Agnico-Eagle reports second quarter results; New gold mine to be built at Goldex

Agnico-Eagle reports second quarter results; New gold mine to be
built at Goldex
(All amounts expressed in U.S. dollars unless otherwise noted. Prepared
according to U.S. GAAP)



TORONTO, July 27  /PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited today
reported second quarter earnings of $12.8 million, or $0.15 per share. This
compares to net earnings of $8.8 million, or $0.11 per share, in the second
quarter of 2004. For the first six months of 2005, earnings totaled $23.2
million ($0.27 per share) versus $21.7 million ($0.26 per share) in the
corresponding period of 2004.

Second quarter earnings in 2005 were positively affected by non-cash mark-
to-market gains on byproduct metal derivative contracts of $4.2 million ($0.05
per share), and a deferred tax recovery of $3.8 million ($0.04 per share). Cash
flow provided by operating activities was $19.1 million in the quarter, compared
to $14.9 million in the prior year's second quarter. Payable gold production in
the second quarter was 61,771 ounces at total cash costs per ounce of gold of
$103(1). This compares with 65,233 ounces at total cash costs of $77 per ounce
in the second quarter of 2004. Based on first half operating results, gold
production for the full year 2005 is expected to be 250,000 ounces to 260,000
ounces at total cash costs below $100 per ounce.

  Highlights for the quarter include:

  -  Goldex Project was approved for construction by the Board. Gold
     production at Goldex is expected in 2008, averaging 170,000 ounces per
     year at total cash costs of $200 per ounce.
  -  LaRonde mine's solid operating performance drives strong earnings and
     cash flows.
  -  The drilling campaign on the Pinos Altos project in Mexico has
     returned multiple high grade gold intercepts extending the known
     mineralization beyond the previously outlined gold and silver
     resource.
  -  Agnico-Eagle's $130 million offer for Riddarhyttan Resources AB is
     proceeding as planned. Subject to regulatory clearance, and 90%
     acceptance of the offer, the acquisition is expected to be completed
     in 2005.



"Agnico-Eagle's low cost LaRonde operation continues to generate strong
earnings and cash flows," said Sean Boyd, President and Chief Executive
Officer. "Our decision today to begin construction of a new gold mine at Goldex
is an important step toward our goal of building value by expanding our low cost
production base. Over the coming months we look forward to further progress at
our LaRonde II and Lapa projects in Quebec, and our international opportunities
in Finland and Mexico", added Mr. Boyd.

Conference Call Tomorrow

The Company's senior management will host the Second Quarter Results Conference
Call on Thursday July 28, 2005 at 12:00 p.m. (E.S.T.). Management will also
provide an update of the Company's exploration and development activities. To
listen on the telephone, please dial [phone] or 1 [phone] toll
free, at least five minutes before the scheduled start of the presentation. The
access phone number for the archived audio replay is 1 [phone], passcode
21104890 (followed by the number sign). It will be available from Thursday,
July 28, 2005 at 2:00 pm until Friday, August 5, 2005 at 11:59 pm.
Additionally, a live audio webcast of the call will be available on the
Company's website at http://www.agnico-eagle.com/. The presentation will be
archived on the website until January 28, 2006.

LaRonde Operating Results

Compared to the first quarter, the LaRonde mine improved its operating
performance, following delays in mining some high grade gold stopes in the
lower mine in the first quarter. As the required stope access rehabilitation
work was completed, the percentage of production from the gold-rich lower mine
improved, resulting in improvements in financial performance.

LaRonde processed over 8,200 tons of ore per day in the second quarter,
continuing the strong performance seen during the first quarter (7,946 tpd),
and in 2004 (8,156 tpd). Approximately 67% of this tonnage was from the lower
mine, showing continued improvement from the first quarter (64%) when
rehabilitation work forced higher tonnage from the upper mine.

As a result of the strong ore production, minesite costs per ton were C$51(2)
in the second quarter (slightly higher than expected due to higher input costs
such as fuel, and increased equipment maintenance and ground support expense).
For the first half of 2005, minesite costs per ton were C$49, in the middle of
the expected range for the year of C$48 per ton to C$50 per ton. In the first
half of 2004, minesite costs per ton were C$47. The higher level in 2005 was
largely due to rehabilitation costs incurred in the first quarter, and higher
input costs, set out above.

On a per ounce basis, net of byproduct credits, LaRonde's total cash costs
remained low, by industry standards, at $103 per ounce in the second quarter.
This compares with the results of the second quarter of 2004 when total cash
costs per ounce were $77. The main reason for the increase in total cash costs
is the lower gold production in 2005 of 117,081 ounces versus 135,421 in the
first half of 2004.

Year to date total cash costs were $84 per ounce versus $78 per ounce in the
first six months of 2004.

In spite of the high tonnage being achieved by the mine, the payable quarterly
gold production of 61,771 ounces was 5% lower than the corresponding period in
2004. Higher lead content, associated with higher zinc grades, had a negative
impact on gold recoveries in the mill. Also negatively impacting the gold
production was lower ore recovery in some high grade stopes in an attempt to
control dilution.

As a result of the delays in accessing higher grade gold stopes in the first
quarter, and the lower recoveries in the second quarter, the Company is now
targeting gold production of 250,000 ounces to 260,000 ounces in 2005 at total
cash costs below $100 per ounce. Byproduct production is expected to be over 5
million ounces of silver, 165 million pounds of zinc, and 17 million pounds of
copper.

  Strong Metals Production and High Metals Prices Yield Solid Earnings and
  Cash Flows



In spite of the lower than expected payable gold production, strong metals
prices and byproduct production resulted, once again, in strong earnings and
cash flows. Second quarter earnings were $12.8 million, or $0.15 per share
compared to earnings of $8.8 million, or $0.11 per share, in the second quarter
of 2004.

