Positive Exploration Results Encountered at Multiple Projects: Amaruq Drilling Continues to Extend Known Zones and Discover New Occurrences; Extension of Near-Mine Mineralization at La India; Strike

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POSITIVE EXPLORATION RESULTS ENCOUNTERED AT MULTIPLE PROJECTS: AMARUQ DRILLING CONTINUES TO EXTEND KNOWN ZONES AND DISCOVER NEW OCCURRENCES; EXTENSION OF NEAR-MINE MINERALIZATION AT LA INDIA; STRIKE LENGTH OF KNOWN MINERALIZED ZONES INCREASED AT EL BARQUENO AND BARSELE

Toronto (September 5, 2017) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) is pleased to provide an update on its recent 2017 exploration activities at the Amaruq project in Nunavut, the Barsele project in Sweden and the La India Mine and El Barqueno project in Mexico. Highlights include:

• Drilling at Amaruq traces gold beneath current Whale Tail and V Zone mineral resources – AMQ17-1418 intersects a strongly mineralized quartz vein that returned 8.6 grams per tonne ("g/t") gold over 38.7 metres at 273 metres depth extending the V Zone to the east of the proposed pit
• New Tugak structure identified 4.5 kilometres west of Whale Tail at Amaruq – Initial drill results include 2.5 g/t gold over 10.0 metres near surface. Follow up drilling is planned
• At the Barsele project, drilling infills area between Central and Avan zones – High-grade interval in Central Zone intersects 5.4 g/t gold over 11.5 metres at 275 metres depth
• La India drilling extends near-pit mineralization and other near-mine targets,

mineral reserves and mineral resources expected to increase at year-end 2017 – Drilling at El Realito intersects 9.5 g/t gold and 36 g/t silver over 7.3 metres at 92 metres depth, while drilling at La Chipriona intersects 1.4 g/t gold and 67 g/t silver over 40.3 metres near surface. Both of these zones are outside of the current mine plan

• At El Barqueno, drilling extends strike length of Azteca-Zapateco zones by over 1,000 metres to west onto Cuauhtémoc zone – Recent results in far west include 6.3 g/t gold and 45 g/t silver over 5.7 metres at 201 metres depth

“Our solid operational performance has generated strong cash flow, which has allowed us to maintain a robust exploration budget both at our mine sites and at our exploration/development projects in 2017. As a result, we continue to make new discoveries and extend the mineralization at multiple projects,” said Sean Boyd, Chief Executive Officer of Agnico Eagle. “We believe that there is good potential to expand and upgrade the mineral resources and mineral reserves at many of our key projects by year-end 2017”, added Mr. Boyd.

Amaruq Satellite Deposit – V Zone Expands at Depth and to West; Whale Tail Ore Shoot Extended, Directional Drill Program Reaching Below Current Mineral Resources; New Tugak Showing Discovered 4.5 Kilometres West of Planned Whale Tail Pit; I Zone Confirmed by New Drilling

Agnico Eagle has a 100% interest in the Amaruq satellite deposit, approximately 50 kilometres northwest of the Meadowbank mine. Amaruq is situated on a 116,717-hectare property, near the 77,411-hectare Meadowbank property. A significant gold discovery was made on the Amaruq property in 2013, and activities since that time have focused on the development of satellite mineralization to feed the existing 11,000 tonne per day Meadowbank mill.

At December 31, 2016, the Amaruq property contained an open pit indicated mineral resource of 2.1 million ounces of gold (16.9 million tonnes grading 3.88 g/t gold); an open pit inferred mineral resource of 763,000 ounces gold (4.9 million tonnes grading 4.81 g/t gold); and an underground inferred mineral resource of 1.4 million ounces gold (6.8 million tonnes grading 6.22 g/t gold).

In February 2017, the Company’s Board of Directors approved the development of the Amaruq property pending the receipt of the required permits.

The first phase of a planned $22 million, 75,000 metre drill program commenced in early February 2017 and, to the end of July, 352 holes (65,600 metres) were drilled. The infill drill program at IVR and Whale Tail were completed in late May. Since then, drilling has focused on extension of the V Zone to the east, west and at depth and extension of the Whale Tail deposit at depth. Additionally, drilling continues on multiple regional targets north and west of Mammoth Lake, such as the new Tugak showing, which is more than four kilometres west of the current mineral resources. Exploration results continue to expand the mineralization below the planned Whale Tail and proposed V Zone open pits, with continued success at depth in both deposit areas. The I Zone, which was discovered in 2013, has been intersected in several recent holes north of the V Zone, demonstrating continuity with previous drill intercepts.

