aem april 2012 corporate update

AGNICO-EAGLE MINES LIMITED

Corporate Update

April 2012

Forward Looking Statements

2

The information in this document has been prepared as at April 17, 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 forward looking 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 or information.

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 future internal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's minesites and statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. 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 other costs; 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 Company's stock price; and risks associated with the Company's byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Company's Annual Report on Form 20-F for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information. Marc Legault, a Qualified Person and the Company’s Senior Vice-President, Project Development, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 15, 2012 press release on the Company’s website. That press release also lists the Qualified Persons for each project.

Notes To Investors

Note Regarding The Use Of Non-GAAP Financial Measures This document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognized measures under United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of operations is set forth in the notes to the financial statements included in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the SEC Note Regarding Production Guidance The gold production guidance is based on the Company’s mineral reserves but includes contingencies, assumes metal prices and foreign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.

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Focused Business With No Change In Strategy

Our business is positioned to deliver enhanced leverage to gold through: Reserve Growth – Exploration expected to continue to increase the size of our

large deposits

Production Growth – Gold production expected to increase by 24% from 2011 to 2014 from currently operating mines

Net Free Cash Flow – Construction capital requirements have declined while production and cash flows are expected to grow

Dividend Yield – AEM is one of the industry leaders in dividends per share and dividend yield

4

Financial Position Net Free Cash Flow Expected to Enhance Balance Sheet Strength

5

ALL AMOUNTS ARE IN US$, unless otherwise indicated

Dec. 31 2011

CASH AND CASH EQUIVALENTS (millions) $221

LONG TERM DEBT (millions) $920

AVAILABLE CREDIT FACILITIES ($US millions) $880

COMMON SHARES OUTSTANDING (Weighted average, millions) 170.3

COMMON SHARES, FULLY DILUTED (Weighted average, millions) 170.3

AEM Among Industry Leaders Long Track Record of Increasing Reserves Current proven and probable gold reserves of 18.6 million ounces Deposits also contain 8.7 million ounces of indicated gold resources and

10.3 million ounces of inferred resource*

Increased reserves at Kittila and Meliadine Decrease in 2011 reserves due to Goldex and Meadowbank reclassifications

15

16

17

18

19

20

21

22

2007 2008 2009 2010 2011 2012E

AEM Gold reserves* (millions of ounces)

* See attached reserve and resource tables 6

-

50

100

150

200

250

NEM ABX AEM GG KGC IAG

200920102011

Gold reserves / per 1,000 shares

Operating Results and Forecast Expecting Increasing Gold Production From Operating Mines

2011 2012 Forecast 2013 Forecast 2014 Forecast Production

(Gold koz) Total Cash Cost ($/oz)

Production (Gold koz)

Total Cash Cost2 ($/oz)

Production (Gold koz)

Production (Gold koz

LaRonde 124 77 150 – 165 570 220 280

Kittila 144 739 150 – 160 650 155 170

Lapa 107 650 95 – 105 750 100 105

Pinos Altos1 204 299 200 – 210 415 210 190

Meadowbank 271 1,000 280 – 310 1,040 305 310

Total 850 609 875 – 950 720 990 1,055

1. Pinos Altos figures include Creston Mascota 2. 2012 assumptions include Ag $30/oz, Cu $7,000/tonne, Zn $1,800/tonne, C$/US$ 1.00, US$/Euro 1.35 7

Laronde 20%

Goldex 17%

Lapa 10%

Kittila 12%

Pinos Altos 25%

Meadowbank 16%

2011 Total Gross Mine Profit - $946M

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800,000oz

850,000oz

900,000oz

950,000oz

1,000,000oz

1,050,000oz

1,100,000oz

2012E 2013E 2014E -

2.00

4.00

6.00

8.00

10.00

12.00

14.00

NEM ABX AEM GG IAG KGC

2009201020112012E2013E2014E

AEM Estimated Production Production Per Share Forecasts*

* Source: Bank Of America Merrill Lynch equity research

AEM Among Industry Leaders Production Growth Per Share Continues

AEM Among Industry Leaders Cash Flow Per Share*

* Source: Bank Of America Merrill Lynch equity research 9

-$3

-$1

$1

$3

$5

$7

$9

NEM ABX AEM GG IAG KGC

2009201020112012E

Generating Net Free Cash Flow Room to Increase the Dividend

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2007A 2008A 2009A 2010A 2011A 2012E 2013 2014

Actual Estimate

Approximate Average EBITDA*

* Approximate average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) estimate for illustrative purposes using $1700/oz gold, $32/oz silver, $2000/t zinc, C$/US$ 1.00, 1.35USD/€

Capital Expenditures (USD $000's)

Illustrative Ongoing Re-Investment

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AEM Among Industry Leaders Returning Capital To Shareholders – 30 Consecutive Years of Dividends

