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Actionable news in AEM: AGNICO EAGLE MINES Ltd.,

Agnico Eagle: Aem (Nyse And Tsx)

The following excerpt is from the company's SEC filing.

For further information:

Investor Relations

(416) 947-1212

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

AGNICO EAGLE REPORTS RECORD THIRD QUARTER 2015 GOLD PRODUCTION; STRONG OPERATING PERFORMANCE LEADS TO INCREASED PRODUCTION GUIDANCE AND REDUCED COSTS

FOR 2015

Toronto (October 28, 2015) Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM)

(Agnico Eagle or the Company) today reported quarterly net income of $1.3 million, or net income of $0.01 per share for the third quarter of 2015. This result includes losses on financial instruments of $16.6 mi llion ($0.08 per share), a non-cash foreign currency translation loss on deferred tax liabilities of $8.1 million ($0.04 per share), various mark-to-market and other adjustment losses of $9.5 million ($0.04 per share), non-cash stock option expense of $4.1 million ($0.02 per share), non-cash foreign currency translation losses of $0.9 million (nil per share), and non-recurring gains of $1.3 million ($0.01 per share). Excluding these items would result in adjusted net income of $39.2 million or adjusted net income of $0.18 per share for the third quarter of 2015. In the third quarter of 2014, the Company reported a net loss of $15.1 million or a net loss of $0.07 per share.

Based on the exploration success in the first half of the year at several of the Companys projects, it was previously announced that exploration expense would increase in the second half of the year. Total exploration expense for the third quarter was $37.1 million.

As a result of this increased exploration expense the Amaruq project in Nunavut yielded a significant increase in inferred resources (see August 19, 2015 news release) and an initial resource is expected to be reported by mid-February 2016 at the El Barqueno project in Mexico.

For the first nine months of 2015, the Company reported net income of $40.1 million, or $0.19 per share. This compares with the first nine months of 2014 when net income was $104.3 million, or $0.55 per share. Financial results in the 2015 period were negatively impacted by much higher investment in exploration (approximately 102% higher); lower gold prices (approximately 9% lower) and lower by-product metals revenues.

Third quarter 2015 cash provided by operating activities was $143.7 million ($217.8 million before changes in non-cash components of working capital). This compares to

cash provided by operating activities of $71.2 million in the third quarter of 2014 ($129.2 million before changes in non-cash components of working capital). The increase in cash provided by operating activities before changes in working capital during the current period was mainly due to an increase of 26% in gold production.

For the first nine months of 2015, cash provided by operating activities was $475.5 million ($547.4 million before changes in non-cash components of working capital), as compared with the first nine months of 2014 when cash provided by operating activities was $504.4 million ($472.8 million before changes in non-cash components of working capital).

The increase in cash provided by operating activities before changes in working capital during the period was mainly due to a 20% increase in gold production.

In the third quarter of 2015, we set a new record for quarterly gold production and lowered unit costs which resulted in strong operating cash flow. This has allowed us to continue to invest in our exploration and development pipeline, which represents the long-term future of our business, said Sean Boyd, Agnico Eagles Chief Executive Officer. Our increased level of exploration activity continues to pay dividends as witnessed by the new discoveries at Kittila, Amaruq and El Barqueno. These projects are expected to be significant contributors to our production profile in the coming years, added Mr. Boyd.

Third Quarter 2015 Highlights Include:

Strong performance of Abitibi operations drives record quarterly gold production and low costs

Payable gold production

in the third quarter of 2015 was 441,124 ounces of gold at total cash costs

per ounce on a by-product basis of $536 and all-in sustaining costs

on a by-product basis (AISC) of $759 per ounce

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.

Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see Reconciliation of Non-GAAP Financial Performance Measures below. Total cash costs per ounce of gold produced is calculated on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See Note Regarding Certain Measures of Performance. For information about the Companys total cash costs per ounce on a co-product basis please see Reconciliation of Non-GAAP Financial Performance Measures.

All-in sustaining costs is a non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see Reconciliation of Non-GAAP Financial Performance Measures Reconciliation of Production Costs to All-In Sustaining Costs Per Ounce of Gold Produced below. The Company calculates all-in sustaining costs per ounce of gold produced on a by-product basis as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the amount of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as all-in sustaining per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The Companys methodology for calculating all-in sustaining costs differ from the methodology used by other producers that disclose all-in sustaining costs. See Note Regarding Certain Measures of Performance. The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.