The second phase of the 2017 Amaruq drill program has already commenced. It is targeting extensions of the Whale Tail deposit and V Zone and testing the continuity of the new Tugak structure.

Recent intercepts from the project are set out in the table below and the drill hole collars are located on the Amaruq project local geology map. The pierce points are shown on the Amaruq project composite longitudinal section. All intercepts reported for the Amaruq project show uncapped and capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.

Recent exploration drill results from the Whale Tail (WT) deposit, the I and V Zones and the Tugak showing, Amaruq project

• Holes at the Whale Tail deposit use a capping factor of 80 g/t gold. Holes at the IVR deposit (including the I and V Zones) use a capping factor of 60 g/t gold. Gold values from the Tugak showing are not capped.

[Amaruq Project Local Geology Map]

[Amaruq Project Composite Longitudinal Section]

V Zone

The V Zone consists of a series of parallel stacked quartz vein structures striking northeast and dipping shallowly to the southeast from near surface. Recent drill results have increased the depth an additional 70 metres to 610 metres below surface locally. The V Zone remains open at depth.

East of the proposed V Zone pit are a few significant new drill holes that intersected mineralization outside and below the pit outline. Immediately east of the planned pit outline, hole AMQ17-1418 intersected mineralization over several closely spaced intervals; the hole intersected 8.6 g/t gold over 38.7 metres at 273 metres depth, including a strongly mineralized quartz vein that intersected 21.4 g/t gold over 8.8 metres at 286 metres depth. Approximately 200 metres southeast of this, hole AMQ17-1475 cut the deepest drill intercept in the V Zone to date, intersecting 8.5 g/t gold over 9.0 metres at 610 metres depth. The latter intercept represents a down-dip advance of 170 metres to the southeast (and a 70 metre descent in vertical depth) in the lowest known mineralized V Zone structure.

Located 120 metres northwest of the proposed V Zone pit outline, hole AMQ17-1455 intersected the I Zone on strike and 70 metres west of previous intersections, with results of 4.9 g/t gold over 8.3 metres at 139 metres depth. Approximately 170 metres to the northeast, hole AMQ17-1457 intersected the same type of mineralization returning 3.9 g/t gold over 7.8 metres at 166 metres depth. Very limited drilling has been completed in this area. The I Zone remains open to the west.

Drilling continued to trace a western extension of the V Zone, up to 300 metres west of the proposed V Zone pit outline. Hole AMQ17-1426 encountered two distinct gold intervals, returning 24.8 g/t gold over 3.5 metres at 77 metres depth and 7.4 g/t gold over 5.0 metres at 168 metres depth. The V Zone structures remain open to the west and at depth. Another 500 metres farther west from hole AMQ17-1426 in an area not previously drilled, hole AMQ17-1437 reported 8.0 g/t gold over 2.8 metres at 40 metres depth. The relationship of this intercept to the V Zone will be investigated further.

Whale Tail

Conversion drilling completed in June has confirmed the robustness of the mineralization within the main ore-shoot in the Whale Tail deposit. For example, hole AMQ17-1366 intersected 7.6 g/t gold over 24.2 metres at 340 metres depth. The second phase drill program this year will target a deep extension of the higher grade ore shoot.

A directional drilling program is underway to determine if the favourable geological units hosting the gold mineralization continue at depth below the Whale Tail deposit, with branches being drilled from two “mother holes” so far, to reach specific depths in search of favourable host rocks. Hole AMQ17-1433D is a branch that was drilled to approximately 680 metres depth; preliminary results show multiple intercepts such as 6.4 g/t gold over 4.8 metres at 596 metres depth and 7.2 g/t gold over 3.4 metres at 617 metres depth.

To date, the Whale Tail deposit has been defined over at least 2.3 kilometres of strike length and extends from surface to 732 metres depth; it remains open at depth and along strike.

Tugak showing

Exploration drilling west of Mammoth Lake has encountered what the Company interprets to be a favourable mineralization host, with sedimentary rocks enclosed between two layers of ultramafics, geologically similar to the main mineralization at the Whale Tail deposit. Located approximately 4.5 kilometres west of the western limit of the planned Whale Tail pit outline, the newly discovered “Tugak showing” is returning encouraging results. Hole AMQ17-1469 intersected 2.5 g/t gold over 10.0 metres near surface, including 3.9 g/t gold over 4.5 metres. Approximately 300 metres to the northwest, hole AMQ17-1477 intersected 3.3 g/t gold over 3.6 metres at 100 metres depth. The Tugak showing requires more investigation to determine its shape and extent, and its relationship to Whale Tail and the IVR deposits.

