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Agnico-Eagle reports second quarter and provides LaRonde exploration update

07/28/1999


     Stock Symbols:  AGE (TSE, ME)
                     AEM (NYSE)
TORONTO, July 28 /CNW-PRN/ - Agnico-Eagle Mines Limited today reported a

net loss of US$2.9 million, or US$0.05 per share for the quarter ended June 30, 1999 compared to a net loss of US$2.0 million, or US$0.04 per share in the same period last year. Operating cash flow declined in the second quarter to a deficit of US$0.8 million, or US$0.02 per share, compared to cash flow of US$0.3 million, or US$0.01 per share in the 1998 second quarter. While financial and operating results met the Company's budget objectives for the quarter, earnings and cash flows were weaker than those in 1998 due to a lower gold price and decreased gold production, partially offset by an improved operating cost performance at the mine.

''Our expansion to 5,000 TPD is progressing well as mining of the Shaft No. 3 zones has begun and a mill test of development ore has returned higher recovered gold grades than indicated by drilling and chip sampling,'' said Sean Boyd, Agnico-Eagle's President and Chief Executive Officer. ''In addition, drilling on the recently acquired El Coco property adjacent to LaRonde has extended Zone 20 South and encountered high grade gold and zinc values,'' added Mr. Boyd.

OPERATING RESULTS

Onsite operating costs improved by 10 percent in the second quarter to C$60 per ton of ore milled compared to C$67 per ton in same quarter of 1998. However, cash operating costs to produce an ounce of gold increased to US$241 per ounce from US$213 per ounce as gold production decreased to 25,794 ounces from 40,580 ounces. The decline in gold production is due to lower gold grades as mining activities remove the remaining ore around Shaft No. 1 and Shaft No. 2. The average gold price realized during the 1999 second quarter was US$277 per ounce, down eight percent from US$300 per ounce realized in the second quarter of 1998.

For the year to date, the net loss was US$4.6 million, or US$0.09 per share compared to US$4.1 million, or US$0.08 per share in 1998. Lower onsite operating costs were more than offset by lower gold production and a weaker gold price.

STRONG FINANCIAL POSITION

At June 30, 1999 Agnico-Eagle's financial position remained strong with a cash balance, excluding bullion on hand, of US$44 million and a working capital position of US$59 million. Including bullion on hand, Agnico-Eagle currently has US$61 million available for its capital investment program.

In June, the Company announced its decision to expand the LaRonde Mine a further 39 percent from a planned 3,600 tons per day to 5,000 tons per day. The Company is expected to spend US$104 million to the end of 2002 to complete the expansion. Of this amount, US$39 million will be spent in the last six months of 1999, US$44 million in 2000, US$17 million in 2001 and US$4 million in 2002. The Company's cash and bullion balance, along with projected cash flow from operations over this period are expected to be sufficient to fund the remaining investment required to achieve a production rate of 5000 tons per day.

In conjunction with a planned banking facility, due diligence on the LaRonde project has been completed by Roscoe Postle Associates and Hatch Associates on behalf of two international banks. The independent review included an audit of LaRonde's reserve and 5,000 ton per day feasibility study. Their report concluded that Agnico-Eagle's work and expansion plans at the LaRonde Mine were in keeping with industry standards and of high quality. Term sheet negotiations are nearing completion and the two banks are expected to seek final credit approval in early August to underwrite a long-term revolving credit facility of US$75 million to US$100 million. This facility is intended to provide the working capital required for the capital expenditure program and to enhance Agnico-Eagle's liquidity and financial flexibility.

LARONDE DRILLING PROGRAM

The Company's ongoing underground drilling program has been accelerated and is focused on several areas, (1) testing the extension of Zone 20 South on the recently acquired El Coco property (2) testing for extensions of Zone 20 North and Zone 7 at depth and (3) definition drilling Zone 20 North (zinc) and Zone 7. Recent drilling has identified high grade gold and zinc mineralization on El Coco and has extended the known area of mineralization. The deep drilling program has continued to encounter Zone 7 and one of the drills has been set up at a recently completed shaft station below 6,000 feet in an effort to reach the Zone 20 North target area at depth. Definition drilling of Zone 20 North (zinc) has also continued to intersect strong zinc grades over sizeable widths. Six drills are currently drilling several targets.

Zone 20 South - El Coco Drilling Results

The recent drilling program on Zone 20 South and its extension into the recently acquired El Coco Property can be characterized by frequent occurrences of visible gold resulting in good grade gold intersections with strong zinc grades. More importantly, the known outline of Zone 20 South has increased in size as drilling has extended the previously calculated area of mineral resource.

