TORONTO , July 29, 2015 /CNW/ – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM)("Agnico Eagle" or the "Company") today reported quarterly net income of $10.1 million , or net income of $0.05 per share for the second quarter of 2015.  This result includes non-recurring losses of $12.9 million ( $0.06 per share), unrealized gains on financial instruments of $9.4 million ( $0.04 per share), non-cash foreign currency translation losses of $4.8 million ( $0.02 per share), non-cash stock option expense of $4.1 million ( $0.02 per share), a non-cash foreign currency translation gain on deferred tax liabilities of $3.2 million ( $0.01 per share) and various mark-to-market and other adjustment gains of $0.8 million ( $0.01 per share).  Excluding these items would result in adjusted net income of $18.5 million or adjusted net income of $0.09 per share for the second quarter of 2015.  In the second quarter of 2014, the Company reported net income of $22.2 million or net income of $0.12 per share.

For the first six months of 2015, the Company reported net income of $38.8 million , or $0.18 per share.  This compares with the first six months of 2014 when net income was $119.3 million , or $0.66 per share.  Financial results in the 2015 period were negatively impacted by lower gold prices (approximately 8% lower) and lower by-product metals revenues.

Second quarter 2015 cash provided by operating activities was $188.3 million ( $152.8 million before changes in non-cash components of working capital).  This compares to cash provided by operating activities of $182.7 million in the second quarter of 2014 ( $136.5 million before changes in non-cash components of working capital).  The increase in cash provided by operating activities before changes in working capital during the current period was mainly due to an increase of 24% in gold production.

For the first six months of 2015, cash provided by operating activities was $331.8 million ( $329.6 million before changes in non-cash components of working capital), as compared with the first half of 2014 when cash provided by operating activities was $433.1 million ( $343.6 million before changes in non-cash components of working capital).  The decrease in cash provided by operating activities before changes in working capital during the period was mainly due to a decrease of 8% in gold prices compared to the 2014 period, which more than offset a 17% increase in gold production.

"With continued strong operating performance, favourable local currency foreign exchange rates, and near-term opportunities to increase production at several of our mines, we remain well-positioned to manage the current price volatility in the gold market", said Sean Boyd , Agnico Eagle's Chief Executive Officer.  "In these challenging times, we will continue to focus on reducing costs and we will remain measured in our approach to managing and growing our business", added Mr. Boyd.

Second Quarter 2015 highlights include:

• Quarterly gold production – Payable gold production 1 in Q2 2015 was 403,678 ounces of gold at total cash costs 2 per ounce on a by-product basis of $601 and all-in sustaining costs 3("AISC") on a by-product basis of $864 per ounce 
   
• Second consecutive record quarter of precious metal production from Mexican operations – In the second quarter of 2015, payable gold and silver production from Mexican operations was 92,056 ounces and 685,869 ounces, respectively.  Total cash costs per ounce of gold on a by-product basis averaged $394 
   
• 2015 production guidance maintained and cost forecasts reduced – Expected gold production for 2015 is maintained at approximately 1.6 million ounces with total cash costs on a by-product basis of $600 to $620 per ounce (previously $610 to $630 ) and AISC of approximately $870 to $890 per ounce (previously $880 to $900 ) 
   
• Vault Extension and Goldex Deep 1 approved for mining; 2015 capital for both projects increased by a total of approximately $36 million – The Vault extension is expected to reduce the potential production gap between the end of production at Meadowbank and the start of production at Amaruq (not yet approved for construction) by approximately one year.   Goldex Deep 1 adds approximately seven years of production at approximately 100,000 ounces of gold per year 
   
• Drilling at Amaruq's Whale Tail deposit confirms grades and thicknesses; mineralization extended to depth – Highlights include: 13.2 grams per tonne ("g/t") gold over 14.3 metres at 133 metres depth, and 13.9 g/t gold over 11.0 metres at 194 metres depth.  The deepest intercept to date on the property yielded 8.8 g/t gold over 6.0 metres at 568 metres depth, almost 200 metres deeper than previous intercepts 
   
• Continued focus on debt reduction – In Q2 2015, $25 million was repaid under the Company's credit facility, C$20 million (reflecting the Company's 50% interest) was repaid under the Canadian Malartic General Partnership (the "Partnership") secured loan facility, and the Canadian Malartic senior unsecured convertible debentures ( C$37.5 million , reflecting the Company's 50% interest) were fully converted by the holders.  As a result, the Company's indebtedness was reduced by approximately $70 million 
   
• A quarterly dividend of $0.08 per share was declared

Second Quarter Financial and Production Highlights

In the second quarter of 2015, strong operational performance continued at the Company's mines.

Payable gold production in the second quarter of 2015 was 403,678 ounces compared to 326,059 ounces in the second quarter of 2014.  The higher level of production in the 2015 period was primarily due to the inclusion of a full quarter of production from Canadian Malartic, increased throughput levels at Goldex, increased mill capacity at Kittila, higher grades at LaRonde and Pinos Altos and increased heap leach stacking at La India and Creston Mascota.  A detailed description of the production and cost performance of each mine is set out below.

Total cash costs per ounce on a by-product basis for the second quarter of 2015 were lower at $601 versus $631 per ounce for the second quarter 2014.  The reduction in total cash costs per ounce on a by-product basis in the second quarter of 2015 was a result of higher silver production, higher gold production at most of the Company's mines and weaker local currencies compared to the second quarter of 2014.

In the second quarter of 2015 the value of the Canadian dollar, Euro and Mexican Peso were 1%, 2%, and 17% lower, respectively than the Company's 2015 currency price assumptions (see February 11, 2015 news release).

Payable gold production for the first half of 2015 was 807,888 ounces, compared to payable gold production of 692,480 ounces in the comparable 2014 period (which included only 11,878 ounces from Canadian Malartic for production from June 16 to June 30, 2014 ).

For the first half of 2015, total cash costs on a by-product basis were $595 per ounce.  This compares with $582 per ounce on a by-product basis in the first half of 2014.  The higher costs in the 2015 period are due to the increased costs at Meadowbank when compared to the 2014 period.  In 2014, Meadowbank had record production and lower costs as a result of processing higher grade ore from the Goose and reserve grade ore from the Portage deposits.

