Forward Looking StatementsThe information in this document has been prepared as at October 24, 2012. Certain statements contained in this document constitute“forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forwardlooking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”,“expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements orinformation.Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions;estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of futureinternal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and othercash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain oredeposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of suchexploration, development and production or decisions with respect to such exploration, development and production; estimates ofreserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events withrespect to the Companys mine sites and statements and information regarding the sufficiency of the Companys cash resources. Suchstatements and information reflect the Companys views as at the date of this document and are subject to certain risks, uncertaintiesand assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknowncould cause the actual results to be materially different from those expressed or implied by such forward looking statements andinformation. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves,mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and othercosts; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks;community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Companysstock price; and risks associated with the Companys byproduct metal derivative strategies. For a more detailed discussion of such risksand other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements containedin this document, see the Companys Annual Report on Form 20-F for the year ended December 31, 2011, as well as the Companysother filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does notintend, and does not assume any obligation, to update these forward-looking statements and information. Alain Blackburn, a QualifiedPerson and the Company’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailedbreakdown of the Company’s reserve and resource position see the February 15, 2012 press release on the Company’s website. Thatpress release also lists the Qualified Persons for each project. 2
Notes To InvestorsNote Regarding The Use Of Non-GAAP Financial MeasuresThis document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognized measuresunder United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to data presented byother gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that theCompany expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expenseand other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable toreconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of theCompanys total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presentedin accordance with US GAAP for the Companys historical results of operations is set forth in the notes to the financial statementsincluded in the Companys Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2011, as wellas the Companys other filings with the Canadian Securities Administrators and the SEC.Note Regarding Production GuidanceThe gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices andforeign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the goldproduction guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineralreserves. 3
Agnico-Eagle Mines LimitedStrong Cash Generation With Measured, Focused Growth andAttractive Dividend Yield Portfolio of quality, long-life mines that continue to perform well Low risk production growth from existing assets Significant exploration upside and reserve growth demonstrated at existing 100%-owned assets Political risk profile expected to remain low Strong cash flow funds dividend, exploration, capital reinvestment programs and enhances financial position 4
Q3 2012 Operating Highlights Record quarterly gold production – 286,971 oz Record gold production and throughput at Meadowbank – 110,988 oz / 10,902 tpd Record gold production at low cash costs from Kittila – 48,619 oz @ $478/oz Strong gold production at record low cash costs from Mexico – 61,973 oz @ $212/oz Record cash flow generation Record quarterly and nine-month cash provided by operating activities of $199M and $590M, respectively Increased 2012E gold production guidance to approximately 1,025,000 oz Lowered 2012E total cash cost guidance to approximately $660 / oz 5
