Mr. Ammar Al-Joundi reports

AGNICO EAGLE PROVIDES UPDATE ON CANADIAN MALARTIC COMPLEX - INTERNAL STUDY DEMONSTRATES IMPROVED VALUE, EXTENDS MINE LIFE AND SUPPORTS POTENTIAL FUTURE PRODUCTION GROWTH IN THE ABITIBI GREENSTONE BELT; POSITIVE EXPLORATION RESULTS EXPECTED TO RESULT IN INCREASED MINERAL RESERVES AND MINERAL RESOURCES; ADDITIONAL PROPERTY SCALE TARGETS BEING EVALUATED

Agnico Eagle Mines Ltd. has provided an update on the Odyssey mine, which forms part of the company's 100-per-cent-owned Canadian Malartic complex. Since the development of the Odyssey project was approved in February, 2021, mineral resources have grown significantly and contributed to an increased mine life. Project construction activities have progressed well despite a challenging construction environment, with first production from underground being achieved on schedule in March of this year. (All amounts expressed in U.S. dollars unless otherwise noted.)

"Since the initial discovery of the East Gouldie deposit in late 2018, the company has made tremendous progress bringing the Odyssey mine into production, initiating the transition from the largest open-pit gold mine in Canada to the largest underground gold mine in Canada. Over the last three years, we have significantly derisked the project while improving its production profile and increasing its overall value. We have added approximately 1.7 million ounces of gold to the mine plan and extended the mine life to 2042," said Ammar Al-Joundi, Agnico Eagle's president and chief executive officer. "We continue to aggressively explore the property and evaluate regional projects that could allow us to utilize the anticipated future excess mill capacity which is expected to be approximately 40,000 tonnes per day starting in 2028. In the Abitibi gold belt, we have a significant competitive advantage, being the employer of choice and having infrastructure and a project pipeline that supports our unique ability to generate organic growth at reduced capital intensity and a lower environmental footprint, which we believe will generate significant shareholder value," added Mr. Al-Joundi.

The company completed a new internal study on the Odyssey mine to reflect progress to date and the new economic environment. Highlights include:

• Significant conversion of mineral resources and mine life extension to 2042: Forecast payable gold production for the Odyssey mine increased by 23 per cent compared with the internal study completed in 2020, supported by a larger mineral resource estimate at year-end 2022. The mine plan now includes approximately 200,000 ounces of gold in mineral reserves (2.8 million tonnes grading 2.22 grams per tonne gold), 4.8 million ounces of gold (45.5 million tonnes grading 3.31 g/t gold) in indicated mineral resources and 4.0 million ounces of gold (53.5 million tonnes grading 2.32 g/t gold) in inferred mineral resources.
• Improved production profile and opportunities to add production in years 2025 to 2028: The Canadian Malartic complex is forecasted to generate positive free cash flow during the transition from open-pit to underground mining, even at a gold price assumption of $1,650 per ounce. Recent positive drill results in the Odyssey internal zones indicate the potential to further increase production during the 2023-to-2028 transition period. From 2029 onward, gold production at the Canadian Malartic complex is forecasted to average 558,000 ounces of gold per year over 13 years at total cash costs per ounce of $768.
• Project significantly derisked, including 60 per cent of surface construction completed in 2.5 years: The project construction and mine development remains largely on schedule. Capital expenditures from 2021 to June, 2023, are expected to be approximately $429-million, approximately 11 per cent higher than estimated in the 2020 study, given inflation and supply chain challenges.
• Larger minable resource partially offsets inflation on capital expenditures: From the second half of 2023 to 2028, development capital expenditures are now forecasted to be approximately $1.28-billion. From 2029 to 2042, development capital expenditures of $140-million have been added to access the East Malartic deep area and sustaining capital expenditures are now forecasted to be approximately $66-million per year. On a per-ounce basis, development capital expenditures have increased by 13 per cent to approximately $216 per ounce, while sustaining capital expenditures have increased by 22 per cent to approximately $109 per ounce, each compared with the 2020 study, primarily as a result of inflationary cost pressures, partially offset by the larger minable resources.
• Improved valuation with excellent potential for growth: The larger minable mineral resource, construction progress and current higher gold price environment more than offset cost inflation and contributed to an increase in project value when compared with the 2020 study. Using a gold price assumption of $1,650 per ounce and a Canadian-dollar/U.S.-dollar foreign exchange rate assumption of 1.32, the Odyssey mine has an after-tax IRR (internal rate of return) of 24 per cent and an after-tax NPV (net present value) (at a 5-per-cent discount rate) of $1.6-billion. At current spot gold prices, the after-tax IRR and NPV are approximately 33 per cent and $2.46 billion, respectively.
• Opportunity to further enhance value: The company expects to have up to 40,000 tonnes per day of excess mill capacity at the Canadian Malartic complex starting in 2028 as processing of open-pit ore and low-grade stockpiles transitions to the higher-grade Odyssey mine. This additional mill capacity provides significant optionality for organic growth at Odyssey, propertywide exploration upside and from the development of other projects in the company's regional pipeline.