AISC for the second quarter of 2015 was lower at $864 versus $1,003 per ounce for the second quarter 2014. The lower AISC is primarily due to higher production, lower than forecast total cash costs per ounce on a by-product basis, lower G&A expenditures and timing of capital expenditures.

For the first half of 2015, AISC was $835 versus $890 per ounce for the 2014 period.  The lower AISC in the 2015 period are due to the same reasons set out above.

Cash Position Remains Strong; Debt Levels Reduced; and Capex Increased to Fund Near-term Production Opportunities

Cash and cash equivalents and short term investments increased to $183.9 million at June 30, 2015 , from the March 31, 2015 balance of $172.1 million .

The outstanding balance on the Company's $1.2 billion credit facility was reduced from $400 million at March 31, 2015 to $375 million at June 30, 2015.   This results in available credit lines of approximately $825 million , as well as the $300 million accordion feature.

As of June 30, 2015 , C$20 million (reflecting the Company's 50% interest) was repaid under the Canadian Malartic General Partnership secured loan facility.  Also, the Canadian Malartic convertible debentures with principal outstanding of C$37.5 million (reflecting the Company's 50% interest), assumed with the joint acquisition of Osisko Mining Corporation ("Osisko") on June 16, 2014 , was fully converted by the holders.

Total capital expenditures made by the Company in the second quarter of 2015 were $111.5 million , including $18.9 million at LaRonde, $18.2 million at Meadowbank, $17.2 million at Pinos Altos , $13.9 million at Kittila, $12.0 million at Goldex, $11.4 million at Meliadine, $10.7 million at Canadian Malartic (50% basis), $6.2 million at La India, $1.7 million at Lapa and $0.2 million at Creston Mascota.

Total capital expenditures for the first six months of 2015 were $194.4 million including $35.5 million at LaRonde, $29.3 million at Pinos Altos , $27.7 million at Meadowbank, $24.3 million at Kittila, $21.9 million at Goldex, $21.4 million at Canadian Malartic (50% basis), $19.8 million at Meliadine, $8.5 million at La India, $4.4 million at Lapa and $0.5 million at Creston Mascota.

Total sustaining capital expenditures made by the Company in the second quarter were $81.9 million , including $18.9 million at LaRonde, $18.2 million at Meadowbank, $11.1 million at Kittila, $10.6 million at Canadian Malartic (50% basis), $10.3 million at Pinos Altos , $6.2 million at La India, $4.7 million at Goldex, $1.7 million at Lapa, and $0.2 million at Creston Mascota.

Total sustaining capital expenditures for the first six months of 2015 were $142.8 million including $35.5 million at LaRonde, $27.7 million at Meadowbank, $20.1 million at Kittila, $19.8 million at Canadian Malartic (50% basis), $17.3 million at Pinos Altos , $9.0 million at Goldex, $8.5 million at La India, $4.4 million at Lapa, and $0.5 million at Creston Mascota.

For 2015, capital expenditures are expected to total approximately $539 million , representing a $58 million increase from the previously announced figure.  The increase is primarily due to additional expenditures for the development of Goldex Deep 1, the Vault pit extension, expansion of the existing Meliadine surface and underground infrastructure, and the sealift of additional equipment for the 2016 Meliadine work program.

Based on the exploration success in the first six months of the year, the 2015 expensed exploration budget has been increased by approximately $20 million to $114 million .  The additional expenditure includes a phase two exploration program at the Amaruq project; an initial exploration program at the Barsele project in Sweden ; a slight increase in exploration spending at the Pandora property and the Odyssey deposits; and additional drilling on the new parallel zone at Kittila.  Expenditures at Amaruq and El Barqueno could potentially increase further, based on exploration results.

Revised 2015 Guidance – Production Maintained, Costs Lowered, Depreciation Increased

Production guidance for 2015 is maintained at approximately 1.6 million ounces of gold with total cash costs on a by-product basis of $600 to $620 per ounce (previously $610 to $630 ) and AISC of approximately $870 to $890 per ounce (previously $880 to $900 ).

The Company expects depreciation and amortization expense to be in the range of $575 to $600 million .  Previous guidance was $550 to $575 million .  The increase is primarily due to the finalization of the purchase price allocation associated with the Canadian Malartic acquisition.

Second Quarter 2015 Results Conference Call and Webcast Tomorrow

The Company's senior management will host a conference call on Thursday, July 30, 2015 at 11:00 AM (E.D.T.) to discuss financial results and provide an update of the Company's operating activities.

Via Webcast:

A live audio webcast of the meeting will be available on the Company's websitewww.agnicoeagle.com .

Via Telephone:

For those preferring to listen by telephone, please dial 1-416-260-0113 or Toll-free 1-800-524-8950.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 1-647-436-0148 or Toll-free 1-888-203-1112, access code 6325908. The conference call replay will expire on August 30, 2015 .

The webcast, along with presentation slides, will be archived for 180 days on www.agnicoeagle.com.

NORTHERN BUSINESS OPERATING REVIEW

ABITIBI REGION, QUEBEC

Agnico Eagle is currently Quebec's largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine.  These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.

LaRonde Mine – Gold Production Steadily Increasing, Commissioning of Coarse Ore Conveyor on Track for Late Q3 2015

The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.

The LaRonde mill processed an average of 6,242 tonnes per day ("tpd") in the second quarter of 2015, compared with an average of 6,197 tpd in the corresponding period of 2014.  Minesite costs per tonne 4 were approximately C$99 in the second quarter of 2015, higher than the C$96 per tonne experienced in the second quarter of 2014.  The increased costs in the 2015 period were primarily due to higher underground development, mill maintenance and site administration costs compared to the prior-year period.

For the first six months of 2015, the LaRonde mill processed an average of 6,223 tpd, compared to 6,194 tpd in the first six months of 2014.  Minesite costs per tonne were approximately C$101 , compared to C$96 per tonne in the first six months of 2014. Costs were higher due to the reasons described above in spite of the higher throughput.