Future Activities

Additional drill results are expected during the second phase of the 2017 program. Regional exploration will continue using two drill rigs in the Mammoth Lake area. Other areas of interest closer to the mineral resources will be probed using four drill rigs, including near-surface exploration west of the IVR deposit and investigating the deep portions of V Zone and Whale Tail.

Approximately $78 million is being spent on capital costs at Amaruq in 2017, primarily on the recently completed all-weather exploration road, additional technical studies and the procurement of materials and equipment.

On August 20, 2017, the 64-kilometre-long exploration road from Meadowbank had reached the Amaruq camp on budget and half a month ahead of schedule. Development of the Amaruq exploration ramp has been permitted and planning is underway; construction of the ramp is planned to begin in early 2018.

On June 15, 2017, the Company and the Kivalliq Inuit Association signed an Inuit Impact and Benefit Agreement ("IIBA") for the Whale Tail Project. The Whale Tail IIBA addresses protection of Inuit values, culture and language and provides for enhanced access by Inuit to employment, training and business opportunities. The IIBA contains implementation and monitoring measures that will ensure these goals are achieved.

Agnico Eagle is working closely with the Nunavut Impact Review Board (“NIRB”) and the Nunavut Water Board (“NWB”) on the Whale Tail joint permitting process. NIRB/NWB has coordinated the technical review, which is underway; technical meetings and a prehearing conference were held in Baker Lake from April 27 to May 2. The final public hearing is scheduled to take place in September 2017; the permitting team is working with the federal and territorial authorities to resolve remaining issues prior to this final public hearing. The Whale Tail pit permitting is on schedule and permits are expected by the third quarter of 2018.

The Company expects a conventional open pit mining operation to begin on the Whale Tail deposit in the third quarter of 2019. Other satellite deposits, such as the V Zone, are being evaluated and considered for future development and will require additional permitting. The planned Whale Tail pit currently extends to a depth of approximately 250 metres and is open for expansion.

For additional details on the project see the Company’s news releases dated February 15, 2017 and July 26, 2017.

Barsele Project – 400-metre Extension of Mineralized System

On June 11, 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Sweden. The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study. The Company is the operator of the project. The Barsele property is known to contain intrusive-hosted gold mineralization (the Central, Avan and Skiråsen zones). The property also hosts gold-rich polymetallic volcanogenic massive sulphide (VMS) mineralization (the Norra Zone). The Central, Avan and Skiråsen zones are now interpreted to be part of the same mineralized system extending approximately 3.0 kilometres of strike length.

In 2016, Agnico Eagle completed an initial mineral resource estimate for the Barsele project that outlined total inferred mineral resources (on a 100% basis) of 1.2 million ounces (21.7 million tonnes grading 1.72 g/t gold). Drilling results for Barsele were last reported in the Company’s news release dated October 26, 2016.

Drilling at Barsele from January through July 2017 totaled 28,511 metres in 56 holes. Recent intercepts from this program are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release and the collars are located on the Barsele Project Regional Geology Map. All intercepts reported for the Barsele project show capped gold grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.

Recent exploration and confirmation drill results from the Barsele project

• Holes at Barsele use a capping factor of 20 g/t gold.

** Hole AVA16-022 intersected a polymetallic vein grading 2.87 g/t gold, 286.4 g/t silver, 2.67% lead and 0.62% zinc over 2.0 metres estimated true width at 65 metres below surface.

*** Hole AVA17-004 intersected a polymetallic zone grading 5.46 g/t gold, 384.5 g/t silver, 1.93% lead and 2.39% zinc over 2.0 metres estimated true width at 50 metres below surface.

[Barsele Project - Regional Geology Map]

In 2017, the exploration program is focused on expanding the mineral resources along strike and at depth, testing the gap between the Central and Avan zones and investigating certain VMS targets.

Recent high-grade gold intersections demonstrate that the area between the Central and Avan zones is mineralized. New shallow intersections in the Avan Zone and deep intersections in the Skiråsen Zone indicate that the system is open to the northwest and southeast as well as at depth. The currently known mineralized system extends approximately 3.0 kilometres along strike and is recognized from surface to approximately 700 metres depth locally. This is an increase of approximately 400 metres strike length, mainly to the northwest.

At the Avan Zone, hole AVA16-024 was drilled to validate previous drilling; it intersected 1.01 g/t gold over 10.0 metres at 20 metres depth. This intercept extends the Avan Zone mineralization strike length by 375 metres to the northwest. Also in the northwest, infill hole AVA17-001 intersected 5.11 g/t gold over 6.6 metres at 205 metres depth. Expansion hole AVA17-010 intersected a high-grade zone grading 9.47 g/t gold over 3.7 metres at 320 metres depth. These holes verify that the Avan Zone continues farther to the northwest and remains open in this direction.