Second quarter earnings in 2005 were positively affected by non-cash mark-
to-market gains on byproduct metal derivative contracts of $4.2 million ($0.05
per share), and a deferred tax recovery of $3.8 million ($0.04 per share). Cash
flow provided by operating activities in the quarter was $19.1 million, compared
to $14.9 million in the prior year's second quarter.

For the six months ended June 30, 2005, earnings totaled $23.2 million ($0.27
per share) versus $21.7 million ($0.26 per share) in the corresponding period
in 2004. Non-cash mark-to-market derivative gains totaled $0.8 million ($0.01
per share) in the first six months, while non-cash deferred tax recovery
totaled $4.1 million ($0.05 per share). Agnico-Eagle expects to accrue deferred
tax expense at the statutory rate of approximately 40% for the balance of the
year.

Cash flow provided by operating activities totaled $47.2 million for the first
half of 2005 versus $21.1 million in the first half of 2004. The sharp
improvement is partly due to a reduction of metals inventories accumulated in
the fourth quarter of 2004, which were sold in 2005. In the second quarter of
2005, sales volumes for gold, silver, zinc and copper each approximated
production, leaving stockpiled inventories relatively unchanged.

Agnico-Eagle generated net free cash flow (cash flow provided by operating
activities less cash flow used in investing activities) of $2.8 million during
the second quarter as cash and equivalents grew to nearly $121 million at June
30, 2005. For the year to date, net free cash flow was $15.0 million.
Additionally, the Company maintains substantially undrawn bank lines of $100
million.

As a result of the approval for the construction of the Goldex mine, the
Company's 2005 capital expenditures are now expected to be just over $60
million, which now includes an additional $19 million for Goldex. Agnico-Eagle
expects to fund Goldex principally from internal cash flows and cash resources,
with the exception of small private placements of flow through common shares.
Agnico-Eagle plans to complete a private placement of 500,000 flow through
common shares at a price of C$20 per share in August 2005 for total proceeds of
C$10 million.

Positive Feasibility Study Results in Goldex Production Decision

Following a favourable review from an independent third party, a positive
production decision was made for the Goldex project. This first step is
consistent with the Company's goal of operating in several gold camps globally,
while maintaining low levels of political risk.

The project base case projects an after-tax internal rate of return of 15%,
based on $400 gold per ounce, a C$/US$ exchange rate of 1.30, minesite
operating costs of C$17/ton, and capital costs of $135 million. Annual gold
production is expected to average over 170,000 ounces over a 10 year mine life,
at total cash costs of approximately $200 per ounce.

Sensitivities to gold price, gold grade, capital cost, operating cost, and a
capital expenditure schedule can be reviewed by following this link.

Goldex will benefit from regional synergies with the nearby LaRonde mine and
Lapa project. In-house technical expertise, procurement synergies, and a long
history of exploring and operating in the region are advantages that should
help Goldex achieve success.

Management is excited to be constructing a second mine in the Abitibi Region,
advancing our strategy of building a multi-mine platform. Agnico-Eagle is also
pleased to be providing significant economic benefit to the Abitibi region
through the creation of approximately 200 permanent jobs. Goldex will be the
first new mine in the Val d'Or - Bourlamaque camp in the last ten years.

The 100% owned Goldex project (1.6 million ounces of probable gold reserves) is
located 35 miles east of LaRonde. Mobilization will begin immediately with first
gold production expected in 2008.

Lapa Shaft Sinking Progressing Well

The Company previously announced a $30 million underground development,
drilling and metallurgical program at its 100% owned Lapa project, seven miles
East of LaRonde.

Lapa contains 4.5 million tons, grading 0.26 ounces per ton, totalling 1.2
million ounces of probable gold reserves. In addition Lapa contains indicated
mineral resources of 832,000 tons grading 0.16 ounces per ton for a total of
133,000 ounces and inferred mineral resources of 1.9 million tons grading 0.22
ounces per ton for a total of 414,000 ounces.

The first phase of the Lapa underground program includes a 2,700-foot shaft
sinking project. The 16-foot diameter, concrete-lined, shaft is expected to be
completed near mid-year, 2006. Shaft sinking commenced in mid-March with the
current depth at 824 feet. Excavation of the first underground station is
complete. The contractor is currently averaging 9.0 feet per shift including
the installation of all services. Underground diamond drilling is expected to
start in the fourth quarter of this year.

Positive results from this first phase program would result in an extension of
the shaft to a depth of approximately 4,500 feet below surface. Incremental
capital costs for phase two, to bring the project into full production, are
currently estimated at $80 million. Assuming no further additions to reserves
and the current reserve grade, the Company envisages an eight-year mine life
with steady-state production levels by late 2008 of approximately 125,000
ounces of gold per annum at cash operating costs below $200 per ounce.

The 100% owned Lapa project is located seven miles east of LaRonde. As a
result, Lapa should benefit strongly from regional synergies.

Bid for Riddarhyttan Expected to be Completed in 2005

On May 12, Agnico-Eagle announced a bid for all the remaining shares of
Riddarhyttan, a public company listed on the Swedish stock exchange (current
ownership of 14%), valuing the shares not already owned by Agnico-Eagle at
nearly $130 million. The U.S. SEC has declared Agnico-Eagle's registration
statement effective. It is currently anticipated that the transaction will be
completed in 2005.

