aem corporate update - december 2009 presentation

AGNICO-EAGLE MINES LIMITEDCorporate Update December 2009

With its emphasis on , an exceptional record of creating shareholder value, and one of the most robust profiles in the industry, Agnico-Eagle Mines Limited has emerged as the gold stock of choice.

quality

growth

Member of the World Gold Council www.gold.org Meadowbank, Canada

Forward Looking Statements

The information in this document has been prepared as at December 1, 2009. 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 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'sAnnual Report on Form 20-F for the year ended December 31, 2008, 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 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 18, 2009 press release on the Company’s website. That press release also lists the Qualified Persons for each project.

2

Note To Investors

Note to Investors 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 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, 2008, as well as the Company's other filings with the Canadian Securities Administrators and the SEC.

3

Corporate Strategy

■ Increase gold production■ Record nine month gold production of 329,628 oz■ Five internal expansions expected to contribute to

continued growth post-2010

■Grow gold reserves■ Record reserves of 18.1 million ounces*■ Four of six deposits may ultimately exceed 5 million oz

■ Acquire small, think big■ Since being acquired, gold reserves and resources up

89%* in Finland, Mexico and Nunavut

■ Be a low-cost leader■ Expect to remain in the lowest quartile of total cash

cost per ounce long term

■Maintain a solid financial profile■ Credit facilities of $900M with a large syndicate of

banks

* See attached reserve and resource tables

Strategy Remains Focused On Per Share Metrics

4

Operating ResultsRecord quarterly gold production expected in Q4/09

08

Q3

2009

Q3

2008

2009

Estimate

Gold(ounces)

118,763* 68,753** 500,000

Silver(ounces in thousands)

1,011* 1,167 4,200

Zinc(tonnes)

12,516 18,040 58,000

Copper(tonnes)

1,400 1,567 6,800

Total cash costs ($/oz)

$449 $240 $340***

All $ amounts are in US$, unless otherwise indicated

Total Cash Costs($/oz)

* Includes 3,175 ounces Au and 16,000 ounces Ag of non commercial production from Pinos Altos** Includes 1,784 ounces of non commercial production from Goldex*** Assumptions for 2009 include Ag $11/oz, Zn $1,300/t, Cu $4,000/t, C$/US$ of 1.22.and US$/Euro of 1.30

00 01 02 03 04 05 06 07

$188 $155$182

$269

$56 $43

-$365

$162

-$690

09E

$340 est.

5

Strong Financial Position

All amounts are in US$, unless otherwise indicated

Sept. 302009

June 302009

Cash and cash equivalents(millions)

$239.0 $173.9

Long term debt(millions)

$685.0 $485.0

Available credit facilities(millions)

$194.8 $394.9

Common shares outstanding (millions)

156.5 156.0

Common shares, fully diluted (millions)

171.3 170.8

Only 171 million shares, fully diluted, over 52 years of operating history

6

Pinos Altos site, Mexico

Growth

7

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010

Gold reserves per share up almost 5x over past 11 years

■ Shares outstanding increased only 3.1 times since 1998. Gold reserves up 13.9 times■ Targeting additional reserve conversion at Kittila, Pinos Altos, Goldex and Meadowbank■ Uniquely positioned with potential for up to four 5 million ounce gold deposits

GOLD RESERVES(Millions of Ounces)

EST.

Meadowbank

Pinos Altos

Kittila

GoldexLapa

LaRonde1.3

3.0 3.3 3.34.0

7.9 7.9

10.4

12.5

16.718.1

20-21

Has provided much better leverage to gold price than ETF’s

8

Gold Reserves Per Share Among Highest In IndustryGrowth In Proven and Probable Reserves / Share

Source: Company filings

0%

50%

100%

150%

200%

250%

300%

2002 2003 2004 2005 2006 2007 2008

A g nico - Eag le B arr ick Eld o rad o Go ld co rp IA M GOLD Kinro ss N ewmo nt Y amana

Agnico-Eagle

Goldcorp

IAMGOLDBarrickNewmontKinrossEldoradoYamana

9

Industry Leading1 Gold Production Growth EstimatesStudies on potential internal expansions underway at Pinos Altos, Meadowbank & Kittila

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

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

LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank

Payable Gold Production(ounces)

1 For an intermediate or senior gold producer

10

Leading Growth Profile Among Senior Producers

Source: AEM guidance, Merrill Lynch estimates – Oct/09

Gold production (oz) / 1000 shares

0

2

4

6

8

10

12

14

Newmont Buenaventura Randgold Agnico-Eagle Barrick Goldcorp Kinross IAMGold Yamana Eldorado

2007A 2008A 2009E 2010E 2011E

11

Production Growth At Low Costs Leads To Strong Cash Flow Generation Strong cash flow per share in 2010*

* Source: Merrill Lynch Research - 11/23/09. Before working capital adjustments. Assumes Au price of US$960/oz in 2009 and US$1,110/oz in 2010.

