Partially offsetting the impact of lower gold prices during the third quarter of 1997 was higher gold production. Quarterly gold production increased over the third quarter of 1996 by 4,000 ounces to 40,213 ounces due to the processing of higher grade gold ore during the quarter.

For the first nine months of 1997 the Company recorded a net loss of $3.4 million or 8 cents a share compared to net income of $0.6 million or 2 cents a share in 1996. Again, the major reason for the decline in income was lower gold prices. Also contributing to lower income was reduced interest income by $1.9 million and a decline in by-product revenue of $0.5 million due to reduced copper by-product production. The decline in by-product revenue, combined with lower nine month gold production, resulted in a increase in cash operating costs to produce an ounce of gold from US$209 for the first nine months of 1996 to US$214 for the first nine months of 1997. On a cost per ton basis the Company's operations have functioned more efficiently in 1997 with costs actually declining 8 percent during the first nine months of 1997 to US$43 per ton. For the full year gold production is budgeted at 160,000 ounces at an estimated cash operating cost of US$215 per ounce. At the Company's LaRonde Mine, underground exploration continued during the quarter with five drills active on the property. Two drills were employed on the 20th level exploration drift, one on the ramp between Shaft #1 and Shaft #3, one at Shaft #2 drilling Zones 7 and 5C and a surface drill to test for the westward and upward extension of Zones 7 and 5C. Items of significance from third quarter drilling are as follows:

1.Discovery of a new zone, Zone 5C, parallel to Zone 7 at Shaft #2. Drill hole 206-64 encountered 0.22 ounces of gold per ton, 1.2 ounces of silver per ton, 0.3% copper and 2.0% zinc over a true thickness of 34 feet. Drill hole 206-68 encountered 0.23 ounces of gold per ton, 0.7 ounces of silver per ton, 0.2% copper and 2.3% zinc over a thickness of 24 feet. These results are currently being followed up by surface and underground drilling and from underground level development.

2.Discovery of a possible extension or reoccurrence of Zone 20 North below Shaft #1. Drill hole 25-13 encountered 0.16 ounces of gold per ton, 1.0 ounces of silver per ton, 0.7% copper and 0.8% zinc over a thickness of 13.8 feet. This value was located 60 feet to the south of the ramp being driven between Shaft #1 and Shaft #3. Drilling is set to resume during the third week of November pending the completion of additional drill stations. The intersection is open at depth and to the east.

3.Continued confirmation of gold/copper mineralization at depth of Zone 20 North. Drill hole 20-131H intersected 0.14 ounces of gold per ton, 2.0 ounces of silver per ton and 1.1% copper over a thickness of 60.7 feet at a depth of 6,900 feet below surface at the midpoint between previous drill holes 20-131A and 20-115A. Drill hole 20-131A had intersected 0.22 ounces of gold per ton, 0.38 ounces of silver per ton, 0.55% copper over a thickness of 22 feet. Drill hole 20-115A had intersected 0.18 ounces of gold per ton, 8.1 ounces of silver per ton, 1.3% copper and 5.1% zinc over a thickness of 37.7 feet. The strike length between drill hole 115A and 20-131A is approximately 1,100 feet. Zone 20 North is still open at depth and to the west.

The development program at LaRonde remains on schedule with Shaft #3 currently at a depth of 4,300 feet. Drilling from Shaft #3 began for the first time in October and represents the start of the three year 450,000 foot underground drilling program. This program will speed up the process of transferring mineral resource to ore reserves. The expansion program also continues at LaRonde with the completion of the new copper circuit and with construction of the enlarged mill building, which will house the new zinc circuit, now underway. By-product zinc production is expected to begin from the zinc circuit during the third quarter of 1998.

At the Goldex Division, both a geostatistical and traditional mineral resource estimate was completed, confirming the previous estimate of 25.4 million tons at an average grade of 0.072 ounces of gold per ton (cut to 1.0 ounces). The geostatistical model suggested the potential of zoning within the 25.4 million ton envelope with a higher grade core comprised of approximately 50% of the mineral resource tonnage grading 0.075 to 0.080 ounces of gold per ton surrounded by the remaining 50% grading 0.065 to 0.075 ounces of gold per ton. If the geostatistical model is proven to be correct, it could have a positive impact on the economics of the Goldex deposit and on the future exploration potential of the property. The Company, in conjunction with an outside consultant, is currently reviewing several large tonnage bulk mining scenarios as part of an overall feasibility study. This work is expected to be completed by the end of 1997. All underground work has ceased on the Project and the Company will await the results of the feasibility study before making a decision on how to proceed with the Goldex Project.

At the Vezza Project a feasibility study has been completed. The study indicates that higher gold prices are required to make this project viable. The Company has a surface drill program planned in the vicinity of the Vezza deposit and it is currently evaluating its options with respect to the Vezza Project.

Although the low gold price does not impair the Company's ability to complete the expansion program at the LaRonde Mine it has caused the Company to review the carrying value of its mining assets and related investments. This review will be completed during the fourth quarter and it will focus on the Company's advanced exploration and development projects and investments in associated mining companies. At September 30, 1997, the carrying value of its advanced development projects and its investment in associated companies amounted to approximately $118 million.

Agnico-Eagle's financial position remains strong with cash of $109 million and working capital of $141 million at the end of September. These funds will be applied to the ongoing expansion program at the LaRonde Mine which is expected to result in increasing gold production and declining cash costs. Given the current weak gold market, the Company has taken several steps to reduce expenditures and enhance its financial position and its capacity to complete its expansion plans. These steps include general cost reductions, a reduction of grass roots exploration programs, the sale of non-core mining assets and a delay of projects other than the LaRonde expansion. Toronto - November 4, 1997 -- Agnico-Eagle Mines Limited is an established Canadian gold producer with operations located principally in northwestern Quebec and exploration and development activities in Quebec and Ontario. Consistently one of the industry's lowest-cost producers, Agnico's operating history includes 23 years of continuous gold production primarily from underground mining operations. Current proven and probable reserves stand at 1.0 million contained ounces, with and additional 3.5 million ounces in the mineral resource category at its LaRonde Mine. Agnico-Eagle is currently focused on the expansion and large scale exploration program of its LaRonde Mine which is expected to result in increased gold production and expanded gold reserves.

Summarized quarterly data for the quarterly period ended September 30, 1997