash components of working capital) up from cash provided by operating activities of $53.7 million in the fourth quarter of 2009 ($99.1 million before changes in non-cash components of working capital), primarily due to 57% higher gold production and significantly higher metal prices.

“The growth plan that transformed the Company over the past several years has resulted in record gold reserves and record annual financial and operating results”, said Sean Boyd, Vice-Chairman and Chief Executive Officer. “As Agnico-Eagle begins the next five-year growth phase from our expanded production platform, our strategy remains unchanged. The focus continues to be to increase our gold reserves, gold production, earnings and cash flows, each on a per-share basis”, added Mr. Boyd.

Fourth quarter and full year 2010 highlights include:

• Record earnings and cash flows – annual earnings up 284%, cash provided by operating activities up 320%, year over year
• Record annual gold production – quarterly production of 256,469 ounces contributed to record annual gold production of 987,609 ounces; up 100% year over year
• Good cost control – Full year total cash costs per ounce of $4511. Minesite costs per tonne2 targets achieved at the steady state mines of LaRonde, Goldex, Lapa and Pinos Altos

1 Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see Note 1 to the financial statements. See also “Note Regarding Certain Measures of Performance”.

2 Minesite costs per tonne is a non-GAAP measure. For reconciliation of this measure to production costs, as reported in the financial statements, see Note 1 to the financial statements at the end of this news release.

• Record Quarter at Pinos Altos – record quarterly gold production of 39,289 ounces at total cash costs of $365 per ounce. First gold pour from Creston Mascota satellite project occurred in December
• Record gold reserves – gold reserves rise 2.9 million ounces net of production, or 16%, to a record 21.3 million ounces3. Record exploration expenditure planned for 2011

For the full year 2010, the Company recorded net income of $332.1 million, or $2.05 per share. In 2009, Agnico-Eagle recorded net income of $86.5 million, or $0.55 per share. Compared with the prior year, 2010 earnings were positively affected by a greater than 100% increase in gold production as a result of a full year of production at Kittila, Pinos Altos and Lapa, the startup of production at the Meadowbank mine in March, combined with higher realized prices for gold, silver, copper and zinc.

For 2010, the Company recorded cash provided by operating activities of $483.5 million ($581.7 million before changes in non-cash components of working capital). This is significantly up from 2009, when cash provided by operating activities totaled $115.1 million ($232.5 million before changes in non-cash components of working capital). The increase was primarily due to the previously mentioned increase in 2010 gold production, as well as significant increases in realized prices for all produced metals in 2010.

Payable gold production4 in the fourth quarter of 2010 was 256,469 ounces compared to 163,276 ounces in the fourth quarter of 2009. A detailed description of the production and cost performance by mine may be found in the respective sections later in this document.

Total cash costs for the fourth quarter of 2010, based on the Company’s historic policy of attributing all stripping costs into current period costs, were $485 per ounce (versus $297 per ounce for fourth quarter 2009). However, to be consistent with other gold producers, going forward the Company will report total cash costs using the more common industry practice of deferring certain stripping costs (which is in line with the practice recommended by the Gold Institute) that can be attributed to future production. Under this methodology, the Company’s cash costs for the fourth quarter of 2010 were $462 per ounce. This compares with $295 per ounce in the fourth quarter of 2009, calculated on the same basis.

The increase in total cash costs per ounce in the fourth quarter of 2010 is mainly due to higher costs at Kittila in October and November and high costs at Meadowbank as the mine continues to ramp-up to full production rates.

The Company’s payable gold production for the full year 2010 was a record 987,609 ounces at total cash costs per ounce of $451, excluding a portion of stripping costs as described above. The full year production is 1.2% below the bottom end of the range of guidance provided in December 2009. The lower than anticipated gold production in the year is largely due to the slower than anticipated ramp-up at the new Meadowbank mine. Additionally, the shortfall is partly a result of lower than expected grades at LaRonde and Lapa in the fourth quarter of 2010.

3 Reserves are exclusive of resources. See attached table “Detailed Mineral Reserve and Resource Data (as at December 31, 2010)” for detailed breakdown of reserves and resources 4 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.

The 2010 production compares to the full year 2009 level of 492,972 ounces at total cash costs per ounce of $346. The higher production in 2010 was due to the opening and optimizing of the new mines. The higher total cash costs per ounce were primarily due to the impact of Meadowbank’s higher cost start-up phase in 2010 (higher than expected at $693 for the year mainly due to reduced throughput related to crushing issues).

