AGNICO-EAGLE REPORTS FIRST QUARTER 2011 RESULTS

Agnico-Eagle Mines Limited (Stock Symbol: AEM (NYSE and TSX)) ("Agnico-Eagle" or the "Company") today reported quarterly net income of $45.3 million, or $0.27 per share for the first quarter of 2011.  This result includes a non-cash foreign currency translation loss of $14.1 million, or $0.08 per share, stock option expense of $18.5 million, or $0.11 per share, an expense of $3.1 million, or $0.02 per share related to the March 10, 2011 Meadowbank fire, and a gain on sale of investments of $4.4 million, or $0.03 per share.
Excluding these items would result in adjusted net income of $76.5 million, or $0.45 per share.  In the first quarter of 2010, the Company reported net income of $22.3 million, or $0.14 per share.

First quarter 2011 cash provided by operating activities was $171.0 million ($146.9 million before changes in non-cash components of working capital), up from cash provided by operating activities of $74.5 million in the first quarter of 2010 ($92.5 million before changes in non-cash components of working capital).

The higher net income and cash provided by operating activities in 2011 was primarily due to 34% higher gold production and significantly higher metal prices when compared to the first quarter of 2010.

"Thanks to a quick response by the team at Meadowbank, the damage caused by the recent fire was limited and we are already back running at full capacity at the mine," said Sean Boyd, Vice-Chairman and Chief Executive Officer.
"On the back of record production quarters at our Pinos Altos and Kittila mines, and with the expected commissioning of the permanent secondary crusher at Meadowbank in the third quarter, we expect to have all six of our mines operating at a steady state as we head into the second half of the year.  It is expected that gold production in the second half of this year should be approximately 20 percent higher than in the first half of 2011," added Mr. Boyd.

First quarter highlights include:

Payable gold production² in the first quarter of 2011 was 252,362 ounces compared to 188,232 ounces in the first quarter of 2010.  A description of the production and cost performance for each mine is set out further below.

The higher level of production in the 2011 period was largely due to production at the Meadowbank mine, which achieved commercial production in March 2010 and therefore only contributed one month to the first quarter total last year.  The increase in gold production in 2011 was in spite of the fire which destroyed the Meadowbank kitchen complex and also in spite of unusually severe winter conditions.  These factors negatively impacted production and costs, as disclosed in the Company's news releases of March 10 and March 28, 2011.

Total cash costs for the first quarter of 2011 were $531 per ounce.  This compares with $441 per ounce in the first quarter of 2010.  The higher cost in 2011 was largely attributable to the issues at Meadowbank which more than offset the positive impact of higher byproduct metals prices.

First Quarter 2011 Results Conference Call and Webcast Tomorrow

The Company's senior management will host a conference call on Friday, April 29, 2011 at 8:30 AM (E.D.T.) to discuss financial results and provide an update of the Company's exploration and development activities.

Via Webcast:

A live audio webcast of the meeting will be available on the Company's website homepage at www.agnico-eagle.com.

Via Telephone:

For those preferring to listen by telephone, please dial 416-644-3416 or Toll-free 800-814-4859.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay archive:

Please dial 416-640-1917 or Toll-free 877-289-8525, access code 4428706#.
The conference call replay will expire on May 29, 2011.
The webcast along with presentation slides will be archived for 180 days on the website.

Cash Position Remains Strong

Cash and cash equivalents increased to $114.8 million at March 31, 2011, up slightly from the December 31, 2010 balance of $104.6 million, as higher cash flows in 2011 allowed the full repayment of the Company's bank facilities.

Capital expenditures in the first quarter of 2011 were $96.8 million, including $22.9 million at Kittila, $20.3 million at Meadowbank, $19.7 million at LaRonde, $15.9 million at Pinos Altos, $11.9 million on Goldex and $5.0 million at Lapa.

With its current cash balances, anticipated cash flows and available bank lines, management believes that Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.

Available bank lines as of March 31, 2011 were approximately $1.2 billion.

THIS PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.

Pinos Altos Tour

Agnico-Eagle will be hosting a trip for equity analysts and buy-side investors on May 19, 2011 to Pinos Altos in northern Mexico.  A charter plane will depart Toronto in the afternoon of May 18.  After overnight in Chihuahua, small planes will take participants to site and back on May 19, with return to Toronto that evening.  Interested parties should contact Adriana Trlin at atrlin@agnico-eagle.com, or 416-947-1212 x3747.  Space is extremely limited.  All presentation materials will also be posted on the Company's website.

Meadowbank and Meliadine Tour

Agnico-Eagle will be hosting a trip for equity analysts and buy-side investors on June 28, 2011 to Meadowbank.
The tour will include a project review of Meliadine while at the Meadowbank site. The tour will be a day trip via chartered airplane from Toronto.  Interested parties should contact Adriana Trlin at atrlin@agnico-eagle.com, or 416-947-1212 x3747.  All presentation materials will also be posted on the Company's website.

Annual General Meeting

Friday April 29, 2011 at 11:00am
Vanity Fair Ballroom
Le M�ridien King Edward Hotel
37 King Street East
Toronto, ON M5C 1E9

Dividend Record and Payment Dates for the Remainder of 2011

Dividend Reinvestment Program

Please follow the link below for information on the Company's dividend reinvestment program.

DividendReinvestmentPlan

About Agnico-Eagle

Agnico-Eagle Mines Limited is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the United States.  The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales and maintains a corporate strategy based on increasing shareholders exposure to gold, on a per share basis.  It has paid a cash dividend for 29 consecutive years.  www.agnico-eagle.com

¹ Total cash costs per ounce is a non-GAAP measure.  For a reconciliation to production costs, see Note 1 to the financial statements.  See also "Note Regarding Certain Measures of Performance".

² Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.