Agnico-Eagle options advanced stage exploration project in Northern Mexico

Agnico-Eagle options advanced stage exploration project in
Northern Mexico
(All amounts expressed in U.S. dollars unless otherwise noted)



TORONTO, March 16  /PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited
("Agnico-Eagle") announced today that is has entered into an option agreement
with Industrias Penoles S.A. de C.V. ("Penoles") to acquire the Pinos Altos
project.

Located in the Sierra Madre gold belt, 170 miles west of the capital of
Mexico's Chihuahua state, the greater than 27,000-acre Pinos Altos property is
directly accessible by paved highway. The property is also approximately 60
miles from a major electric power terminus and within 6 miles of a proposed
extension of the grid.

Penoles acquired the property in 1995 and drilling to date has outlined an
indicated mineral resource of 4.4 million tons with a grade of 0.18 ounces of
gold per ton and 3.82 ounces per ton of silver, containing 0.8 million ounces
of gold and 16.9 million ounces of silver. In addition, the property has an
inferred mineral resource of 2.5 million tons grading 0.18 ounces of gold per
ton and 3.41 ounces of silver per ton, containing 0.4 million ounces of gold
and 8.4 million ounces of silver. Penoles' work to date has also included
metallurgical testing and initial work on the permitting for a potential mining
operation.

"Pinos Altos represents Agnico-Eagle's first entry into the highly prospective
gold camps of Northern Mexico, an area we have actively scouted for three
years," said Sean Boyd, President and Chief Executive Officer. "With its vast
land package and open pit potential, Pinos Altos could provide a near-term step
towards our objective of multi-mine production," added Mr. Boyd.

Over 90% of the Pinos Altos mineral resource is located in the Santo Nino vein,
along a regional fault zone that holds a number of other known deposits in the
area. This Santo Nino vein zone has thicknesses of up to 150 feet over a length
of 1.2 miles and a vertical extent of at least 1,800 feet. It remains open to
the west and at depth.

Under the terms of its option agreement with Penoles, Agnico-Eagle is required
to invest $2.8 million, over the next five months (subject to extension and
certain events), on a 55,000-foot diamond drilling program. The components of
the program are expected to include open pit exploration and resource to
reserve conversion, underground resource to reserve conversion and deep
exploration drilling. After the five-month exploration program is completed,
Agnico-Eagle will have a two-month period to exercise its option to purchase
Penoles' 100% interest in the project. If Agnico-Eagle exercises its option,
the purchase price will be approximately $65 million, to be satisfied with $39
million in cash and 1,809,350 shares of Agnico-Eagle, issued from treasury.

Where to Find Maps

Illustrations and maps related to this project can be viewed by using the
following links:

  http://www.agnico-eagle.com/url/050223_PinosAltos_Location.pdf

  http://www.agnico-eagle.com/url/050223_PinosAltos_Geology.pdf

  Scientific Data



The mineral resource estimate by Penoles was completed in June 2003 and was
reviewed Marc H. Legault, P.Eng., Agnico-Eagle's Manager Project Evaluations
and qualified person as defined by National Instrument 43-101. The data
disclosed, including the sampling, analytical and test data underlying the
mineral resource estimate, has been verified. The key assumptions and
parameters used in the estimate are a gold price of $300 per ounce, a silver
price of $4.75 per ounce, a 0.10 ounce per ton gold grade cut-off, and
metallurgical recoveries of 92.39% for gold and 47.83% for silver. Gold assays
were cut to 0.89 ounces per ton while silver assays were cut to 19.25 ounces
per ton. Although more recent exploration information has been collected in the
area where the mineral resource estimate was completed, it is the opinion of
the qualified person that including this information would not materially
change the estimate. We believe the estimate of mineral resources at Pinos
Altos is not likely to be materially affected by any known environmental,
permitting, legal, title, taxation, socio-political, marketing or other
relevant issues. Mineral resources which are not mineral reserves do not have
demonstrated economic viability. Because Pinos Altos is not considered to be a
material property for Agnico-Eagle, a technical report describing the resource
estimate will not be filed with the securities regulatory authorities.

About Agnico-Eagle

Agnico-Eagle is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
eastern Canada and the southern United States. Agnico-Eagle's LaRonde Mine in
Quebec is Canada's largest gold deposit. 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 25 consecutive years. 

DATASOURCE: Agnico-Eagle Mines Limited



CONTACT: David Smith, Director, Investor Relations, [phone]

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