LaRonde's total cash costs per ounce on a by-product basis were $613 in the second quarter of 2015 on payable production of 64,007 ounces of gold.  This compares with the second quarter of 2014 when total cash costs per ounce on a by-product basis were $732 on production of 48,494 ounces of gold.  Costs in the 2015 period were positively impacted by higher gold grades and favourable foreign exchange rates.

In the first six months of 2015, LaRonde produced 122,900 ounces of gold at total cash costs per ounce of $656 on a by-product basis.  This is in contrast with the first six months of 2014 when the mine produced 107,846 ounces of gold at total cash costs per ounce of $645 on a by-product basis.  Production in the 2015 period was positively impacted by higher grades.  Costs were lower in the 2014 period due to higher by-product production and revenues.

During the quarter, work continued on the installation of the coarse ore conveyor system that will extend from the 293 level to the crusher on the 280 level.  Installation of the new conveyor and the connection of an internal ramp at the 281 level are expected to be completed by the end of the third quarter of 2015.  These two infrastructure components should help to improve mining flexibility and reduce congestion in the deeper portions of the mine.

Studies are continuing to assess the potential to extend the mineral reserve base and carry out mining activities between the 311 and 371 levels at LaRonde.  At present, the mineral reserve base extends to the 311 level, which is 3.1 kilometres below the surface.  In 2014, conversion drilling added approximately 444,000 ounces of gold (2.6 million tonnes at 5.33 g/t gold) to the indicated mineral resources between the 311 and 341 levels.

Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels.  Additional holes are also being drilled to evaluate the extent of the mineralization down to the 371 level (a depth of 3.7 km below the surface).

Canadian Malartic Mine – Mining Productivity Improves, North Zone Mining Rate Increases in Q2 2015

In June 2014 , Agnico Eagle and Yamana Gold Inc. ("Yamana") acquired all of the issued and outstanding common shares of Osisko and created the Canadian Malartic General Partnership (the "Partnership") that owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee.  Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership.

During the second quarter of 2015, the Canadian Malartic mill processed an average of 50,705 tpd (on a 100% basis).  This period included a five day planned shutdown for maintenance to the crushing and grinding circuit, and two days of unplanned maintenance on the conveying system, which reduced mill availability. Comparisons with the 2014 period are not relevant given that the Partnership only took control of the operations on June 16, 2014.   Minesite costs per tonne were approximately C$20 ( C$23 including royalties), which was in line with guidance. The average stripping ratio in the second quarter of 2015 was 2.64 to 1.0.

For the first six months of 2015, the Canadian Malartic mill processed an average of 51,343 tpd.  Minesite costs per tonne were approximately C$20 ( C$23 including royalties).

For the second quarter of 2015, Agnico Eagle's share of production at the Canadian Malartic mine was 68,441 ounces of gold at total cash costs per ounce of $609 on a by-product basis.

In the first six months of 2015, Agnico Eagle's share of production at the Canadian Malartic mine was 136,334 ounces of gold at total cash costs per ounce of $621 on a by-product basis.

Since acquiring the mine in June 2014 , the Partnership has been working on several initiatives to optimize the operations.  Current opportunities include:

• Improving SAG mill liners in an attempt to reduce the number of planned shutdowns to three per year (currently four per year)
• Increasing gyratory crusher availability by redirecting ore containing scrap steel to a separate crusher
• Maintaining mining throughput levels at two million tonnes per month in the North zone (which contains higher grades)
• Waste rock backfilling of the Gouldie pit, to reduce haulage distances and noise

In the first quarter of 2015, the Partnership reported that discussions were ongoing with permitting authorities regarding pre-crushing activities at Canadian Malartic.  In the second quarter of 2015, discussions about improving the efficiency and environmental performance of the existing mobile crusher took place with the Quebec Ministry of Sustainable Development, Environment, Wildlife and Parks.  The Ministry is reviewing this concept and an application for a Certificate of Authorization is being prepared for possible submission later this year.  At this point, milling levels are expected to be approximately 53,000 tpd through 2016.  For the full year 2015, Agnico Eagle's estimated share of gold production from Canadian Malartic remains unchanged at 280,000 ounces.

Permitting activities for the Barnat Extension and deviation of Highway 117 are continuing.  An Environmental Impact Assessment ("EIA") was submitted in February 2015 , and questions were received from permitting authorities in April and May 2015.   Answers to the first round of questions are expected to be submitted by the end of August 2015.   The process remains on schedule for receipt of the necessary permits in November 2016 .

In March 2015 , the Partnership increased its interest in the Malartic CHL property to 100% by acquiring the remaining 30% interest from Abitibi Royalties Inc. (RZZ:TSX-V).  The Malartic CHL property adjoins the Canadian Malartic mine to the east and hosts part of the Odyssey North discovery.  Drilling continues on the Odyssey North and Odyssey South zones with data currently being compiled and interpreted.

Exploration Update on Pandora and Kirkland Lake Projects

Canadian Malartic Corporation , a company in which each of Agnico Eagle and Yamana has an indirect 50% interest, is exploring, among other things, a portfolio of properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec .

At the Upper Beaver property in Kirkland Lake , a mineral resource update is underway and the Partnership will decide the best alternative to develop the property.

At Pandora, underground development on the 101-W exploration drift from the adjacent Lapa mine commenced in February 2015 and approximately 285 metres of drifting was completed during the second quarter of 2015.  Approximately 433 metres of development has been completed year to date, and for the full year, approximately 940 metres of development is planned.

In mid-June 2015 , exploration drilling resumed from the 101-W drift and approximately 7,400 metres of underground drilling is planned in 2015 to test for extensions to the Branch zone and C zone on the Pandora property.

Lapa – Zulapa Z7 Zone Continues to Yield Higher Grades and Recoveries

The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009 .

The Lapa circuit, located at the LaRonde mill, processed an average of 1,387 tpd in the second quarter of 2015.  This compares with an average of 1,789 tpd in the second quarter of 2014.  Throughput in the 2015 period was lower because of downtime related to the discovery of fatigue cracks in the feed head of the Lapa ball mill.  This component is being repaired and ore is currently being processed through the old LaRonde copper regrind circuit.  As a result, throughput levels are expected to be lower than normal through at least the middle of the third quarter of 2015.  Excess ore is currently being stockpiled and there is sufficient mill capacity that should allow the Company to meet its annual throughput rate (tonnes and ounces) over the balance of 2015.

Minesite costs per tonne were C$126 in the second quarter of 2015, compared to the C$105 in the second quarter of 2014.  Costs in the 2015 period were higher due to lower throughput compared to the same period in 2014.

For the first six months of 2015, the Lapa mill processed an average of 1,538 tpd, compared to 1,769 tpd in the first six months of 2014.  Minesite costs per tonne were approximately C$122 , above the C$107 per tonne in the first six months of 2014 due to reasons explained above.

Payable production in the second quarter of 2015 was 19,450 ounces of gold at total cash costs per ounce on a by-product basis of $678 .  This compares with the second quarter of 2014, when production was 18,821 ounces of gold at total cash costs per ounce on a by-product basis of $832 .  In the 2015 period, production was higher and costs were lower due to higher gold grades, better recoveries and favourable foreign exchange rates.

In the first six months of 2015, Lapa produced 45,370 ounces of gold at total cash costs per ounce of $615 on a by-product basis. This compares to the first six months of 2014 when the mine produced 42,230 ounces of gold at total cash costs per ounce of $738 on a by-product basis.  The higher production and lower costs in the 2015 period are due to the reasons outlined above.

At Lapa, 2015 is the last full year of production based on the current life of mine plan.  In 2016, production is expected to exhibit a decline from the current level.  Additional exploration drilling is ongoing in the Zulapa Z7 zone at depth and, if successful, could extend Lapa's mine life.

Goldex – Deep 1 Project Approved for Mining; Production Expected to Extend Through 2024

The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original orebody, the Goldex Extension Zone ("GEZ") were suspended in October 2011 (see October 19, 2011 news release). In July 2012 , the M and E satellite zones were approved for development.  Mining operations resumed on the M and E satellite zones in September 2013.   Mining operations at GEZ remain suspended.

The Goldex mill processed an average of 6,640 tpd in the second quarter of 2015.  This compares with an average of 5,692 tpd in the second quarter of 2014. The higher throughput in the 2015 period was due to more mature mining fronts and productivity improvements compared to the 2014 period.

Minesite costs per tonne were approximately C$34 in the second quarter of 2015, which was essentially unchanged from the C$34 per tonne experienced in the second quarter of 2014.

For the first six months of 2015, the Goldex mill processed an average of 6,468 tpd, compared to 5,544 tpd in the first six months of 2014.  Minesite costs per tonne were approximately C$34 , the same as the first six months of 2014.

Payable gold production in the second quarter of 2015 was 26,462 ounces of gold at total cash costs per ounce on a by-product basis of $633 .  This compares with the second quarter of 2014, when production was 23,929 ounces of gold at total cash costs per ounce on a by-product basis of $670 .  The decrease in total cash costs in the 2015 period was largely a result of increased production due to higher tonnage and favourable foreign exchange rates compared to the 2014 period.

In the first six months of 2015, Goldex produced 55,712 ounces of gold at total cash costs per ounce of $585 on a by-product basis. This compares to the first six months of 2014 when the mine produced 43,359 ounces of gold at total cash costs per ounce of $711 on a by-product basis.  The higher production and lower costs in the 2015 period are due to the same reasons as outlined above.

Following the completion of a positive internal technical study, the Goldex Deep 1 Project was approved for production by Agnico Eagle's Board of Directors.

The study focused on mining the lower part of the Dx zone and the top of D zone (see Goldex composite longitudinal section below) from a depth of 850 metres to 1,200 metres (Level 120).  The Company plans to undertake development from the current Goldex infrastructure, with existing equipment and personnel.  The planned mining method is long-hole stoping with cemented paste backfill, which is the same method currently used at Goldex.

Mineralogy in the D and Dx zones is very similar to what is currently being mined in M, M2, M5, E and E2 zones.  Metallurgical testing of both the D and Dx zones has indicated that recoveries for the Deep 1 project are expected to be approximately 91.5%, which is in line with current recoveries at Goldex.  No changes to the processing plant are anticipated.  Tailings deposition at the Manitou site is expected to continue, as the site has ample capacity.

The mining rate for Deep 1 is expected to be approximately 6,000 tpd, which would allow for the potential processing of up to 2,000 tpd of ore from other sources such as the Akasaba West Project.  The average grade milled is expected to be approximately 1.69 g/t gold and the minesite costs per tonne are estimated to be approximately C$35 to C$40 .

Gold production is expected to average in excess of 100,000 oz per year from 2018 through 2024 at an average total cash cost per ounce on a by-product basis of between $610 and $630 .  Development capital is forecast to be approximately $135 to $140 million , and sustaining capital is estimated at approximately $60 to $70 million per year.  The development capital includes the cost of the installation of an automated conveyor system.

The Dx zone contains approximately 51,000 ounces of gold in indicated mineral resources (0.7 million tonnes at 2.12 g/t gold) and approximately 172,000 ounces of gold in inferred mineral resources (3.7 million tonnes at 1.46 g/t gold).  The D zone contains approximately 727,000 ounces of gold in indicated mineral resources (10.2 million tonnes at 2.21 g/t gold) and approximately 709,000 ounces of gold in inferred mineral resources (12.9 million tonnes at 1.70 g/t gold).  Additional details on the Goldex resources are presented in the table below:

* "Other zones" includes M, E, P, S and South zones

The internal technical study was carried out using a gold price assumption of $1,200 per ounce and an US$/C$ exchange rate of 1.20.