As previously reported, past exploration on the extension of Zone 20 South onto the El Coco Property had identified a total resource of 2.4 million tons grading 0.23 ounces of gold per ton of which 869,000 tons grading 0.37 ounces of gold per ton was classified as a possible reserve. Four drills are presently in operation to transfer the possible reserve to probable reserves and increase the overall resource position. The four drills are located on the 20th level exploration drift (2,800 feet below surface), 122 Level (4,000 feet below surface), 134 Level (4,400 feet below surface) and 146 Level (4,800 feet below surface).

During this current drilling program, six drill holes were completed from the 20th level exploration drift and one hole from Level 122. Three holes were drilled above the known mineralization and four were completed within Zone 20 South on the El Coco Property. The three holes drilled above Zone 20 South did not encounter significant mineralization. The four holes drilled within the zone are outlined below:

     -------------------------------------------------------------------------
                    True        Gold(oz/ton)
     Drill Hole  Thickness(ft)  Cut(1 oz)   Silver(oz/ton)  Copper(%)  Zinc(%)
     -------------------------------------------------------------------------
     20-187         9.8            0.12          1.61         0.10       5.56
     -------------------------------------------------------------------------
     20-188        14.8            0.50          2.84         0.16       7.06
     -------------------------------------------------------------------------
     20-202         9.2            0.18          3.61         0.25      10.38
     -------------------------------------------------------------------------
     12221725       9.2            0.12          1.59         0.31       6.13
     -------------------------------------------------------------------------

     The above results were cut to one ounce of gold per ton as visible gold

was evident in the drill core. This hole 20-188 had an uncut gold grade of 0.83 ounces of gold per ton. This drill hole intersected Zone 20 South approximately 300 feet above an earlier drill hole 20-103, which was previously drilled along the LaRonde/El Coco property boundary and returned 0.60 ounces of gold per ton over 23 feet.

The visible gold observed in DDH 20-187 was not confirmed by the assay result and the assay is being rechecked. These values continued to confirm the high-grade nature of Zone 20 South as well its unique metallurgical characteristic of gold mineralization in conjunction with high-grade zinc values.

In addition to high grade gold and zinc intersections within the zone, drilling from Level 146 below the known zone has extended Zone 20 South. Assay results for drill hole 146-20701 are outlined below:

     -------------------------------------------------------------------------
                     True       Gold(oz/ton)
     Drill Hole  Thickness(ft)  Cut(1 oz)   Silver(oz/ton)  Copper(%)  Zinc(%)
     -------------------------------------------------------------------------
     146-20701        9.2          0.23          0.45         0.01       0.27
     -------------------------------------------------------------------------

     The above result is significant, as it is located on Level 146

approximately 400 feet outside of the current Zone 20 South resource on El Coco, which had earlier been calculated to Level 134.

In addition to the above results, an additional six drill holes have been completed and assays results are pending. Drilling of Zone 20 South on El Coco is expected to be completed by the end of August.

Deep Drilling Program - Zone 20 North (Gold) and Zone 7

Two drills continued the deep exploration program during the quarter targeting Zone 20 North (Gold). Drill hole 3160-04C, set up on the 160 Level (5,250 feet below surface), continued to experience difficulty on its third attempt to reach the Zone 20 North target area. The hole did encounter stringer sphalerite (zinc) mineralization over a length of 16 feet at a depth of approximately 9,200 feet below surface but it did not reach the Zone 20 North target area. A survey of the location of the drill hole indicated that it had deviated sharply to the west and was running parallel to the Zone 20 North target area. It was concluded that further wedging of the hole would be ineffective and the drill has been lowered over 1,000 feet to Level 194 (6,365 feet below surface) where it is in a better position to successfully reach both Zone 20 North and Zone 7. The sphalerite (zinc) zone, which is a new occurrence and does not correspond to Zone 20 North, will be followed up at later date.

Deep drill hole 3170-11 drilled from Level 170 also deviated from its intended target. This hole had targeted Zone 20 North at an approximate depth of 7,700 feet below surface. A wedge has been placed in the hole and the projected trajectory of the hole now indicates the target area should be intersected at approximately 8,800 feet below surface. The drill hole is currently 1,200 feet away from this target area.

