Agnico Eagle Reports Second Quarter 2014 Results Increased 2014 Guidance on the Back of Continued Strong Operating Results and Completion of the Osisko Acquisition

Stock Symbol: AEM (NYSE and TSX)

For further information: Investor Relations (416) 947-1212

(All amounts expressed in U.S. dollars unless otherwise noted)

AGNICO EAGLE REPORTS SECOND QUARTER 2014 RESULTS INCREASED 2014 GUIDANCE ON THE BACK OF CONTINUED STRONG OPERATING RESULTS AND COMPLETION OF THE OSISKO ACQUISITION

Toronto (July 30, 2014) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported a quarterly net income of $37.7 million, or $0.20 per share for the second quarter of 2014. This result includes a non-cash foreign currency translation loss of $8.7 million ($0.05 per share), non-cash stock option expense of $5.1 million ($0.03 per share), non-recurring losses of $6.1 million ($0.03 per share) related to the Osisko Mining Corporation (“Osisko”) acquisition, and non-recurring gains of $4.8 million ($0.03 per share). Excluding these items would result in an adjusted net income of $52.8 million, or $0.28 per share. In the second quarter of 2013, the Company reported a net loss of $24.4 million, or $0.14 per share.

For the first six months of 2014, the Company reported net income of $146.5 million, or $0.81 per share. This compares with the first six months of 2013 when a net loss of $0.5 million, or nil per share, was realized. Financial results in the 2014 period were positively affected by significantly higher gold production due primarily to higher grades at Meadowbank and contributions from commercial production at Goldex and La India.

Second quarter 2014 cash provided by operating activities was $197.7 million ($139.5 million before changes in non-cash components of working capital), compared to cash provided by operating activities of $75.3 million in the second quarter of 2013 ($63.6 million before changes in non-cash components of working capital).

For the first six months of 2014, cash provided by operating activities was $445.4 million ($333.3 million before changes in non-cash components of working capital), as compared with the first half of 2013 when cash provided by operating activities was $221.4 million ($198.1 million before changes in non-cash components of working capital).

The higher net income and cash provided by operating activities in 2014 was in spite of lower realized metal prices and is a result of significantly higher gold production, as described above.

“With the closing of the Osisko transaction in the second quarter, we are now working closely with our partner Yamana to optimize the Canadian Malartic mine and maximize the potential of the Kirkland Lake portfolio,” said Sean Boyd, President and Chief Executive Officer. “In light of the Osisko acquisition, and on the back of continued strong operating performance in the second quarter we are pleased to announce revised production guidance of approximately 1,360,000 million ounces of gold for 2014, which is a 14% increase over our previous guidance. Additionally, due to optimization efforts, particularly at Meadowbank, Kittila and in our Southern Business, we anticipate increasing our gold production guidance for 2015, beyond the addition of the Canadian Malartic mine. We will quantify this increase as soon as possible once our budget process is further advanced”, added Mr. Boyd.

Second quarter 2014 highlights include:

• Continued strong operating performance in the second quarter 2014 - Payable production¹ of 326,059 ounces at total cash costs² per ounce on a byproduct basis of $626
• Acquisition of Osisko – during the second quarter, Agnico Eagle and Yamana Gold Inc. (“Yamana”) each acquired 50% of Osisko and formed a joint committee to operate the Canadian Malartic mine. The Company and Yamana are currently preparing a new NI 43-101 report for the Canadian Malartic mine. The partners will also jointly explore and potentially develop the Kirkland Lake assets, and continue exploration at the Pandora property.
• Increased 2014 Guidance - production for 2014 is now expected to be 1,350,000 to 1,370,000 million ounces, with total cash costs on a by-product basis of $650 to $675 per ounce. All-in sustaining costs³ on a by-product basis are unchanged at $990 per ounce

1 Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.

2 Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see “Reconciliation of Non-US GAAP Financial Performance Measures – Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine” below. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, noncash reclamation provisions, deferred stripping costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See “Note Regarding Certain Measures of Performance”.

3 All-in sustaining costs is a non-US GAAP measure and is used to show the full cost of gold production from current operations. The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options) and reclamation expenses divided by the amount of gold produced. The Company’s methodology for calculating all-in sustaining costs may not be similar to the methodology used by other producers that disclose all-in sustaining costs.