Goldex composite longitudinal section

The advancement of the Deep 1 project at Goldex also unlocks significant upside potential through:

• Potential for additional mineral resource conversion in Deep 1
• Potential for mining at Deep 2 (below Level 120)
• Potential to develop the South Zone (a narrow high-grade zone accessible via Deep 1 infrastructure)
• Potential development of the Akasaba West deposit

An Environmental Impact Assessment ("EIA") on the Akasaba West deposit is expected to be submitted later in the third quarter of 2015, which will allow the environmental review process to commence.  The Company anticipates the EIA approval in the fall of 2017.

Based on an internal technical study, the Akasaba West deposit has the potential to produce approximately 20,000 to 25,000 ounces of gold and 8.5 to 10.0 million pounds of copper per year for four to five years.  The average total cash costs per ounce on a by-product basis is estimated to be approximately $400 .  Capital costs (including closure costs) are estimated at approximately C$50 million .

At Goldex, 2015 capital spending guidance has been increased by $9 million .  The higher planned capital expenditure is due to:

• Use of a contractor to complete the near surface ramp access to the M3 and M4 zones
• Acceleration of the Deep 1 underground development program
• Accelerated mineral resource conversion drilling at Deep 1

FINLAND AND SWEDEN

Agnico Eagle's Kittila mine in Finland is the largest primary gold producer in Europe , and hosts the Company's largest mineral reserve base.  Exploration activities continue to expand the mineral resource base and studies are underway to evaluate the potential to cost-effectively increase production.

Kittila – Gold Production Increases, Unit Costs Decline, Drilling Encounters New Parallel Zone in Close Proximity to Main Rimpi Ramp

The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.

The Kittila mill processed an average of 4,170 tpd in the second quarter of 2015 compared to the 2,720 tpd in the second quarter of 2014. The higher throughput in the 2015 period is a result of the mill expansion completed in the fourth quarter of 2014.

Minesite costs per tonne at Kittila were approximately ¬75 in the second quarter of 2015, compared to ¬81 in the second quarter of 2014.  Costs decreased in the second quarter of 2015 due to the increased throughput when compared with the 2014 period.

For the first six months of 2015, the Kittila mill processed an average of 4,004 tpd, compared to 3,065 tpd in the first six months of 2014.  Minesite costs per tonne were approximately ¬76 in the first six months of 2015, the same as the ¬76 per tonne in the comparable 2014 period.

Since the expansion, the mill has shown potential to operate in excess of 4,000 tpd and efforts are ongoing to optimize throughput and recovery rates; in conjunction, the Company is also working to optimize underground mining rates and evaluate the potential to develop new mining areas. Unit costs are expected to improve once steady state operations are achieved.

Second quarter 2015 payable gold production at Kittila was 41,986 ounces with a total cash costs per ounce on a by-product basis of $776 .  In the second quarter of 2014, the mine produced 31,830 ounces at total cash costs per ounce on a by-product basis of $862 .  The higher production in the 2015 period is a result of the increased mill capacity compared to the 2014 period.  Costs decreased in the second quarter of 2015 primarily due to increased production, lower energy costs and a favourable foreign exchange rate.

In the first six months of 2015, Kittila produced 86,640 ounces of gold at a total cash cost per ounce of $727 on a by-product basis.  This is in contrast to the first six months of 2014, when the mine produced 70,382 ounces of gold at total cash costs per ounce of $825 on a by-product basis.  The lower cash costs in 2015 are mainly due to reasons described above.

Previous drilling from the surface at Kittila has outlined a significant zone of mineralization at Rimpi with potentially wider widths and better grades than those currently being mined.  The main underground ramp at Kittila is being extended to reach the Rimpi Zone and a new surface ramp is also being developed to access the shallower portions of the Rimpi deposit.  The surface ramp had advanced 715 metres to 119 metres depth by the end of June. 

In April, the Company announced that drilling had encountered a new parallel lens of mineralization approximately 1.3 kilometres below surface and 150 metres east of the main Kittila ore zone, within the sheared and altered structure that hosts the known Kittila deposits (see April 30, 2015 press release).  A recent hole in this area (ROU15-603) yielded 5.2 g/t gold (uncapped) over 13.3 metres (estimated true width) at approximately 975 metres below surface.  Further details on this intercept and the drill hole coordinates are set out in the tables below.

This latest intersection is located approximately 150 metres below the main exploration ramp being driven towards Rimpi and opens up the possibility that the up-dip extension of the new mineralized zone may be present at a similar elevation east of the ramp.  This new lens could provide additional tonnage should further drilling confirm the continuity of the mineralization. Additional drilling is underway, and a second underground deep drill rig is expected to start operating in the fourth quarter 2015 to test for extensions of the new parallel zone.

Recent exploration drill results from the Kittila mine

Kittila mine exploration drill collar coordinates

At the Kuotko deposit, located approximately 15 kilometres north of Kittila, drilling is ongoing to infill and expand the existing approximately 170,000 ounce inferred resource (1.8 million tonnes at 2.9 g/t gold).  Metallurgical testing is underway, and on completion of the drilling, studies will be carried out to assess the viability of mining the deposit as an open pit.  If the studies are positive, permit applications would then be expected to be submitted by the end of 2015.

Barsele Project – Joint Venture Transaction Completed Late Q2 2015

On June 11, 2015 , Agnico Eagle acquired a 55% interest in Orex Minerals Inc's (REX:TSX-V) Barsele project in Sweden .  The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study.

The Barsele property is known to contain intrusive-hosted gold mineralization and gold-rich volcanogenic massive sulphide mineralization. In 2015, the Company plans to spend approximately $3.25 million on exploration to further evaluate the mineral potential of the property.

NUNAVUT REGION

With the Company's largest producing mine (Meadowbank) and two significant development assets and exploration projects (Meliadine and Amaruq) located in Nunavut , Agnico Eagle has the potential to build an operating platform that could have the ability to generate strong production and cash flows over several decades.

Meadowbank – Mine Life Extended as Vault Pit Extension Approved

The 100% owned Meadowbank mine in Nunavut , northern Canada , achieved commercial production in March 2010 .

The Meadowbank mill processed an average of 11,199 tpd in the second quarter of 2015, compared to the 11,549 tpd achieved in the second quarter of 2014.  Year-over-year mill throughput levels were lower due to a higher percentage of Vault ore processed which has a higher hardness factor.

