Presentation May 4th - Swedish Mining Research and

Agnico-Eagle Mines LimitedKittilä Mine – Presentation May 4th 2011

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Agnico-Eagle Mines Limited

�AEM has 52 years of operating history, dating back to 1957 when Agnico Mines Limited was founded

�In 1972, Agnico Mines merged with gold exploration company Eagle Gold Mines Limited to form today’s AEM

�From inception, AEM has operated a quality business, always maintaining a healthy balance sheet and never selling its gold forward

�In 1994, AEM listed on the New York Stock Exchange

�In 2000, Completion of LaRonde’s Penna Shaft, the deepest single-lift shaft in the Western Hemisphere

�In 2005, AEM acquires the Suurikuusikko gold deposit in Finland and signs an option agreement to purchase the Pinos Altos property in Mexico

Located in mining-friendly regions of low political risk100% owned, with low total acquisition costsEach region has long-term mining camp potential

Operations at a glanceSix mines now operating.

LaRondeQUEBEC, CANADA

GoldexQUEBEC, CANADA

KittilaKITTILA, FINLAND

MeadowbankNUNAVUT, CANADA

Fraser Institute’s ranking 1 Fraser Institute’s

ranking 1 Fraser Institute’s ranking 14

Fraser Institute’s ranking 44

Fraser Institute’s 2008/2009 ranking of 71 mining jurisdictions

Fraser Institute’s ranking 1

LapaQUEBEC, CANADA

Fraser Institute’s ranking 28

Pinos AltosCHIHUAHUA, MEXICO

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KITTILÄ MINE

Rovaniemi

Kittilä

Murmansk

KiirunaMine

Sweden Russia

Norway

Kittilä Mine Location

25 km

55 km north of Kittilä900 km north of HelsinkiExcellent Infrastructure: roads, airports, communicationLandholdings: 84 tenements (6,969 has)

and one mining licence (847 has)

1986 First findings in the Suurikuusikko field by GTK

1998 Exploration started by Riddarhyttan Resources AB, a Swedish junior mining company

2002 Environmental permit for mining at Suurikuusikko (open pit and underground) granted by the Environmental Permitting authorities

2003 Mining license granted by the Ministry of Employment and Economics

2005 Agnico-Eagle Mines Limited became the sole owner of Riddarhyttan by 2005 and the exploration was expanded

2006 Upon completion of a final feasibility study, the decision to open the Kittilä Mine was made and the construction and development began

2008 First ore production in May and first concentrate in September

2009 The first gold pour on January 14th, 2009. The Grand Opening of the Kittilä Mine was on June 4th, 2009

KITTILÄ MINE - HISTORY

KITTILÄ MINE from exploration to gold bullion

Kittilä Mine Areal View 07-2010

TailingsProcessing - Services

Suuri Open Pit

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Kittilä Mine Ore Reserves 31.12.2010

Suurikuusikko Ore Lenses

Longitudial Sections, N-S

NS

2 km

Mt Au, g/t Au, MOz.

Proven and Probable Mineral Reserve (diluted, no ore loss) 32..7 4.6 4.9 (157

tonne)

Indicated Mineral Resource (diluted, no ore loss) 15.3 2.41

Inferred Mineral Resource (not diluted, no ore loss) 8.3 2.5

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Kittilä Mine Mining

Open pit mining during the forts 3-4 years

Followed by underground mining

Annual mining 1,100,000 tonnes of ore

1 km

N

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KITTILÄ mining MT

0,0

0,2

0,4

0,6

0,8

1,0

1,2

2008 2009 2010 2011 2012 2013 2014

OP UG

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OPEN PIT MINING

Suurikuusikko and Rouravaara pits, 35 MtEquipment:

1 AC ROC F9C rock drill2 AC ROC L8 rock drills3 Cat 385 excavators1 Cat 345 excavator7 Cat 777 trucks2 Cat D6 / D8 bulldozers

Waste mining started in September 2007

Ore Mining started May 2008Geological parameters

Dilution 15 % at 0.7 g/tOre Recovery 95%

KITTILÄ MINE – Suuri open pit, July 2010

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OPEN PITS: BUFFER BLASTING

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OPEN PITS: BUFFER BLASTING

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TUNNELING

5.3 m

5.5

m Gradient 1:7

5,268 m in 2006 - 084,000 m in 20095,040 m in 2010 6,000 m in 2011 (planned) Decline 90 m/month

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MAIN LEVEL -350

Fuel BayWashing Bay Main Shop

Sump

Parking

Services cable

Electrical station

cafeteria

Warehouse

Proposed shaft Ventilation raise (intake)

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MAIN UNDERGROUND LEVEL 350

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Kittilä Mine Ore Processing

Kittilä Mill Control Room

Kittilä Mill Production 2011

Ore Processing: Flotation – Pressure Oxidation – Cyanide Leaching Current Annual Production 5 000 kg gold

Kittilä Mine Mill Process Flow Sheet

Processing - Simplified Flow Sheet

C.I.L Tailings Disposal

Flotation Tailings Disposal

ProcessWaterTank

Process Water in closed circuit

Neutralization

Flotation

Carbon-in-leach

I

II

Cyanide destruction

ENVIRONMENT

Construction of new tailings Area.(photos taken end of June 2010)All ponds lined with waterproof bitumen liners

KITTILÄ MINE - Tailings Facility

Kittilä Mine

Strengths in Environmental Protection:� Sufficient human and financial resources� Good cooperation with authorities, local

associations and people living in the nearby villages

Kittilä Mine Environment

Objectives:� 100% Compliance� Waste Rock Management � Water treatment / water balance� Tailing pond expansion� Waste management - recycling

Kittilä Mine Plant Site

Kittilä mine personnel

Currently 570 employees working at the mine site� 370 own employees

�55% residing in Kittilä and 86% residing in Lapland� 200 contractor employees

�15% from Kittilä and 41% from Lapland

In addition in 2010, the mine employed 75 summer trainees� The average age of own employee’s is

39.3 years � 14.3% of the employees are women

KITTILÄ MINE - LABOUR

The Economy of the Kittilä municipality is dependant on: � The tourist industry and the Kittilä mine

�The tourist industry provides ca. 1100 jobs for Kittilä residents, or 42% of Kittilä’s total manpower resources (in total 1800 jobs during high season)

�The Kittilä mine provides 570jobs, about half from Kittilä, or 12% of Kittilä’stotal manpower resources

�The unemployment rate in Kittilä is below 10% on average - during high season 6%

� One mine employee provide jobs for three other persons

� The Kittilä annual municipal tax income is 3.5 M EUR and equal amount to the State

� Annual real estate tax paid by the Kittilä mine 0.2 M EUR

� Royalty payment to the State will be about 2 M EUR annually

� Corporation tax in the future will be about 15-20 M EUR

� The Kittilä mine’s annual turn-over is now about 150 M EUR - tourist industry’s under 200 M EUR (in 2007)

KITTILÄ MINE - ECONOMIC IMPACT ON THE MUNICIPALITY

Kittilä Mine

Kittilä Mine