• Mid-Year 2014 Exploration Update – IVR discovery near Meadowbank continues to expand; new deep intersection at Kittila; and technical studies progress at Meliadine and Akasaba West projects; (for further information see the 2014 Exploration Update news release dated July 30, 2014)

Payable gold production in the second quarter of 2014 was 326,059 ounces, including 11,878 ounces from the Canadian Malartic mine, compared to 224,089 ounces in the second quarter of 2013. A description of the production and cost performance for each mine is set out below.

Total cash costs per ounce of gold produced on a by-product basis for the second quarter of 2014 were $626. This compares with $785 per ounce on a by-product basis in the second quarter of 2013 (excluding the Kittila operations). The lower cash cost per ounce in 2014 was due primarily to higher grades at Meadowbank and contributions from commercial production at Goldex and La India.

Payable gold production for the first half of 2014 was 692,480 ounces, including 11,878 ounces from Canadian Malartic, compared to payable gold production of 461,064 ounces in the comparable 2013 period.

For the first half of 2014, total cash costs on a by-product basis were $579 per ounce. This compares with $762 per ounce on a by-product basis in the first six months of 2013 (excluding the 2013 second quarter impact of the idled Kittila operations due to maintenance). The higher production in 2014 is due to the factors that impacted the second quarter, as mentioned above.

On May 1, 2014, the Company reported that gold production was expected to exceed the higher end of the 2014 guidance range of 1,175,000 to 1,205,000 ounces, while total cash costs on a by-product basis were forecast to be better than the lower end of the guidance range of $670 to $690 per ounce. Given the continued strong operating results, 2014 production guidance, excluding the ounces from Canadian Malartic, is now expected to be 1,225,00 to 1,245,000 million ounces, while total cash costs on a byproduct basis are forecast to be $650 to $675 per ounce. Including Canadian Malartic, 2014 production is now expected to be 1,350,000 to 1,370,000 million ounces, while total cash costs on a by-product basis are expected to remain in the range of $650 to $675 per ounce.

Expected all-in sustaining cost (AISC) guidance calculated on a by-product basis for 2014 is unchanged at $990 per ounce.

The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.

Updated production guidance for 2015 is expected to be provided with the Q3 2014 results in October.. Detailed guidance for 2015, 2016 and 2017 will be included in Agnico Eagle’s regular three-year guidance news release to be provided in February 2015.

Quarterly Dividend Declared

Agnico Eagle has paid a dividend every year since 1983. The Board of Directors has approved the next quarterly dividend of 8 cents per share to be paid on September 16, 2014 to shareholders of record as of September 2, 2014.

Other Expected Dividend and Record Dates for 2014
Record Date	Payment Date
Dec. 1	Dec. 15

Conversion to International Financial Reporting Standards

Agnico Eagle has decided to convert its basis of accounting to International Financial Reporting Standards ("IFRS") to enhance the comparability of its financial statements to the Company's peers within the mining industry. The Company has commenced the process to convert its basis of accounting from US GAAP to IFRS with a transition date of January 1, 2013. Agnico Eagle anticipates reporting under IFRS for interim and annual periods beginning in the third quarter of 2014, with comparative information restated under IFRS. Additional disclosure regarding the IFRS conversion is included in the Company's Management's Discussion and Analysis in respect of the second quarter of 2014, which is expected to be filed in August 2014.

Second Quarter 2014 Results Conference Call and Webcast Tomorrow

Agnico Eagle’s senior management will host a conference call on Thursday, July 31, 2014 at 11:00 AM (E.D.T.) to discuss the Company’s financial and operating results.

Via Webcast:

A live audio webcast of the meeting will be available on the Company’s website www.agnicoeagle.com.

Via Telephone:

For those preferring to listen in by telephone, please dial 416-847-6330 or Toll-free 1- 866-530-1553. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 647-436-0148 or Toll-free 1-888-203-1112, access code 9653906. The conference call replay will expire on August 31, 2014 at 2:00 PM.

The webcast along with presentation slides will be archived for 180 days on www.agnicoeagle.com.

Capital Expenditures

Capital expenditures in the second quarter of 2014 were $101.5 million, including $29.1 million at Kittila, $19.1 million at LaRonde, $11.8 million at Meadowbank, $8.9 million at Pinos Altos, $7.8 million at Goldex, $5.3 million at Lapa, $3.9 million at La India and $3.4 million at Creston Mascota. Capital expenditures at development projects included $11.4 million at Meliadine.