Riddarhyttan's resource estimate for its 100% owned Suurikuusikko gold deposit
in northern Finland continues to grow. As at July 19, 2005, Riddarhyttan has
reported a measured gold resource of 2.5 million tonnes grading 6.2 grams per
tonne (0.5 million ounces), an indicated resource of 9.3 million tonnes grading
5.1 grams per tonne (1.5 million ounces) and an inferred resource of 12.5
million tonnes grading 4.2 grams per tonne (1.7 million ounces), using a
cut-off of two grams per tonne, on the Suurikuusikko deposit.

Five drills are active on the property for the purpose of in-fill drilling, and
depth and strike extension. Further detail is available at the Riddarhyttan
Resources AB website.

Drilling Continues on Pinos Altos

Following a three year examination of opportunities in the Sierra Madre gold
and silver camp, an exploration and purchase option agreement was finalized
with Industrias Penoles S.A. de C.V. (Penoles) in March for 100% of the Pinos
Altos property in Mexico (as detailed in the March 16, 2005 press release).
Pinos Altos contains an indicated gold resource of 4.4 million tons, grading
0.18 ounces of gold per ton and 3.82 ounces per ton of silver, containing
800,000 ounces of gold and 16.9 million ounces of silver. In addition, the
property has an inferred resource of 2.5 million tons, grading 0.18 ounces per
ton of gold and 3.41 ounces per ton of silver, containing approximately 400,000
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.

Three surface rigs are currently drilling on site, with another drilling
underground. Spending to date totals $1.2 million, with $1.6 million remaining
to fulfill the terms of the option agreement.

During the second quarter, the diamond drilling program targeted three sectors:

  -  Open pit resource exploration (twenty one holes including two in
     progress, for 9,144 feet)
  -  Resource conversion (three holes, for 4,583 feet); and
  -  Deep resource exploration (two holes, including one in progress for
     3,533 feet).



  Significant results to date are presented in the following table:

  -------------------------------------------------------------------------
                                                  Gold              Silver
                                                (oz/ton,           (oz/ton,
               True                      Gold      cut    Silver    cut to
  Drill     Thickness                   (oz/ton, to 1.75  (oz/ton,  23.33
  Hole         (ft)     From      To     uncut)  oz/ton)   uncut)  oz/ton)
  -------------------------------------------------------------------------
  PA-05-01A     33.5  1,550.2  1,589.5     0.11     0.11     4.20     4.20
  -------------------------------------------------------------------------
  PA-05-02      14.8    291.0    306.8     0.33     0.33     4.86     4.86
  -------------------------------------------------------------------------
  PA-05-03      85.3  1,341.8  1,427.8     0.58     0.39    32.27     9.86
  -------------------------------------------------------------------------
  PA-05-04      33.5    231.0    266.4    n.s.r.   n.s.r.   n.s.r.   n.s.r.
  -------------------------------------------------------------------------
  PA-05-05      30.2    459.3    492.1     0.09     0.09     0.29     0.29
  -------------------------------------------------------------------------
  PA-05-06      18.0    225.4    250.7     0.23     0.23     3.06     3.06
  -------------------------------------------------------------------------
  PA-05-07      28.5  1,902.9  1,952.1     0.16     0.16     2.44     2.44
  -------------------------------------------------------------------------
  PA-05-08      40.7    181.7    224.7     0.16     0.16     3.25     3.25
  -------------------------------------------------------------------------
  PA-05-09      85.3    262.1    359.2     0.11     0.11     3.36     3.36
  -------------------------------------------------------------------------
  PA-05-10     108.3    246.1    368.1     0.10     0.10     2.38     2.38
  -------------------------------------------------------------------------
  PA-05-11     155.8    411.7    688.0     0.27     0.21     2.56     2.56
  -------------------------------------------------------------------------
  PA-05-12      33.1    314.3    357.6     0.04     0.04     1.36     1.36
  -------------------------------------------------------------------------
  PA-05-13      27.9    206.7    236.2    n.s.r.   n.s.r.   n.s.r.   n.s.r.
  -------------------------------------------------------------------------
  PA-05-14      49.2  2,198.5  2,262.8     0.12     0.12      a.p.     a.p.
  -------------------------------------------------------------------------
  PA-05-15      14.8    299.5    315.3    n.s.r.   n.s.r.   n.s.r.   n.s.r.
  -------------------------------------------------------------------------
  PA-05-16      23.0    306.8    331.4     0.03     0.03     0.81     0.81
  -------------------------------------------------------------------------
  PA-05-17      34.4    240.5    285.4     0.13     0.13      a.p.     a.p.
  -------------------------------------------------------------------------
  PA-05-18       9.2     50.9     60.7     0.03     0.03     0.71     0.71
  -------------------------------------------------------------------------
  PA-05-19       9.8     79.1     90.2     0.08     0.08     0.41     0.41
  -------------------------------------------------------------------------
  PA-05-20      30.2    183.7    236.2     0.31     0.30     3.81     3.81
  -------------------------------------------------------------------------
  Drill holes PA-05-21 to PA-05-26 are in progress, or assays pending.
  n.s.r. (equal sign) no significant result; a.p (equal sign) silver assays
  pending



The drilling was successful in identifying a potential open pit resource on the
property, creating the possibility for an accelerated development schedule.
Agnico-Eagle is currently investigating the possibility of using heap leach
technology to process a portion of the Pinos Altos resource. This could
potentially reduce processing costs and project lead-time.

Additionally, the drilling has extended the mineralized zone at depth which has
potential to add significantly to the resource.

A decision on whether the Company will exercise its option, for approximately
$65 million, is expected before the end of 2005.

LaRonde II Update

Significant progress has been made on the LaRonde II pre-feasibility study.
Completed sections of the study include: detailed risk analysis; hoisting and
access options; mine planning and stope sequencing; geomechanical studies; and
potential infrastructure requirements. Cost estimates were also received for
the various hoisting and access options. The final study is expected to be
completed in the fourth quarter of 2005.