The linked graph below presents the increase in gold production per share over the past 10 years. The Company believes that increasing this metric, and thereby increasing shareholders exposure to gold on a per share basis over time, is one of the best ways to increase shareholder returns.

Gold Production Per 1000 Shares

Conference Call Tomorrow

The Company’s senior management will host a conference call on Thursday, February 17, 2011 at 11:00 AM (E.S.T.) to discuss financial results and provide an update of the Company’s exploration and development activities. A detailed mineral reserve and resource update will also be provided.

Via Webcast:

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

Via Telephone:

For those preferring to listen by telephone, please dial 416-644-3415 or Toll-free 800-814- 4861. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay archive:

Please dial 416-640-1917 or the Toll-free access number 877-289-8525, passcode 4403795#.

The conference call replay will expire on Thursday, February 24, 2011.

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

Cash Position Remains Strong

Cash and cash equivalents decreased to $104.6 million at December 31, 2010 from the September 30, 2010 balance of $148.1 million, as the Company repaid $65 million of its long term debt during the quarter.

Capital expenditures in the fourth quarter were $115.0 million, including $28.2 million at Pinos Altos, $26.1 million at Meadowbank, $23.7 million at LaRonde, $18.7 million at Kittila, $8.8 million on Goldex and $7.3 million at Lapa. For the full year 2010, capital expenditures totaled $511.6 million.

With its cash balances, anticipated cash flows and available bank lines, management believes that Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.

Available bank lines as of December 31, 2010 were approximately $1.1 billion.

Gold Reserves Rise to Record Level

At year-end 2010, the Company’s proven and probable gold reserves totaled 21.3 million ounces, net of depletion, an increase of 2.9 million ounces (or 16%) over 2009 levels. The largest increase (2.6 million ounces) came from the conversion of resources to reserves at the new Meliadine project in Nunavut, Canada (acquired in July 2010).

Another large contribution to the total came from Kittila where approximately 0.9 million ounces of reserves were added in 2010, net of depletion. Kittila now has the highest level of gold reserves at any of the Company’s properties.

This exploration success continues Agnico-Eagle’s track record of increasing its shareholders exposure to gold. During the year, the number of shares outstanding increased by approximately 8%, while the gold reserves increased by approximately 16%. A graph showing the increase in reserves per share over the past 10 years is linked below.

Gold Reserves Per 1000 Shares

In 2011, it is expected that Agnico-Eagle’s overall mineral reserves will continue to grow as the Company continues to convert its resources to reserves and continues the exploration of its properties outside of the currently known resource. Agnico-Eagle’s goal is to increase gold reserves from its existing portfolio of mines and projects to more than 22 million ounces by year-end 2011. During 2011, the Company expects to invest approximately $145 million in exploration.

The Company’s year-end 2010 gold reserves, net of 987,609 ounces of gold production, is set out below:

Gold Reserves By Mine	Proven & Probable Reserve (000s ounces)
	2010	2009
LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank Meliadine	4,818 1,566 677 4,880 3,271 3,486 2,600	4,849 1,630 843 4,025 3,396 3,655 -
Total	21,298	18,398

Amounts presented in the table and in this press release have been rounded to the nearest thousand. See attached table "Detailed Mineral Reserve and Resource Data (as at December 31, 2010)" for detailed breakdown of the Company's reserves and resources.

Agnico-Eagle’s byproduct proven and probable reserves include approximately 124 million ounces of silver, 404,000 tonnes of zinc and 95,000 tonnes of copper.

The metals prices and exchange rates used in the reserve and resource calculation are the trailing three-year averages for such prices or rates, as mandated by the U.S. Securities and Exchange Commission (the “SEC”). The assumptions used in calculating the 2010 reserves and resources were $1024 per ounce gold, $16.62 per ounce silver, $0.86 per pound zinc, $2.97 per pound copper, $0.90 per pound lead, a C$/US$ exchange rate of 1.08, a US$/Euro exchange rate of 1.40, and a Mexican Peso/US$ exchange rate of 12.43. For a 10% change in the gold price (leaving all other assumptions unchanged), there would be an estimated 3% change in proven and probable reserves.