On a 100% basis, capital expenditures at the Canadian Malartic Mine in the second quarter of 2014 were C$42.1 million (approximately C$67.1 million for the first six months of 2014).

Capital expenditures for the first six months of 2014 were $200.3 million. For 2014, capital expenditures are expected to total approximately $468 million, representing a $37 million increase from the previously announced figure which is due primarily to the acquisition of Osisko but also additional expenditures at Goldex for acceleration of the ramp into the D Zone, and at Kittila to reflect the completion of the plant expansion ahead of plan.

Liquidity – Credit Rating Maintained

Cash and cash equivalents and short-term investments totaled $245.0 million at June 30th, 2014, up from the March 31, 2014 balance of $184.0 million. The increase in the cash balance is largely due to the impact of higher production and lower production costs. The outstanding balance on the Company’s credit facility was $520 million at June 30, 2014 which increased from the March 31, 2014 balance of $120 million as the Company used the credit facility to fund the acquisition of Osisko. Available bank lines as of June 30, 2014 are approximately $680 million.

As at June 30, 2014, the Canadian Malartic GP (the “Partnership”), through which the Company and Yamana hold their 50% interests in the Canadian Malartic mine, had C$40.1 million of cash and cash equivalents and assumed long term debt of C$124.3 million of loans, C$75 million of convertible debentures and C$75.3 million of capital lease obligations.

At current gold prices and related forecasts, Agnico Eagle remains well within its debt covenants. In addition to the Company’s credit facility referred to above, the Company’s debt is comprised of five separate series of notes, whose maturities are spread out over a seven-year period, with the earliest maturity being $115 million in 2017.

On June 25, 2014 DBRS reaffirmed Agnico Eagle’s investment grade credit rating at BBB (low) with a stable trend.

Revised 2014 Tax Guidance

For 2014, the jurisdictional tax rates are expected to be:

Canada - 40% to 50% Mexico - 35% to 40% Finland - 20%

The Company's overall tax rate is expected to be between 35% to 40%. Previous guidance was 40% to 45%. The decrease is largely due to the high proportion of the profit being generated by the Meadowbank mine, which continues to be sheltered by tax pools.

Northern Business Operating Review

LaRonde –Good Cost Performance Continues

The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Current mine life is estimated to be through 2024.

On a period-over-period basis, tonnes milled were relatively flat with an average of 6,197 tonnes per day (“tpd”) processed in the second quarter of 2014, compared to an average of 6,143 tpd in the corresponding quarter of 2013.

Subsequent to quarter end, in July, a planned three week shutdown was carried out to upgrade the production and service hoist drives at the Penna shaft. During the shutdown, additional maintenance activities were also undertaken underground and at the mill. Due to the shutdown, the mining sequence in the second quarter of 2014 was modified. As a result, fewer tonnes were mined from the deeper portion of the LaRonde mine with more ore coming from upper level stopes, which had lower gold grades, but higher base metal grades.

With the maintenance now completed, the proportion of production from the deeper mine is expected to increase over the balance of the year as the deeper, higher grade Level 293 pyramid advances to maturity. The mined grade is expected to continue to increase towards the average reserve grade over the next several years.

Minesite costs per tonne ⁴ were approximately C$91 in the second quarter of 2014. Compared to the C$103 per tonne experienced in the second quarter of 2013. The decrease in costs is largely due to reduced labor and contractor costs, and lower material costs (electricity and consumables).

4 Minesite costs per tonne is a non-GAAP measure. For reconciliation to production costs, see “Reconciliation of non-US GAAP Financial Performance Measures – Reconciliation of Production Costs to Minesite Costs per Tonne by Mine” contained herein. See also “Note Regarding Certain Measures of Performance”.

For the first six months of 2014, the LaRonde mill processed an average of 6,194 tpd, compared to 6,372 tpd in the first six months of 2013. Minesite costs per tonne were approximately C$95, compared to C$100 per tonne in the first six months of 2013. Costs were lower due to the reasons described above in spite of the lower throughput.

On a per ounce basis LaRonde’s total cash costs per ounce were $691 on a by-product basis in the second quarter of 2014 on production of 48,494 ounces of gold. This compares with the second quarter of 2013 when total cash costs per ounce were $927 on a by-product basis on production of 46,119 ounces of gold. The increased production in the second quarter of 2014 is due to slightly higher grades and higher tonnage processed. The considerable improvement in total cash costs is related to lower minesite costs per tonne and higher by-product (zinc) credits in the 2014 period. In addition, there was also a negative settlement adjustment on concentrate shipments of $90 per ounce in the second quarter of 2013 compared to the second quarter of 2014.

