AGNICO-EAGLE DRILLING PROGRAM CONTINUES TO CONFIRM THICKER MINERALIZATION THAN INITIALLY ESTIMATED AT LARONDE

Agnico-Eagle Mines Limited today announced that initial 9th level definition drilling around Shaft No.3 at the LaRonde Mine continued to confirm mineralization that is thicker than originally estimated. As previously announced, the trend to increased thicknesses was first evident earlier this year upon completion of the definition drilling program along the 8th level (4,400 feet below surface) of Shaft No.3. Additionally, the drilling program identified a potential new zone and revealed the possible upward extension of Zone 7. Based on the results to date, the Company has accelerated the definition drilling program, beginning a series of down holes from the 9th level.

"Definition drilling results around Shaft No.3 at the LaRonde Property continue to indicate an ore structure larger than originally estimated," said Sean Boyd, President and Chief Executive Officer. "The potential increase in overall tonnage could have a significant positive impact on the current LaRonde Mine expansion program. Although definition drilling is at an early stage, the Company is studying several possible scenarios to increase the production rate beyond the currently planned expansion rate of 3,600 tons per day." Initial drilling at the 9th level consisted of a series of flat holes spaced approximately 300 feet apart. The principal target of this drilling was the upper zinc/silver portion of Zone 20 North, the largest mineralized zone on the LaRonde property. The drilling has established a strike length for Zone 20 North along the 9th level horizon of 1,650 feet and the zone remains open for extension to the west. To date, assay results have been received for five of the seven holes drilled from the 9th level. The results are summarized below. All core lengths are expressed as true thicknesses.

1. The 9th level horizontal thickness of Zone 20N continues to be significantly larger than that used in the initial resource calculations. Drill hole values continue to range from two to three times greater in thickness. Previous horizontal thickness used in the original resource calculation based on exploration drilling results varied from 10 feet to 40 feet.
   
   
2. Zone 20N has been tested by definition drilling for over 2,000 feet vertically (i.e. from 2,800 feet below surface to 4,800 feet below surface). Previous exploration drilling had intersected Zone 20N at a depth of 7,000 feet with DDH 20-131H intersecting 0.14 ounces of gold per ton, 1.98 ounces of silver per ton, 1.13 percent copper over a true thickness of 60.7 feet. The zone is still open at depth and to the west at that elevation. The continuing drill program will focus on extending Zone 20N and filling in the large untested area between the 9th level and 7,000 feet below surface. If the trend of larger thickness is maintained to depth, then the overall size of Zone 20 North could increase significantly.
   
   
3. The tighter spaced drilling has continued to confirm the excellent exploration potential of the LaRonde Property. DDH-3146-02 encountered gold mineralization (0.22 ounces of gold per ton, 1.75 ounces of silver per ton, 0.17 percent copper, 4.43 percent zinc over 9.2 feet) that could be the upward and eastern extension of Zone 7 up to the 9th level. Follow up work will be conducted as additional Shaft No.3 development levels become available for drilling.
   
   
4. A potentially new zone was encountered in DDH 3146-05. The drill hole intersected 0.15 ounces of gold per ton, 0.79 ounces of silver per ton, 0.06 percent copper, 2.61 percent zinc over 13.1 feet. The intersection is located 175 feet to the south of Zone 20N between Zones 20N and 20 South. Follow up work will be conducted by deeper drilling.
   
   
5. The drilling has also confirmed the general geological interpretation. Zone 20N is a volcanogenic massive sulfide deposit with local horizontal thickness in excess of 100 feet. The strike of the lens is almost east - west, dipping steeply to the south at 80 to 85 degrees. The drilling has continued to confirm the zones nature, upper zinc - silver portion of the zone overlaying a lower gold - copper portion of the zone. The 9th level drilling has begun to encounter the expected transition to economic gold/copper values.

The Global Inventory (including probable reserve and mineral resource categories) of the Shaft No.3 zones has been estimated at 29.2 million tons. The Zone 20N massive sulfide lens makes up approximately 20 million tons or 68 percent of the Global Inventory. Drilling has been accelerated and is now testing Zone 20N at the 10th level horizon (5,250 feet below surface or 450 feet below the 9th level). Upon completion of this drilling, (expected mid-July) the ore reserve - mineral resource will be recalculated. Currently, only the 8th level definition drilling has been incorporated in the 1998 ore reserve - mineral resource figure. The 9th level definition drill results have not been incorporated in any mineral resource estimate.

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. Agnico-Eagle's operating history includes 23 years of continuous gold production primarily from underground mining operations. Current proven and probable reserves stand at 0.8 million contained ounces, with an additional 3.4 million ounces in the mineral resource category at its LaRonde Division. In addition, Agnico-Eagle is currently focused on a development and expansion program at the LaRonde Division that is expected to result in increased gold production and expanded gold reserves.