Goldex Mine - Steady State Mine Achieves Record Quarterly Gold Production

The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 24.7 million tonnes grading 2.1 g/t. Overall, the reserve and resource base at Goldex decreased by approximately 3%, including what was mined during 2009.

The Goldex mill processed an average of 7,655 tonnes per day in the fourth quarter of 2009, significantly exceeding the design capacity for the plant of approximately 6,900 tonnes per day. During the fourth quarter of 2008, the plant processed 6,140 tonnes per day. Milling performance for the full year 2009 was 7,164 tonnes per day. As the mine began production mid-year 2008, no comparable period exists.

Minesite costs per tonne at Goldex were approximately C$23 in the fourth quarter, essentially unchanged from the fourth quarter 2008 figure of C$24. For the full year 2009, mining costs per tonne were approximately C$23. Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world.

Payable gold production in the fourth quarter of 2009 was a record 46,075 ounces at total cash costs per ounce of $338. This compares to fourth quarter 2008 gold production of 31,972 ounces at total cash costs per ounce of $323. The increase in production is due to increased grade and throughput in the mill. In the fourth quarter of 2009, the Canadian dollar was much stronger versus the US dollar than in the fourth quarter of 2008, negatively impacting the total cash costs.

For the full year 2009, Goldex's payable gold production was 148,849 at total cash costs per ounce of $366. This compares to full year 2008 production of 57,436 ounces at total cash costs per ounce of $419, reflecting the partial year and the start-up phase of the mine. Gold production for 2010 is expected to be 164,000 ounces.

Life of mine average annual gold production is expected to be approximately 160,000 ounces per year through 2017.

In 2009, the Board of Directors approved the expansion of the mine from 6,900 tonnes per day to at least 8,000 tonnes per day. This project required additions primarily to the crushing circuit and minor additions to the mining fleet. Installation of the permanent surface crusher is complete and the increased mining rate is expected to be realized in early 2011 as the underground mining advances enough to support the higher rate.