"Since the acquisition of the initial 50-per-cent interest in the Canadian Malartic mine in 2014, the aggressive exploration program outside the Canadian Malartic open pit has identified more than 6.2 million ounces of gold in indicated mineral resources, 9.2 million ounces of gold in inferred mineral resources and 200,000 ounces of gold in mineral reserves (in Odyssey South) as at Dec. 31, 2022. The 9.0 million ounces of gold in the mine plan of the 2023 study includes 100 per cent of the December, 2022, mineral reserves, 78 per cent of the total indicated mineral resources and only 43 per cent of the total inferred mineral resources. The potential for further conversion of inferred mineral resources is significant and is expected to add mine life and continue to increase value," said Guy Gosselin, Agnico Eagle's executive vice-president, exploration. "Near-term exploration upside is excellent along the lateral extensions of the East Gouldie horizon and in the Odyssey internal zones. The consolidation of additional ground adjacent to the Canadian Malartic and Odyssey mines in recent years, including the Rand Malartic, Midway and Camflo projects, has increased our land position by more than 50 per cent to 13,580 hectares, which includes a continuous 16.5-kilometre segment of the gold-rich Cadillac/Larder Lake break. We believe the Rand Malartic and Midway projects and the ground surrounding the past-producing Camflo and Malartic Goldfields mines offer further, excellent potential to make a discovery, and continued exploration efforts in the future could provide optionality to utilize available excess processing capacity at the Canadian Malartic mill," concluded Mr. Gosselin.

The company's near-term exploration focus remains on continuing to infill drill the Odyssey South zone and adjacent internal zones, infill drill the core portion of the East Gouldie zone, and undertake the investigation of the lateral extensions along the favourable mineralized horizon to the east and the west. A first phase of 60 drill holes was completed at the Camflo project and regional exploration continues along strike to the east on the Rand Malartic project heading toward the Midway/LTA project. Highlights include:

• Odyssey South and Odyssey internal zones: Underground infill drilling continues to return strong results in the Odyssey South deposit and in the internal zones at Odyssey, which are being investigated for their potential to provide additional mineral resources near existing and planned infrastructure at relatively shallow underground depths.
• East Gouldie: Infill drilling continues to provide positive results as the exploration program transitions its primary focus toward investigating the extensions of the favourable horizon to the east and to the west in the East Gouldie corridor for potential mineral resource expansion and to identify potential new mineralized zones.
• Camflo: More than 14,000 metres of drilling in 60 drill holes have been completed year to date with three drill rigs in the first phase of drilling completed in April. This was the first exploration drilling in the near-surface portion of the Camflo deposit since the closure of the historical underground mine in 1992. Recent results demonstrate the potential for near-surface mineralization around historical zones 1 and 8 with highlight results returning 3.3 g/t gold over 38.7 metres at 53 metres depth and 1.5 g/t gold over 81.0 metres at 192 metres depth. Potential ore mined at Camflo could be processed at the existing Canadian Malartic mill, located four kilometres away.
• Regional exploration: Drilling has resumed on the Rand Malartic property to investigate exploration targets potentially analogous to the Odyssey South and Odyssey North deposits in a series of porphyry intrusions that extend from the Odyssey mine toward the east and the past-producing Malartic Goldfields mine on the Midway and LTA properties.

New internal study reflects significant project advancements since early 2021

Following the completion of the 2020 study, the Odyssey project was approved for development in February, 2021 (see company news release dated Feb. 11, 2021). The 2023 study updates the larger minable mineral resource and incorporates both the higher gold price environment and higher costs and capital expenditures resulting from inflationary pressures over the past several, years as well as multiple significant advancements at the project, including:

• A larger minable mineral resource extended the mine life to 2042;
• Approximately $429-million is projected to be spent on construction and development activities through June 30, 2023, and approximately 60 per cent of the surface construction has been completed;
• Capital expenditures and operating cost estimates have been updated to reflect the current inflationary environment;
• The Odyssey mine is now fully permitted, with the mine production certificate of authorization received in October, 2022, and the mining lease granted in November, 2022;
• Shaft sinking commenced in March, 2023, along with the first production from the Odyssey South deposit, with total production of approximately 50,000 ounces expected in 2023;
• Infill and expansion drilling at Odyssey since 2020 has resulted in a significant increase in mineral reserves and mineral resources, with the addition of 197,000 ounces of mineral reserves (2.8 million tonnes grading 2.22 g/t gold), the successful conversion of an additional 5.3 million ounces of measured mineral resources and indicated mineral resources to a new total of 6.2 million ounces of mineral resources (64.2 million tonnes grading 2.99 g/t gold), with 9.2 million ounces (132.4 million tonnes grading 2.17 g/t gold) in the inferred mineral resources category;
• Continuing infill drilling at the East Gouldie deposit shows strong continuity of gold grades;
• Confidence in the mine plan improved, with approximately 53 per cent of minable gold ounces now categorized as indicated mineral resources, compared with approximately 5 per cent in the 2020 study;
• Agnico Eagle acquired Yamana Gold Inc.'s 50-per-cent interest in Canadian Malartic on March 31, 2023, resulting in a 100-per-cent interest in the Canadian Malartic and Odyssey mines;
• With the Yamana transaction, the company now expects to have up to 40,000 tpd of excess mill capacity starting at the Canadian Malartic complex in 2028 as processing of open-pit ore and low-grade stockpiles winds down and transitions to the higher-grade Odyssey mine; this additional mill capacity provides significant optionality for organic growth at Odyssey, propertywide exploration upside and from the development of other projects in the company's regional pipeline.

Aggressive exploration program continues to demonstrate geological upside potential

With the discovery of East Gouldie in September, 2018, the company focused on expansion drilling, quickly growing the inferred mineral resource at the Odyssey project from 4.1 million ounces (60.4 million tonnes grading 2.13 g/t gold grade) at year-end 2017 to 13.6 million ounces (237.5 million tonnes grading 1.78 g/t gold grade) at year-end 2020. The year-end 2020 mineral resources supported the 2020 study. The 2020 study forecasted total gold production of 7.3 million ounces of gold from 2023 to 2039, consisting of 400,000 ounces of gold (6.2 million tonnes grading 2.07 g/t gold grade) of indicated mineral resources and 6.9 million ounces (75.9 million tonnes grading 2.82 g/t gold grade) of inferred mineral resources.

