Mr. Ammar Al-Joundi reports

AGNICO EAGLE REPORTS SECOND QUARTER 2023 RESULTS - RECORD QUARTERLY GOLD PRODUCTION AND SOLID COST PERFORMANCE DRIVE STRONG QUARTERLY EARNINGS AND OPERATING CASH FLOW; WELL POSITIONED TO ACHIEVE ANNUAL PRODUCTION AND COST GUIDANCE

Agnico Eagle Mines Ltd. has released financial and operating results for the second quarter of 2023. (All amounts are expressed in U.S. dollars unless otherwise noted.)

"Agnico Eagle delivered another strong operational quarter, with record quarterly gold production and better-than-expected costs driving solid financial results. With this excellent start to the year, we are tracking very well to meet our annual production and cost guidance. I would also like to commend our team for one of the best quarterly safety performances in the company's history," said Ammar Al-Joundi, Agnico Eagle's president and chief executive officer. "In June, we released an update on the Odyssey project at Canadian Malartic, which highlighted an improved production profile, a mine life extension to 2042 and a significant geological upside. We continue to advance the various studies of our key pipeline projects in the Abitibi gold belt, with the objective of leveraging our existing infrastructure and generating value for our shareholders. We expect to report the results of these ongoing studies through the first half of 2024. Finally, in the second quarter, we had strong exploration results from Detour, Meliadine, Kittila and at Hope Bay, with the intersection of higher-grade mineralization at the Madrid deposit," added Mr. Al-Joundi.

Second quarter 2023 highlights:

• Record quarterly gold production and solid cost performance: Record quarterly gold production reflects 100-per-cent ownership of Canadian Malartic for the full quarter, combined with a strong operational performance at all producing sites. Payable gold production (1) in the second quarter of 2023 was 873,204 ounces at production costs per ounce of $851, total cash costs per ounce (2) of $840 and all-in sustaining costs (AISC) per ounce (3) of $1,150.
• Operational performance drives strong quarterly financial results: The company reported quarterly net income of 66 cents per share in the second quarter of 2023, with adjusted net income (4) of 65 cents per share. Operating cash flow was $1.46 per share.
• Strong operating and safety performance at all mine sites: Gold production and costs in the second quarter of 2023 were better than anticipated, reflecting strong operating performance across the company's mines, despite the challenges related to wildfires in Northern Ontario and Quebec and the caribou migration in Nunavut. Lower-than-expected costs reflect a strong operating performance, favourable foreign exchange rates and the easing of certain inflationary pressures.
• Important milestones achieved across the portfolio: At the Canadian Malartic complex, the team celebrated production of its seven millionth ounce in June. In addition, Detour Lake, Goldex and Macassa each achieved record quarterly mill throughput rates while Meliadine recorded its best ever monthly mill throughput in May, 2023.
• Gold production, cost and capital expenditure guidance reiterated for 2023: Expected payable gold production in 2023 remains unchanged at approximately 3.24 million to 3.44 million ounces with total cash costs per ounce expected to be between $840 and $890, and AISC per ounce expected to be between $1,140 and $1,190. Total capital expenditures (excluding capitalized exploration) for 2023 are still estimated to be approximately $1.42-billion. The company's 2023 production guidance assumes Kittila operates at an annual rate of 1.6 million tonnes per year. A decision by the Supreme Court of Finland to either maintain the 1.6 Mtpy permit or revert to the 2.0 Mtpy permit is expected in the third quarter of 2023.
• Solid cash flow generation strengthens the company's balance sheet and liquidity position: During the second quarter of 2023, the company repaid $900-million of the amounts drawn on its unsecured revolving bank credit facility. The amount repaid on the unsecured revolving bank credit facility was repaid using $300-million in cash on hand and $600-million drawn on an unsecured term loan facility, which the company entered into in the quarter. Additionally on June 30, 2023, the company repaid the $100-million 4.54 per cent Series A senior notes at maturity. As at June 30, 2023, the company's long-term debt was $1,942.0-million, and its net debt (5) was $1,509.5-million.
• Update on key value drivers and pipeline projects:
  • Odyssey mine at the Canadian Malartic complex: In June, 2023, the company released the results of a new internal study reflecting significant project advancements, an improved valuation and opportunities to further enhance value. Shaft sinking activities ramped up through the quarter, with approximately 60 metres sunk as at June 30, 2023. Production through the ramp at the Odyssey South deposit increased through the quarter and remains on schedule to reach a planned rate of 3,500 tonnes per day in 2024. Drilling activities focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west.
  • Detour Lake: In the second quarter of 2023, the mill set a record for quarterly throughput, with an improved mill availability of 92.8 per cent. The continued focus on mill process optimization and mill availability is tracking well to reach, and potentially exceed, throughput of 28.0 Mtpy. The company is advancing the underground mining scenario study based on a revised mineral resource model and expects to report the results of this study in the first half of 2024.
  • Optimization of assets and infrastructure in the Abitibi gold belt: The company continued to advance several internal evaluations to assess potential production opportunities at the Macassa near-surface and the Amalgamated Kirkland deposits, and at the Upper Beaver and Wasamac projects. These evaluations include an assessment of ore transportation through rail or truck to the company's existing processing facilities in the region, with a goal of increasing future gold production at lower capital costs and with a reduced environmental footprint. The results of these evaluations are expected to be reported in the first half of 2024.
• Positive exploration results at Detour, Meliadine, Kittila and Hope Bay:
  • Based on exploration success in the first half of 2023, a supplemental exploration budget of $32-million has been approved: The company's exploration program returned positive results in the first half of 2023 at several key operating sites and projects, showing excellent potential to identify additional mineral resources and replace mineral reserves. These results support the focused addition of supplemental budgets.
  • Detour: Drilling continues to investigate the deposit below the West Pit mineral reserve and the western plunge extension of the mineralization to confirm the mineralized zones potentially amenable to underground mining. Drill results below the West pit reserve continue to demonstrate potential for a higher-grade envelope with a recent intercept yielding 12.9 grams per tonne gold over 12.9 metres at a 400-metre depth, while two kilometres west of the open-pit mineral reserves, mineralization remains open with a recent intercept returning 2.8 grams per tonne gold over 14.4 metres at a 1,061-metre depth.
  • Meliadine: Drilling continues to investigate the vertical extensions of the mineralized zones in the central part of the Tiriganiaq, Wesmeg and Wesmeg North deposits. At Wesmeg North, a recent intercept yielded 6.3 g/t gold over 7.4 metres at a 558-metre depth. Approximately 1.5 kilometres southeast of Tiriganiaq at the F-Zone deposit, a recent intercept yielded 6.4 g/t gold over 16.0 metres at a 167-metre depth in the upper portion of the deposit.
  • Kittila: Drilling has extended the Rimpi Main zone to the north, outside of the current mineral resources, with a recent intercept yielding 7.2 g/t gold over 4.5 metres at a 1,102-metre depth. In the Roura area close to the shaft bottom, a recent intercept in the Main zone yielded 7.7 g/t gold over 7.3 metres at a 1,152-metre depth. At shallow depth in the Rimpi area, the Parallel/Sisar zone was identified in an area that has received limited drilling to date, yielding 3.1 g/t gold over 4.5 metres at a 142-metre depth and opening a new near-surface target area for future exploration.
  • Hope Bay project: A total of nine exploration drill rigs were operating at the Doris and Madrid deposits and regionally during the second quarter. At Doris, drilling in the BCO zone continued to return good grades and thicknesses to further confirm the potential to expand the zone along strike. At Madrid, drilling focused on a two-kilometre-long, previously untested gap between the Suluk and Patch 7 zones, with new highlight intercepts of 10.0 g/t gold over 14.0 metres at a 677-metre depth and 13.7 g/t gold over 4.6 metres at a 697-metre depth. This drilling confirms the potential of Madrid/Suluk/Patch 7 as it extends the high-grade Patch 7 zone by 500 metres vertically and by 900 metres laterally at depth.
• A quarterly dividend of 40 cents per share has been declared.

(1) Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the company whether such products are shipped during the period or held as inventory at the end of the period.

(2) Total cash costs per ounce is a non-generally accepted accounting principle ratio that is not a standardized financial measure under international financial reporting standards and, unless otherwise specified, is reported on a byproduct basis in this news release.

(3) AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and, unless otherwise specified, is reported on a byproduct basis in this news release.

(4) Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS.

(5) Net debt is a non-GAAP measure that is not a standardized measure under IFRS.

Second quarter 2023 results conference call and webcast tomorrow

Agnico Eagle's senior management will host a conference call on Thursday, July 27, 2023, at 11 a.m. EDT, to discuss the company's second quarter 2023 financial and operating results.

By webcast

A live audio webcast of the conference call will be available on the company's website.

By telephone

For those preferring to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

By URL entry

To join the conference call without operator assistance, you may register and enter your phone number to receive an instant automated callback.

Replay archive

Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access code 008251 followed by the number sign. The conference call replay will expire on Aug. 27, 2023.

The webcast, along with presentation slides, will be archived for 180 days on the company's website.

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.

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