Forward Looking Statements

The information in this press release has been prepared as at May 5, 2005.
Certain statements contained in this press release constitute "forward- looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995. When used in this document, the words
"anticipate", "expect", \"estimate," "forecast," "planned" and similar
expressions are intended to identify forward-looking statements.

Such statements include, without limitation: estimates of future mineral
production and sales; estimates of future production costs and other expenses;
estimates of future capital expenditures and other cash needs; statements as to
the projected development of certain ore deposits, including estimates of
exploration, development and other capital costs, and estimates of the timing
of such development or decisions with respect to such development; estimates of
reserves and resources, and statements regarding future exploration results; the
anticipated timing of events with respect to the Company's minesites, including
Goldex and Lapa; the anticipated timing of events with respect to the Company's
exploration and decision in connection with its Pinos Altos option; the
Company's bid for Riddarhyttan; the ability of the Company to achieve its
objective of building a multi-mine production base; and other statements
regarding anticipated trends with respect to the Company's capital resources
and results of operations. Such statements reflect the Company's views at the
time with respect to future events and are subject to certain risks,
uncertainties and assumptions. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or implied by
such forward-looking statements. Such risks include, but are not limited to:
the Company's dependence upon its LaRonde mine for all of its current gold
production; uncertainty of mineral reserve, mineral resource, mineral grade and
mineral recovery estimates; uncertainty of future production, capital
expenditures, and other costs; gold and other metals price volatility; currency
fluctuations; mining risks; and governmental and environmental regulation. For a
more detailed discussion of such risks and other factors, see Company's Annual
Information Form and Annual Report on Form 20-F for the year ended December 31,
2004, as well as the Company's other filings with the Ontario Securities
Commission 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.

About Agnico-Eagle

Agnico-Eagle is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
Canada, the United States, and Mexico. 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.

Scientific and Technical Data

Canadian Administrator's National Instrument 43-101 ("NI 43-101") requires
mining companies to disclose reserves and resources using the subcategories of
"proven" reserves, "probable" reserves, "measured" resources, "indicated"
resources and "inferred" resources. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.

A mineral reserve is the economically mineable part of a measured or indicated
resource demonstrated by at least a preliminary feasibility study. This study
must include adequate information on mining, processing, metallurgical,
economic and other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified. A mineral reserve includes diluting
materials and allows for losses that may occur when the material is mined. A
proven mineral reserve is the economically mineable part of a measured resource
for which quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated with
confidence sufficient to allow the appropriate application of technical and
economic parameters, to support production planning and evaluation of the
economic viability of the deposit. A probable mineral reserve is the
economically mineable part of an indicated mineral resource for which quantity,
grade or quality, densities, shape and physical characteristics can be estimated
with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit.

A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the earth's crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. A measured mineral
resource is that part of a mineral resource for which quantity, grade or
quality, densities, shape, physical characteristics, can be estimated with a
level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely
enough for geological and grade continuity to be reasonable assumed. An
inferred mineral resource is that part of a mineral resource for which quantity
and grade or quality can be estimated on the basis of geological evidence and
limited sampling and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and sampling gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes. Mineral resources which are not mineral reserves do
not have demonstrated economic viability.

Investors are cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.

The terms "measured", "indicated" and "inferred" mineral resources are terms
recognized and required under certain securities legislation. United States
investors are advised that the SEC does not recognize these terms. "Inferred
mineral resources" have a great amount of uncertainty as to their existence and
as to their economic and legal feasibility. It cannot be assumed that all or any
part of an inferred mineral resource will ever be upgraded to a higher category.
Estimates of inferred mineral resources may not form the basis of feasibility or
other economic studies. United States investors are cautioned not to assume that
all or any part of measured or indicated mineral resources will ever be
converted into mineral reserves. United States investors are also cautioned not
to assume that all or any part of an inferred mineral resource exists or is
economically or legally mineable.

Riddarhyttan Technical Data

The mineral resource estimate reported herein for Riddarhyttan's Suurikuusikko
property was prepared for Riddarhyttan in accordance with the Australasian Code
for Reporting Mineral Resources and Ore Reserves, September 1999 ("JORC Code").
Riddarhyttan's mineral resources disclosed herein were estimated using a
minimum gold grade cut-off of 2 grams of gold per ton. Mineral resource
estimates prepared under reporting codes other than NI 43-101 should not be
relied upon as they may not conform to NI 43-101 standards and definitions.
However, reserve and resource categories in the JORC Code are substantially
similar to the corresponding categories of mineral reserves and resources
required under NI 43-101. To the best of Agnico-Eagle's knowledge, the
Riddarhyttan estimate is relevant and reliable.

The Riddarhyttan resource data in this press release has been compiled by
Lars-Goran Ohlsson and Thomas Lindholm (Riddarhyttan Resources AB) who by
SveMin, Foreningen for gruvor, mineral- och metallproducenter, is registered as
a "Qualified Person" and Bill Fleshman, a certified professional geologist in
Australia.

Pinos Altos Technical Data

The Pinos Altos exploration results disclosed in this press release were
reviewed by Dino Lombardi, P.Geo., Senior Geologist International Projects. The
mineral resource estimate reported herein for Penoles's Pinos Altos property was
completed in June 2003 and was reviewed Marc H. Legault, P.Eng., Agnico-Eagle's
Manager Project Evaluations and a qualified person as defined by NI 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. 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. 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.

