Toronto - February 25, 1997

AGNICO-EAGLE REPORTS 1996 RESULTS AND PROVIDES EXPLORATION AND RESERVE UPDATE

Agnico-Eagle Mines Limited reports net income of $0.3 million or 1 cent per share on revenue of $80.9 million for the year ended December 31, 1996, down from a restated $18.6 million or 50 cents per share in 1995 on revenue of $88.3 million. Operating cash flow for the year amounted to $15.8 million or 41 cents per share compared to a record $44.4 million or $1.20 per share in 1995.

Contributing to the reduced profitability, in addition to lower production and lower metal prices, was a one time charge of $5.0 million to record the Company's obligation under an employment contract to the estate of the former President and a $6.5 million reduction in interest and sundry income due primarily to lower interest rates and lower cash balances.

Revenue for 1996 declined 8 percent due to a 5 percent decrease in gold production and lower average gold prices. The decreased gold production of approximately 7,600 ounces was a function of slightly lower gold grades of 0.24 ounces per ton compared to 0.25 ounces per ton in 1995. Although the lower gold production contributed to a rise in unit costs in 1996 to US$210 per ounce from a record low of US$152 per ounce in 1995, the most significant factor leading to higher cash operating costs was the drop in net by-product revenue which represents a unit cost increase of US$31 per ounce.

During the 1996 fourth quarter, the Company recorded a net loss of $0.3 million or 1 cent per share on revenue of $18.4 million compared to a restated net income of $3.2 million or 9 cents per share on revenue of $21.9 million in the fourth quarter of 1995. The decline in fourth quarter net income was largely attributable to a decline in the average gold price of US$337 per ounce due to a book adjustment of the carrying value of the bullion held in inventory amounting to $1.7 million. The lower average gold price also reflects the impact of pricing and settling fourth quarter gold production during the first quarter of 1997 when the physical gold was received. Also contributing to lower fourth quarter net income was a reduction in interest income of $1.3 million due to lower interest rates and reduced cash balances.

The Company's active exploration continued in 1996 and has led to an increase in the mineral resource at the LaRonde Division and has identified new areas of mineralization at the Goldex Division.

LaRonde Division - Exploration

A total of 101,000 feet of diamond drilling, including 76,000 feet of definition drilling was completed in 1996 at LaRonde. The drilling program was successful in defining known ore reserves, transferring mineral resource to ore reserves and adding to the overall mineral resource at LaRonde.

The definition drilling program defined three separate areas: (a) zone 5 (Main Zone) at depth (b) Zones 6 and 7 at Shaft #2 and (c) Zones 20 North and 20 South at Shaft #3. The end result was a replacement of the gold ounces mined in 1996 to maintain the proven and probable ore reserve level at more than 1 million ounces of contained gold. The new proven and probable reserve figure is as follows:

Exploration drilling continued to probe the central areas and depth extensions of Zone 20 North as well as the down plunge extension of Zone 20 South at Shaft #3. Drill hole intersections in the central area and at depth continued to confirm the gold - copper and zinc - silver zoning and the continuity of Zone 20 North mineralization and the down plunge extension of Zone 20 South. The drilling also indicated that Zone 19, which was originally thought to be a separate zone, was actually the gold - copper portion of Zone 20 North.

Drilling on Zone 20 North at depth was focused principally at following up earlier drill results. Previously, drill hole 20-131A had returned 0.22 ounces of gold per ton, 0.38 ounces of silver, 0.55% copper and low grade zinc over a true width of 22 feet at a depth of 7,040 feet below surface. Drill hole 20-131A was located 1,151 feet to the west of drill hole 20-115A which had returned 0.18 ounces of gold, 8.1 ounces of silver, 1.31% copper and 5.08% zinc over a true width of 38 feet.

