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

Press Releases

Stock Symbol:  AEM (NYSE and TSX)

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

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 non-cash 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), non-cash 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 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

Read More: http://ir.agnicoeagle.com/English/investor-relations/news-releases/news-release-details/2015/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/default.aspx

IBF2