In 2021, the exploration focus at the Odyssey project shifted to conversion drilling to improve the geological confidence in preparation for production start-up. The company was successful at converting and expanding the mineral resources, and, as at Dec. 31, 2022, the combined East Malartic, East Gouldie and Odyssey deposits had 6.2 million ounces of gold (64.2 million tonnes grading 2.99 g/t gold) in indicated mineral resources and 9.2 million ounces of gold (132.4 million tonnes grading 2.17 g/t gold) in inferred mineral resources. In addition, an initial portion of the indicated mineral resources at the Odyssey South deposit was converted to probable mineral reserves as at Dec. 31, 2022, adding a total of 197,000 ounces of gold of probable mineral reserves (2.8 million tonnes grading 2.22 g/t gold).

The 2023 study is based on year-end 2022 mineral resources and mineral reserves and resulted in an increase of 23 per cent in minable gold ounces. The company now forecasts total production of 9.0 million ounces of gold from 2023 to 2042, consisting of 200,000 ounces of gold (2.8 million tonnes grading 2.22 g/t gold) of probable mineral reserves, 4.8 million ounces of gold (45.5 million tonnes grading 3.31 g/t gold) of indicated mineral resource and 4.0 million ounces of gold (53.5 million tonnes grading 2.32 g/t gold) of inferred mineral resources. Approximately 53 per cent of gold ounces included in the mine plan are now categorized as indicated mineral resources (compared with approximately 5 per cent in the 2020 study), significantly improving the geological confidence of the minable resource and derisking future production. With only 43 per cent of the total inferred mineral resources included in the mine plan, the Odyssey mine shows potential to continue to extend and grow its production profile.

The forecast parameters for the 2023 study include inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized. The basis for the 2023 study and the qualifications and assumptions made by the qualified person are set out in this news release. The results of the 2023 study had no impact on the results of any pre-feasibility or feasibility study in respect of the Odyssey project.

As at Dec. 31, 2022, East Gouldie hosted indicated mineral resources of 5.3 million ounces of gold (50.2 million tonnes grading 3.29 g/t gold) and inferred mineral resources of 2.6 million ounces of gold (32.4 million tonnes grading 2.54 g/t gold). An addition of mineral reserves is expected at the Odyssey mine at year-end 2023 with the conversion of indicated mineral resources at the East Gouldie deposit.

The strong conversion of mineral resources positioned the company well to transition into production. The exploration focus will shift again toward expanding the mineral resource base at the Odyssey mine and within the Canadian Malartic property and assessing the potential to add in-mine mineralization to further extend the mine life and grow annual production.

New internal study extends mine life and reflects stronger economics

Mining concept unchanged

The Odyssey mine concept remains unchanged and based on a sublevel open-stoping mining method with paste backfill. Longitudinal retreat and transverse primary-secondary mining methods will be used dependent on mineralization geometry and stope design criteria.

The mine is expected to utilize a combination of conventional and automated equipment, similar to the equipment currently employed at the LaRonde complex. On the two main levels with loading pockets, trucks and hammers are expected to be remotely operated 24 hours a day and seven days a week from a surface control room, increasing equipment utilization rates. The company continues to evaluate opportunities to optimize the project and integrate battery-powered equipment.

Many of the design criteria and parameters are similar to Agnico Eagle's existing operating mines in the region. Underground production will originate from four different mining zones, namely Odyssey South, East Gouldie, Odyssey North and East Malartic. Run-of-mine ore from the pit will start to decrease in 2023 and the underground mine is expected to reach a production rate of approximately 19,000 tpd by 2031.

Production through the ramp at Odyssey South commenced on schedule in the first quarter of 2023 and is expected to ramp up to approximately 3,500 tpd in 2024. Full production from this zone is scheduled to be maintained from 2024 to 2027. The company believes that production from Odyssey South could be extended from additional mineralization in the previously described internal zones.

Production from East Gouldie is now expected to start in the first half of 2027 by ramp. The first loading station of the production shaft at level 114 is expected to be completed and commissioned in mid-2027. Production from East Gouldie will then be hauled to surface by shaft and is expected to ramp up through 2028 to reach a run rate of approximately 12,500 tpd. The larger mineral resource base at East Gouldie resulted in the extension of planned production from this zone to 2042. The company believes that the mine life could continue to be extended further based on the significant upside in the geological potential along strike to the east and west and at depth.

Production from Odyssey North is now expected to start in 2028 and ramp up to a run rate of approximately 3,500 tpd by 2030. Full production is expected to be maintained from this zone until 2038.

Production from East Malartic is now scheduled to start in 2030 and progressively increase to a run rate of approximately 3,200 tpd. Production from East Malartic has also been extended to 2042 and has the potential to be further extended alongside any East Gouldie mine life extension.