Agnico-Eagle Technical Data

The qualified person responsible for the Lapa mineral reserve and mineral
resource estimate is Christian D'Amours, Geo., of Service Conseil Geopointcom.
In estimating the Lapa resource and reserve, a minimum gold grade cut-off of
0.15 and 0.19 ounce/ton, respectively was used to evaluate drill intercepts
that have been adjusted to respect a minimum mining width of 9.2 ft. The
estimate was derived using a three dimensional block model of the deposit; the
grades were interpolated using the inverse distance power squared method.

A qualified person Carl Pelletier, Geo., of Innovexplo Geological Services,
supervised the preparation of and verified the scientific and technical
information regarding the Goldex project including sampling, analytical and
test data underlying the mineral reserve and resource estimate. A qualified
person, R. Mohan Srivastava, P.Geo., of Froidevaux, Srivastava & Schofield
Consultants, was responsible for the mineral estimate process at Goldex.
Because Goldex is now considered to be a material property for Agnico-Eagle, a
technical report describing the resource estimate will be filed with the
securities regulatory authorities shortly.

Agnico-Eagle Mines Ltd. is reporting mineral resource and reserve estimates in
accordance with the CIM guidelines for the estimation, classification and
reporting of resources and reserves. The effective date of each estimate is
December 31, 2004. More recent information on exploration, mining, processing,
metallurgy and other economic factors have also been used. Reserve estimates
were calculated using historic three-year average metals prices and foreign
exchange rates in accordance with the Securities and Exchange Commission's
("SEC") Industry Guide 7. Industry Guide 7 requires the use of prices that
reflect current economic conditions at the time of reserve determination which
Staff of the SEC has interpreted to mean historic three-year average prices.
The assumptions used for 2004 reserves and resources were $360 per ounce gold,
$5.42 per ounce silver, $0.41 per pound zinc, $0.95 per pound copper and a
C$/US$ exchange rate of 1.42. There are no known relevant issues that would
materially affect the estimates. No independent verification of the data has
been published.

Tonnage amounts and contained metal amounts presented in the tables in this
news release have been rounded to the nearest 1000.

The qualified person responsible for the LaRonde II pre-feasibility study is
Carol Plummer, P.Eng., Mine Superintendent for LaRonde. The qualified person
responsible for the Lapa pre-feasibility and Goldex feasibility studies is
Rosaire Emond Ing., Goldex Project Manager.

The qualified person responsible for the LaRonde mineral reserve and resource
estimate is Guy Gosselin, Ing., P.Geo., Manager Exploration. A description of
the operating and capital cost assumptions, parameters and methods used to
estimate the Penna shaft can be found in the LaRonde Division SEDAR disclosure
cited above.

The qualified person responsible for the Lapa mineral reserve and mineral
resource estimate is Christian D'Amours, P.Geo., of Service Conseil
Geopointcom. In estimating the Lapa resource and reserve, a minimum gold grade
cut-off of 0.15 and 0.19 oz/ton, respectively was used to evaluate drill
intercepts that have been adjusted to respect a minimum mining width of 9.2 ft.
The estimate was derived using a three dimensional block model of the deposit;
the grades were interpolated using the inverse distance power squared method.

The Goldex mineral reserve and resource estimate was supervised by qualified
person Carl Pelletier, P.Geo., of Innovexplo Geological Services. Mr. Pelletier
also supervised the preparation of and verified the scientific and technical
information regarding the Goldex project including sampling, analytical and
test data underlying the mineral reserve and resource estimate. A qualified
person, R. Mohan Srivastava, P.Geo., of Froidevaux, Srivastava & Schofield
Consultants, was responsible for the mineral estimate process at Goldex.

The minimum gold grade cut-off used to evaluate drill intercepts at Goldex was
0.04 oz/ton over a minimum true thickness of 50 feet. The reserve was derived
by evaluating a three-dimensional model of the Goldex Extension zone, whose
gold grade was estimated using a 95% confidence interval grade calculation
method, and then adjusting the model envelope to only include sectors with a
high probability of exceeding the cut-off grade.

  ------------------------------
  (1) Total cash costs per ounce is a non-GAAP measure. For a
      reconciliation of this measure to the financial statements, see
      note 1 following the financial statements
  (2) Minesite costs per ton is a non-GAAP measure. For a reconciliation of
      this measure to the financial statements, see Note 1 following the
      financial statements



  Summarized Quarterly Data (Unaudited)         Agnico-Eagle Mines Limited
  -------------------------------------------------------------------------
  (thousands of
   United States Dollars          Three months ended      Six months ended
   except where noted,                       June 30,              June 30,
   US GAAP basis)                    2005       2004       2005       2004
  -------------------------------------------------------------------------
  Income and cash flow
  LaRonde Division
  Revenues from mining
   operations                   $  49,572  $  45,664  $ 111,338  $  94,268
  Production costs                 30,268     25,680     61,241     49,821
  -------------------------------------------------------------------------
  Gross profit (exclusive of
   amortization shown below)    $  19,304  $  19,984  $  50,097  $  44,447
  Amortization                      5,983      5,859     13,194     11,441
  -------------------------------------------------------------------------
  Gross profit                  $  13,321  $  14,125  $  36,903  $  33,006
                               --------------------------------------------
  -------------------------------------------------------------------------

  Net income for period         $  12,794  $   8,805  $  23,242  $  21,714
  Net income per share (basic
   and fully diluted)           $    0.15  $    0.11  $    0.27  $    0.26
  Cash flow provided by
   operating activities         $  19,103  $  14,901  $  47,208  $  21,120
  Cash flow used in investing
   activities                   $ (16,334) $ (23,493) $ (32,239) $ (32,874)
  Cash flow (used in) provided
   by financing activities      $     920  $   1,552  $    (175) $     484
  Weighted average number of
   common shares
    Outstanding - basic
     (in thousands)                86,220     84,648     86,176     84,592