* Approximate average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) estimate for illustrative purposes using $1700/oz gold, $32/oz silver, $2000/t zinc, C$/US$ 1.00, 1.35USD/€

Dividends per Share

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$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

NEM AEM ABX GG IAG KGC

2009201020112012E

One Of The Highest Dividends Per Share In The Industry

Four Cornerstone Assets Production, reserves, free cash flow expected to grow from existing mines

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LARONDE KITTILA MEXICO MELIADINE

LaRonde Gold Production Expected to Increase

Higher gold grades expected to drive gold production growth and profits

Value of ore per tonne approximately 50% higher over life of mine versus 2011 at same metals prices

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P&P GOLD RESERVES (million oz) 4.7

AVERAGE GOLD RESERVE GRADE (g/t) 4.4

Indicated resource (million oz) 0.4

Inferred resource (million oz) 1.3

Estimated LOM (years) 15

2012 exploration budget (LaRonde & regional) $1M

See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.

Kittila Large Long-Life Gold Deposit Continues To Grow

Higher grades in 2012 expected to result in higher gold production at lower costs

Initial 25% expansion study expected in late 2012

Good exploration results at Rimpi suggest potential for larger expansion

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2007 – 2008

2006

2009 – 2010 2011

2012 Focus Area






2012 exploration budget $16M


Mexico Low Cost Producer

2012 production at Creston Mascota expected to increase due to full year of operation

Underground expansion underway. Expected to offset lower grades in later years

La India may add to production profile in 2014

Exploration potential at Tarachi and satellite zones

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Meliadine Growing Gold Reserve And Resource On 80 Kilometre Trend Permitting and road construction

underway

Examining production scenarios from open pits and underground

Updated feasibility study expected in late 2013

Drilling has expanded gold contained in reserves and resources by approximately 40% in 1.5 years

Potential to accelerate underground development to test deposit at depth

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Wolf

Pump F Zone

Tiriganiaq

Wesmeg

Discovery







Meadowbank Strong Net Free Cash Flow Generator

Mill consistently exceeding design throughput

Optimized mine plan expected to be lower risk due to:

36% fewer tonnes moved over life of mine

More conservative estimates for gold grade

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Est. LOM (years) 6



Lapa Steady State Operation – Good Tonnage and Cost Control

2012 production and costs expected to be similar to 2011

Anticipated life of mine extended through 2015

Extending underground exploration drift to east

Will provide access to drill targets that could extend mine life

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Est. LOM (years) 4



Goldex - Action Plan Focused on Monitoring, Investigation and Remediation

Mine operations suspended October 2011

Grouting and remediation programs in progress

Assessment program includes rock and soil monitoring

Exploration program focused on potential of satellite mineralized zones

Update expected in Q2 2012

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Exploration Upside Large, Growing Gold Deposits

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Meliadine Project Our Fastest Growing Gold Deposit

Indicated resources – 33 koz Au Inferred resources – 197 koz Au

Proven & Probable reserves – 2,781 koz Au Indicated resources – 649 koz Au Inferred resources – 1,329 koz Au

Indicated resources – 343 koz Au Inferred resources – 411 koz Au

Inferred resources – 133koz Au

Proven & Probable reserves – 97 koz Au Indicated resources – 254 koz Au Inferred resources – 179 koz Au

Meliadine (Total) Proven & Probable reserves – 2,877 koz Au Indicated resources – 1,658 koz Au Inferred resources – 2,438 koz Au

22 See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.

Meliadine – High Grade Underground Gold Reserve Ramp Extension Expected to Begin in 2013

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2012 Exploration Focus

Kittila – Our Largest Gold Deposit

2012 Focus Area

Still open for exploration at depth and to the North 2011 exploration expanded reserves and resources in Roura and Rimpi trends $16M in exploration, 10 – 12 drills in 2012

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Business Is Positioned To Deliver Moving Forward No Change in Strategy or Focus

AEM is among industry leaders in per share production, reserves, cash flows and dividends

24% production growth anticipated through 2014 from existing mines, with minimal capex required

Solid, achievable production and cost guidance

Expecting growth in reserves through exploration of existing assets

Business generating strong cash flows

Allocated to dividends, exploration and re-investing in our core assets

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Appendix

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Operating Metrics

$0/t

$20/t

$40/t

$60/t

$80/t

$100/t

$120/t

4,000tpd

4,500tpd

5,000tpd

5,500tpd

6,000tpd

6,500tpd

7,000tpd

7,500tpd

8,000tpd

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

LaRonde - Ore milled ('000 tonnes) LaRonde - Minesite costs per tonne (C$)