Two new production records set at Canadian Malartic

New quarterly records were set for average tonnes processed per calendar day (53,703 tonnes on a 100% basis), and ounces of gold produced in a quarter (153,206 ounces on a 100% basis)

2015 production guidance increased and cost forecasts reduced

Expected gold production for 2015 is now forecast to be approximately 1.65 million ounces (previously 1.6 million ounces) with total cash costs on a by-product basis of approximately $590 to $610 per ounce (previously $600 to $620) and AISC of approximately $840 to $860 per ounce (previously $870 to $890) expected

Amaruq drilling expands scope of known mineralization

- Drilling indicates that the Whale Tail and Mammoth zones form a single mineralized system at least 2.3 kilometres long. In addition, the V zone (part of the IVR area) has been identified as a substantial mineralized structure, locally with abundant visible gold

Drilling extends new parallel zone at Kittila

Two recent drill holes have confirmed continuity within the new parallel lens (now called the Sisar lens). Highlights include: 8.1 grams per tonne (g/t) gold (uncapped) over 8.0 metres at 1,235 metres depth; and 5.5 g/t gold (uncapped) over 3.3 metres at 950 metres depth and 560 metres farther north along strike

Improved financial flexibility

In the third quarter, the Companys credit facility was amended and $25 million was repaid. In addition, a 10-year, $50-million term note was issued to Ressources Québec, a subsidiary of Investissement Québec. Capital expenditures in 2015 are also forecast to be approximately $50 million lower than previously reported due to positive foreign currency adjustments and deferrals into future periods

A quarterly dividend of $0.08 per share was declared

Third Quarter Financial and Production Highlights

In the third quarter of 2015, strong operational performance continued at the Companys mines.

Payable gold production in the third quarter of 2015 was a record 441,124 ounces compared to 349,273 ounces in the third quarter of 2014. The higher level of production in the 2015 period was primarily due to increased throughput levels at LaRonde, Goldex and Canadian Malartic, increased mill capacity at Kittila and higher grades at LaRonde, Meadowbank, Goldex, Kittila, Pinos Altos and La India. A detailed description of the production and cost performance at each mine is set out below.

Total cash costs per ounce on a by-product basis for the third quarter of 2015 were lower at $536 compared to $716 per ounce for the third quarter of 2014. The reduction in total cash costs per ounce on a by-product basis in the third quarter of 2015 was a result of higher silver production, higher gold production at the majority of the Companys mines and weaker local currencies compared to the third quarter of 2014.

In the third quarter of 2015 the average value of the Canadian dollar, Euro and Mexican Peso were 8%, 4%, and 23% lower, respectively than the Companys 2015 currency price assumptions (see February 11, 2015 news release).

Payable gold production for the first nine months of 2015 was 1,249,012 ounces, compared to payable gold production of 1,041,753 ounces in the comparable 2014 period (which only included 76,639 ounces from Canadian Malartic for production from June 16 to September 30, 2014).

otal cash costs on a by-product basis were $574 per ounce. This compares with $627 per ounce on a by-product basis in the first nine months of 2014. The lower costs in the 2015 period are due to the higher levels of production and favourable currency movements compared to the 2014 period.

AISC for the third quarter of 2015 was lower at $759 versus $1,059 per ounce for the third quarter of 2014. The lower AISC is primarily due to higher production, lower total cash costs per ounce on a by-product basis, lower general and administrative expenditures and lower capital expenditures.

For the first nine months of 2015, AISC

was $808 versus $947 per ounce for the 2014 period. The lower AISC in the 2015 period is due to the same reasons set out above.

Cash Position Remains Strong; Continued focus on Debt Reduction; Credit lines extended for an additional year through 2020

Cash and cash equivalents and short term investments increased to $208.1 million at September 30, 2015, from the June 30, 2015 balance of $164.0 million.

The outstanding balance on the Companys $1.2 billion credit facility was reduced from $375 million at June 30, 2015 to $350 million at September 30, 2015. This results in available credit lines of approximately $850 million, not including the $300 million accordion facility.

On September 30, 2015, the Company amended its $1.2 billion Credit Facility to extend the maturity date from June 22, 2019 to June 22, 2020 and improve the pricing terms.

On September 30 2015, a private placement of a $50 million, 10-year senior unsecured note (the Note) with a maturity of September 30, 2025 was completed with Ressources Québec, a subsidiary of Investissement Québec. The Company has agreed to use the net proceeds from the issuance of the Note at its mining projects in the Province of Québec.

Total capital expenditures made by the Company in the third quarter of 2015 were $122.4 million, including $24.8 million at Meliadine, $19.7 million at Meadowbank, $15.1 million at LaRonde, $14.1 million at Kittila, $13.3 million at Goldex, $12.5 million at Pinos Altos, $9.3 million at Canadian Malartic (50% basis), $7.0 million at La India, $1.2 million at Creston Mascota and $1.1 million at Lapa.

Total capital expenditures for the first nine months of 2015 were $316.8 million

including $50.6 million at LaRonde, $47.4 million at Meadowbank, $44.6 million at Meliadine, $41.8 million at Pinos Altos, $38.4 million at Kittila, $35.3 million at Goldex, $29.8 million at Canadian Malartic (50% basis), $15.5 million at La India, $5.5 million at Lapa and $1.6 million at Creston Mascota.

Total sustaining capital expenditures made by the Company in the third quarter were $72.0 million, including $19.5 million at Meadowbank, $15.1 million at LaRonde, $10.6 million at Kittila, $8.2 million at Canadian Malartic (50% basis), $7.0 million at La India, $6.7 million at Pinos Altos, $2.6 million at Goldex, $1.2 million at Creston Mascota and $1.1 million at Lapa.

Total sustaining capital expenditures for the first nine months of 2015 were $214.7 million

including $50.6 million at LaRonde, $47.2 million at Meadowbank, $30.7 million at Kittila, $28.0 million at Canadian Malartic (50% basis), $24.0 million at Pinos Altos, $15.5 million at La India, $11.6 million at Goldex, $5.5 million at Lapa, and $1.6 million at Creston Mascota.

For 2015, capital expenditures are expected to total approximately $489.0 million, representing approximately a $50 million decrease from the previously announced figure.

The decrease is primarily due to favourable currency movements and capital expenditure deferrals into future periods.

The Company recorded an income and mining taxes recovery of $15.3 million on the consolidated statements of income for the third quarter of 2015. This was primarily a result of applying effective tax rates on a regional tax basis which were well in excess of the statutory tax rate based on IFRS tax calculation methodology. The Company continues to guide an effective tax rate range between 40% and 45% for 2015.

Revised 2015 Guidance Production Increased and Costs Lowered

As a result of strong operational performance in the third quarter of 2015, production guidance for 2015 has been increased to approximately 1.65 million ounces of gold (previously 1.6 million ounces) with total cash costs on a by-product basis of approximately $590 to $610 per ounce (previously $600 to $620) and AISC of approximately $840 to $860 per ounce (previously $870 to $890).

Third Quarter 2015 Results Conference Call and Webcast Tomorrow

The Companys senior management will host a

conference call on Thursday, October 29, 2015

11:00 AM (E.D.T.)

to discuss financial results and provide an update of the Companys operating activities.

Via Webcast:

A live audio webcast of the meeting will be available on the Companys website

www.agnicoeagle.com

Via Telephone:

For those preferring to listen by telephone, please dial 1-416-260-0113 or toll-free 1-800-524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code 3791390. The conference call replay will expire on November 29, 2015.

The webcast, along with presentation slides, will be archived for 180 days on

NORTHERN BUSINESS OPERATING REVIEW

ABITIBI REGION, QUEBEC

Agnico Eagle is currently Quebecs largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.

LaRonde Mine Increased Production Driven by Higher Grades in Lower Mining Area, Phase 1 Commissioning of Coarse Ore Conveyor Underway

The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.

The LaRonde mill processed an average of 5,992 tonnes per day (tpd) in the third quarter of 2015, compared with an average of 4,634 tpd in the corresponding period of 2014. Throughput in the 2014 period was lower due to an approximate four week shutdown related to the upgrade and commissioning of the production and service hoist drives at the Penna shaft.

Minesite costs per tonne

were approximately C$101 in the third quarter of 2015, lower than the C$111 per tonne experienced in the third quarter of 2014. The higher costs in the 2014 period were primarily due to the scheduled shutdown noted above.

For the first nine months of 2015, the LaRonde mill processed an average of 6,145 tpd, compared to 5,668 tpd in the first nine months of 2014. Minesite costs per tonne were approximately C$101, compared to C$100 per tonne in the first nine months of 2014.