  Tons of ore milled              751,608    753,724  1,466,729  1,442,926
  Head grades:
    Gold (oz. per ton)               0.09       0.09       0.09       0.10
    Silver (oz. per ton)             2.21       2.26       2.17       2.26
    Zinc                            4.11%      3.80%      4.12%      3.80%
    Copper                          0.36%      0.54%      0.38%      0.54%
  Recovery rates:
    Gold                           90.02%     91.69%     90.28%     91.69%
    Silver                         85.20%     85.88%     84.40%     85.92%
    Zinc                           82.50%     83.37%     82.10%     83.38%
    Copper                         74.50%     78.99%     75.80%     78.96%
  Payable metal produced:
    Gold (ounces)                  61,771     65,233    117,081    135,421
    Silver (ounces in thousands)    1,204      1,558      2,302      2,686
    Zinc (pounds in thousands)     44,347     37,483     85,488     74,130
    Copper (pounds in thousands)    3,705      5,075      7,694     10,915
  Payable metal sold:
    Gold (ounces)                  60,550     65,233    130,687    135,421
    Silver (ounces in thousands)    1,121      1,558      2,519      2,686
    Zinc (pounds in thousands)     44,371     37,483     81,825     74,130
    Copper (pounds in thousands)    3,558      5,075      9,774     10,915
  Realized prices per unit of
   production:
    Gold (per ounce)            $     427  $     393  $     429  $     401
    Silver (per ounce)          $    7.16  $    6.22  $    7.01  $    6.42
    Zinc (per pound)            $    0.58  $    0.47  $    0.59  $    0.48
    Copper (per pound)          $    1.55  $    1.26  $    1.51  $    1.25

  Total cash costs (per ounce):
  Production costs              $     490  $     394  $     523  $     368
  Less: Net byproduct revenues       (379)      (300)      (416)      (272)
        Inventory adjustments          (6)       (15)       (21)       (16)
        Accretion expense
         and other                     (2)        (2)        (2)        (2)
  -------------------------------------------------------------------------
  Total cash costs (per ounce)  $     103  $      77  $      84  $      78
  -------------------------------------------------------------------------

  Minesite costs per ton milled
   (Canadian dollars)           $      51  $      47  $      49  $      47
  -------------------------------------------------------------------------



  Consolidated Balance Sheet                    Agnico-Eagle Mines Limited
  -------------------------------------------------------------------------
  (thousands of United States dollars,               June 30,  December 31,
   US GAAP basis - Unaudited)                           2005          2004
  -------------------------------------------------------------------------
  ASSETS
  Current
  Cash and cash equivalents                        $ 120,798     $ 106,014
  Metals awaiting settlement                          35,459        43,442
  Income taxes recoverable                             7,590        16,105
  Inventories:
    Ore stockpiles                                    10,790         9,036
    Concentrates                                       4,535         9,065
    Supplies                                           8,365         8,292
  Other current assets                                20,948        19,843
  -------------------------------------------------------------------------
  Total current assets                               208,485       211,797
  Fair value of derivative financial instruments       2,814         2,689
  Other assets                                        23,187        25,234
  Future income and mining tax assets                 57,680        51,407
  Mining properties                                  444,189       427,037
  -------------------------------------------------------------------------
                                                   $ 736,355     $ 718,164
                                                  -------------------------
  -------------------------------------------------------------------------

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Current
  Accounts payable and accrued liabilities         $  21,187     $  28,667
  Dividends payable                                      828         3,399
  Interest payable                                     2,426         2,426
  -------------------------------------------------------------------------
  Total current liabilities                           24,441        34,492
  -------------------------------------------------------------------------
  Long-term debt                                     141,326       141,495
  Asset retirement obligation and other liabilities   15,115        14,815
  Future income and mining tax liabilities            59,177        57,136

  Shareholders' Equity
  Common shares
    Authorized - unlimited
    Issued - 86,268,696 (2004 - 86,072,779)          623,087       620,704
  Stock options                                        2,090           465
  Warrants                                            15,732        15,732
  Contributed surplus                                  7,181         7,181
  Deficit                                           (149,514)     (172,756)
  Accumulated other comprehensive loss                (2,280)       (1,100)
  -------------------------------------------------------------------------
  Total shareholders' equity                         496,296       470,226
  -------------------------------------------------------------------------
                                                   $ 736,355     $ 718,164
                                                  -------------------------
  -------------------------------------------------------------------------



  Consolidated Statement of Income              Agnico-Eagle Mines Limited
   and Comprehensive Income - Unaudited
  -------------------------------------------------------------------------
  (thousands of
   United States Dollars          Three months ended      Six months ended
   except per share amounts,                 June 30,              June 30,
   US GAAP basis)                    2005       2004       2005       2004
  -------------------------------------------------------------------------

  REVENUES
  Revenues from mining
   operations                   $  49,572  $  45,664  $ 111,338  $  94,268
  Interest and sundry               4,492        158      1,701        363
  -------------------------------------------------------------------------
                                   54,064     45,822    113,039     94,631
  COSTS AND EXPENSES
  Production                       30,268     25,680     61,241     49,821
  Exploration and corporate
   development                      3,364        452      6,127        742
  Equity loss in junior
   exploration companies              838        609      1,973        898
  Amortization                      5,983      5,859     13,194     11,441
  General and administrative        2,412      2,012      6,161      3,811
  Provincial capital tax              311        739        910      1,194
  Interest                          2,102      2,272      4,654      4,029
  Foreign currency gain              (467)      (518)      (851)      (379)
  -------------------------------------------------------------------------
  Income before income, mining
   and federal capital taxes        9,253      8,717     19,630     23,074

