Agnico-Eagle Mines Limited Annual General Meeting May 12, 2006
FORWARD LOOKING STATEMENT The information in this press release has been prepared as at May 11, 2006. 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, cash costs, minesite 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 anticipated future exploration and feasibility study results; the anticipated timing of events with respect to the Company s minesites, the anticipated timing of events with respect to the Company s acquisition of the Pinos Altos property; 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 as at the date this press release was prepared 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, 2005, as well as the Company s other filings with the Canadian Securities Administrators 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. Certain of the foregoing statements, primarily related to projects, are based on preliminary views of the Company with respect to, among other things, grade, tonnage, processing, mining methods, capital costs, and location of surface infrastructure and actual results and final decisions may be quite different from those currently anticipated. 2
CORPORATE STRATEGY Building Value Through Production And Reserve Growth Potential to triple gold production by 2009 Growing gold reserves now over 10 million ounces Maintain a conservative and strong balance sheet Fund existing projects while minimizing shareholder dilution Keep full participation in rising precious metal prices 3
CORPORATE HIGHLIGHTS Another Quarter of Record Performance Record quarterly revenue of $90.6 million Record low total cash costs of minus $241 per ounce Record quarterly earnings of $37.2 million or $0.35 per share Cash position increased by $34 million to $155 million Newest member of S&P/TSX 60 index 4
GOLD RESERVES Anticipating Further Strong Growth In Reserves Targeting additional reserve conversion at Pinos Altos and Suurikuusikko in 2006 and 2007 16000 AEM s gold reserves are significantly larger than its 14000 intermediate gold producing peers Target 14 to 15 12000 Total Agnico-Eagle Reserves 10000 (Millions of Ounces) 10.4 8000 Suurikuusikko Lapa 7.9 7.9 6000 Goldex 4000 LaRonde 3.0 3.3 3.3 4.0 2000 1.3 0 1998 1999 2000 2001 2001 2002 2002 2003 2003 2004 20042005 2005 2006F 2008 2007F Est. 5
OPERATING RESULTS Record Low Total Cash Costs All amounts are in US$, unless otherwise indicated Q1 2006 Q1 2005 Total Cash Costs ($/oz) Gold (ounces) 64,235 55,310 $269 Silver (ounces in thousands) 1,227 1,097 $188 $155 $182 Zinc (tonnes) 18,462 18,661 $56 $43 Copper (tonnes) 2,053 1,810 $(241) Minesite costs per tonne (C$) $ 57 $ 53 Total cash costs ($/oz) $ (241) $ 67 2000 2001 2002 2003 2004 2005 Q1 2006 6
FINANCIAL RESULTS Record Earnings All amounts are in US$, unless otherwise indicated Q1 2006 Q1 2005 Revenues from mining operations (millions) $ 90.6 $ 61.8 Earnings (millions) $ 37.2 $ 10.4 Earnings per share $ 0.35 $ 0.12 7
STEADY PERFORMANCE FROM LARONDE MINE LaRonde is a Strong Foundation For Growth Minesite Costs per Tonne Milled (C$) Tonnes per Day LaRonde 60 10,000 9,000 50 8,000 40 7,000 6,000 30 5,000 4,000 20 3,000 10 2,000 1,000 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 8
FULL YEAR 2006 - FORECAST LaRonde is a Strong Foundation For Growth Tonnes per day 7,300 Payable production: Au (ounces) 250,000 Ag (ounces in thousands) 5,700 Cu (tonnes) 9,100 Zn (tonnes) 72,500 Minesite costs / tonne (C$) $56-$58 Total cash costs / oz (US$)* Less than $0.00 * At current prices 9
FINANCIAL POSITION Increased Financial Strength All amounts are in US$, unless otherwise indicated March 31 2006 December 31 2005 Cash and cash equivalents (millions) $ 155 $ 121 Long term debt (millions) $ nil $ 131 Common shares outstanding (millions) 111.4 97.8 Available bank lines (millions) $ 150 $ 150 10
11 Building Gold Production and Reserves
GLOBAL GROWTH Extensive Gold Growth Pipeline Each project region has mining camp potential Growth projects well matched to our technical skills Excellent infrastructure nearby Large property positions & database open for expansion U.S.A. Nevada Mexico Pinos Altos Canada LaRonde, Goldex & Lapa Canada Toronto, HQ Finland Suurikuusikko Largest exploration budget in company history $16 million 12
QUEBEC GOLD PRODUCTION GROWTH More Growth to Come From Finland and Mexico LaRonde Goldex LaRonde II Lapa 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2006 2007 2008 2009 2010 2011 2012 2013 13