LaRondes total cash costs per ounce on a by-product basis were $558 in the third quarter of 2015 on payable production of 71,860 ounces of gold. This compares with the third quarter of 2014 when total cash costs per ounce on a by-product basis were $861 on production of 37,490 ounces of gold. Production in the 2015 period increased as a result of higher throughput and higher gold grades (primarily from the 293 mining pyramid) compared to the 2014 period. Costs in the 2015 period were lower due to higher gold production (partially offset by lower by-product revenues) and favourable foreign exchange rates.

In the first nine months of 2015, LaRonde produced 194,760 ounces of gold at total cash costs per ounce of $620 on a by-product basis. This is in contrast with the first nine months of 2014 when the mine produced 145,336 ounces of gold at total cash costs per ounce of $701 on a by-product basis. Production in the 2015 period was higher and costs were lower due to the factors mentioned above.

Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see Reconciliation of Non-GAAP Financial Performance Measures below. See also Note Regarding Certain Measures of Performance.

During the quarter, work was completed on the installation of the coarse ore conveyor system that extends from the 293 level to the crusher on the 280 level. The first phase of commissioning involving the discharge point and rock breaker is underway. The ore pass feeding the rock breaker is expected to be commissioned in the first quarter of 2016. The new conveyor should help to improve mining flexibility and reduce congestion in the deeper portions of the mine.

Studies are continuing to assess the potential to extend the mineral reserves and carry out mining activities between the 311 and 371 levels at LaRonde. At present, the mineral reserves extend to the 311 level, which is 3.1 kilometres below the surface. Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels. Additional holes are also being drilled to evaluate the extent of the mineralization down to the 371 level (a depth of 3.7 kilometres below the surface).

The exploration is currently focused on Zone 20, which is the active mining horizon. Additional drilling is also planned for Zone 6, which is located in the footwall to Zone 20.

Canadian Malartic Mine New Quarterly Production Records Established

In June 2014, Agnico Eagle and Yamana Gold Inc. (Yamana) acquired all of the issued and outstanding common shares of Osisko Mining Corporation (Osisko) and created the Canadian Malartic General Partnership (the Partnership). The partnership owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership.

Canadian Malartic had very strong operational performance in the third quarter of 2015. New records were set for quarterly tonnes milled (4.94 million tonnes), tonnes processed per day (53,703 tonnes), and ounces produced (153,206 ounces on a 100% basis). On September 22, 2015, the mine poured its two millionth ounce of gold.

During the third quarter of 2015, the Canadian Malartic mill processed an average of 53,703 tpd (on a 100% basis)

compared with an average of 52,539 tpd in the corresponding period of 2014. Minesite costs per tonne were approximately C$22 ( C$19.32 excluding royalties) compared to the C$22 ( C$19.60 excluding royalties) per tonne experienced in the third quarter of 2014. The costs in the 2015 period were in line with the costs in the 2014 period. Throughput was higher in the 2015 period due to improved crusher operating time. The average stripping ratio in the third quarter of 2015 was 2.04 to 1.0.

For the first nine months of 2015, the Canadian Malartic mill processed an average of 52,139 tpd

compared with an average of 50,580 tpd in the corresponding period of 2014 (on a 100% basis). Minesite costs per tonne were approximately C$23 (C$19.72 excluding royalties) compared to the C$22 (C$19.42 excluding royalties) per tonne experienced in the corresponding period of 2014. The 2014 tonnage and costs are not considered to be representative as they only reflect the period of June 16 through September 30.

For the third quarter of 2015, Agnico Eagles share of production at the Canadian Malartic mine was 76,603 ounces of gold at total cash costs per ounce of $544 on a by-product basis.

This compares with the third quarter of 2014 when total cash costs per ounce on a by-product basis were $735 on production of 64,761 ounces of gold. Production was higher in the 2015 period due to increased mill throughput and higher grades. Costs in the 2015 period were lower due to increased production and favourable foreign exchange rates.

In the first nine months of 2015, Agnico Eagles share of production at the Canadian Malartic mine was 212,937 ounces of gold at total cash costs per ounce of $593 on a by-product basis. This is in contrast with production from June 16 to September 30, 2014 which only included 76,639 ounces of gold at total cash costs per ounce of $717 on a by-product basis from Canadian Malartic.

The Partnership continues to work on initiatives to optimize the operations. Current opportunities include:

Improving SAG mill and crusher liners to attempt to reduce the number of planned shutdowns to three per year (currently four per year). New liners were installed in Q3 2015

Improving gyratory crusher availability by redirecting ore containing scrap steel to a separate crusher

Maintaining mining throughput levels at two million tonnes per month in the North zone (which contains higher grades)

Acquiring an additional remote excavator for use in the North zone

Adding two larger production drills which is expected reduce drilling costs

Increasing rate of waste rock backfilling of the Gouldie pit which reduces haulage distances and noise

Permitting activities for the Barnat Extension and deviation of Highway 117 are continuing. An Environmental Impact Assessment (EIA) for this project was submitted in February 2015. An initial series of questions were received by the Partnership, and final responses were submitted in September 2015. A second round of questions from the government is expected to be received later in the fourth quarter of 2015. Public hearings are then expected to be held in the spring of 2016, with receipt of the necessary permits potentially by year-end 2016. In parallel, the Partnership is currently working on the permitting for improving the efficiency and environmental performance of the existing mobile crusher. At this point, milling levels are expected to be approximately 53,000 tpd through year-end 2016.

In March 2015, the Partnership increased its interest in the Malartic CHL property to 100% by acquiring the remaining 30% interest from Abitibi Royalties Inc. The Malartic CHL property adjoins the Canadian Malartic mine to the east and hosts part of the Odyssey North discovery. At the end of the third quarter of 2015, 28 holes (24,537 metres) of drilling had been completed on the Odyssey zones. Drilling and data compilation will continue in the fourth quarter.

Update on Pandora and Kirkland Lake Projects

Canadian Malartic Corporation, a company in which each of Agnico Eagle and Yamana has an indirect 50% interest, is exploring a portfolio of properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec.

In the Kirkland Lake area, an internal technical study on the Upper Beaver property is being reviewed. Elsewhere in the region, compilation work is ongoing and a select number of targets are being drilled.

At Pandora, underground development on the 101-W exploration drift from the adjacent Lapa mine commenced in February 2015 and approximately 691 metres of development was completed by the end of the third quarter of 2015. For the full year, approximately 940 metres of development is planned.

In mid-June 2015, underground drilling resumed from the 101-W exploration drift and approximately half of the proposed 2015 program (approximately 7,000 metres) was completed by the end of the third quarter. The focus of the current exploration program is to test for extensions to the Branch zone and C zone on the Pandora property.

Lapa Zulapa Z7 Zone Continues to Deliver Higher Grades and Recoveries

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.

The Lapa circuit, located at the LaRonde mill, processed an average of 1,583 tpd in the third quarter of 2015. This compares with an average of 1,703 tpd in the third quarter of 2014. Throughput in the 2015 period was lower because of downtime related to repairs carried out on the Lapa ball mill. Repairs were completed in August 2015. During the repair time, excess ore was stockpiled and there is sufficient mill capacity that should allow the Company to meet its annual throughput rate (tonnes and ounces) over the balance of 2015.

Minesite costs per tonne were C$114 in the third quarter of 2015, compared to the C$104 in the third quarter of 2014. Costs in the 2015 period were higher due to mining at deeper depths and lower throughput compared to the same period in 2014.

For the first nine months of 2015, the Lapa mill processed an average of 1,553 tpd, compared to 1,747 tpd in the first nine months of 2014. Minesite costs per tonne were approximately C$119, above the C$106 per tonne in the first nine months of 2014 due to the reasons explained above.

Payable production in the third quarter of 2015 was 25,668 ounces of gold at total cash costs per ounce on a by-product basis of $522. This compares with the third quarter of 2014, when production was 24,781 ounces of gold at total cash costs per ounce on a by-product basis of $606. In the 2015 period, production was higher primarily due to better recoveries (up 8.7%) related to a higher component of free gold in the Zulapa Z7 ore

zone. Costs were lower primarily due to increased production and favourable foreign exchange rates.

In the first nine months of 2015, Lapa produced 71,038 ounces of gold at total cash costs per ounce of $581 on a by-product basis. This compares to the first nine months of 2014 when the mine produced 67,011 ounces of gold at total cash costs per ounce of $689 on a by-product basis. The higher production and lower costs in the 2015 period are due to the reasons outlined above.