  Federal capital tax                 234        275        482        541
  Income and mining tax
   expense (recovery)              (3,775)      (363)    (4,094)       819
  -------------------------------------------------------------------------
  Net income for the period     $  12,794  $   8,805  $  23,242  $  21,714
                               --------------------------------------------
  -------------------------------------------------------------------------
  Net income per share -
   basic and diluted            $    0.15  $    0.11  $    0.27  $    0.26
                               --------------------------------------------
  -------------------------------------------------------------------------

  Weighted average number
   of shares (in thousands)
    Basic                          86,220     84,648     86,176     84,592
    Diluted                        86,627     85,141     86,583     85,084
                               --------------------------------------------
  -------------------------------------------------------------------------

  Comprehensive income:

  Net income for the period     $  12,794  $   8,805  $  23,242  $  21,714
  -------------------------------------------------------------------------

  Other comprehensive income,
   net of tax:
    Unrealized loss on hedging
     activities                      (210)    (1,247)      (117)    (1,062)
    Unrealized gain (loss) on
     available-for-sale
     securities                     1,130       (726)       977     (1,168)
    Cumulative translation
     adjustment on equity
     investee                      (1,310)               (2,006)         -
    Adjustments for derivative
     instruments maturing
     during the period                (15)    (2,147)       (34)    (2,931)
    Adjustments for realized gains
     on available-for-sale
     securities due to dispositions
     in the period                      -       (124)         -       (632)
  -------------------------------------------------------------------------

  Other comprehensive loss for
   the period                        (405)    (4,244)    (1,180)    (5,793)
  -------------------------------------------------------------------------

  Comprehensive income for
   the period                   $  12,389  $   4,561  $  22,062  $  15,921
                               --------------------------------------------
  -------------------------------------------------------------------------


  Consolidated Statement of                     Agnico-Eagle Mines Limited
  Shareholders' Equity
  -------------------------------------------------------------------------
  (thousands of
   United States Dollars          Three months ended      Six months ended
   except where noted,                       June 30,              June 30,
   US GAAP basis - Unaudited)        2005       2004       2005       2004
  -------------------------------------------------------------------------

  Deficit
  Balance, beginning of period  $(162,308) $(205,146) $(172,756) $(218,055)
  Net income for the period        12,794      8,805     23,242     21,714
  -------------------------------------------------------------------------
  Balance, end of period        $(149,514) $(196,341) $(149,514) $(196,341)
  -------------------------------------------------------------------------

  Accumulated other
   comprehensive loss
  Balance, beginning of period  $  (1,875) $  (6,989) $  (1,100) $  (5,440)
  Other comprehensive loss for
   the period                        (405)    (4,244)    (1,180)    (5,793)
  -------------------------------------------------------------------------
  Balance, end of period        $  (2,280) $ (11,233) $  (2,280) $ (11,233)
  -------------------------------------------------------------------------



  Consolidated Statement of Cash Flows          Agnico-Eagle Mines Limited
  - Unaudited
  -------------------------------------------------------------------------
  (thousands of                   Three months ended      Six months ended
   United States Dollars,                    June 30,              June 30,
   US GAAP basis)                    2005       2004       2005       2004
  -------------------------------------------------------------------------
  Operating activities
  Net income for the period     $  12,794  $   8,805  $  23,242  $  21,714
  Add (deduct) items not
   affecting cash from operating
   activities:
    Amortization                    5,983      5,859     13,194     11,441
    Future income and mining
     taxes (recoveries)            (3,913)       532     (4,232)     2,489
    Unrealized loss on
     derivative contracts               -        (42)         -        174
    Amortization of deferred
     costs and other               (3,006)     1,970      3,115      2,128
  -------------------------------------------------------------------------
                                   11,858     17,124     35,319     37,946
  Change in non-cash working
   capital balances
    Metals awaiting settlement      6,230        337      7,983     (7,510)
    Income taxes recoverable        5,564     (1,194)     8,515     (2,310)
    Inventories                       999        600      2,702     (1,071)
    Prepaid expenses and other       (139)       676        198      2,376
    Accounts payable and accrued
     liabilities                   (7,026)    (4,270)    (7,509)    (7,576)
    Interest payable                1,617      1,628          -       (735)
  -------------------------------------------------------------------------
  Cash flows provided by
   operating activities            19,103     14,901     47,208     21,120
  -------------------------------------------------------------------------

  Investing activities
  Additions to mining
   properties                     (14,020)   (11,774)   (29,203)   (21,997)
  Investments and other            (2,314)   (11,719)    (3,036)   (10,877)
  -------------------------------------------------------------------------
  Cash flows used in investing
   activities                     (16,334)   (23,493)   (32,239)   (32,874)
  -------------------------------------------------------------------------

  Financing activities
  Dividends paid                        -          -     (2,542)    (2,480)
  Common shares issued                920      1,552      2,367      2,964
  -------------------------------------------------------------------------
  Cash flows (used in) provided
   by financing activities            920      1,552       (175)       484
  -------------------------------------------------------------------------

  Effect of exchange rate
   changes on cash and cash
   equivalents                         (5)       110        (10)       162

  Net increase (decrease) in
   cash and cash equivalents
   during the period                3,684     (6,930)    14,784    (11,108)
  Cash and cash equivalents,
   beginning of period            117,114    106,187    106,014    110,365
  -------------------------------------------------------------------------
  Cash and cash equivalents,
   end of period                $ 120,798  $  99,257  $ 120,798  $  99,257
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  Other operating cash flow
   information:
  Interest paid during the
   period                       $     (27) $     353  $   3,985  $   3,466
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------
  Income, mining, and capital
   taxes paid (recovered)
   during the period            $  (5,823) $   1,369  $  (8,350) $   2,530
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------