$0/t

$20/t

$40/t

$60/t

$80/t

$100/t

$120/t

$140/t

$160/t

0tpd

200tpd

400tpd

600tpd

800tpd

1,000tpd

1,200tpd

1,400tpd

1,600tpd

1,800tpd

2,000tpd

Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

Lapa - Ore milled ('000 tonnes)

Lapa - Minesite costs per tonne (C$)Lapa

LaRonde

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Operating Metrics

€0/t €10/t €20/t €30/t €40/t €50/t €60/t €70/t €80/t €90/t €100/t

0tpd

500tpd

1,000tpd

1,500tpd

2,000tpd

2,500tpd

3,000tpd

3,500tpd

Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

Kittila - Ore milled('000 tonnes) Kittila - Minesite costs per tonne (EUR)

$0/t

$20/t

$40/t

$60/t

$80/t

$100/t

$120/t

$140/t

$160/t

$180/t

0tpd

1,000tpd

2,000tpd

3,000tpd

4,000tpd

5,000tpd

6,000tpd

7,000tpd

8,000tpd

9,000tpd

10,000tpd

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Meadowbank - Ore milled ('000 tonnes) Meadowbank - Minesite costs per tonne (C$)

Pinos Altos Meadowbank

Kittila

28

$0/t

$10/t

$20/t

$30/t

$40/t

$50/t

$60/t

0tpd

1,000tpd

2,000tpd

3,000tpd

4,000tpd

5,000tpd

6,000tpd

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Pinos Altos - Ore milled ('000 tonnes) Pinos Altos - Minesite costs per tonne (USD$)

Gold and Silver Reserves and Resources December 31, 2011

Gold Tonnes (000’s)

Gold (g/t)

Gold (ounces)

(000’s)

Proven 11,029 2.80 994

Probable 146,057 3.78 17,757

Total Reserves 157,086 3.71 18,750

Measured & Indicated 168,336 1.78 9,633

Inferred 131,216 2.30 9,712

Silver Tonnes (000’s)

Silver (g/t)

Silver (ounces)

(000’s)

Proven 7,318 45.35 10,670

Probable 72,693 45.06 105,319

Total Reserves 80,011 45.09 115,989

Measured & Indicated 27,801 27.24 24,344

Inferred 34,513 19.00 21,082


Copper, Zinc and Lead Reserves and Resources December 31, 2011

Copper Tonnes (000’s)

Copper (%)

Copper (tonnes)

Proven 5,331 0.28 15,025

Probable 27,901 0.27 76,160

Total Reserves 33,232 0.27 91,184

Indicated 7,225 0.12 8,629

Inferred 11,400 0.26 29,664

Zinc Tonnes (000’s)

Zinc (%)

Zinc (tonnes)

Proven 5,331 2.04 108,626

Probable 27,901 0.77 215,522

Total Reserves 33,232 0.98 324,149

Indicated 7,225 1.49 107,338

Inferred 11,400 0.44 49,745

Lead Tonnes (000’s)

Lead (%)

Lead (tonnes)

Proven 5,331 0.23 12,391

Probable 27,901 0.05 13,441

Total Reserves 33,232 0.08 25,832

Indicated 7,225 0.15 11,127

Inferred 11,400 0.05 5,138

*Calculated grades 30 See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources.

Notes to Investors Regarding the Use of Resources

Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This document uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Cautionary Note to Investors Concerning Estimates of Inferred Resources This document also uses the term "inferred resources". We advise investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal 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 to assume that part or all of an inferred resource exists, or is economically or legally mineable. Scientific and Technical Data Agnico-Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification and reporting 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 a company 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 are urged 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 SEC Industry Guide 7. Industry Guide 7 requires the use of prices that reflect current economic conditions at the time of reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates reported by 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 of 1.05, 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 the subcategories of “proven” reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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Notes to Investors Regarding the Use of Resources A 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 of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allows for losses that may occur when the material is mined. 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 by at 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 and precious 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 geological evidence and knowledge. A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on 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 that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Mineral resources which are not mineral reserves do not have 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 appropriately detailed assessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent 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 a Pre-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 about each 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 the Technical Reports referred to above, 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 dated February 15, 2012. The contents of this document have been prepared under the supervision of, and reviewed by, Marc Legault P.Eng., Senior Vice-President Project Development and a “Qualified Person” for the purposes of NI 43-101.

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A solid financial position, low-cost structure, well-funded growth projects in regions of low political risk, and a focused, consistent strategy put Agnico-Eagle in a strong position to continue creating exceptional per share value.

Sean Boyd President and Chief Executive Officer

Ammar Al-Joundi SVP Finance and Chief Financial Officer

David Smith SVP, Strategic Planning & Investor Relations

Trading Symbol: AEM on TSX & NYSE

Investor Relations: 416-947-1212 [email protected]

Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681

agnico-eagle.com

aem april 2012 corporate update

Business

future estimates

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