Although the two recent deep drill holes have not yet reached Zone 20 North they continued to encounter Zone 7 intersecting broad pyrite stringer mineralization (30-50 feet) with anomalous gold values ranging from 0.01 to 0.21 ounces per ton. Both of these intersections were encountered at a depth of 8,670 feet below surface and were outside and approximately 400 feet to the west of the projected outline of Zone 7 at depth. Although the gold grades in this area are not as high as those in the main Zone 7 area, these results are important because they have identified a broad mineralized stringer zone containing anomalous gold values over a length of more than 500 feet. This area of Zone 7 is open in all directions. The following table highlights the recent intersections:

     -------------------------------------------------------------------------
                   True
     Drill Hole Thickness(ft) Gold(oz/ton)  Silver(oz/ton)  Copper(%)  Zinc(%)
     -------------------------------------------------------------------------
     3160-04C       3.3           0.04           0.47         0.02       0.35
     -------------------------------------------------------------------------
     3170-11       16.4           0.04           0.34         0.11       0.25
     -------------------------------------------------------------------------
     including      3.3           0.21           0.34         0.08       0.09
     -------------------------------------------------------------------------

     Deep drilling will continue to test Zones 20 North (gold) and Zone 7

using two drills set up in Shaft No. 3 on Level 170 and the newly established drill station on Level 194.

     Zone 20 North (Zinc) Drilling Results

     Definition drilling continued on Level 146 (4,800 feet below surface).

The drilling was completed along the shaft section and continued to confirm the high zinc grades and large thicknesses encountered in the upper Zone 20 North zinc zone. The drill results are outlined below:

     -------------------------------------------------------------------------
                    True        Gold(oz/ton)
     Drill Hole  Thickness(ft)  Cut(1 oz)   Silver(oz/ton)  Copper(%)  Zinc(%)
     -------------------------------------------------------------------------
     146-20701      65.3          0.02           2.31         0.04       8.64
     -------------------------------------------------------------------------
     146-20702      72.8          0.03           4.04         0.03       8.96
     -------------------------------------------------------------------------

     LaRonde Expansion Program Update

     Mill Test - Zone 20 North and 20 South Development Ore

     Although it is still early, a recent mill test of development ore
indicates the potential to realize higher recovered gold grades.
     A composite sample of development ore from Zones 20 North and 20 South

totaling approximately 8,600 tons was milled during the month of June. The sample consisted of 2,585 tons of lower grade development ore from the upper portion of Zone 20 South and 6,032 tons from Zone 20 North mined on Level 122. Geologically the development ore mined exhibited the north/south fracturing known to result in higher recovered gold grades in LaRonde's main ore zone. The following table summarizes the results:

     -------------------------------------------------------------------------
     Sample Type      Tonnage  Gold(oz/ton) Silver(oz/ton)  Copper(%)  Zinc(%)
     -------------------------------------------------------------------------
     Chip & Drilling  10,543      0.07          1.15          0.21       2.00
     -------------------------------------------------------------------------
          Mill         8,617      0.10          1.24          0.28       2.25
     -------------------------------------------------------------------------

     The recovered gold grades from the mill of 0.10 ounces of gold per ton

were higher than the 0.07 ounce per ton grade indicated by chip sampling and drilling. Underground development, including the sampling of development ore, had suggested a possible upgrade similar to what has historically been realized at Shaft No. 1.

This was the first major bulk sample test conducted on Shaft No. 3 ores. More importantly, chip sampling and drilling results compose the majority of the data used to calculate the current Shaft No. 3 ore reserve and mineral resource. Although 8,617 tons is a small sample relative to the 38.0 millions tons of reserve and resource presently indicated at Shaft No. 3 the sample results are an initial early indication of the potential to realize higher gold grades than what is presently indicated and calculated by drilling.

Shaft Sinking and Mill Expansion

At the end of the quarter, Shaft No. 3 had reached a depth of 6,441 feet for a total advance in the quarter of 382 feet. Ground conditions continue to be excellent. The Level 194 station excavation was completed and sinking resumed. Drilling is scheduled to start from this new level in early August. The first mining block from Zone 20 North Gold on Level 122 neared production. The stope is currently being drilled and the first production blast is scheduled for the beginning of August. Ore from this area will be trucked up the ramp to Shaft No. 1 until Shaft No. 3 is ready for production in early 2000. At that time the volume of ore mined and processed will begin to increase resulting in increased gold production and significantly lower costs to produce an ounce of gold in 2000.

The SAG mill, 5,000-ton ore bin and the truck dump were 80% complete at the end of the quarter. Commissioning of the SAG mill is currently in progress and the mill is scheduled to be in operation by the first week in August.