The byproduct reserves and resources for silver, zinc, copper and lead contained in the LaRonde orebody, and the silver reserves contained at Pinos Altos, are presented in the “Detailed Mineral Reserve and Resource Data” section set out near the end of this news release. These byproduct reserves are not included in Agnico-Eagle’s gold reserve and resource totals.

Large Conversion of Gold Resources to Reserves in 2010

Exploration drilling during 2010 resulted in 2.9 million ounces of gold being converted from the resource category into the reserve category. In spite of this conversion, the resources continued to grow at several of the mines and projects.

In 2010, the Company's indicated mineral resources increased marginally over 2009 levels, largely due to the addition of indicated mineral resource at the Meliadine property. The Company's inferred resources as at the end of 2010 increased significantly over the 2009 level, with the largest contribution to this increase coming from the Meliadine and Bousquet properties.

However, these increases take into account a restatement of the 2009 resource at Meadowbank. Approximately 2.0 million ounces of indicated resource (19,763,101 tonnes grading 3.19 g/t) and 0.2 million ounces of inferred resource (2,431,310 tonnes grading 2.66 g/t) were overstated due to an arithmetic error. These resources were not within planned pit limits and were not part of the life of mine plan.

LaRonde Mine – Steady 2010 Performance As Expected

The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Overall, proven and probable gold reserves at LaRonde contain approximately 4.8 million ounces from 34.7 million tonnes grading 4.3 grams per tonne (“g/t”).

The LaRonde mill processed an average of 6,918 tonnes per day (“tpd”) in the fourth quarter of 2010, compared with an average of 6,983 tpd in the corresponding period of 2009. Milling performance for the full year 2010 was approximately 7,102 tpd versus 6,975 tpd in 2009. LaRonde has been operating at a steady state of approximately 7,000 tonnes per day for more than seven years, since its final expansion in 2003.

Minesite costs per tonne were approximately C$79 in the fourth quarter of 2010. These costs are higher than the C$69 per tonne experienced in the fourth quarter of 2009. The increase is largely due to higher costs for labour, chemical reagents and fuel. Additionally, a higher proportion of ore from the lower levels was mined in 2010 leading to higher haulage costs.

Minesite costs per tonne for the full year 2010 were on budget at approximately C$75, approximately 4% higher than in 2009 (C$72) mainly due to cost pressures as discussed above.

On a per ounce basis, net of byproduct credits, LaRonde’s total cash costs per ounce were minus $250 in the fourth quarter on production of 38,405 ounces of gold. This compares with the fourth quarter of 2009 when total cash costs per ounce were minus $84 on production of 46,397 ounces of gold. The decrease in total cash costs is largely due to significantly higher byproduct metal prices. The lower gold production in the 2010 period is largely related to lower grades as the mine extracted some lower grade tonnage which had become economic due to higher zinc and gold prices.

For the full year 2010, LaRonde’s total cash costs per ounce were minus $7 on gold production of 162,806 ounces, placing it among the lowest cash cost gold mines in the industry. This compares to total cash costs per ounce of $103 on gold production of 203,494 in 2009, as lower gold production in 2010 (lower grades extracted as mentioned above) was more than offset by stronger byproduct metals prices.

The total cash cost per ounce performance of Agnico-Eagle’s three Quebec mines is particularly noteworthy in light of the relative strength of the Canadian dollar in 2010 (up 6% versus the US dollar).

Gold production in 2011 at LaRonde is expected to be approximately 157,000 ounces as the gold grade of the stopes scheduled to be mined does not increase until late in the year, when the deeper, gold rich, ore is accessed via the new internal shaft of the LaRonde Extension. Post-2011, LaRonde is expected to ramp up to an average life of mine production of 338,000 ounces of gold per year, reflecting the higher gold grades at depth. This project remains on time and on budget.

Goldex Mine – Achieves Record Annual Gold Production

The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 27.8 million tonnes grading 1.8 g/t.

The Goldex mill processed an average of 7,844 tpd in the fourth quarter of 2010. During the fourth quarter of 2009, the plant processed 7,655 tpd. Milling performance for the full year 2010 was 7,621 tpd compared to 7,164 tpd in 2009. This strong tonnage performance was largely due to the full year operation of the permanent secondary crushing unit, which has resulted in an increase to the capacity of the mill.

