Agnico-Eagle Reports Record Operating Results

TORONTO, ON - Agnico-Eagle Mines Limited reported quarterly net income of $106.3 million for the third quarter of 2012. These results include a non-cash foreign currency translation loss of $16.3 million, stock option expense of $7.1 million, and other non-recurring items totaling a loss of $1.8 million. Excluding these items would result in adjusted net income of $131.5 million.

For the first nine months of 2012, net income was $228.1 million.

For the first nine months of 2012, cash provided by operating activities was a record $590.0 million as compared with the first nine months of 2011, when cash provided by operating activities was $535.2 million.

The higher net income and cash provided by operating activities in the 2012 periods were primarily due to significantly stronger gold production and good cost performance at several of the operating mines, in particular at Meadowbank in Nunavut.

"Continued strong operating performance during the third quarter has resulted in a further strengthening of our financial position. In addition to steady production from all of our mines, and in particular record gold output at Meadowbank and Kittila in Canada, we are pleased to announce an increase in our full year production forecast with an associated reduction in the total cash cost estimate," said Sean Boyd, President and Chief Executive Officer.

The company's address is 145 King Street East, Suite 400, Toronto ON M5C 2Y7, 416 947-1212, fax: 416 367-4681.