YEAR 2000

The Company is fully aware of the potential disruption that may be caused by the passage to the Year 2000 and other data-related problems associated with it.

The primary concern has been the financial systems used by Agnico-Eagle. The majority of the Company's critical systems have been confirmed by our vendors to be Year 2000 compliant. These systems are currently being upgraded to the most recent versions that are confirmed to be compliant.

The inventory of equipment and instrumentation used in Agnico-Eagle's mine operations has been completed. Testing of these systems and contacting of customers and suppliers to confirm compliance has been completed for critical process control equipment. Moreover, third party suppliers have been requested to warrant compliance of date sensitive instrumentation as a condition attached to any purchase order issued for such instrumentation.

Based on the Company's current assessment, Agnico-Eagle has determined that most of its mission critical systems are already Year 2000 compliant and major systems modification is not expected. Therefore, costs to complete this process are not expected to be material.

Favourable responses have been received from critical third party suppliers and financial institutions regarding their preparedness for the transition to the Year 2000. Reliability of the commitments or comfort that will be expressed has been evaluated and a contingency plan is being defined where either criticality or insufficient comfort warrants it. This will be equally the case for financial systems and mine operation equipment and instrumentation. This plan is expected to complete and fully tested by the end of the third quarter 1999.

The time frames during which the Company believes it will complete its Year 2000 analysis and modifications and the cost estimates to complete these modifications are based on management's best estimates, which were made in reliance on numerous assumptions of future events, including the continued availability of certain resources and other factors. Any change in these assumptions may affect projections made by the Company. There can be no guarantee that the estimated time frames and costs will be achieved; actual results could differ materially from those anticipated.

This press release contains certain ''forward-looking statements'' (within the meaning of the United States Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Other risks and uncertainties are disclosed under the heading ''Risk Factors'' in the Company's Annual Information Form (AIF) filed with certain Canadian securities regulators (including the Ontario and Quebec Securities Commissions) and with the United States Securities and Exchange Commission (as Form 20-F).

Agnico-Eagle Mines Limited is an established Canadian gold producer with operations located principally in northwestern Quebec and exploration and development activities in Quebec, Ontario and Nevada. Consistently one of the industry's lowest-cost producers, Agnico's operating history includes 24 years of continuous gold production primarily from underground mining operations. Current proven and probable gold reserves stand at 1.5 million contained ounces, with an 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 (Unaudited)         Agnico-Eagle Mines Limited
     -------------------------------------------------------------------------
     (thousands of United States      Three months            Six months
     dollars, except per share        ended June 30,          ended June 30,
     and per ounce amounts)          1999        1998        1999        1998
     (Note 1)
     -------------------------------------------------------------------------

     CONSOLIDATED FINANCIAL DATA

     Income and cash flow
     -------------------------------------------------------------------------
     Revenue from mining
      operations (Note 2)       $   7,210   $  11,187   $  17,316   $  21,711
     Net loss for period        $  (2,890)  $  (1,959)  $  (4,635)  $  (4,089)
     Loss per share             $   (0.05)  $   (0.04)  $   (0.09)  $   (0.08)
     Operating cash flow
      (Note 3)                  $    (838)  $     327   $  (1,600)  $     299
     Operating cash flow
      per share                 $   (0.02)  $    0.01   $   (0.03)  $    0.01
     Gold production-ounces        25,794      40,580      58,800      76,312
     Average gold price
      - per ounce realized      $     277   $     300   $     282   $     300
     Average exchange rate
      - US$ per Canadian
        dollar                     0.6776      0.6918      0.6699      0.6959
     Weighted average number
      of shares - basic
      (in thousands)               53,285      46,756      53,258      46,766

     Operating and Financial Summary
     LaRonde Division
     Revenues from mining
      operations (Note 2)       $   7,210   $  11,187   $  17,316   $  21,711
     Mine operating costs           7,425       8,639      15,408      16,478
     -------------------------------------------------------------------------
     Mine operating profit
      (loss)                    $    (215)  $   2,548   $   1,908   $   5,233
     -------------------------------------------------------------------------
                                ----------------------------------------------

     Tons of ore milled           183,708     198,293     387,578     380,809
     Grade - ounces of gold
      per ton                        0.15        0.22        0.17        0.22
     Gold production - ounces      25,794      40,580      58,800      76,312
     Copper production - pounds   979,150   1,529,258   2,203,324   2,946,962
     Zinc production - pounds   1,783,810           -   3,347,795           -