Minesite costs per tonne at Goldex were approximately C$21 in the fourth quarter of 2010, down from C$23 in the fourth quarter of 2009. For the full year 2010, minesite costs per tonne were approximately C$22, slightly below the C$23 per tonne in 2009, largely due to the strong tonnage performance which more than offset industry wide cost pressures.

Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world on a minesite cost per tonne basis.

Payable gold production in the fourth quarter of 2010 was 43,110 ounces at total cash costs per ounce of $370. This compares to fourth quarter 2009 gold production of 46,075 ounces at total cash costs per ounce of $338. The decrease in gold production is due to the scheduled mining of lower grade during the 2010 period which also negatively impacted the cost per ounce.

For the full year 2010, Goldex’s payable gold production was a record 184,386 ounces at total cash costs per ounce of $335. This compares favourably to full year 2009 production of 148,849 ounces at total cash costs per ounce of $366. The improved performance at Goldex is reflective of the ongoing optimization efforts at the mine and improved throughput.

Gold production for 2011 is expected to be approximately 183,500 ounces.

Due to exploration success in 2010, it is expected that the mine life of Goldex may be extended as the deeper D Zone is explored and quantified. Beginning in 2011, it is expected that a ramp will be driven below the current workings to facilitate additional drilling which would be incorporated in a feasibility study considering the extraction of this zone. The study is expected to be completed in mid-2013.

Goldex Longitudinal Section

Kittila Mine – Growing Reserves and Record Mill Recoveries

The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009. Proven and probable gold reserves total approximately 4.9 million ounces from 32.7 million tonnes grading 4.6 g/t. This is up approximately 21%, or 0.9 million ounces, from the 2009 level largely as a result of successful resource to reserve conversion drilling below the Suuri and Roura orebodies.

The following link shows a Kittila longitudinal section and the area of new reserves.

Kittila Longitudinal Section

The Kittila mill processed an average of 2,619 tonnes per day in the fourth quarter of 2010, compared with its 3,000 tonne per day design rate. A two week maintenance shutdown in early October was largely responsible for the lower-than-design throughput. In the fourth quarter of 2009, the Kittila mill processed 2,728 tonnes per day.

Gold recoveries in the fourth quarter of 2010 were a quarterly record of 81.8%, nearing the design rate of 83%. This compares with the fourth quarter of 2009 when the recoveries were 76.2%. This improvement in mill recovery was largely due to a mid-year 2010 breakthrough in the process which resulted in the ability to lower the chloride levels in the feed to the autoclave. Recoveries in excess of 85% have been recently achieved.

Minesite costs per tonne at Kittila were approximately €79 in the fourth quarter 2010, compared to €46 in the fourth quarter of 2009. The increase in minesite costs was largely due to ore re-handling (blending) as the mine dealt with high sulphur ore for the first time.

Higher costs associated with the start-up phase and commercial production in the underground mine also negatively impacted the 2010 costs. Additionally, costs were affected by high maintenance costs (and reduced equipment availability) and unbudgeted contractor costs.

In December, operations and costs at Kittila stabilized significantly as the mill gained experience with the high sulphur ore and the underground mine nears its design throughput. For the month, throughput in the mill averaged approximately 3,200 tpd, mill recoveries were 82.5%, minesite costs per tonne were €72 and total cash costs per ounce were $685.

This improved performance has extended into January and February, as Kittila has continued to exceed its design throughput, while minesite costs per tonne and total cash costs per ounce continue to decrease from the December level.

For the full year 2010, the minesite costs per tonne were €66, compared to €54 in 2009. This increase is largely attributable to the above-mentioned cost pressures.

Fourth quarter 2010 gold production at Kittila was below expectations at 29,721 ounces with a total cash cost per ounce of $832. In the fourth quarter of 2009 the mine produced 35,270 ounces at total cash costs per ounce of $464. The lower production and higher cost were the result of the previously discussed factors.

For the full year 2010, payable gold production from Kittila was 126,205 ounces at total cash costs of $657 per ounce. In 2009, the mine produced 71,838 ounces of gold at total cash costs of $668 per ounce. The higher production and lower cost in 2010 was largely due to a combination of 28% higher throughput and 27% higher mill recovery in 2010 as optimization efforts in the mill succeeded. These factors were partly offset by much higher minesite costs as discussed above.

The Company believes that it has now achieved steady state production at Kittila, with recoveries consistently above the design rate of 83%. As a result, minesite costs and total cash costs per ounce are expected to decline significantly in 2011. Gold production in 2011 is expected to be 147,100 ounces.

