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Agnico-Eagle Mines Limited ("Agnico-Eagle" or the "Company") announced today that it has closed its previously announced US$290 million private placement of 9.2 million units of Agnico-Eagle (including 1.2 million units purchased upon exercise of the underwriters' option). Each unit consists of one common share of Agnico-Eagle and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company, at a price of US$47.25 per share, at any time during the five-year term of the warrant.

As part of the private placement, an affiliate of the CPP Investment Board (the "Lead Purchaser") purchased 3 million units. As previously announced, the Lead Purchaser agreed to purchase 4 million units and any additional units not purchased by other buyers. The Lead Purchaser subsequently agreed to reduce its allocation to 3 million units in light of demand from other buyers. As consideration for the Lead Purchaser's commitment, Agnico-Eagle issued to the Lead Purchaser warrants entitling it to purchase 4 million common shares of the Company, at a price of US$47.25 per share, at any time during the five-year term of the warrant.

The lead underwriters for the private placement were Macquarie Capital MarketsCanada Ltd., and the other members of the underwriting syndicate were Scotia Capital Inc., UBS Securities Canada Inc., TD Securities Inc., National Bank Financial Inc., RBC Capital Markets, BMO Capital Markets, Merrill Lynch Canada Inc., CIBC World Markets Inc., Canaccord Adams Inc., Genuity Capital Markets, Blackmont Capital Inc. and Credit Suisse Securities (Canada) Inc.

The gross proceeds of the private placement were approximately US$290 million. The Company intends to use the net proceeds of the private placement for mine development and related capital expenditures, as well as for general corporate purposes.

The securities were sold on a private placement basis in Canada. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States, or to or for the account of U.S. persons, absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful.