(All amounts expressed in U.S. dollars unless otherwise noted)

AGNICO-EAGLE REPORTS THIRD QUARTER 2008 RESULTS

Toronto (October 29, 2008) � Agnico-Eagle Mines Limited (TSX: AEM / NYSE: AEM)("Agnico-Eagle" or the �Company�) today reported quarterly net income of $14.0 million, or $0.10 per share for the third quarter of 2008.  This result includes a non-cash foreign currency translation gain of $18.5 million, or $0.13 per share, partly offset by a net loss on investments of $10.4 million, or $0.07 per share and non-cash stock option expense of $2.3 million, or $0.02 per share.  In the third quarter of 2007, the Company reported net income of $11.5 million, or $0.08 per share.  The increase in net income, when compared to the third quarter of 2007, was due to higher gold production and prices and the f oreign currency translation gain, partly offset by the net loss on investments and substantially lower byproduct zinc and copper prices. 

Third quarter 2008 cash provided by operating activities was $17.9 million, compared with $54.9 million in the third quarter of 2007, as higher gold production and prices were more than offset by lower byproduct zinc and copper prices.

Third quarter 2008 highlights include:

• Strong Operating Results � good metal output and cost control contributed to solid operating earnings and cash flow as gold production increased 23% to 68,753 ounces when compared to the third quarter of 2007
• Low Costs - Low total cash costs per ounce  at LaRonde of $135.  Good cost control at LaRonde with C$71 minesite costs per tonne  in the third quarter 
• Progress On Gold Production Growth � new Goldex mine achieved commercial production August 1, 2008.  Mining and processing operations are underway at the new Kittila gold mine in Finland
• Expanding Gold Deposits � preliminary exploration results demonstrate the potential to continue to grow the gold deposits at Kittila, Pinos Altos and Meadowbank.  Scoping studies are underway on potential expansions at these sites and also on the Goldex mine
• Financial Position Strengthened � credit facilities doubled to $600 million.  Flow-through issuance of approximately C$55 million subsequent to quarter end.

Payable gold production  in the third quarter of 2008 was 68,753 ounces at weighted average total cash costs per ounce of $240.  This compares with payable gold production of 55,830 ounces, at total cash costs per ounce of minus $307, in the third quarter of 2007 when only LaRonde was operating, and zinc prices were much higher.  For the full year, gold production from LaRonde, Goldex and Kittila is now forecast to be approximately 300,000 ounces. 

�Agnico-Eagle showed strong growth in gold production in the third quarter with the achievement of commercial production at Goldex�, said Sean Boyd, Vice-Chairman and Chief Executive Officer.  �With the Kittila mine now in the commissioning phase, we are poised to deliver record gold production in the fourth quarter�, added Mr. Boyd.

The Company is undertaking its annual life of mine planning exercise based on its most recently published mineral reserves (February 2008).  The results are expected to be released in December 2008.  As previously announced, considering industry-wide cost escalation, capital expenditures for the 2008 through 2010 period could be approximately $1.4 billion, as described in Agnico-Eagle�s press release of July 23, 2008.  Of this amount, approximately $680 million had been spent at September 30, 2008.  Approximately 70% of the remaining amount is committed.     

For the first nine months of 2008, net income was $51.3 million, or $0.36 per share, versus $74.2 million, or $0.57 per share, in the first nine months of 2007.  The decrease was largely due to 37% lower realized zinc prices between the comparative periods, higher non-cash stock-based compensation expenses and net investment losses, offset partially by a 10% increase in gold production and increased gold prices and a foreign currency translation gain.

For the first nine months of 2008, cash provided by operating activities was $164.5 million, down from $196.7 million in the first nine months of 2007.  The decrease was largely due to the aforementioned decrease in zinc prices, offset partly by increased gold production and prices and changes in working capital.

Conference Call Tomorrow

The Company will host its quarterly conference call on Thursday, October 30, 2008 at 11:00 a.m. (E.D.T.).  Management will review the Company�s financial results for the third quarter 2008 and provide an update of its 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 416-644-3414 or Toll-free 800-733-7571.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call. 

Replay archive:
Please dial the 416-640-1917 or Toll-free access number 877-289-8525, passcode 21259722#.

The conference call will be replayed from Thursday, October 30, 2008 at 1:30 PM (E.S.T.) to Thursday, November 6, 2008 11:59 PM (E.S.T.). 

The webcast along with presentation slides will be archived for 180 days on the website.

LaRonde Mine - Strong Production and Cost Control Performance Continues

The LaRonde mill processed an average of 7,105 tonnes of ore per day in the third quarter of 2008, compared with an average of 7,252 tonnes per day in the third quarter of 2007. 

Minesite costs per tonne were C$71 in the third quarter.  These costs are higher than the C$66 per tonne experienced in the third quarter of 2007, largely due to cost increases for consumables, primarily steel, fuel and chemical reagents and slightly lower tonnage being processed.

For the first nine months of 2008, the minesite costs per tonne were C$68, as compared to the first nine months of 2007 when the minesite costs per tonne were $67.  The slightly higher cost is largely due to the higher consumable costs.   

On a per ounce basis, net of byproduct credits, LaRonde�s total cash costs per ounce remained very low by industry standards, at $135 in the third quarter.  This compares with the results of the third quarter of 2007 when total cash costs per ounce were minus $307.  The increase in total cash costs is due to much lower byproduct revenues resulting mainly from lower realized prices for zinc. 

For the first nine months of 2008, LaRonde�s total cash costs per ounce were minus $41, as compared to the first nine months of 2007 when the total cash costs per ounce were minus $430.  The higher unit costs are largely due to lower byproduct prices.

Goldex Mine Begins Commercial Production; Continues Ramp-Up to Full Capacity

The new Goldex mine achieved commercial production as of August 1, 2008.  Gold production in the third quarter 2008 was 17,159 ounces (including 15,375 ounces since the start of commercial production) at total cash costs per ounce of $620.  Since the beginning of August, the mill has continued to improve its throughput and averaged approximately 4,700 tonnes per day to the end of the third quarter.  Peak capacity is expected to be 6,900 tonnes per day and is expected to be achieved by year end 2008. 

Since the start of commercial production, minesite cost per ton averaged C$34 but is expected to decline to C$20 to C$25 per tonne as peak capacity is reached.  Mill recoveries continue to improve as well.  Currently they are 85% compared to estimated feasibility study rates of 93%. 

A total of 56,840 metres of production drilling, representing 1.1 million tonnes of ore, were completed during the third quarter.  A total of 2.5 million tonnes have been drilled so far in 2008.  Approximately 54,800 tonnes of ore have been broken and are in the storage facilities on surface and underground.

Cash Position Remains Strong, Despite Large Investments in Gold Growth; Bank Facility Doubled to $600 million

Cash and cash equivalents decreased to approximately $112.2 million at September 30, 2008 from the June 30, 2008 balance of $150.0 million.  During the quarter, Agnico-Eagle added $17.9 million of cash provided by operating activities.  Capital expenditures in the quarter totaled $253.7 million, including $125.5 million on the construction of Meadowbank, $54.2 million at Kittila, $29.3 million at Pinos Altos and $24.5 million at Lapa, $9.5 million on the LaRonde Extension, and $1.8 million on Goldex.

During the quarter, the Company tendered its Gold Eagle shares for cash proceeds of approximately $40 million and over 760,000 shares of Goldcorp Inc.  Also in the quarter, the Company invested approximately $47 million to increase its ownership position in Comaplex Minerals Inc. to 15.6%.

During the quarter, the Company doubled its credit lines to $600 million and drew $225 million.  Debt drawn under these lines now totals approximately $366 million, including $66 in letters of credit.  Subsequent to quarter end, the Company raised approximately C$55 million through the issuance of 779,250 flow-through common shares at a price of C$70 per share, further strengthening its financial position.

Gold Growth Projects Progressing

Construction commenced at the 100% owned Kittila mine project in northern Finland in the second quarter of 2006.  The project is expected to produce an average of 150,000 ounces of gold per year over its estimated mine life of 13 years.  Initial start-up is expected in the fourth quarter of 2008.  Kittila has probable gold reserves of 3.0 million ounces (18.2 million tonnes grading 5.1 grams per tonne). 

Pit blasts in ore began in May and the first gold concentrate was produced in September.  There are currently 1,800 tonnes of concentrate awaiting processing through the autoclave.  The first concentrate is expected to be fed into the autoclave in early November, as commissioning is currently underway.

A further 127,000 tonnes of ore were extracted from the pit during the third quarter of 2008.  At September 30, 2008, the ore stockpiles totaled 192,575 tonnes with an average grade of 4.3 grams of gold per tonne, based on muck sampling.

Gold production at Kittila in 2008 is now expected to be approximately 20,000 ounces.

As announced on September 4, 2008, 1.0 million ounces of gold were added to the inferred resource category at Kittila.  This brings the total mineral inventory at Kittila to 3.0 million ounces of probable reserves grading 5.1 grams per tonne from 18.2 million tonnes, 5.4 million tonnes grading 3.0 grams per tonne, or 0.5 million ounces, of indicated resources and a further 15.7 million tonnes grading 4.34 grams per tonne, or 2.2 million ounces, of inferred resources.  Considering the growth in reserves and resources to date, the Company is contemplating future increases to the production rate and also methods to access the deeper mineralization at Kittila.
 