1.18

4.16

$0

$1

$2

$3

$4

$5

$6

New

mon

t

Agni

co-E

agle

Barr

ick

Gol

dcor

p

Kinr

oss

YGAM

Yam

ana

YCG

IAM

GO

LD

GSS

NXG

Eldo

rado

2009 2010

12

Outperforming Major Indices Over Multiple Horizons

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

11/0

4

02/0

5

05/0

5

08/0

5

11/0

5

02/0

6

05/0

6

08/0

6

11/0

6

02/0

7

05/0

7

08/0

7

11/0

7

02/0

8

05/0

8

08/0

8

11/0

8

02/0

9

05/0

9

08/0

9

11/0

9

TSX S&P 500 DOW AEM Gold FTSE GOLD Index

5 Year

-200%

0%

200%

400%

600%

800%

1000%

1200%

01/0

0

07/0

0

01/0

1

07/0

1

01/0

2

07/0

2

01/0

3

07/0

3

01/0

4

07/0

4

01/0

5

07/0

5

01/0

6

07/0

6

01/0

7

07/0

7

01/0

8

07/0

8

01/0

9

07/0

9


10 Year

-65%

-45%

-25%

-5%

15%

35%

55%

11/0

7

01/0

8

03/0

8

05/0

8

07/0

8

09/0

8

11/0

8

01/0

9

03/0

9

05/0

9

07/0

9

09/0

9

11/0

9


2 Year

13

Historical Performance of Gold vs. Gold EquitiesYears

5 10 15 20Gold (US$/oz) 187% 339% 193% 205%

Gold IndicesFTSE Gold Mines Index (US$) 129% 298% 71% 80%S&P/TSX Gold Index (C$) 111% 164% 34% 126%

Agnico-Eagle (US$) 372% 1061% 415% 705%

S&P 500 -1% -19% 137% 214%

Lapa site, Canada

Quality

14

■ Located in mining-friendly regions of low political risk■ 100% owned, with low total acquisition costs■ Each region has long-term mining camp potential

Operations At A GlanceFive mines now operating. One new gold mine nearing completion

LaRondeQUEBEC, CANADA

GoldexQUEBEC, CANADA

KittilaKITTILA, FINLAND

MeadowbankNUNAVUT, CANADA

Fraser Institute’s ranking 1 Fraser Institute’s

ranking 1 Fraser Institute’s ranking 14

Fraser Institute’s ranking 44

Fraser Institute’s 2008/2009 ranking of 71 mining jurisdictions


LapaQUEBEC, CANADA


Pinos AltosCHIHUAHUA, MEXICO

15

LaRonde – Canada

■ Project ■ Shaft sinking for Extension complete.

2,854 metres final depth■ Start of production from Extension expected in 2011.

On time, on budget

■ 2009 Exploration■ Focus on resource conversion, additional

potential at depth and to the East■ Drilling possible extension of Westwood zone on Ellison

Good production and cost performance continues

Au reserves (m oz) 5.0

Average reserve grade (g/t) 4.3

Measured & Indicated resource (m oz) 0.4

Inferred resource (m oz) 3.0

Estimated average production (k oz/yr) 320

Est. LOM (years) 13

2009 exploration budget $1M

16

Goldex – Canada

■Mined lower grade eastern stope during Q3

■ Project■ Increase production rate from 6,900 tpd to 8,000 tpd

(an additional 20,000 oz/yr), starting in late-2011■ Capital cost approximately $10 million. Estimated IRR 76%

■ 2009 Exploration■ Focus on resource conversion, exploration to west,

east and at depth

Drilling and blasting approximately 1.5 years ahead of schedule






Est. LOM (yrs) 8


17

Lapa – Canada

■Operations■ Commercial production achieved May 1, 2009■ Milled grade reconciles with expected reserve grade■ Process optimization underway

– mill recoveries approaching design

■ 2009 Exploration■ Focus on resource conversion, further exploration upside

at depth and to the East

Efforts focused on reducing mining cycle time






Est. LOM (yrs) 6


18

Kittila – Finland

■Mill has periodically exceeded design throughputand recoveries. Optimization ongoing