A study is underway examining the possibility of increasing the production rate at Kittila. Results of the study are expected to be completed in the third quarter of 2011. A third quarter reserve and resource update is expected as well.

Lapa – Steady Performance During 2010

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009. Proven and probable gold reserves total approximately 0.7 million ounces from 2.8 million tonnes grading 7.4 g/t.

The Lapa circuit, at the LaRonde mill, processed an average of 1,517 tpd in the fourth quarter of 2010. This compares with an average of 1,191 tonnes per day in the fourth quarter of 2009 as Lapa successfully achieved its design rate of 1,500 tpd. For the full year 2010, Lapa averaged 1,512 tpd compared with 1,090 tpd in 2009, the mine’s first year of operation.

Minesite costs per tonne were C$115 in the fourth quarter of 2010, 22% below the C$148 in the fourth quarter of 2009. The lower cost is largely due to good cost control and the increased throughput, as mentioned above.

Full-year minesite costs in 2010 were C$114 per tonne, significantly below C$140 achieved in 2009. The improved operating performance is attributable to realized efficiencies as the Company gained valuable experience with the orebody.

Payable production in the fourth quarter of 2010 was 29,288 ounces of gold at total cash costs per ounce of $564. This compares favourably with the fourth quarter of 2009, when production was 22,590 ounces of gold at total cash cost per ounce of $608. The improvements were largely due to improved throughput, but also higher grade as dilution was reduced in 2010 through optimization of drilling, blasting and support patterns.

For the full year 2010, payable production was 117,456 ounces of gold at total cash costs of $529 per ounce. As Lapa came into commercial production partway through 2009, prior year production was 52,602 ounces of gold at total cash costs of $751 per ounce.

Payable production in 2011 is expected to be approximately 125,000 ounces of gold.

During 2011, an exploration drift will facilitate drilling along the trend to the east and at depth. These areas have not previously been explored. The drilling is intended to investigate the possibility of extending the mine life.

Pinos Altos – Record Gold Production at Low Costs

The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009. For 2010, proven and probable reserves, including the stand-alone Creston Mascota deposit, total 3.3 million ounces of gold and 92.0 million ounces of silver from 44.2 million tonnes grading 2.3 g/t of gold and 64.8 g/t silver.

The Pinos Altos mill processed an average of 4,501 tpd in the fourth quarter of 2010. This compares favourably with 1,863 tonnes per day in the fourth quarter of 2009 (its first quarter of operation). Previous issues with tailings filter capacity were eliminated in the second half of 2010 with the installation of two additional filter banks. The mill is now routinely performing at process rates above the initial design capacity of 4,000 tpd including a one week period during November 2010 when it operated at a rate of 5,300 tpd. Higher throughput has been observed in each consecutive quarter at Pinos Altos since startup in the last quarter of 2009.

Minesite costs per tonne were $35 in the fourth quarter of 2010, compared to $27 in the partial fourth quarter of 2009. In the fourth quarter of 2009, a greater proportion of lower cost heap leach tonnes were processed. For the full year 2010, minesite costs per tonne were $35. With commercial production achieved at November 1, 2009, there is no comparable period in that year. The minesite costs at Pinos Altos for Q4 and full year 2010 were lower than forecast.

Payable production in the fourth quarter of 2010 was a record 39,289 ounces of gold at total cash costs per ounce of $365. This compares with production of 12,944 ounces at a total cash cost of $570 in the partial quarter of 2009.

The first gold production occurred at the satellite Creston Mascota project during the fourth quarter of 2010 with 666 ounces of payable gold production being reported from this heap leach operation (included in the Pinos Altos total). Commercial production at Creston Mascota is expected to be achieved in the second quarter of 2011.

Full year 2010 production was 131,097 ounces at total cash cost per ounce of gold of $425. There is no comparable period in 2009.

Payable production in 2011 (including Creston Mascota) is expected to be 199,000 ounces of gold and approximately 2.2 million ounces of silver.

The Company is evaluating alternatives with respect to increasing the underground mine capacity either through an additional production ramp or a production shaft. The study is expected to be completed near the end of 2011.