Infill hole AVA17-004 intersected a polymetallic quartz vein zone grading 5.46 g/t gold, 384.5 g/t silver, 1.93% lead and 2.39% zinc over 2.0 metres at 50 metres depth, next to a shear structure. This intersection is similar to the polymetallic zone intersected 100 metres to the southwest in hole AVA16-022, where an intercept graded 2.87 g/t gold, 286.4 g/t silver, 2.67% lead and 0.62% zinc over 2.0 metres at 65 metres depth. The Company believes that these two intersections might indicate a gold-rich VMS system within the Avan Zone.

In the southeast end of the Central Zone, infill hole CNT16-032 intersected 1.63 g/t gold over 62.0 metres at 390 metres depth. Infill hole CNT17-012 drilled between the Central and Skiråsen Zones intersected 3.49 g/t gold over 14.5 metres at 265 metres depth. This indicates that the Central and Skiråsen Zones might be connected in the 100-metre-wide gap between them.

Between the Central and Avan zones, exploration hole CNT17-006 returned intercepts through two lodes: 5.34 g/t gold over 16.6 metres at 265 metres depth, followed by a lower grade intercept of 1.74 g/t gold over 14.8 metres at 390 metres depth. The upper high grade intersection is located about 90 metres east of the high-grade lode intersected in hole CNT16-011: 5.36 g/t gold over 11.5 metres at 275 metres depth.

In the Skiråsen Zone, infill hole SKI16-015 intersected multiple gold intercepts between 165 and 591 metres depth, including 3.65 g/t gold over 3.7 metres at 290 metres depth and 2.29 g/t gold over 16.5 metres at 315 metres depth. The hole also intersected anomalous zinc mineralization between 771 and 790 metres depth down-hole, with grades varying 0.10% and 2.8% zinc.

Expansion hole SKI16-002 was extended down to 899 metres total length. The hole intersected 2.15 g/t gold over 13.0 metres at 695 metres depth, which is the deepest intercept to date at the Barsele project. This intercept demonstrates that gold- mineralization continues at depth and that the system is still open down-plunge to the southeast.

The plan for the remainder of the year at Barsele is to continue expansion and infill drilling on the Avan, Central and Skiråsen zones, and to drill-test regional targets. Additional trenching is planned at the Central Zone as well as regional basal till sampling.

La India – Exploration Focused on Extending Near-Pit Mineralization and Other Near-Mine Targets

The La India mine in Sonora, Mexico, located approximately 70 kilometres from the Company's Pinos Altos mine, achieved commercial production in February 2014.

In the first half of the year, infill drilling was carried out on the Main Zone to evaluate the potential to extend mineral reserves and mineral resources below the current pit design.

Drilling was also carried out at the nearby El Realito, Chipriona, Cerro de Oro and El Cochi zones in the first half, with encouraging results. These areas are being drilled to evaluate the potential to increase mineral reserves and mineral resources in close proximity to the current mining areas. Additional exploration work is planned in these areas in the second half of 2017.

Mine-site exploration at the La India property from January through July 2017 includes 19,790 metres in 182 holes of the 26,000-metre budget in 2017. The mine-site exploration in this period comprises 4,962 metres (45 holes) in the Main Zone, 9,750 metres (78 holes) at El Realito, 3,878 metres (45 holes) at El Cochi and 1,170 metres (14 holes) at Cerro de Oro. In addition, the regional exploration at the La India property in this period completed 2,292 metres (9 holes) at Chipriona as part of the 10,000-metre budget which is distributed among various satellite targets.

Selected recent drill results from the La India mine property are set out in the table below; the drill hole collar coordinates are set out in a table in the Appendix of this news release and the collars are located on the La India Area Property and Location Map. All intercepts reported for the La India mine property show uncapped gold and silver grades over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.

Additional drilling is planned in the second half of 2017. Given the increases in mineral reserves and mineral resources in 2016 and the success of the ongoing exploration program, the Company is evaluating location options to construct additional heap leach pad capacity.

Recent exploration drill results from the La India mine area

Gold and silver grades in the La India area are uncapped

[La India Area Property and Location Map]

La India’s Main Zone

During the second quarter, infill (conversion) and step-out drilling was carried out on La India’s Main Zone to evaluate the potential to extend the mineral reserves inside the current pit design and to explore opportunities to increase mineral resources outside the currently planned pit limits.