Operating Results Record production with improved costs Q3 2012 YTD 2012 Production Total Cash Cost Production Total Cash Cost (Gold oz) ($/oz) (Gold oz) ($/oz) LaRonde 40,477 564 123,964 514 Kittila 48,619 478 130,605 564 Lapa 24,914 760 81,570 683 Pinos Altos1 61,973 212 182,345 284 Meadowbank 110,988 734 288,792 836 Total 286,971 556 807,276 602 Q3 2012 Revenue By Metal YTD 2012 Q3 2012 2012 Forecast Gold (oz) 286,971 807,276 1,025,0002 Base Metals Silver (000’s oz) 1,140 3,450 4,150 3% Gold 90% Zinc (t) 7,379 29,915 33,000 Silver 7% Copper (t) 982 3,312 4,800 Total cash costs 556 602 6602 ($/oz)1. Pinos Altos figures include Creston Mascota 2. Adjusted forecast 6
LaRonde Transition period to lower mine extended YTD gold production of 123,964 oz at P&P GOLD RESERVES (million oz) 4.7 total cash costs of $514 per ounce Q3 gold grade 2.5 g/t vs. 1.7 g/t in Q3’11 AVERAGE GOLD RESERVE GRADE (g/t) 4.4 Heat, congestion and lack of flexibility Indicated resource (million oz) 0.4 extend production ramp-up period through 2015; Life of mine profile Inferred resource (million oz) 1.3 remains unchanged Value of ore per tonne approximately Estimated LOM (years) 15 50% higher over life of mine versus 2012 2012 exploration budget $1M (LaRonde & regional) See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.$75M Cash Operating Margin$60M$45M$30M$15M $0M Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 11
Lapa Stable production and cost control continues YTD gold production of 81,570 oz at total P&P GOLD RESERVES (million oz) 0.5 cash costs per ounce of $683 AVERAGE GOLD RESERVE GRADE (g/t) 6.5 Anticipated life of mine extended into 2016 Indicated resource (million oz) 0.3 Underground exploration drifts to east Inferred resource (million oz) 0.1 and west will provide access to drill targets that could extend mine life Est. LOM (years) 4 2012 exploration budget $5M See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. $40M Cash Operating Margin $20M $0M Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 12
KittilaRecord quarterly production at low costs Q3 gold production a record 48,619 oz P&P GOLD RESERVES (million oz) 5.2 at total cash costs of $478 per ounce Initial 25% expansion study expected AVERAGE GOLD RESERVE GRADE (g/t) 4.7 in late 2012 Indicated resource (million oz) 1.0 Good exploration results at Rimpi Inferred resource (million oz) 1.2 suggest potential for ongoing phased expansions Estimated LOM (years) 33 Transitioning fully to underground 2012 exploration budget $17M operations in 2013; Expecting higher See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. unit costs$55M Cash Operating Margin$40M$25M$10M Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 13
Mexico - Pinos Altos & Creston Mascota Strong Q3 production at record low cash costs Q3 gold production of 61,973 oz at record P&P GOLD RESERVES (million oz) 3.1 low total cash costs per ounce of $212 La India to add to production profile in AVERAGE GOLD RESERVE GRADE (g/t) 2.1 2014 Indicated resource (million oz) 0.8 Production delays at Creston Mascota; Ramp-up to resume in Q2 2013 Inferred resource (million oz) 0.8 Estimated LOM (years) 18 2012 exploration budget $6M See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.$100M Cash Operating Margin$80M$60M$40M Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 14
Meadowbank Record production and operating profit Another gold production record in Q3 P&P GOLD RESERVES (million oz) 2.2 of 110,988 oz at total cash costs per ounce of $734 AVERAGE GOLD RESERVE GRADE (g/t) 2.8 De-risked mine plan continuing to Indicated resource (million oz) 1.3 hit/exceed targets on throughput (10,902 tpd in Q3) and grade (3.7 g/t in Inferred resource (million oz) 0.5 Q3) Est. LOM (years) 6 2012 exploration budget $7M See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Cash Operating Margin$100M$80M$60M$40M$20M Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 15
Upcoming News Flow November 2012 – Exploration update December 2012 – Annual dividend announcement February 2013 Q4 Results New reserve/resource estimates Updated three year production and cost guidance 16
Sound Business Continues To Deliver No change in strategy or focus AEM is among industry leaders in per share production, reserves, cash flows and dividends Meaningful near-term production growth driven by LaRonde, La India and Goldex, with manageable, fully funded capex Solid, achievable production and cost guidance Expecting growth in reserves through exploration of existing assets Business generating strong cash flows in regions of low political risk Allocated to dividends, exploration and reinvesting in our core assets 17
Gold and Silver Reserves and Resources December 31, 2011 Tonnes Gold Gold Tonnes Silver SilverGold (000’s) (g/t) (ounces) Silver (000’s) (g/t) (ounces) (000’s) (000’s)Proven 11,029 2.80 994 Proven 7,318 45.35 10,670Probable 146,057 3.78 17,757 Probable 72,693 45.06 105,319Total Total 157,086 3.71 18,750 80,011 45.09 115,989Reserves ReservesMeasured & Measured & 168,336 1.78 9,633 27,801 27.24 24,344Indicated IndicatedInferred 131,216 2.30 9,712 Inferred 34,513 19.00 21,082See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.