Minesite costs per tonne were approximately C$74 in the second quarter of 2015.  These costs were higher than the C$70 per tonne in the second quarter of 2014.  The higher costs per tonne were primarily due to lower throughput compared to the respective 2014 period.

For the first six months of 2015, the Meadowbank mill processed an average of 11,103 tpd, compared to 11,299 tpd in the first six months of 2014.  Minesite costs per tonne were approximately C$73 in the first six months of 2015, which was the same as the C$73 per tonne in the comparable 2014 period.

Payable production in the second quarter of 2015 was 91,276 ounces of gold at total cash costs per ounce on a by-product basis of $688 .  This compares with the second quarter of 2014 when 118,161 ounces were produced at total cash costs per ounce on a by-product basis of $563 .  The lower production and higher costs in the 2015 period compared to the 2014 period are primarily due to the processing of lower grade ore (down 18%) and lower recoveries (down 2.5%).

In the first six months of 2015, Meadowbank produced 179,799 ounces of gold at total cash costs per ounce of $672 on a by-product basis.  In the first six months of 2014 the mine produced 274,605 ounces of gold at total cash costs per ounce of $489 on a by-product basis.  The lower production and higher costs in the 2015 period compared to the previous period was a result of the final high grade ore from the Goose and Portage pits that was mined in the first quarter 2014.

In 2013, approximately 246,000 ounces were removed from mineral reserves at the Vault deposit due to a change in the gold price assumption used to calculate mineral reserves at December 31, 2013.   Given the current US dollar to Canadian dollar foreign exchange rate (which yields favourable revenues and costs in Canadian dollar terms), lower fuel costs, and the growing significance of the Amaruq Project, the Company has decided to proceed with the expansion of the Vault pit.  With the expansion, the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than originally forecast).  The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of production at a satellite operation at Amaruq (not yet approved for construction).

The Meadowbank production profile has been revised to reflect the need for additional waste stripping associated with the pit extension.  The revised production profile is shown below (ounces of gold):

The Meadowbank 2015 guidance for total cash costs per ounce of gold on a by-product basis is unchanged at $656 .  Meadowbank's average annual total cash costs per ounce of gold on a by-product basis for 2016 through 2018 are expected to be approximately $750 to $800 .

Including the revised Meadowbank production profile, the Company's average annual production for 2015 to 2017 is still expected to be approximately 1.6 million ounces.

The 2015 capital budget at Meadowbank has been increased by $27 million to reflect additional costs associated with developing the Vault extension (higher deferred stripping and the purchase of additional mining trucks).

Amaruq Project – Drilling Continues to Infill Whale Tail Zone; Positive Results at Mammoth Lake; Phase Two Exploration Program Underway

Agnico Eagle has a 100% interest in the Amaruq project in Nunavut , northern Canada .  The large property consists of 114,761 hectares of Inuit-owned and federal Crown land, located approximately 50 kilometres northwest of the Meadowbank mine.

The purpose of the 2015 winter and spring exploration program was to infill the Whale Tail zone from surface to 200 metres depth in order to convert inferred to indicated mineral resources at open pit depths, with some additional exploration drill holes as deep as 350 metres and drilling into geophysical (magnetic and electromagnetic) targets in the Mammoth Lake area.  The Company last reported exploration results from this project on June 9, 2015.   As of June 30 , the $16-million phase one 2015 drill program was complete with a total of 162 holes (48,081 metres).

Drilling Confirms and Expands Whale Tail Mineralized Zone

To date, the Whale Tail deposit has been defined over at least 1.2 kilometres of strike length between surface and 450 metres depth, suggesting potential for both open pit and underground mining. The deposit remains open at depth and along strike.

Recent work confirms that Whale Tail consists of multiple lenses of mineralization with a high-grade wide core.  Some of the most significant results include 10.2 g/t gold over 6.8 metres at 109 metres depth and 13.2 g/t gold over 14.3 metres at 133 metres depth (hole AMQ15-249). Hole AMQ15-236 intersected three lenses between 226 and 276 metres depth including 13.0 g/t gold over 7.1 metres at 276 metres depth.  Hole AMQ15-250 intersected three lenses: 13.9 g/t gold over 11.0 metres at 194 metres depth, 4.8 g/t gold over 6.5 metres at 219 metres depth, and 10.2 g/t gold over 9.8 metres at 279 metres depth.  Hole AMQ15-221 intersected two lenses below 300 metres depth including 7.3 g/t gold over 5.4 metres at 336 metres depth.

The deepest intercept to date on the property is in a structure north of Whale Tail (first described in the June 9, 2015 news release): hole AMQ15-234 intersected 8.8 g/t gold over 6.0 metres at 568 metres depth, almost 200 metres deeper than any previous intercept. Another intercept that may be associated with the same structure is between the east end of the Whale Tail zone and the R zone, where hole AMQ15-225 intersected 4.9 g/t gold over 3.9 metres at 164 metres depth.  This opens up a new exploration area that could potentially connect the Whale Tail deposit with the IVR deposit.

Positive Results from Initial Drill Holes at Mammoth Lake

The first drill results in the east part of Mammoth Lake area (located west of the Whale Tail zone) show mineralization between 50 and 300 metres depth that appears to connect with the Whale Tail deposit, possibly extending the strike length of the combined mineralization to approximately 2.0 kilometres.  In the extreme east part of Mammoth Lake, 600 metres west of the known Whale Tail zone, hole AMQ15-261 intersected 6.2 g/t gold over 11.3 metres at 74 metres depth.  Two hundred metres farther west, hole AMQ15-246 yielded two intercepts: 2.0 g/t gold over 8.8 metres at 248 metres depth and 6.8 g/t gold over 12.9 metres at 277 metres depth. As well, hole AMQ15-264 yielded 8.0 g/t gold over 8.4 metres at 195 metres depth.  Another 1,400 metres farther southwest on the west side of Mammoth Lake, hole AMQ15-226 intersected 13.3 g/t gold over 3.0 metres at 162 metres depth.