Drill hole 20-131C intersected both Zone 20 North and Zone 20 South at a depth of 6,190 feet below surface or 850 feet above hole 20-131A and returned 20 feet of mineralization corresponding to Zone 20 North and 48 feet corresponding to Zone 20 South. The values obtained were as follows:

Drill hole 20-131F 500 feet above drill hole 20-131A or 6,490 feet below surface also intersected both Zones 20 North and 20 South. The values obtained were as follows:

In the central area of the Shaft #3 mineralization (approximately 5,400 feet below surface) drill hole 20-102B had previously intersected Zone 20 North returning 0.04 ounces of gold, 3.63 ounces of silver, 0.2% copper, 9.0% zinc over 30 feet (Zinc Zone) and 0.16 ounces of gold, 0.72 ounces of silver, 0.3% copper, 0.15% zinc over 10 feet (Gold Zone). Drill hole 20-102B did not reach Zone 20 South. Drill hole 20-258, drilled 260 feet below drill hole 20-102B or 5,660 feet below surface intersected the following values:

The recently completed drilling (central and lower) confirmed the following:

Including probable reserves, the updated global resource estimate for the Shaft #3 mineralization is as follows:

By comparison the global resource estimate of Shaft #3 mineralization at the end of 1995 was as follows:

Total contained gold ounces in all categories including proven, probable and mineral resource stood at 4.54 million ounces at the end of 1996. Total contained gold ounces at the end of 1995 stood at 4.46 million ounces. The majority of the definition drilling during 1996 was restricted to the 20th level exploration drift where most of the values encountered were in the known zinc rich horizon. Definition drilling in 1997 will be focused primarily on the gold - copper zones.

Exploration drilling from the 20th level drift is continuing in 1997 with 3 drills currently in operation. All drills are testing for extensions of the mineral resource at depth and to the west of the known mineralization. In addition to this drilling, the Shaft #3 development program is continuing. Definition drilling will be resumed from Shaft #3 in the third quarter. The entire Shaft #3 underground program includes 450,000 feet of diamond drilling with the first drill expected to begin testing the mineralized zones from Shaft #3 during the third quarter of 1997. Direct access to the mineralized zones is expected to be available for the first time by early 1998 when the first of four development drifts off of Shaft #3 is completed. The pace of exploration will also be increased upon completion of the ramp from Shaft #1 by early 1998. This ramp will open up new areas for exploration below the main zone and to the west of Shaft #3.

Goldex Division

As previously reported, the underground program at the Goldex Project was completed in the third quarter with positive results from a mill test of 113,000 tons of mineralized material. The anticipated grade of this sample based on drilling was 0.049 ounces per ton, while the actual gold grade realized from the mill test was higher at 0.074 ounces per ton. As part of a review of the feasibility of the Goldex Project an independent consultant was hired to review the mineral resource estimate. Using a smaller area of influence around drill holes the revised mineral resource estimate is 22.8 million tons grading 0.065 ounces per ton. This new estimate is slightly lower than the previous estimate of 25.3 million tons grading 0.073 ounces of gold per ton, however a 35,000 foot drilling program is currently ongoing to provide closer spaced data points within the mineral resource and to extend the mineral resource outside of the known outline. Initial drilling in drill hole DDH-12-136, outside of the known mineral resource, has returned 0.09 ounces of gold per ton over 408 feet. Within this section was 300 feet of mineralization grading 0.10 ounces per ton. The entire drill hole encountered over 800 feet of mineralization grading 0.05 ounces of gold per ton. All assays are presented cut to one ounce per ton.

Currently, there are three drills in operation underground at Goldex. Drilling is expected to be completed by the end of April and the results of this program will be used to calculate a revised mineral resource which will form the basis for a feasibility study on the Goldex Project. This study will include an evaluation of various large scale underground bulk mining scenarios which appear to be well suited to the dimensions of the Goldex Deposit.

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. The Company's operating history includes 22 years of continuous gold production primarily from underground mining operations. Agnico-Eagle is currently working on several underground projects which are expected to result in increased gold production and expanded gold reserves.