In the first six months of 2014, LaRonde produced 107,846 ounces of gold at total cash costs per ounce of $642 on a by-product basis. This is in contrast with the first half of 2013 when the mine produced 85,192 ounces of gold at total cash costs per ounce of $831 on a by-product basis. The reasons for the higher production and lower costs in the 2014 period are outlined above.

Post-2014, LaRonde is expected to increase production over the next several years to an average life of mine production of more than 300,000 ounces of gold per year, reflecting the higher gold grades expected at depth.

Canadian Malartic GP – Optimization and Cost Saving Studies Underway

In June 2014, Agnico Eagle and Yamana acquired all issued and outstanding common shares of Osisko, and created the 50:50 Partnership that owns and operates the Canadian Malartic mine through a joint management committee. The Partnership acquired the Canadian Malartic mine on June 16, 2014.

During the second quarter of 2014, the Canadian Malartic mill processed an average of 50,673 tpd, with minesite costs per tonne of approximately C$20. The second quarter included a 5 day scheduled shutdown for mill maintenance.

For the first six months of 2014, the Canadian Malartic mill processed an average of 49,584 tpd, with minesite costs per tonne of approximately C$20

For the full second quarter of 2014, production at the Canadian Malartic mine (on a 100% basis) was 133,181 ounces of gold at a total cash cost per ounce of $645 on a byproduct basis. Production from June 16 to June 30, 2014 (on a 100% basis) was 23,756 ounces of gold at a total cash cost per ounce of $614 on a by-product basis. Agnico Eagle’s 50% share of attributable production for these 15 days was 11,878 ounces of gold. Minesite costs per tonne for the above mentioned 15 day period were C$21.

In the first six months of 2014, the Canadian Malartic mine produced 273,211 ounces of gold (on a 100% basis). Canadian Malartic’s total cash costs per ounce were $610 on a by-product basis in the first half of 2014.

The Partnership is in the process of completing a new NI 43-101 report on the Canadian Malartic mine. This report is expected to be completed later in August 2014.

In 2014, ore grades are expected to average 1.02 g/t gold with recoveries of approximately 89% and an average strip ratio of 2.6 to 1.0. Minesite costs per tonne are expected to be approximately C$21. For the full year, the Canadian Malartic mine is forecast to produce 510,000 to 530,000 ounces (on a 100% basis), with total cash costs per ounce of $695 on a by-product basis.

Total cash costs on a by-product basis are expected to increase in the second half of 2014 largely due to inclusion of the 5% NSR royalty (approximately $65 per ounce annually), increased operating costs associated with the Gouldie pit (approximately C$11.7 million), increased drilling costs in the north part of the pit to reduce noise and vibration (approximately C$6.6 million), and increased cyanide consumption (approximately C$6.7 million).

Total capital costs for 2014 at Malartic (on a 100% basis) are estimated at approximately C$169.3million. Capital costs are higher than the original Osisko forecast of C$126.0 million primarily due to the acceleration of activities at the Gouldie pit to increase mining flexibility (approximately $C13.0 million), increased capitalized stripping costs (approximately $C12.0 million), and the addition of extra mining equipment (approximately $C9.0 million).

Potential Opportunities to Optimize the Canadian Malartic Operations

By the beginning of 2015, the Company believes that there is good potential to refine and improve the Canadian Malartic mining operation. Studies are currently underway to fully explore synergies and opportunities for optimization of the asset. Potential initiatives include:

• Projects to improve or expand the current crushing and grinding capacity, as the mine will be generating additional ore stockpiles in the coming years.
• Savings on procurement of consumables and equipment (Abitibi synergies).
• Improvement of drilling and blasting techniques in the open pit (fragmentation).
• Empowering the workforce to reduce/optimize minesite costs and a reduction in Osisko’s head office costs (annual savings of approximately C$12.0 to C$15.0 million).
• Optimization of the mine plan.

An update on the optimization plan is expected to be presented by the Partnership at the end of the third quarter of 2014. Updated guidance for 2015 and 2016 will be included in Agnico Eagle’s regular three-year guidance to be provided in February 2015.