At Lapa, 2015 is the last full year of production based on the current life of mine plan. Commercial production is forecast to end at the mine in the third quarter of 2016, but exploration activities (primarily on the Pandora property) are expected to continue. The permanent employees are expected to be relocated to the Companys other operations where they will replace contract positions.

Studies are underway to evaluate other internal opportunities to utilize the Lapa mill, which is located at the LaRonde Metallurgical complex.

Goldex Development Rates Expected to Double by Year End; M Zone Yields Better Than Expected Grades

The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original orebody, the Goldex Extension Zone (GEZ), were suspended in October 2011. In July 2012, the M and E satellite zones were approved for development. Mining operations resumed on the M and E satellite zones in September 2013. Mining operations at GEZ remain suspended.

The Goldex mill processed an average of 6,199 tpd in the third quarter of 2015. This compares with an average of 5,851 tpd in the third quarter of 2014. The higher throughput in the 2015 period was due to more mature mining fronts and productivity improvements compared to the 2014 period.

Minesite costs per tonne were approximately C$34 in the third quarter of 2015, which was slightly higher than the C$32 per tonne experienced in the third quarter of 2014. The increased cost in the 2015 period is primarily due to increased development in the M3 and M4 zones and extensions to the E Zone.

For the first nine months of 2015, the Goldex mill processed an average of 6,377 tpd, compared to 5,647 tpd in the first nine months of 2014. Minesite costs per tonne were approximately C$34 in the first nine months of 2015 which is in line with C$33 in first nine months of 2014.

Payable gold production in the third quarter of 2015 was 32,068 ounces of gold at total cash costs per ounce on a by-product basis of $479. This compares with the third quarter of 2014, when production was 27,611 ounces of gold at total cash costs per ounce on a by-product basis of $582. The higher production in the 2015 period was largely due to increased tonnage and better grades (especially in the M Zone) and higher

recoveries. The decrease in total cash costs in the 2015 period was largely a result of increased production and favourable foreign exchange rates compared to the 2014 period.

In the first nine months of 2015, Goldex produced 87,780 ounces of gold at total cash costs per ounce of $546 on a by-product basis. This compares to the first nine months of 2014 when the mine produced 70,970 ounces of gold at total cash costs per ounce of $661 on a by-product basis. The higher production and lower costs in the 2015 period are due to the same reasons as outlined above.

In late July 2015, the Company announced production approval for the Goldex Deep 1 project (see July 29, 2015 news release). Mining will focus on the lower part of the Dx zone and the top of the D zone from a depth of 850 metres to 1,200 metres (level 120). The Company plans to undertake development from the current Goldex infrastructure, with existing equipment and personnel. The planned mining method is long-hole stoping with cemented paste backfill, which is the same method currently used at Goldex M & E zones. Gold production from the Goldex Deep 1 project is currently expected to average in excess of 100,000 ounces per year from 2018 through 2024.

In the third quarter of 2015, approximately 1,462 metres of development were carried out in the Deep zone. The ramp has now reached Level 115 on its way to an ultimate depth of level 120. In addition, full restoration of the surface ramp is expected to be completed by the end of this year. This ramp will improve on the ability to move equipment and supplies from the surface into the underground workings.

The advancement of the Deep 1 project at Goldex also has the potential to unlock other significant value creating opportunities including:

Potential for additional mineral resource conversion in the Deep 1 zone

Potential for mining at the Deep 2 (below level 120)

Potential to develop the South zone (a narrow high-grade zone accessible via Deep 1 infrastructure)

Potential development of the Akasaba West deposit, which is approximately 30 kilometres to the East of Goldex

An EIA on the Akasaba West deposit was submitted during the quarter, which allows the environmental review process to commence. The Company anticipates the EIA approval in late 2017 or early 2018.

FINLAND AND SWEDEN

Agnico Eagles Kittila mine in Finland is the largest primary gold producer in Europe and hosts the Companys largest mineral reserves. Exploration activities continue to expand the mineral resources and studies are underway to evaluate the potential to cost-effectively increase production.

Kittila Focus Remains On Optimizing Future Production Levels and Exploration Potential of the New Parallel Zone

The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.

The Kittila mill processed an average of 3,937 tpd in the third quarter of 2015 compared to the 2,559 tpd in the third quarter of 2014. Throughput in the 2014 period was lower due to a planned shutdown to complete the mill expansion. Minesite costs per tonne at Kittila...


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