     Onsite operating costs
      per ton milled
      (Canadian dollars)        $      60   $      67   $      59   $      66
     -------------------------------------------------------------------------
                                ----------------------------------------------

     Operating costs per gold
      ounce produced (US$):
     Onsite operating costs
      (including reclamation
       provision)               $     288   $     225   $     262   $     230
     Less: Non cash reclamation
           provision                   (4)         (3)         (4)         (3)
           Net by-product
           revenues                   (43)         (9)        (31)        (13)
     -------------------------------------------------------------------------
     Cash operating costs       $     241   $     213   $     227   $     214
     Non cash costs:
     Reclamation provision              4           3           4           3
     Depreciation and
      amortization                     53          46          45          48
     -------------------------------------------------------------------------
     Total operating costs      $     298   $     262   $     276   $     265
     -------------------------------------------------------------------------
                                ----------------------------------------------

     Notes to Summarized Quarterly Data and Consolidated Financial Statements:

     (1)  Effective January 1, 1999, Agnico-Eagle changed its functional and
          reporting currency from Canadian to United States dollars. The
          temporal method is applied for the accounting currency transactions
          and translation. Comparative figures for periods prior to January 1,
          1999, denominated into Canadian dollars, are translated into United
          States dollars under, generally accepted Canadian accounting
          principles, using the closing spot Canadian and United States
          currency exchange rate as at December 31, 1998 of $1.5333.

     (2)  Revenue from mining operations consists of gold by-product revenues
          net of smelting and refining charges.

     (3)  Before non-cash working capital adjustments.


     Consolidated Balance Sheets                   Agnico-Eagle Mines Limited
     -------------------------------------------------------------------------
     (thousands of United States dollars)            June 30,   December 31,
                                                         1999           1998
     -------------------------------------------------------------------------
                                                   (Unaudited)
     ASSETS
     Current
     Cash and cash equivalents                      $  43,785      $  76,262
     Metals awaiting settlement and gold bullion       18,401         23,210
     Income taxes recoverable                             745            714
     Prepaid expenses, supplies and other               6,044          6,558

     -------------------------------------------------------------------------
     Total current assets                              68,975        106,744
     -------------------------------------------------------------------------
     Investments, loans, advances and other assets     12,473         13,560
     Future income and mining tax assets                5,064          4,061
     Mining properties                                188,751        156,388
     -------------------------------------------------------------------------
                                                    $ 275,263      $ 280,753
     -------------------------------------------------------------------------
                                                    --------------------------

     LIABILITIES AND SHAREHOLDERS' EQUITY
     Current
     Accounts payable and accrued liabilities       $   4,340      $   6,832
     Dividends payable                                    642          1,660
     Income and mining taxes payable                    2,720          2,885
     Current interest due on senior convertible
      notes                                             1,896          1,897

     -------------------------------------------------------------------------
     Total current liabilities                          9,598         13,274
     -------------------------------------------------------------------------
     Senior convertible notes                         107,161        105,239
     -------------------------------------------------------------------------
     Reclamation provision and other liabilities        5,099          4,507
     -------------------------------------------------------------------------
     Future income and mining tax liabilities           9,379          9,695
     -------------------------------------------------------------------------
     Minority interest                                  3,590          3,592
     -------------------------------------------------------------------------

     Shareholders' Equity
     Common shares
       Authorized - unlimited
       Issued - 55,223,344 (1998 - 55,112,625)        151,932         151,307
     Other paid in capital                             14,535          14,535
     Contributed surplus                                3,886           3,886
     Deficit                                          (16,134)        (11,499)
     Company's own shares held by subsidiary company  (13,783)        (13,783)
     -------------------------------------------------------------------------
     Total shareholders' equity                       140,436         144,446
     -------------------------------------------------------------------------
                                                    $ 275,263      $  280,753
     -------------------------------------------------------------------------
                                                    --------------------------


     Consolidated Statements of Loss               Agnico-Eagle Mines Limited
      (Unaudited)
     -------------------------------------------------------------------------
     (thousands of United             Three months            Six months
     States dollars, except           ended June 30,          ended June 30,
     per share amounts)              1999        1998        1999        1998
     -------------------------------------------------------------------------
     REVENUES
     -------------------------------------------------------------------------
     Revenues from mining
      operations                $   7,210   $  11,187   $  17,316   $  21,711
     Interest and sundry income     1,085         970       1,732       1,581
     -------------------------------------------------------------------------
                                    8,295      12,157      19,048      23,292
     COSTS AND EXPENSES
     -------------------------------------------------------------------------
     Production                     7,346       8,892      15,533      17,087
     Exploration                      961         401       1,363       1,158
     Depreciation and amortization  1,378       1,772       2,709       3,408
     General and administrative     1,131         821       2,111       1,718
     Capital tax                      190         359         538         558
     Interest                       2,152       2,169       4,301       4,205
     -------------------------------------------------------------------------
     Loss before the undernoted    (4,863)     (2,257)     (7,507)     (4,842)

     Foreign currency gain (loss)   1,490        (267)      1,811        (512)
     -------------------------------------------------------------------------
     Loss before income and mining
      tax recoveries               (3,373)     (2,524)     (5,696)     (5,354)
     Income and mining tax
      recoveries                     (483)       (565)     (1,061)     (1,265)
     -------------------------------------------------------------------------
     Net loss for the period    $  (2,890)  $  (1,959)  $  (4,635)  $  (4,089)
     -------------------------------------------------------------------------
                                ----------------------------------------------

     Loss per share             $   (0.05)  $   (0.04)  $   (0.09)  $   (0.08)
     -------------------------------------------------------------------------
                                ----------------------------------------------


     Consolidated Statements of Cash Flows         Agnico-Eagle Mines Limited
      (Unaudited)
     -------------------------------------------------------------------------
     (thousands of United             Three months           Six months
     States dollars)                  ended June 30,         ended June 30,
                                     1999        1998       1999         1998
     -------------------------------------------------------------------------
     Operating activities
     Net loss for the period    $  (2,890)  $  (1,959)  $  (4,635)  $  (4,089)
     Add (deduct) items not
      affecting cash from
      operating activities:
     Depreciation and
      amortization                  1,378       1,772       2,709       3,408
     Future provision of income
      and mining recoveries          (641)       (766)     (1,385)     (1,565)
     Foreign currency
      translation gain                (92)        345        (824)        537
     Amortization of deferred
      interest and financing
      costs on convertible          1,044         958       2,066       1,880
     Other                            363         (23)        469         128
     -------------------------------------------------------------------------
                                     (838)        327      (1,600)        299
     Net change in non-cash
      working capital balances
      related to operations
     Metals awaiting settlement
      and gold bullion              4,098         592       4,809         550
     Prepaid expenses, supplies
      and other                      (187)        796         514       1,426
     Income and mining taxes
      recoverable and payable          20         227        (196)        197
     Accounts payable and accrued
      liabilities                    (665)        503      (2,333)       (707)
     Current interest due on
      senior convertible notes      1,105       1,085          (1)         45
     -------------------------------------------------------------------------
     Cash flows from operating
      activities                    3,533       3,530       1,193       1,810
     -------------------------------------------------------------------------

     Investing activities
     Additions to mining
      properties                  (20,437)     (9,508)    (35,072)    (17,631)
     Purchase of shares of
      subsidiary companies and
      other                            61         (37)         62        (578)
     -------------------------------------------------------------------------
     Cash flows used in investing
      activities                  (20,376)     (9,545)    (35,010)    (18,209)
     -------------------------------------------------------------------------

     Financing activities
     Dividends paid                    (4)         (5)     (1,020)       (800)
     Share issued by public
      offering                          -      65,219           -      65,219
     Shares issued under employee
      plans                           276         150         549         300
     Share issue costs                  -      (3,000)          -      (3,000)
     Purchase of the Company's own
      shares held by subsidiary
      company and other                 -          55           -        (184)
     -------------------------------------------------------------------------
     Cash flows from (used in)
      financing activities            272      62,419        (471)     61,535
     -------------------------------------------------------------------------

     Effect of exchange rate
      changes on cash and cash
      equivalents                     666           -       1,811           -
     Net increase (decrease) in
      cash and cash equivalents   (15,905)     56,404     (32,477)     45,136
     Cash and cash equivalents,
      beginning of period          59,690     749,040      76,262      60,308
     -------------------------------------------------------------------------
     Cash and cash equivalents,
      end of period             $  43,785   $ 105,444   $  43,785  $  105,444
     -------------------------------------------------------------------------
                                ----------------------------------------------
     Other operating cash flow
      information:
     Interest paid during
      the period                $      38   $   1,651   $   2,270  $    2,294
     -------------------------------------------------------------------------
                                ----------------------------------------------
     Taxes paid during
      the period                $     402   $     327   $   1,165  $      655
     -------------------------------------------------------------------------
                                ----------------------------------------------


SOURCE  Agnico-Eagle Mines Limited
©2008 Agnico-Eagle Mines Limited