Osisko Exploration Portfolio – Upper Beaver to be the Main Focus

In addition to being the operators at the Canadian Malartic mine, Agnico Eagle and Yamana will also jointly explore and consider the development potential at the jointly held Kirkland Lake assets, and continue exploration at the Pandora property.

Prior to the completion of the acquisition, Osisko drilled 215 exploration holes totaling approximately 94,000 metres on their key exploration holdings. A breakdown of the drilling is shown in the table below.

Exploration drilling summary for the Osisko Exploration Portfolio, January 1 to June 30, 2014

Project	Year-to-date, 2014
	No. holes	Total length (metres)
Canadian Malartic	28	17,744
Pandora/Wood-Pandora	12	4,136
Kirkland Lake	175	71,994
Total	215	93,874

Two rigs are still drilling on the Upper Beaver and Canadian Kirkland properties. Data from these programs are being reviewed with the intent of prioritizing areas for follow-up work. Work programs, budgets and a strategic plan to develop the Kirkland Lake camp are expected to be released later this fall.

Lapa – Higher Grades Expected from Zulapa Zone 7 in the Fourth Quarter 2014

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009. Current mine life is estimated to be through 2016.

The Lapa circuit at the LaRonde mill processed an average of 1,789 tpd in the second quarter of 2014, slightly higher than the 1,745 tpd processed in the second quarter of 2013.

Minesite costs per tonne were C$107 in the second quarter of 2014, compared to C$110 in the second quarter of 2013. Despite mining at a deeper depth the lower minesite costs in the current quarter is due to lower labor costs and continued cost reduction efforts versus the comparable period last year.

For the first six months of 2014, the Lapa mill processed an average of 1,769 tpd, compared to 1,761 tpd in the first six months of 2013. Minesite costs per tonne were approximately C$108, slightly below the C$112 per tonne in the first six months of 2013 due to reasons explained above.

Payable production in the second quarter of 2014 was 18,821 ounces of gold at total cash costs per ounce of $847 on a by-product basis. This compares with the second quarter of 2013, when production was 23,178 ounces of gold at total cash cost per ounce of $720 on a by-product basis. In the current period, the decrease in gold production and higher total cash costs per ounce were generally due to the processing of lower gold grades compared to the same quarter last year.

In the first six months of 2014, Lapa produced 42,230 ounces of gold at total cash costs per ounce of $747 on a by-product basis. This compares to the first half of 2013 when the mine produced 50,046 ounces of gold at total cash costs per ounce of $699 on a byproduct basis. The lower production and higher costs in the 2014 period are due to the reasons outlined above.

During the second quarter of 2014, gold grades were lower than forecast due to the mining of lower grade stopes in the deep zone and on the flanks of the deposit. In the second half of 2014, grades are expected to improve with the optimization of the mine plan and the start of mining in the higher grade Zulapa 7 zone.

Goldex Mine – Excellent Cost Performance, Mill Ramp up to 6,000 tpd Ahead of Schedule

The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original Goldex Extension Zone (GEZ) orebody were suspended in October 2011 (see October 19, 2011 news release). Mining operations at the GEZ remain suspended. In July 2012, the M and E satellite zones were approved for development, and these zones achieved commercial production in October 2013.

The Goldex mill processed an average of 5,692 tpd in the second quarter of 2014 and throughput is expected to increase to approximately 6,000 tpd by year end 2014.

Minesite costs per tonne at Goldex were approximately C$33 in the second quarter of 2014. Minesite costs per tonne were significantly lower than 2014 guidance of C$37, primarily due to improved underground productivity, higher than forecast tonnage and reduced labor costs.

For the first six months of 2014, the Goldex mill processed an average of 5,544 tpd. Minesite costs per tonne were approximately C$32.

Payable gold production in the second quarter of 2014 was 23,929 ounces at a total cash cost per ounce of $654 on a by-product basis. In the first six months of 2014, Goldex produced 43,359 ounces of gold at total cash costs per ounce of $678 on a by-product basis.

Development activities are progressing on the M2, M5 and E2 satellite zones. A new surface portal has been collared and the old ramp is being refurbished to provide access to the M3 and M4 zones. This ramp will also facilitate the movement of equipment from surface to the underground. In addition, accelerated development of the exploration ramp into the DX zone (the top of the Deep zone) is underway. This ramp will provide access for additional exploration drilling.