Recent drill intercepts from the Whale Tail zone and Mammoth Lake area are set out in the table below and the drill hole collars are located on the Amaruq project local geology map.  Pierce points are shown on the Whale Tail composite longitudinal section; the Mammoth Lake collar coordinates are given in a second table.  All intercepts reported for the Amaruq project show capped grades over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.

Recent exploration drill results from the Whale Tail (WT) deposit and the Mammoth Lake area, Amaruq project

* Holes at Amaruq use a capping factor of 60 g/t gold 

Amaruq project's Mammoth Lake area exploration drill collar coordinates

* Coordinate System UTM Nad 83 zone 14

Amaruq project local geology map

Amaruq project – Whale Tail composite longitudinal section

In February 2015 , the Company announced an initial inferred mineral resource containing 1.5 million ounces of gold (6.6 million tonnes at 7.07 g/t gold) at the Amaruq project, based on drilling from 2013 through October 2014.   An updated Amaruq mineral resource including initial indicated mineral resources is expected later this summer based on the drilling completed through the end of June.

The phase two exploration program, budgeted at approximately $15 million , is now underway.  This program, which is planned to include approximately 50,000 metres of drilling, prospecting, and geochemical sampling (soil, till, and rock), is expected to continue through August 2015.   The main objectives of the phase two program are:

• Step out drilling between the Mammoth Lake and Whale Tail areas to try and link the two zones together
• Continue drilling in the western part of Mammoth Lake with the objective of defining the extent (size) of this new discovery
• Drilling at IVR to test for a potential link with the Whale Tail zone and investigate continuity of mineralization at depth and long strike to the east where field work has identified coincident geophysical and geochemical anomalies
• Additional deep drilling at Whale Tail (at a depth of approximately 500 metres below surface)

The Company has also expanded the airborne geophysical (VTEM) coverage on the Amaruq project.  This year an additional 68,044 hectares were surveyed resulting in total coverage of approximately 81,000 hectares (approximately 71% of the Amaruq property).  Data from the VTEM survey is currently being reviewed with the intent of developing additional targets for evaluation.  Studies are ongoing to evaluate the potential to develop the Amaruq deposit as a satellite operation to Meadowbank.

Meliadine Project – Inuit Impact Benefit Agreement Signed and 2015 Budget Increased

The Meliadine gold project was acquired in July 2010 and is the Company's largest development project based on mineral reserves and mineral resources.  The Company has a 100% interest in the 111,757 hectare property, which is linked to the town of Rankin Inlet in Nunavut by a 25 kilometre all-weather access road.

On July 13, 2015 , the Kivalliq Inuit Association (KIA) and Agnico Eagle signed the Inuit Impact Benefit Agreement (IIBA) for the Meliadine gold project.  Through the IIBA both Agnico Eagle and the KIA are intent on ensuring that business opportunities, employment and training opportunities arising from this potential mine will benefit the Inuit of the Kivalliq Region.

The IIBA addresses protection of Inuit values, culture and language, protection of the land, water and wildlife and provides financial compensation to Inuit over the mine life.  In moving forward, Agnico Eagle and the KIA will work toward a rate of 50% Inuit employment.  With the signing of the Meliadine IIBA, the first financial payment from Agnico Eagle to KIA totaling C$1.5 million has been made.

On March 12, 2015 , the Company completed and filed with Canadian securities regulators an updated National Instrument 43-101 ("NI 43-101") technical report on the Meliadine gold project.  The updated technical study was based on extracting only the 3.3 million ounces of gold in proven and probable mineral reserves (13.9 million tonnes of ore at 7.44 g/t gold), which is all contained in the Tiriganiaq and Wesmeg deposits.

The Meliadine property also hosts 3.3 million ounces of measured and indicated mineral resources (20.2 million tonnes at 5.06 g/t gold), and 3.5 million ounces of inferred mineral resources (14.1 million tonnes at 7.65 g/t gold).  In addition, there are numerous other known gold occurrences in the 80 km long greenstone belt that require further evaluation.

Internal studies suggest that if the mine were to be developed there could be considerably more gold available to be added to the mine plan from the Tiriganiaq and Wesmeg/Normeg deposits, which could potentially extend the mine life, improve the project economics, and increase the after-tax internal rate of return ("IRR").  The Company is currently evaluating potential expanded production scenarios at Meliadine.

At the end of the second quarter 2015, the underground ramp had been advanced by 867 metres, and is now at a depth of approximately 275 metres below surface.  This year's plan calls for total underground development of approximately 2,500 metres.  This development will allow for more cost-effective exploration and conversion drilling of the deeper parts of the Tiriganiaq and Wesmeg/Normeg deposits and help to optimize potential mining plans.

The Company is currently studying options and alternatives in Nunavut to capitalize on the large and growing mineral resource base in the region and to maximize value.  In order to keep the Meliadine project on track for a potential late 2019 startup, the 2015 capital budget has been increased by $22 million .  The increased budget will be used to expand the existing surface and underground infrastructure and sealift additional equipment for the 2016 work program.

The timing of future capital expenditures on the Meliadine project beyond 2015 and the determination of whether to build a mine at Meliadine are subject to approval by Agnico Eagle's Board of Directors, prevailing market conditions and outcomes of the various potential scenarios being evaluated.

SOUTHERN BUSINESS OPERATING REVIEW

At present, Agnico Eagle's southern business operations are focused in Mexico .  These operations have been the source of growing precious metals production (gold and silver) with stable operating costs since 2009.

Pinos Altos – Strong Performance Driven by Lower Costs and Higher Throughput

The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009 .

The Pinos Altos mill processed 5,854 tpd in the second quarter of 2015, compared to 5,513 tpd processed in the second quarter of 2014.  During the second quarter of 2015, approximately 114,800 tonnes of ore were stacked on the leach pad at Pinos Altos , compared to 154,200 tonnes in the comparable 2014 period.  Minesite costs per tonne at Pinos Altos were $43 in the second quarter of 2015, slightly lower than the $46 in the second quarter of 2014.  The difference in minesite costs per tonne was largely attributable to variations in the proportion of heap leach ore to milled ore and open pit ore to underground ore, currency variations and routine fluctuations in the waste to ore stripping ratio in the open pit mines.