Canadian Malartic complex production profile improved

The Canadian Malartic complex will progressively transition from open-pit mining to underground mining between 2023 and 2028. In the 2020 study, the gold production profile was estimated to decline below 475,000 ounces in 2026 and 2027. To help fill the production shortfall during the transition period, the company optimized the design of the Barnat pit, adding 290,000 ounces to the production profile from years 2021 to 2029. With the extension of the Barnat pit, initial production from East Malartic has been pushed back to 2030 from the originally planned 2028 and replaced by earlier production from Odyssey North. Additional ounces of gold from processing low-grade stockpiles (approximately 113,000 ounces, 11.2 million tonnes grading 0.32 g/t) have also been included to the updated production plan. Revisions to the shaft development schedule and mining sequence envision a slower ramp-up of the East Gouldie zone in 2027, partially offsetting the additions to the gold production profile. Over all, the company now forecasts gold production from the Canadian Malartic complex to be 475,000 ounces in 2027 but remain above 500,000 ounces in all other years extending to 2041.

With a larger minable gold mineral resource, the Odyssey mine life has been extended by three years to 2042 and the average annual payable production is now approximately 558,000 ounces of gold from 2029 to 2041 (compared with 547,000 ounces of gold from 2029 to 2039 in the 2020 study). In 2042, gold production is estimated at 406,000 ounces of gold.

The company believes that the exploration successes in the Odyssey internal zones, East Gouldie and Camflo provide opportunities to complement the forecasted gold production and potentially extend the mine life.

Improved valuation reflecting longer mine life and new gold price and cost environment

On a per-ounce basis, development capital expenditures have increased by 13 per cent to approximately $216 per ounce, while sustaining capital expenditures have increased by 22 per cent to approximately $109 per ounce, compared with the 2020 study, as inflationary cost pressures were partially offset by the larger minable resource base.

Development capital expenditures from the second half of 2023 to 2028 are now expected to total approximately $1.28-billion, compared with an estimated $950-million in the 2020 study. The 35-per-cent increase in development capital expenditures is primarily a result of inflationary costs pressures on materials (mostly steel, cement and copper wire), contractor costs and equipment, as well as limited revisions to the project resulting from detailed engineering of approximately $39-million, $17-million in equipment payment deferral and a contingency adjustment of approximately $46-million.

Development capital expenditures do not include any offsetting revenue from precommercial sales. From the second half of 2023 to 2028, gold production is forecast to total approximately 854,000 ounces at total cash costs per ounce of approximately $831. During that period, the Canadian Malartic complex is forecast to remain cash flow positive when using a gold price assumption of $1,650 per ounce, essentially self-financing the transition to an underground operation.

Development capital expenditures of $255-million are now forecasted in years 2029 to 2042 to complete the loading pocket at the bottom of the shaft in year 2029 and to develop the lower section of East Malartic.

Sustaining capital expenditures are expected to gradually decline from 2029 to 2042, with an expected average of approximately $66.1-million per year, compared with $56-million per year estimated in the 2020 study.

Total cash costs per ounce are now forecasted to be approximately $768 from 2029 to 2042, compared with $630 from 2029 to 2039 in the 2020 study. Cost estimates, including underground development and mining costs, processing costs, and equipment procurement, reflect the new cost environment following three years of high inflationary cost pressures. The company continues to evaluate opportunities to further optimize and improve gold production and unit costs from 2029 through 2042.

A larger minable resource, construction progress and current higher gold price environment contributed to offset cost inflation and resulted in stronger mine economics. Using a gold price of $1,650 per ounce and a Canadian-dollar/U.S.-dollar foreign exchange rate assumption of 1.32, the Odyssey mine has an after-tax IRR of 24 per cent and an after-tax NPV (5-per-cent discount rate) of $1.6-billion. Using a recent spot gold price ($1,950 per ounce), the Odyssey mine after-tax IRR improves to 33 per cent and the after-tax NPV (5-per-cent discount rate) to $2.46-billion.

In the 2020 study, the Odyssey project had an estimated after-tax IRR of 17.5 per cent and an after-tax NPV (5-per-cent discount rate) of $1.14-billion, using a gold price of $1,550 per ounce and a Canadian-dollar/U.S.-dollar foreign exchange rate assumption of 1.30.

Updated Odyssey mine operating parameters are set out in the attached table.

The Odyssey mine has excellent exploration potential and is currently expected to have a mine life of 20 years, including 13 years of payable gold production averaging 558,000 ounces per year. With additional exploration, the company believes that mineralization will continue to be added into the mine plan in the coming years, with good potential to grow yearly gold production and extend mine life.

Surface construction 60 per cent completed; underground development on schedule

"The Canadian Malartic team has done a tremendous job in a challenging environment to advance the Odyssey mine construction in a safe manner and largely on schedule while controlling costs. The last three years have been challenging with COVID-19 causing significant inflationary cost pressures and creating considerable disruptions to the work force and supply chains. With 60 per cent of the surface construction completed to date and with the start of production from Odyssey South achieved in March, 2023, the peak construction years are effectively behind us. The next phase of construction and underground mine development will advance at a manageable pace and we are confident that we will reach full production in 2029 as initially communicated in February, 2021," said Dominique Girard, Agnico Eagle's chief operating officer for Quebec, Nunavut and Europe.

The Odyssey mine benefits from the utilization of existing infrastructure at the Canadian Malartic complex, which includes the processing plant, the tailing storage facilities and the maintenance facilities. Additional infrastructure is being developed to support production using a ramp from surface for the shallow mineralized zones and using a 1,800-metre-deep production shaft for the deeper mineralized zones below 600 metres.

Construction of additional surface infrastructure commenced in August, 2020, and is currently approximately 60 per cent complete. Ramp development was started in December, 2020, to facilitate underground conversion drilling and to provide access to the Odyssey and East Malartic deposits. As at the date of this news release, underground development by ramp access had reached the bottom of the Odyssey South deposit and the shaft access point at level 54. Production from the Odyssey South deposit commenced on schedule in March, 2023.