■ Project ■Examining options to significantly increase production

rate of this growing deposit. Study results expected in 2010■ 2009 Exploration■Focus on resource conversion, expansion below Suuri

and Roura, and along strike

Overall mill recoveries now exceeding 80%






Est. LOM (yrs) 14


19

Kittila – Mill Optimization UnderwayGold recoveries progressing as expected

10

20

30

40

50

60

70

80

90

J F M A M J J A S O N D0

2000

4000

6000

8000

10000

12000

14000

Gold Payable(ounces)

Forecasted / May 2009

Gold Recovery(%)

4,514 oz

13,771 oz23,000 oz

33,500 oz

RealisedAu Ounces :

Au Recovery : Realised Forecasted / May 2009

13,300 oz

18,284 oz

Estimate

Estimated / October 2009

20

Kittila – Expansion Opportunity

■ Studying production rate of 300,000 ounces per year

■ Examining underground mining via shaft access

■Orebody remains open at depth and along strike

■ Eleven drills currently operating

Examining large capacity increase. Potential reserve increases at depth

21

Pinos Altos – MexicoPlant commissioning in progress. Commercial production expected in Q4 2009

■Mill recoveries as expected but slower tonnageramp-up due to tailings filters

■ Project■ Plant expansion from 4,000 tpd to 6,000 tpd is being

studied. Reflects 125% increase in reserve tonnage since 2007

■ Stand-alone heap leach project at Creston Mascota underway

■ 2009 Exploration ■ Potential to develop additional satellite

deposits (Cubiro, Sinter, San Eligio)■ Focus on resource conversion, expansion of

Pinos Altos zones, Reyna de Plata, Creston Mascota






Est. LOM (yrs) 20


22

Meadowbank – CanadaPlant start-up on schedule for Q1 2010

■ All necessary supplies and consumables for project completion now on site

■ Cushion for start-up provided by large surface ore stockpile

■ Project■ Potential production increase from 8,500 tpd to 10,000 tpd■ Study results expected Q3 2009; review in Q4 2009

■ 2009 Exploration■ Focus on resource conversion and expansion of Vault,

Goose South and Portage






Est. LOM (yrs) 10


23

Upcoming NewsExploration driving expansions

Q4

Q1• 2009 Reserves and

Resources

• Scoping study on expansion at Meadowbank

• Budget and production guidance

• Technical Session in Toronto

• Dividend announcement

24

LaRonde site, Canada

Appendix

25

Operating Mines With Reserves Over 5M oz, Grading Over 2g/t Au

Kittila, Meadowbank and Pinos Altos have the potential to join this group of top-tier world class operating assets

26

Property Name CountryLocation Ranking*

Reserves Grade

Reserves - Contained

Total Cash Costs $/oz

Prod'n (000's oz)

(100% basis)

% Owned Operator/Significant Owner

1 Turquoise Ridge (Getchell) United States - Nevada 3 15.58 g/t 5,313,000 oz $515 165 75% Barrick Gold Corporation (Operator)2 Moab Khotsong Gold Mine South Africa 49 10.86 g/t 7,320,000 oz $379 192 100% AngloGold Ashanti Limited3 Mponeng Gold Mine South Africa 49 10.69 g/t 13,000,000 oz $249 600 100% AngloGold Ashanti Limited4 Bulyanhulu Gold Operation Tanzania 48 9.86 g/t 11,977,000 oz $620 200 100% Barrick Gold Corporation (Operator)5 Phakisa Gold Mine South Africa 49 8.05 g/t 5,300,000 oz $555 22 100% Harmony Gold Mining Company Limited6 Driefontein Gold Mine South Africa 49 7.50 g/t 18,200,000 oz $448 830 100% Gold Fields Limited (Operator)7 Obuasi Gold Mine Ghana 35 7.50 g/t 9,660,000 oz $633 357 100% AngloGold Ashanti Limited8 Evander Gold Mine South Africa 49 7.26 g/t 13,800,000 oz $572 190 100% Harmony Gold Mining Company9 Kloof Gold Mine South Africa 49 6.20 g/t 10,521,000 oz $552 643 100% Gold Fields Limited (Operator)

