Q1 2012 Summary

Agnico-Eagle Mines Limited today reported quarterly net income of $78.5 million, or $0.46 per share for the first quarter of 2012. This result includes a tax adjustment gain of $9.2 million, or $0.05 per share, non-cash foreign currency translation loss of $15.5 million, or $0.09 per share and stock option expense of $11.8 million, or $0.07 per share, and other non-recurring expense of $4.8 million or $0.03 per share. Excluding these items would result in adjusted net income of $101.4 million, or $0.59 per share. In the first quarter of 2011, the Company reported net income of $45.3 million, or $0.27 per share.

Cash flow generation was strong as first quarter 2012 cash provided by operating activities was $181.4 million ($169.2 million before changes in non-cash components of working capital), up from cash provided by operating activities of $171.0 million in the first quarter of 2011 ($146.9 million before changes in non-cash components of working capital).

The higher net income and cash provided by operating activities in 2012 was primarily due to a 20% higher realized gold price, partly offset by lower byproduct metal prices when compared to the first quarter of 2011.

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Comment by Sean Boyd, Vice Chairman and CEO

“A strong first quarter from our five mines has set the Company up for a solid operating year. In fact, Agnico-Eagle produced more gold in the first quarter of 2012 than in the first quarter of 2011, which included production from the now suspended Goldex mine. While a scheduled 40-day maintenance shutdown of Kittila’s mill, beginning in May, will result in lower second quarter gold production than the first quarter, all of our operations are performing to expectations”, said Sean Boyd, President and Chief Executive Officer. “With an exploration update scheduled to be released in the second quarter, we look forward to further demonstrating the world-class nature of several of our assets”, added Mr. Boyd.