Shaft-sinking activities started in March, 2023. The company expects to complete and commission the production shaft in 2027.

Surface construction update

The additional surface infrastructure includes a headframe and hoist for the production shaft, a paste backfill plant, an administrative building, a warehouse, maintenance facilities, and an electrical substation.

As at the date of this news release, the final road arrangement to access the mine site, including a modification to Highway 117 approximately three kilometres east of the town of Malartic, has been completed, the mine project office and surface facilities have been built to support the mine development, and a new 120-kilovolt substation and a new 11.4-kilometre transmission line have been constructed on the property.

Construction of the warehouse and maintenance shop is complete and both buildings are operational: the maintenance shop has four mobile mechanical bays and a skip bay.

The headframe tower was completed in January, 2023, slightly later than planned due to adverse weather conditions affecting the installation of the structural steel. The auxiliary hoist, headframe compressor and waste silo were completed and commissioned in the first quarter of 2023. Shaft-sinking activities started in March, 2023, with 55 metres completed as at the date of this news release.

The production shaft will be 1,800 metres deep and 6.5 metres in diameter. It will be a concrete-lined circular shaft equipped with a steel set and divided into four compartments. The shaft is designed to allow the operation of two 52-tonne skips for a daily capacity of 20,000 tonnes per day.

Shaft sinking is now anticipated to be completed in the first half of 2027 and the company is assessing opportunities to accelerate it. With ramp development performance better than expected, the company is evaluating the option to presink two legs of the shaft from levels 26 to 36 and levels 54 to 62, which could reduce the overall timeline by up to two months.

The service hoist is expected to be operational to a temporary loading station at level 102 (1,050 metres below surface) by late 2025 and will support the transportation of people, materials and waste. The main production hoist, ore silo and the loading station at level 114 are expected to be completed and commissioned in mid-2027. The second loading station and material handling system at level 166 (shaft bottom) are expected to be finalized in 2029.

When hoisting ore from the loading station at level 114, the shaft is expected to have a capacity of up to 25,000 tpd. When hoisting from the loading station at level 166, the shaft bottom, the shaft is expected to have a capacity of 20,000 tpd. The company is evaluating opportunities to utilize the higher skipping capacity when mining the higher portion of East Gouldie.

The surface ventilation and heating system for the shaft will be located inside an annex of the headframe building. It includes two vertical 84-inch-diameter, 400-horsepower air intake fans with silencers at 250,000 cubic feet per minute each and two natural gas heater units.

The construction of the paste plant will be completed in two phases. The first phase is expected to achieve a backfilling capacity of approximately 4,000 tpd to support production activities from Odyssey South. The construction of the first phase of the paste plant was completed in the second quarter of 2023 and commissioning is expected in June, 2023. In the second phase, expected to be completed in 2027, the paste plant will be expanded to a capacity of approximately 20,000 tpd.

The main office and dry building will be located at the Odyssey mine site entrance and will have a capacity for approximately 1,050 workers. It will also house the main control room dedicated to remote control and automation stations. Construction of the administrative facilities is expected to be completed in 2025.

Underground development update

Access to the underground mine will be through a combination of a ramp from surface and the production shaft. In December, 2020, ramp development commenced on the Odyssey mine to facilitate underground conversion drilling and provide access to the Odyssey and East Malartic deposits. The ramp separates into two declines, one heading to Odyssey South and one to East Malartic. The Odyssey South decline will continue at depth to access the Odyssey North and East Gouldie mining zones. Material from these deeper zones will be hoisted to surface using the production shaft.

As at May 31, 2023, the ramp was 3,645 metres in length, reaching the bottom of the Odyssey South deposit at a depth of 578 metres. The company expects to maintain the current ramp development rate of 150 metres per month and reach the top of the East Gouldie deposit in the first half of 2024 at a depth of 740 metres. Shaft stations down to level 114 will now be developed by the ramp development crew, minimizing the lateral development done by the shaft-sinking crew. Ramp access is expected to reach the shaft bottom in early 2029.

Development of the Odyssey South underground infrastructure and production levels are progressing on schedule, with over 10,200 metres completed as at May 31, 2023. With multiple mining faces now available, total lateral development, including ramp development, is expected to progress at approximately 900 metres per month going forward to gain access to new mining areas. The first stope from level 31 was extracted in March, 2023, and the underground operations are on track to produce approximately 50,000 ounces of gold in 2023.

Capital expenditure update

Capital expenditures starting in 2021 through to the end of June, 2023, are expected to be approximately $429-million. Key elements include:

• Approximately $252-million to complete approximately 60 per cent of surface construction and shaft sinking;
• Approximately $149-million to support ramp access, development and underground construction;
• Approximately $28-million to purchase mobile equipment.

These figures represent a 14-per-cent increase from the original budget of $386-million over that period. The increase is primarily due to inflationary cost pressures on steel, cement and contactors.

At this stage, the construction of the Odyssey mine has been significantly derisked due to increased detailed engineering, a better understanding of the cost environment and completion of approximately 60 per cent of the surface construction. The next phase of construction and underground mine development is expected to advance at a more manageable pace, allowing for increased focus on cost optimization.

Infill drilling at the Odyssey mine continues to confirm continuity, grade and width of East Gouldie and Odyssey south deposits and provide near-term exploration upside in Odyssey internal zones; first phase of exploration completed at Camflo project confirms and extends gold mineralization at shallow depths; regional exploration program targets include Rand Malartic and Midway projects.