These satellite zones could have the potential to further extend the mine's life. Economies of scale may also be available if additional zones are developed as the mill has the ability to operate at over 8,000 tpd. Studies are currently underway to fully evaluate the potential of these zones, with initial results expected in early 2015. The Goldex mining approach may also open up other mining opportunities in the region.

Meadowbank – Record Throughput and Continued Cost Control Drive Strong Performance

The 100% owned Meadowbank mine is located in Nunavut, Canada. Current mine life is estimated to be through 2018.

The Meadowbank mill processed an average of 11,549 tpd in the second quarter of 2014. This compares with 11,303 tpd in the second quarter of 2013. The record throughput in the 2014 period is largely due to the continued optimization of the mine plan and improved equipment availability. The secondary crusher has consistently exceeded the initial design rate of 8,500 tpd since startup.

Minesite costs per tonne were C$71 in the second quarter of 2014, compared with C$83 per tonne in the second quarter of 2013. Costs are lower in the 2014 period due to more tonnes of ore processed in 2014 versus 2013, improved productivity, as well as ongoing cost reduction initiatives. In addition, seasonal costs were deferred into the second half of 2014.

For the first six months of 2014, the Meadowbank mill processed an average of 11,299 tpd, compared to 11,311 tpd in the first six months of 2013. Minesite costs per tonne were approximately C$73 in the first six months of 2014, below the C$85 per tonne in the comparable 2013 period due to reasons described above.

Payable production in the second quarter of 2014 was 118,161 ounces of gold at total cash costs per ounce of $577 on a by-product basis. This compares with payable production in the second quarter of 2013 of 91,873 ounces of gold at total cash costs per ounce of $912 on a by-product basis. The increase in year over year production and lower total cash costs reflects higher grades, increased throughput, higher recoveries, and lower minesite costs per tonne compared to the previous period.

In the first six months of 2014, Meadowbank produced 274,605 ounces of gold at total cash costs per ounce of $496 on a by-product basis. In the first half of 2013 the mine produced 173,691 ounces of gold at total cash costs per ounce of $986 on a by-product basis. The stronger 2014 results are due to the reasons outlined above.

Production in the second half of 2014 will be considerably lower than the first half of the year (approximately a 60:40 split between the first half and second half as previously reported in the Company’s May 1, 2014 news release) as grades are expected to be closer to reserve grade with the completion of mining activities in the Goose pit by yearend and a higher percentage of ore being sourced from the lower grade Vault pit.

Exploration drilling has expanded the scope of the mineralization at the IVR property, located 50 kilometres northwest of the Meadowbank mine. A total of 48 drill holes (7,423 metres) have been completed since the program began in 2013. The best intercepts to date include 26.1 grams per tonne (“g/t”) gold (capped) over 4.8 metres, and 27.6 g/t gold (capped) over 3.0 metres estimated true width. A phase two exploration program consisting of 20,000 metres of drilling is currently underway. For additional details on this project, readers are referred to Agnico Eagle’s mid-year exploration news release dated July 30, 2014.

Kittila Mine – Plant Expansion to be Completed Ahead of Schedule

The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009. Current mine life is estimated to be through 2037.

In the second quarter of 2014, the Kittila mill processed an average of approximately 2,720 tpd. In the second quarter of 2013, the Kittila mill was idle for most of the quarter due to the relining of the autoclave, as such tonnage comparisons with the prior period are not considered to be relevant.

Minesite costs per tonne at Kittila were approximately €81 in the second quarter of 2014. Given the autoclave relining, minesite costs per tonne in the 2013 comparable period are also not considered relevant.

For the first six months of 2014, the Kittila mill processed an average of 3,065 tpd, compared to 1,761 tpd in the first six months of 2013. The higher throughput in 2014 is due to the reason mentioned above.

Minesite costs per tonne at Kittila were approximately €77 in the first six months of 2014, unchanged from €77 in the comparable period of 2013. Minesite costs per tonne in the 2013 period only reflect 104 days of operation due to the autoclave relining.

Second quarter 2014 gold production at Kittila was 31,830 ounces with a total cash cost per ounce of $862 on a by-product basis. Gold recoveries in the 2014 period were slightly below normal due to temporary site water balance issues. In the second quarter of 2013 the mine produced 5,389 ounces. Cash costs and production are not considered comparable due to the relining of the autoclave mentioned above.