10 Elandsrand Gold Mine South Africa 49 6.20 g/t 7,500,000 oz $660 174 100% Harmony Gold Mining Company11 South Deep Gold Mine South Africa 49 6.10 g/t 29,486,000 oz $717 175 100% Gold Fields Limited (Operator)12 Beatrix Gold Mine South Africa 49 5.00 g/t 6,450,000 oz $507 391 100% Gold Fields Limited (Operator)13 Loulo Gold Operation Mali 33 4.90 g/t 7,400,992 oz $511 258 80% Randgold Resources Limited14 LaRonde Gold/Base Metals Mine Canada - Quebec 1 4.32 g/t 5,000,000 oz $106 216 100% Agnico-Eagle Mines Limited15 Carlin Gold Mine United States - Nevada 3 3.80 g/t 12,709,380 oz na na 100% Newmont Mining Corporation16 Olimpiada Gold Operation Russia 53 3.75 g/t 15,385,265 oz na 854 100% OJSC Polyus Gold (Operator)17 Betze-Post Gold Mine - Open Pit United States - Nevada 3 3.70 g/t 10,294,000 oz $452 1,706 100% Barrick Gold Corporation (Operator)18 Porgera Gold Operation Papua New Guinea 61 3.08 g/t 8,240,000 oz $417 660 95% Barrick Gold Corporation (Operator)19 Geita Gold Mine Tanzania 48 2.93 g/t 5,140,000 oz $728 264 100% AngloGold Ashanti Limited20 Lihir Gold Mine Papua New Guinea 61 2.83 g/t 21,778,721 oz $406 771 100% Lihir Gold Limited (Operator)21 Aksu Gold Mine Kazakhstan 56 2.55 g/t 5,796,297 oz na na 100% KazakhGold Group Limited22 Ahafo Gold Operation Ghana 35 2.33 g/t 9,380,000 oz $408 521 100% Newmont Mining Corporation

Lapa Canada - Quebec 1 8.80 g/t 1,061,000 oz na na 100% Agnico-Eagle Mines LimitedKittila Gold Mine Finland 14 4.69 g/t 3,224,000 oz na na 100% Agnico-Eagle Mines LimitedPinos Altos Mexico 28 2.68 g/t 3,593,000 oz na na 100% Agnico-Eagle Mines LimitedMeadowbank Gold Mine Canada - Nunavut 44 3.45 g/t 3,638,000 oz na na 100% Agnico-Eagle Mines LimitedGoldex Canada - Quebec 1 2.05 g/t 1,571,000 oz $419 57 100% Agnico-Eagle Mines Limited

Notes: *2008/09 Fraser Institute study ranked 71 mining jurisdictions

Source: Intierra, Fraser Institute, company websites -- March 2009

Au

min

es w

ith

rese

rves

>5m

oz,

grad

ing

>2 g

/t

Gold and Silver Reserves and Resources

Tonnes (000’s)

Gold (g/t)

Gold(ounces)

(000’s)

Proven 4,828 2.77 430

Probable 154,469 3.55 17,631

Total Reserves 159,297 3.53 18,061

Indicated 47,569 2.07 3,173

Inferred 46,603 3.84 5,760

Tonnes (000’s)

Silver(g/t)*

Silver(ounces)

(000’s)

Proven 4,172 66.74 8,952

Probable 73,404 55.83 131,759

Total 77,576 56.42 140,711

Indicated 18,817 26.31 15,919

Inferred 8,937 28.32 8,138

*Calculated grades

27

Copper, Zinc and Lead Reserves and Resources

Tonnes (000’s)

Copper(%)*

Copper(tonnes)

Proven 4,075 0.33 13,370

Probable 31,735 0.28 89,961

Total 35,810 0.29 103,331

Indicated 6,349 0.15 9,399

Inferred 4,937 0.44 21,515

Tonnes (000’s)

Zinc(%)*

Zinc(tonnes)

Proven 4,075 3.27 133,442

Probable 31,735 1.42 450,246

Total 35,810 1.63 583,688

Indicated 6,349 1.55 98,124

Inferred 4,937 0.77 38,068

Tonnes (000’s)

Lead(%)*

Lead(tonnes)

Proven 4,075 0.37 15,146

Probable 31,735 0.12 38,769

Total 35,810 0.15 53,915

Indicated 6,349 0.16 10,235

Inferred 4,937 0.08 3,946

*Calculated grades

28

Executive and Registered Office:145 King Street East, Suite 400Toronto, Ontario, Canada, M5C 2Y7Tel: 416-947-1212Toll-Free: 888-822-6714 Fax: 416-367-4681

www.agnico-eagle.com

Trading Symbol: AEM on TSX & NYSE

Sean BoydVice Chairman and Chief Executive Officer Ebe ScherkusPresident and Chief Operating OfficerDavid GarofaloSenior Vice President, Finance and Chief Financial Officer

Investor Relations:[email protected]

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.

Member of the World Gold Council www.gold.org

aem corporate update - december 2009 presentation

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