Copper, Zinc and Lead Reserves and Resources December 31, 2011 Tonnes Copper Copper Tonnes Zinc Zinc Tonnes Lead Lead Copper Zinc Lead (000’s) (%) (tonnes) (000’s) (%) (tonnes) (000’s) (%) (tonnes) Proven 5,331 0.28 15,025 Proven 5,331 2.04 108,626 Proven 5,331 0.23 12,391 Probable 27,901 0.27 76,160 Probable 27,901 0.77 215,522 Probable 27,901 0.05 13,441 Total Total Total 33,232 0.27 91,184 33,232 0.98 324,149 33,232 0.08 25,832 Reserves Reserves Reserves Indicated 7,225 0.12 8,629 Indicated 7,225 1.49 107,338 Indicated 7,225 0.15 11,127 Inferred 11,400 0.26 29,664 Inferred 11,400 0.44 49,745 Inferred 11,400 0.05 5,138See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources 22
Notes to Investors Regarding the Use of ResourcesCautionary Note to Investors Concerning Estimates of Measured and Indicated ResourcesThis document uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and requiredby Canadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in thesecategories will ever be converted into reserves.Cautionary Note to Investors Concerning Estimates of Inferred ResourcesThis document also uses the term "inferred resources". We advise investors that while this term is recognized and required by Canadian regulations, theSEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic andlegal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules,estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not toassume that part or all of an inferred resource exists, or is economically or legally mineable.Scientific and Technical DataAgnico-Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification andreporting of resources and reserves.Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that acompany can economically and legally extract or produce. Agnico-Eagle uses certain terms in this press release, such as “measured”, “indicated”, and“inferred”, and “resources” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors areurged to consider closely the disclosure in our Form 20-F, which may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml. A“final” or “bankable” feasibility study is required to meet the requirements to designate reserves under Industry Guide 7.Estimates for all properties were calculated using historic three-year average metals prices and foreign exchange rates in accordance with the SECIndustry Guide 7. Industry Guide 7 requires the use of prices that reflect current economic conditions at the time of reserve determination, which the Staffof the SEC has interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates reportedby the Company on February 15, 2012 were based on three-year average prices for the period ending December 31, 2011 of $1,255 per ounce gold,$23.00 per ounce silver, $0.91 per pound zinc, $3.25 per pound copper, $0.95 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of1.05, 1.37 and 12.86, respectively.The Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) requires mining companies to disclose reserves and resources using thesubcategories of “proven” reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources. Mineral resources that arenot mineral reserves do not have demonstrated economic viability. 23
Notes to Investors Regarding the Use of ResourcesA mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study.This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time ofreporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allows for losses that may occur when the material ismined. A proven mineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study.A probable mineral reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated byat least a preliminary feasibility study.A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural solid fossilized organic material including base andprecious metals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction.The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geologicalevidence and knowledge. A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physicalcharacteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economicparameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliableexploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely enough to confirm both geological and grade continuity. An indicated mineral resource is that part of a mineral resource forwhich quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriateapplication of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is basedon detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits,workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An inferred mineral resource is thatpart of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling andreasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered throughappropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Mineral resources which are not mineral reserves do nothave demonstrated economic viability.Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.A Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriatelydetailed assessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmentalconsiderations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time ofreporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by aproponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of aPre-Feasibility Study.The effective date for all of the Company’s mineral resource and reserve estimates in this document is December 31, 2011. Additional information abouteach of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in Technical Reports,which may be found at www.sedar.com. Other important operating information can be found in the Company’s Form 20-F and its news release datedFebruary 15, 2012.Alain Blackburn, a Qualified Person and the Company’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. 24
A solid financial position, well-funded growth projects in regions of low political risk,and a focused, consistent strategy put Agnico-Eagle in a strong position to continuecreating exceptional per share value.Sean Boyd Executive and Registered Office:President and 145 King Street East, Suite 400Chief Executive Officer Toronto, Ontario, Canada, M5C 2Y7David Smith Tel: 416-947-1212SVP Finance and Chief Financial Officer Toll-Free: 888-822-6714 Fax: 416-367-4681Trading Symbol:AEM on TSX & NYSEInvestor Relations:email@example.com
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