  Note 1

  Reconciliation of Total Cash Costs Per Ounce and Total Minesite Costs
  Per Ton

  Total cash cost is not a recognized measure under US GAAP and this data
  may not be comparable to data presented by other gold producers. We
  believe that this generally accepted industry measure is a realistic
  indication of operating performance and is useful in allowing year over
  year comparisons. As illustrated in the table below, this measure is
  calculated by adjusting Production Costs as shown in the Statement of
  Income and Comprehensive Income for net byproduct revenues, royalties,
  inventory adjustments and asset retirement provisions. This measure is
  intended to provide investors with information about the cash generating
  capabilities of our mining operations. Management uses this measure to
  monitor the performance of our mining operations. Since market prices for
  gold are quoted on a per ounce basis, using this per ounce measure allows
  management to assess the mine's cash generating capabilities at various
  gold prices. Management is aware that this per ounce measure of
  performance can be impacted by fluctuations in byproduct metal prices and
  exchange rates. Management compensates for the limitation inherent with
  this measure by using it in conjunction with the minesite cost per ton
  measure (discussed below) as well as other data prepared in accordance
  with US GAAP. Management also performs sensitivity analyses in order to
  quantify the effects of fluctuating metal prices and exchange rates.

  Minesite cost per ton is not a recognized measure under US GAAP and this
  data may not be comparable to data presented by other gold producers. As
  illustrated in the table below, this measure is calculated by adjusting
  Production Costs as shown in the Statement of Income and Comprehensive
  Income for inventory and hedging adjustments and asset retirement
  provisions and then dividing by tons processed through the mill. Since
  total cash cost data can be affected by fluctuations in byproduct metal
  prices and exchange rates, management believes this measure provides
  additional information regarding the performance of mining operations and
  allows management to monitor operating costs on a more consistent basis
  as the per ton measure eliminates the cost variability associated with
  varying production levels. Management also uses this measure to determine
  the economic viability of mining blocks. As each mining block is
  evaluated based on the net realizable value of each ton mined, in order
  to be economically viable the estimated revenue on a per ton basis must
  be in excess of the minesite cost per ton. Management is aware that this
  per ton measure is impacted by fluctuations in production levels and thus
  uses this evaluation tool in conjunction with production costs prepared
  in accordance with US GAAP. This measure supplements production cost
  information prepared in accordance with US GAAP and allows investors to
  distinguish between changes in production costs resulting from changes in
  production versus changes in operating performance.

  The following tables provide a reconciliation of the total cash operating
  costs per ounce of gold produced and minesite operating cost per ton to
  the financial statements:

  (thousands of dollars,         3 Months   6 months   3 Months   6 months
   except where noted)              ended      ended      ended      ended
                                  June 30,   June 30,   June 30,   June 30,
                                     2005       2005       2004       2004
  -------------------------------------------------------------------------
  Cost of production per
   Consolidated Statements of
   Income                         $30,268    $61,241    $25,680    $49,821
  Adjustments:
    Byproduct revenues            (23,436)   (48,697)   (19,921)   (38,132)
      Inventory adjustment(i)        (358)    (2,531)      (603)      (898)
    Non-cash reclamation
     provision                       (105)      (212)      (131)      (261)
                                 ---------  ---------  ---------  ---------
  Cash operating costs             $6,369     $9,801     $5,025    $10,530
  Gold production (ounces)         61,771    117,081     65,233    135,421
                                 ---------  ---------  ---------  ---------
  Total cash costs (per ounce)       $103        $84        $77        $78
                                 ---------  ---------  ---------  ---------
                                 ---------  ---------  ---------  ---------



  (thousands of dollars,         3 Months   6 months   3 Months   6 months
   except where noted)              ended      ended      ended      ended
                                  June 30,   June 30,   June 30,   June 30,
                                     2005       2005       2004       2004
  -------------------------------------------------------------------------
  Cost of production per
   Consolidated Statements of
   Income                         $30,268    $61,241    $25,680    $49,821
  Adjustments:
    Inventory adjustment(i) and
     hedging adjustments(ii)          605     (2,615)       383      1,211
    Non-cash reclamation
     provision                       (106)      (212)      (131)      (261)
                                 ---------  ---------  ---------  ---------
  Minesite operating costs (US$)  $30,767    $58,414    $25,932    $50,771
                                 ---------  ---------  ---------  ---------
  Minesite operating costs (C$)   $38,155    $72,073    $35,201    $67,990
  Tons milled (000's tons)            752      1,467        754      1,443
                                 ---------  ---------  ---------  ---------
  Minesite costs per ton
   (C$)(iii)                          $51        $49        $47        $47
                                 ---------  ---------  ---------  ---------
                                 ---------  ---------  ---------  ---------

  Notes:
  (i)   Under the Company's revenue recognition policy, revenue is
        recognized on concentrates when legal title passes. Since total
        cash operating costs are calculated on a production basis, this
        adjustment reflects the portion of concentrate production for which
        revenue has not been recognized in the period.
  (ii)  Hedging adjustments reflect gains and losses on the Company's
        derivative positions entered into to hedge the effects of foreign
        exchange fluctuations on production costs. These items are not
        reflective of operating performance and thus have been eliminated
        when calculating operating costs per ton.
  (iii) Total cash operating costs and operating cost per ton data are not
        recognized measures under US GAAP. Management uses these generally
        accepted industry measures in evaluating operating performance and
        believes them to be realistic indications of such performance. The
        data also indicates the Company's ability to generate cash flow and
        operating earnings at various gold prices. This additional
        information should be considered together with other data prepared
        in accordance with US GAAP.


DATASOURCE: Agnico-Eagle Mines Limited



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

Copyright