LARONDE II Long Life Gold Reserves Under Construction Gold reserves of 19.2 million tonnes at 6.0 g/t, or 3.6 million ounces Planned operation of 6,000 tonnes per day, maximizing existing infrastructure Average annual gold production of 320,000 oz/year at total cash costs of approximately $230/oz Initial production startup expected in 2011 14
LARONDE II Long Life Gold Reserves Under Construction Base case IRR 13.3% after tax Assumes $450 gold, $1.40 copper, $0.55 zinc, $6.50 silver, 1.25 C$/US$ Positive IRR at gold prices below $350 per ounce Capital cost $210 million expected start-up 2011 Ongoing sustaining capital of $10 million to $12 million per annum Funded from existing cash and cash flows 15
GOLDEX MINE New Gold Mine Under Construction Gold reserves of 1.6 million ounces deposit remains open Base case IRR 15% after tax, $400 gold, 1.30 C$/US$ Underground and surface construction in progress Capital cost $135 million expected start-up H2, 2008 Estimated average annual production of 170,000 oz at total cash costs of approximately $200/oz 16
LAPA $30 Million Underground Program in Progress Gold reserves of 1.2 million oz Grade upside exists. Uncut grade 12.0 g/t vs. 8.9 g/t cut Ore exposed on Level 69 Current Reserves Sampling and grade validation in progress Definition drilling completed on upper part of contact zone Additional $80 million to reach full production shaft to 1,300 metre depth Zone Exposed Level 69 Shaft depth over 700 m 1,500 metres from surface Acceleration of shaft and mine construction being considered Mineral Resource Estimated production in mid to late 2008 averaging 125,000 oz/year Additional Potential Phase 1 Phase 2 17
SUURIKUUSIKKO PROJECT - FINLAND Potential to be Europe s Largest Gold Mine Feasibility study complete, production decision anticipated June, 2006 Senior management and construction team in place Map source: GTK, geological survey of Finland 18
SUURIKUUSIKKO PROJECT Large Gold Reserve And Resource Open For Expansion Shear hosted disseminated gold deposit Explored 5 km or 1/3 of strike length Drilled to only 800 metre depth 2006 exploration budget $5 million Grade g/t Tonnes (millions) Ounces (millions) Probable Reserve 5.3 13.8 2.32 Measured Resource 3.8 0.2 0.02 Indicated Resource 4.2 1.7 0.23 Inferred Resource 4.4 6.7 0.93 Ketola Etelä Main West Zone Unexplored 665 m WEST CORRIDOR Unexplored 4.0 km Approx. Open Pit Outline Reserves Main East Zone Central Rouravaara Northern Rouravaara Resources Unexplored 785 m 19 EAST CORRIDOR Unexplored Unexplored Unexplored
PINOS ALTOS MEXICO Growing Gold and Silver Resource Indicated gold resource of 12.5 million tonnes at 3.9 g/t, or 1.6 million oz Inferred gold resource of 3.2 million tonnes at 5.2 g/t, or 0.5 million oz Indicated silver resource of 12.5 million tons at 102 g/t, or 41.0 million oz Inferred silver resource of 3.2 million tons at 111 g/t, or 11.6 million oz 20
PINOS ALTOS MEXICO Growing Gold and Silver Resource Feasibility study complete by Q2, 2007 Contemplating 3,000 tonne per day operation via open pit and underground Senior management in place Estimated capex $150 million N60 Looking NE E-W Looking N Au eq*width (ppm*m) <5 5 10 10 25 25 50 > 50 Previously Released Drillhole in Progress New Results Santo Niño N70 Looking NE Oberon de Weber El Apache Cerro Colorado PA-05-77 PA-05-64 PA-05-53 PA-05-40 SN1925-53 PA-05-52 PA-05-39 SN1925-58 PA-05-80 PA-05-49 PA-05-39A PA-05-81 OPEN PA-05-79A OPEN OPEN 21
TIMELINE AND UPCOMING NEWS June 2006 Lapa bankable feasibility study third party review completed Suurikuusikko bankable feasibility study - third party review completed Suurikuusikko site visit June 13-15 July 2006 Second quarter financial and operating results July 26 after market close 22
INVESTMENT HIGHLIGHTS Early Stages of Growth Story Potential Increase In Valuation Multiple LaRonde generating record earnings and cash flows Four growth projects have potential to triple gold production by 2009 600% 500% 400% Share Price - AEM vs HUI Gold Index HUI Existing projects provide potential to increase gold reserves to 14 million to 15 million ounces by 2008 300% 200% AEM Highest exploration budget in Company history - $16 million 100% 0% -100% Jan02 Jan03 Jan04 Jan05 Jan06 23
Agnico-Eagle Mines Limited Sean Boyd Vice Chairman and Chief Executive Officer Ebe Scherkus President and Chief Operating Officer David Garofalo Vice President, Finance and Chief Financial Officer Executive and Registered Office: 145 King Street East, Suite 500 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681 Email: info@agnico-eagle.com Web: www.agnico-eagle.com Trading Symbols: AEM / TSX & NYSE Warrants: TSX: AEM.WT.U / NASDAQ: AEMLW Investor Relations Contact: David Smith Director, Investor Relations