Since the purchase of the Canadian Malartic mine in 2014, a series of acquisitions of neighbouring properties has increased the overall property portfolio at Canadian Malartic by more than 50 per cent to the current total of 13,580 hectares, with the notable additions of the Camflo, Rand Malartic, Piche Harvey, Midway and Fourniere properties. The company now controls 16.5 kilometres of continuous ground along the Cadillac-Larder Lake break at its Canadian Malartic and adjoining properties.

An update on selected exploration programs and budgets at Canadian Malartic and regionally is set out as follows.

In the exploration program at Canadian Malartic and adjoining properties in 2023, the company expects to spend a total of approximately $21.8-million (50-per-cent basis for the first quarter of 2023 and 100-per-cent basis for the remaining quarters of 2023) for 164,000 metres of drilling (100-per-cent basis).

Up to 15 drills were active on the Canadian Malartic and surrounding properties during the first five months of 2023, with five underground drills currently completing infill drilling on the Odyssey South deposit, four surface drills focused on completing infill drilling and transitioning to expanding East Gouldie mineralization, and up to six drills active in regional exploration. Approximately 95,030 metres (100-per-cent basis) were drilled during the first five months of 2023.

The primary exploration target at Canadian Malartic from 2019 to the present has been the East Gouldie deposit, located approximately 1.5 kilometres east of the Canadian Malartic/Barnat open-pit deposit and south of the East Malartic and Odyssey underground deposits. The East Gouldie deposit has a strike length of 2,100 metres in an east-west direction, dips 60 degrees north and extends from 500 metres to 2,000 metres depth below surface. The deposit is a silicified and carbonatized mineralized envelope with fine disseminated pyrite developed in deformed greywacke units.

History of East Gouldie discovery and mineral resource growth

The East Gouldie deposit was discovered by the Canadian Malartic team in September, 2018, when an exploration hole targeting the East Malartic deposit at depth intersected East Gouldie at an angle, with three follow-up drill holes confirming the discovery.

A large exploration drilling program was launched at East Gouldie in 2019 to build up a mineral inventory using wide drill spacing between 250 to 500 metres. The East Gouldie discovery was announced in October, 2019, and an initial inferred mineral resource of 2.7 million ounces of gold on a 100-per-cent basis (25.5 million tonnes grading 3.34 g/t gold as at Dec. 31, 2019) was declared in February, 2020.

The drilling program accelerated in 2020 and focused on the higher grade and most promising areas of the deposit and started to convert the mineral inventory to inferred mineral resources using tighter drill spacing of 125 to 250 metres.

In 2021, exploration drilling further increased the confidence in the inferred mineral resources by reducing the drill spacing to at least 75 metres, leading to an initial declaration of 1.5 million ounces of gold on a 100-per-cent basis in indicated mineral resources at East Gouldie at year-end (11.9 million tonnes grading 3.88 g/t gold in indicated mineral resources).

The main objective of the exploration program in 2022 was to reduce spacing further to 40 metres locally and to a maximum of 75 metres globally and to convert inferred mineral resources into indicated mineral resources.

Since the acquisition of the project in 2014 to the end of May, 2023, the mine site and regional exploration teams around the Canadian Malartic mine have completed 1.12 million metres of drilling at an approximate cost of $202-million (Canadian) at the East Gouldie, East Malartic, Odyssey North and Odyssey South deposits and regional exploration on the East Amphi, Rand Malartic, Midway and Camflo properties.

From the 2018 discovery to the date of this news release, the East Gouldie deposit and broader East Gouldie corridor were intersected by 359 pierce points. Approximately six surface drill rigs targeted East Gouldie during 2017 to 2019 and up to 12 surface drill rigs were active from 2020 to 2022. From the discovery during the fourth quarter of 2018 to year-end 2021, almost all the exploration drilling targeted East Gouldie from surface until the development of an exploration ramp in 2022 permitted exploration drilling from underground of the Odyssey South deposit and the Odyssey internal zones.

Current exploration program at the Odyssey mine

Exploration at the Odyssey mine in 2023 is expected to include $11.8-million for 102,000 metres of drilling with four objectives: continued drilling into East Gouldie to convert additional inferred mineral resources to indicated mineral resources toward the outer portions of the deposit; testing the immediate extensions of East Gouldie to the west and at shallower depths; continued conversion drilling into extensions of the Odyssey South deposit; and further investigation of the Odyssey internal zones.

Highlight intercepts in the East Gouldie deposit during the fourth quarter of 2022 and the first five months of 2023 include: 6.6 g/t gold over 10.4 metres at 978 metres depth in hole MEX22-247W in the upper western portion of the deposit; 4.2 g/t gold over 58.3 metres at 1,561 metres depth in hole MEX21-224WCZB and 3.9 g/t gold over 62.6 metres at 1,625 metres depth in hole MEX22-251RZ in the deepest, western portion of the deposit; 3.5 g/t gold over 22.2 metres at 1,773 metres depth in hole MEX21-226WE and 3.6 g/t gold over 30.1 metres at 1,659 metres depth in hole MEX22-245 in the deepest, central portion of the deposit; and 3.2 g/t gold over 27.1 metres at 1,538 metres depth in hole MEX22-238ZB in the easternmost portion of the deposit.

Exploration drilling in the western extension of the East Gouldie corridor intersected wide mineralization in the lower portion of the corridor with highlights of 2.0 g/t gold over 33.4 metres at 1,588 metres depth in hole MEX22-264, 1.9 g/t gold over 54.7 metres at 1,524 metres depth in hole MEX22-231ZB and 1.7 g/t gold over 41.2 metres at 1,461 metres depth in hole MEX22-274 at distances of 22 metres, 278 metres and 350 metres west, respectively, of the current inferred mineral resources at East Gouldie, further demonstrating the potential to extend the East Gouldie mineral resources to the west at depth.