Meadowbank – Optimization Ongoing

The 100% owned Meadowbank mine project in Nunavut, northern Canada, achieved commercial production in March 2010. Proven and probable gold reserves total 3.5 million ounces from 34.1 million tonnes grading 3.2 g/t. An additional 0.3 million ounces of indicated gold (9.1 million tonnes grading 1.0 g/t) resources are within the currently contemplated pit limits.

The Meadowbank mill processed an average of 6,659 tpd in the fourth quarter of 2010, essentially unchanged from the third quarter of 2010 as the new mine continues with a temporary secondary crushing arrangement. The permanent secondary crushing facility is anticipated to be operational in the third quarter of 2011. The design rate of 8,500 tpd is expected to be achieved at this time.

Minesite costs per tonne were C$91 in the fourth quarter and C$95 for the full year of 2010. With commercial production achieved in March 2010, there is no comparable period in 2009. These costs were higher than the C$82 per tonne which is expected in 2011.

The higher costs in 2010 are largely due to lower than planned throughput in the mill (approximately 19% lower than budget in the fourth quarter) largely due to the temporary crushing issues.

Payable production in the fourth quarter of 2010 was 75,990 ounces of gold at total cash cost per ounce of gold of $745. Full year 2010 production was 265,659 ounces of gold at total cash costs per ounce of gold of $693. These costs are expected to decline dramatically in 2011 as throughput improves.

Payable production in 2011 is expected to be 362,000 ounces of gold.

During the 2011 drilling season, conversion and expansion of the 0.3 million ounces (2.3 million tonnes grading 4.4 g/t) of indicated resource and 0.2 million ounces (0.8 million tonnes grading 5.6 g/t) of inferred resource around the southern end of the deposit will remain a priority. A study considering an underground exploration ramp to examine this resource is expected to be presented to the Board in the second quarter of 2011.

Meliadine – Initial Gold Reserve Established, Gold Resource Expands

In July 2010, Agnico-Eagle completed the acquisition of the Meliadine project near Rankin Inlet, Nunavut.

The initial reserve estimate is 2.6 million ounces of gold from 9.5 million tonnes grading 8.5 g/t. It is expected that this reserve will continue to grow rapidly as the large gold resource is drilled extensively over the next 12 months. Approximately $65 million is expected to be spent on Meliadine exploration in 2011.

In addition to the initial gold reserve, the Meliadine project contains 1.5 million ounces of indicated gold resource from 8.8 million tonnes grading 5.2 g/t. It also includes approximately 2.6 million ounces of inferred gold resource from 11.8 million tonnes grading 6.9 g/t.

The following link shows the reserve and resource outlines for the main Tiriganiaq deposit.

Tiriganiaq Longitudinal Section

The Company is evaluating the possibility of accelerating underground ramp development at Meliadine to facilitate exploration and development of the growing deposit. The ramp study, and a reserve and resource update, are expected to be completed in the third quarter of 2011.

It is anticipated that the final feasibility will be presented to the Board for a production decision in 2013. Earliest gold production is expected to be late 2015.

Depreciation Guidance

Agnico-Eagle expects 2011 amortization on its income statement to amount to $200 to $250 per reserve ounce. This amount was approximately $195 in 2010 and $151 in 2009.

Please see the supplemental financial data section of the Financial and Operating Database on the Company’s website for the adjusted plant, property and mine development totals by mine at December 31, 2010.

Mine Tour Meadowbank and Meliadine

Agnico-Eagle will be hosting a trip for equity analysts and buy-side investors on June 28, 2011 to Meadowbank. The tour will include a project review of Meliadine while at the Meadowbank site. The tour will be a day trip via chartered airplane from Toronto.

Interested parties should contact Hazel Winchester at [email protected], or 416- 847-3717. All presentation materials will also be posted on the Company’s website.

Annual General Meeting

Friday April 29, 2011 at 11:00am Vanity Fair Ballroom Le Méridien King Edward Hotel 37 King Street East Toronto, ON M5C 1E9

Dividend Record and Payment Dates for the Remainder of 2011

Record Date	Payment Date
March 1	March 15
June 1	June 15
September 1	September 15
December 1	December 15

Dividend Reinvestment Program

Please follow the link below for information on the Company’s dividend reinvestment program.

DividendReinvestmentPlan

About Agnico-Eagle

Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde mine is Canada's largest operating gold mine in terms of reserves. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales. It has paid a cash dividend for 29 consecutive years. www.agnico-eagle.com