At the 100% owned Lapa mine project in northwestern Quebec, the final phase of construction commenced in the second quarter of 2006.  Proven and probable gold reserves of 1.1 million ounces (3.8 million tonnes grading 8.9 grams per tonne) are expected to support estimated annua l production of 125,000 ounces over an anticipated mine life of seven years. 

Lateral and vertical raise development is well underway with a lateral advance of more than 2,000 metres, and raise development of approximately 1,000 metres completed during the third quarter.  Also, the ore has been exposed on Level 77.  Currently, approximately 8,600 tonnes of ore are stockpiled on surface, grading 10.4 grams per tonne.

Construction of the surface service facilities is also proceeding well.  Initial production from Lapa is expected to begin in mid-2009.

At the 100% owned LaRonde mine in northwestern Quebec, construction commenced in the second quarter of 2006 on the new infrastructure to access the deep ore (the LaRonde Extension).  Proven and probable reserves of 5.0 million ounces (34.9 million tonnes grading 4.4 grams per tonne) are expected to support a mine life through 2021.  Annual gold production is anticipated to average 340,000 ounces over the remaining 14 year mine life, with the LaRonde Extension contributing to production beginning in 2011. 

During the second quarter of 2007, sinking of the internal shaft for the LaRonde Extension began.  At the end of the third quarter, approximately 330 metres of advance had been achieved.

At the 100% owned Pinos Altos mine project in northern Mexico, the property has probable gold reserves of 2.5 million ounces (24.7 million tonnes grading 3.2 grams per tonne).  Additionally, the property contains a large silver reserve of over 73.1 million ounces (from the same 24.7 million tonnes grading 92.2 grams per tonne).  The project was approved for construction in August 2007.  Average annual production is expected to be approximately 190,000 ounces of gold over an estimated 12 year mine life with start-up expected in the third quarter of 2009.

Open pit mining has commenced and pre-production development has exceeded plan with more than six million tonnes of waste pre-stripping completed to date.  Total underground ramp development now exceeds three kilometres.  A small quantity of open pit ore will be mined and stockpiled in the fourth quarter of 2008.

Mill construction began in the third quarter of 2008.  Significant completion of earthworks for the leach pad, process plant, and other facilities, the erection of steel for the truck shop and warehouse facilities, the first major concrete pours including the ball mill and SAG mill foundations and several tank foundations, the installation and commissioning of the construction camp, and the 33 kV power line were all accomplished during the quarter.

Three surface exploration drills and two underground exploration drills are currently operating at Pinos Altos.  Favorable results from the on site drilling campaign are expected to produce new resources and reserves at Santo Nino, extensions of the mineralized zone laterally and at depth in Oberon de Weber, extensions of the resource and reserve potential at Cerro Colorado and Cerro Colorado West, and infill results which should allow conversion of resources at San Eligio.

Exploration drilling also continues on the Creston/Mascota area.  This region, approximately 10 kilometres northwest of the main Santo Nino deposit at Pinos Altos, currently has an inferred gold resource of 7.7 million tonnes grading 1.4 grams per tonne gold and 16.2 grams per tonne silver.  Baseline engineering, community and environmental work has commenced. An initial scoping study, on what could be a stand-alone mining operation, is expected to be completed by the end of 2008.

Agnico-Eagle�s 100% owned Meadowbank project in Nunavut has probable gold reserves of 3.5 million ounces (29.3 million tonnes grading 3.7 grams per tonne).  With a large additional gold resource, the project remains open for expansion.  Initial gold production is anticipated in the first quarter of 2010.  Annual gold production is currently estimated to average 360,000 ounces over the estimated nine year life of the mine. 

During the quarter, mine crews worked on dike preparation and the airstrip.  The first rock for the East Dike was placed in the water on July 30th and it was completed one month later.  The East Dike cut off wall was closed and the West Channel Dike was completed in September.  During the last three months, 957,464 tonnes of rock were blasted from the different pits and quarries.

At quarter end, the cladding of the mill building was approximately 60% complete.  The foundations for the power plant are complete and the erection of the steel is approximately 90% finished with cladding to begin in October.  All of the main buildings are expected to be fully enclosed before year end 2008.

The new exploration camp, located approximately 10 kilometres south of the main camp at Meadowbank, is now fully functional.  Five new drill rigs have arrived at the exploration camp in preparation for the winter drilling season.  As soon as possible, drilling will begin from the ice on condemnation holes and the deep drilling program on Goose Island.

About Agnico-Eagle

Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and Finland and exploration and development activities in Canada, Mexico and the United States.  Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit in terms of reserves.  The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales.  It has paid a cash dividend for 26 consecutive years.

For further information:
David Smith; VP, Investor Relations
(416) 947-1212

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Tel. : (514) 939-3989
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