With production under way in the Odyssey South deposit and two stopes already mined out, drilling from underground gradually increased during the first half of 2023 as ramp development provided access to new drill bays to test Odyssey South and the Odyssey internal zones located at underground depths within the porphyry between the Odyssey North and Odyssey South deposits.

Underground infill drilling into Odyssey South continued to confirm the widths and grades of mineralization and returned recent highlights of: 3.8 g/t gold over 6.8 metres at 354 metres depth in hole UGOD-016-130; 4.8 g/t over 8.1 metres at 230 metres depth in hole UGOD-016-142; 4.9 g/t over 9.1 metres at 230 metres depth in hole UGOD-016-143; 4.0 g/t over 23.9 metres (core length) at 245 metres depth in the Odyssey internal zones and 2.9 g/t over 12.4 metres at 247 metres depth in Odyssey South in hole UGOD-031-005; and 8.1 g/t over 5.3 metres at 316 metres depth in hole UGOD-031-018.

With the continued infill drilling success, the company expects that the probable mineral reserves of the Odyssey South deposit will continue to grow and replace 2023 production from the zone.

Exploration drilling from the Odyssey ramp is also increasing confidence in the adjacent Odyssey internal zones, where gold mineralization is hosted in porphyry rock. The program of increased drilling, development drift sampling and geological mapping of the Odyssey internal zones is demonstrating good continuity of gold mineralization within these internal structures. Recent highlights from drilling into the Odyssey internal zones include 5.5 g/t gold over 10.4 metres (core length) at 332 metres depth in hole UGOD-031-020; 4.1 g/t gold over 12.4 metres (core length) at 352 metres depth in hole UGOD-031-022; and 10.3 g/t gold over 4.7 metres (core length) at 282 metres depth in hole UGOD-031-024.

Exploration drilling from surface into the Odyssey internal zones returned highlights of 11.1 g/t gold over 4.2 metres (core length) at 446 metres depth in hole MEV22-262 and 12.0 g/t gold over 6.0 metres (core length) at 547 metres depth in hole MEX22-242.

The gold mineralization encountered to date in the Odyssey internal zones is not included in the current mine plan at Odyssey and could represent an attractive near-term exploration opportunity considering its proximity to existing and planned underground mine infrastructure around the Odyssey South and Odyssey North deposits.

Regional exploration

The company's regional exploration strategy beyond the current mining operations at Canadian Malartic encompasses the Canadian Malartic mine and adjacent properties and includes the 100-per-cent-owned Camflo, Rand Malartic, Midway and East Amphi projects.

The geologically distinct, gold-rich horizons present at the Canadian Malartic and Odyssey mining operations extend eastward across the company's property portfolio, most notably the suites of gabbro-hosted and porphyry-hosted gold mineralization at the past-producing Rand Malartic, Midway and LTA properties. The lateral extension of the East Gouldie horizon to the south in the Pontiac group sediments has also never been investigated on those adjacent properties, except very recently only on the Rand Malartic property.

Approximately $5-million is budgeted by the company in 2023 for 22,000 metres of regional exploration drilling mainly to complete a first phase of drilling at the adjacent Camflo property acquired in 2021 for its near-surface, bulk-tonnage gold mineralization potential. Another $5-million is budgeted for 40,000 metres of additional drilling into the best emerging targets that will be generated from the first phase of work in 2023 on the Canadian Malartic, Rand Malartic, Camflo and Midway properties.

Camflo

The 945-hectare Camflo property is four kilometres north of the Odyssey mine and includes the past-producing Camflo mine, which had historical production of approximately 1.6 million ounces of gold.

In its initial evaluation of the Camflo property, the company identified porphyry-hosted gold mineralization that could potentially be mined through an open pit. Additional studies are under way to evaluate this mineralization and the potential for additional mineralization in adjacent rock types.

During the first phase of the 2023 drilling campaign completed in April, more than 14,000 metres were drilled in 60 holes using three drill rigs. This was the first exploration drill program completed in the near-surface portion of the Camflo deposit since the closure of the underground mine in 1992.

Early results from the campaign demonstrate the potential for near-surface mineralization around historical zone 1 and zone 8 (renamed Diorite zone). In zone 1, near-surface highlights include: 4.8 g/t gold over 8.8 metres at 107 metres depth in hole CF23-5405 and 5.7 g/t over 3.9 metres at 105 metres depth in hole CF23-5431. Deeper in zones 1, 2 and 3, hole CF23-5414 intersected 1.5 g/t gold over 81.0 metres at 192 metres depth and 3.5 g/t gold over 5.7 metres at 240 metres depth in fault zone A. In the Diorite zone, highlights include: 3.3 g/t gold over 38.7 metres at 53 metres depth in hole CF23-5458 and 3.2 g/t gold over 16.2 metres at 103 metres depth in hole CF23-5447. Hole CF23-5404 identified a new mineralized zone that returned 3.7 g/t gold over 7.1 metres at 18 metres depth.

The second phase of exploration drilling at Camflo will test for potential lateral extensions of mineralization and infill known zones.

Rand Malartic

Drilling has resumed on the Rand Malartic property to investigate exploration targets potentially analogous to the Odyssey South and Odyssey North deposits in a series of porphyry intrusions within the Piche group that extend from the Odyssey mine to the east toward the past-producing Malartic Goldfields mine No. 1 and mine No. 2 on the Midway and LTA properties.

Highlight hole RD22-4693, drilled during the fourth quarter of 2022, intersected 0.6 g/t gold over 244.7 metres (core length) at 1,599 metres depth, including 2.6 g/t gold over 6.0 metres (core length) at 1,561 metres depth. This intersection, located 1,325 metres east of the Odyssey North deposit, is within the South Porphyry intrusion that is analogous to the No. 12 porphyry, which hosts mineral resources in the Odyssey North and Odyssey South deposits. Geological structures observed at Rand Malartic are similarly analogous to the Sladen fault, which is a key structure related to gold mineralization at the Canadian Malartic and Odyssey mining operations to the west.

Follow-up drilling at Rand Malartic, including a wedge hole off of hole RD22-4693, will further explore the prospective South Porphyry intrusion, which has been traced over one kilometre at surface and to a minimum depth of 1,500 metres. The company believes that these suites of porphyry intrusions to the east of the Odyssey mine have excellent exploration potential for bulk-tonnage mineralization considering the historical exploration drill results and similarities with the East Malartic, Odyssey South and Odyssey North deposits.

Midway

Historical gold production at the past-producing Malartic Goldfields mine (comprising mine No. 1 and mine No. 2), which extends from the Midway property partially onto the 139-hectare LTA property to the northwest, is estimated at approximately 1.7 million ounces of gold (nine million tonnes grading 5.9 g/t gold) during its active period from 1939 to 1965, with ore sourced from gabbro-hosted zones to a depth of approximately 800 metres.

In a technical report on the Malartic-Midway project filed by former owner Northern Star Mining Corp. Inc. on SEDAR on July 16, 2008, historic mineral resources at Midway were estimated by rock type at: 821,400 tonnes grading 6.51 g/t gold in indicated mineral resources and 531,400 tonnes grading 6.86 g/t gold in inferred mineral resources in gabbro rock; and 1.51 million tonnes grading 2.40 g/t gold in indicated mineral resources and 1.47 million tonnes grading 2.40 g/t gold in inferred mineral resources in shallow and wider porphyry rock. The company is not treating this historical estimate as current mineral resources but sees this as indicative of near-term exploration opportunities to make new discoveries in the near future around the historical Malartic Goldfields mine, considering the relatively shallow depth where mining stopped and historical drill intercepts outside of the historical mining area reporting gold mineralization. Importantly, any new discovery would be within close range of the Canadian Malartic complex processing facilities.

LTA property

As previously disclosed (see news release dated Feb. 16, 2023), Canadian Malartic GP entered into an agreement with Barrick Gold on Jan. 12, 2023, to acquire the LTA property. The company will now acquire the LTA property as part of the Yamana transaction and the LTA acquisition is expected to close in the first half of 2023.

The LTA property is surrounded by Agnico Eagle's Midway and Piche-Harvey properties and was one of the last inlier claims on the eastern portion of the Canadian Malartic property portfolio. The LTA property hosted approximately 50 per cent of the historical gold production at the Malartic Goldfields mine.

In the near term at LTA, the company plans to complete compilation of historical data to prioritize drill targets for later in 2023. Of particular interest are the historic M zone and P zone, which contain known gold mineralization hosted in porphyry rock that are considered to be similar to the Odyssey North and South deposit.

East Amphi

At the East Amphi project, located approximately three kilometres northwest of the Canadian Malartic pit, there is potential to extend the East Amphi deposit at depth. A high-resolution drone survey completed in early 2021 over the East Amphi and Radium North properties generated several new targets in undrilled areas.

The consolidation of a large land position to the east of the Odyssey mine was an important step to establish a long-term exploration strategy that will first be conducted from surface and the company believes that a future combination of surface and underground exploration has the potential to lead to significant future discoveries similar to the LaRonde mine in the Bousquet camp with its long-term underground exploration program.

Opportunities to further enhance value

At the Canadian Malartic complex, the company expects to have up to 40,000 tpd of excess mill capacity starting in 2028 as processing of open-pit ore and low-grade stockpiles gradually decreases and processing transitions to the higher-grade Odyssey mine.

As discussed herein, the company is making good progress with infill and stepout drilling activities at the Odyssey mine with a current focus on the East Gouldie, Odyssey South and Internal zones. Additionally, the adjacent properties of Camflo, Rand Malartic, Midway and East Amphi, located between three to five kilometres from the Canadian Malartic mill, offer potential opportunities to supplement the existing mine life with additional sources of ore.

In addition to maximizing production from the Odyssey mine and the adjacent properties mentioned herein, the company is also exploring the possibility of utilizing the excess mill and tailings storage capacity at Canadian Malartic to support other regional projects. This approach is expected to reduce future capital investments, mitigate execution and operational risks, and minimize the environmental footprint. Current internal studies include potential sources of ore from:

• Macassa near-surface deposits and the AK deposit;
• The Upper Beaver project;
• The Wasamac project;
• Other Kirkland Lake satellite deposits (Upper Canada and Anoki-McBean).

The company believes that, collectively, these projects represent a substantial opportunity to maximize value from optimized resource utilization and deliver superior returns to shareholders.

About Agnico Eagle Mines Ltd.

Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.

Scientific and technical information

The scientific and technical information contained in this news release relating to the Canadian Malartic complex has been approved by Dominique Girard, Eng, executive vice-president and chief operating officer, Nunavut, Quebec and Europe; and relating to exploration, mineral reserves and mineral resources has been approved by Guy Gosselin, Eng, PGeo, executive vice-president, exploration, each of whom is a qualified person for the purposes of National 43-101.

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