For the first six months of 2015, the Pinos Altos mill processed an average of 5,758 tpd, compared to 5,448 tpd processed in the first six months of 2014.  Approximately 189,200 tonnes of ore were stacked on the Pinos Altos leach pad during the first six months of 2015, compared to 293,300 tonnes in the prior year period.  Minesite costs per tonne were approximately $45 compared to $48 per tonne in the first six months of 2014 with variance due to the proportion of heap leach to mill ore and the proportion of underground ore to open pit, and variations in the proportion of waste to ore mined, and variations in the currency exchange rate.

Payable production in the second quarter of 2015 was 50,647 ounces of gold at a total cash costs per ounce on a by-product basis of $384 .  This compares with production of 43,978 ounces at total cash costs per ounce on a by-product basis of $516 in the second quarter of 2014.  Higher production in 2015 is largely due to higher throughput and higher grades processed over the comparable prior year period. The decrease in the year over year total cash costs per ounce is largely due to higher silver production (offset, in part by a decline in realized silver prices) and favourable foreign exchange rates compared to the prior year period.

In the first six months of 2015, Pinos Altos produced 100,753 ounces of gold at total cash costs per ounce of $371 on a by-product basis.  This is in contrast to the first six months of 2014 when the mine produced 89,195 ounces of gold at total cash costs per ounce of $498 on a by-product basis.  The lower cash costs in the first six months of 2015 are primarily due to favourable foreign exchange rates and higher silver production compared to the prior year period of 2014.

Site clearing and geotechnical studies have been completed for the Phase IV heap leach pad at Pinos Altos .  Engineering design work is in progress with completion expected by year-end 2015.

The Pinos Altos shaft sinking project remains on schedule for completion in 2016.  At the end of the second quarter of 2015, the shaft had reached a depth of approximately 573 metres, and development activities had commenced on level 28.  When the shaft is completed, it will allow better matching of the mill capacity with the future mining capacity at Pinos Altos once the open pit mining operation begins to wind down as planned over the next several years.

The Company continues to evaluate a number of regional satellite opportunities.  A 6,000 metre in-fill and conversion drill program on the Sinter deposit is 50% complete with the expectation to add this deposit to the Pinos Altos mine plan beginning in 2020.

Creston Mascota Deposit at Pinos Altos – Improved Ore Stacking in Q2 2015

The Creston Mascota deposit at Pinos Altos has been operating as a satellite operation to the Pinos Altos mine since late 2010.

Approximately 608,500 tonnes of ore were stacked on the Creston Mascota leach pad during the second quarter of 2015, compared to approximately 394,800 tonnes stacked in the second quarter of 2014.  In the 2015 period, additional ore was encountered outside the block model, which resulted in more tonnes at lower grades being stacked compared to the 2014 period.  Minesite costs per tonne at Creston Mascota were $11 in the second quarter of 2015, compared to $18 in the second quarter of 2014.  Costs in the 2015 period were lower due to currency fluctuations, a reduced stripping ratio, lower fuel consumption and reduced power requirements compared to the 2014 period.

For the first six months of 2015, approximately 1,135,500 tonnes of ore were stacked on the Creston Mascota leach pad, compared to 773,700 tonnes in the prior year period.

For the first six months of 2015, mine site costs per tonne at Creston Mascota were $11 , compared to $18 per tonne in the first six months of 2014.  Costs were lower in the 2015 period due to the reasons outlined above.

Payable gold production at Creston Mascota in the second quarter of 2015 was 15,606 ounces at a total cash costs per ounce on a by-product basis of $402 .  This compares to 11,159 ounces at a total cash costs per ounce on a by-product basis of $613 during the second quarter of 2014.  Production was higher in the 2015 period due to more tonnes stacked, compared to the 2014 period.  Cash costs were lower in the 2015 period based on lower minesite costs per tonne (see above), increased production and a favourable foreign exchange rate compared to the 2014 period.

Payable gold production for the first six months of 2015 was 28,054 ounces at a total cash costs per ounce of $421 on a by-product basis.  This compares to 21,476 ounces at a total cash costs per ounce of $606 on a by-product basis in the first six months of 2014.  The higher production and lower costs in the 2015 period are due to the reasons outlined above.

In April 2015 , higher grade mineralization was encountered at the bottom of the pit and outside the Creston Mascota block model.  Additional drilling is in progress to test for continuity of this mineralization, and results are currently being compiled.  In the second half of 2015, a 3,500 metre infill and conversion drill program is planned on the Bravo satellite zone which would offer the potential to extend the Creston Mascota mine life.

La India – Gold Production Exceeds Design Expectation as Growth Studies Continue

The La India mine property in Sonora, Mexico , located approximately 70 kilometres from the Company's Pinos Altos mine, was acquired in November 2011 through the purchase of Grayd Resources, which held a 56,000 hectare land position in the Mulatos Gold belt. Commissioning of the mine commenced ahead of schedule in the third quarter of 2013 and commercial production was declared as of February 1, 2014 .

Approximately 1,359,500 tonnes of ore were stacked on the La India leach pad during the second quarter of 2015, compared to approximately 1,137,500 tonnes stacked in the second quarter of 2014. Minesite costs per tonne at La India were $9 in the second quarter of 2015, compared to the $8 in the second quarter of 2014. Tonnage variation reflects the ramp up to design capacity and the increased minesite costs reflect normal variations in waste/ore stripping ratio.

In the first six months of 2015, approximately 2,738,000 tonnes of ore were stacked on the La India leach pad, compared to approximately 2,156,400 stacked in the first six months of 2014.  Minesite costs per tonne at La India were $9 in the first six months of 2015, compared to the $7 in the first six months of 2014.  The higher production and costs in the 2015 period are due to the reasons outlined above.

Payable gold production at La India in the second quarter of 2015 was 25,803 ounces at total cash costs per ounce of $410 on a by-product basis were.  Production in the second quarter of 2014 was 17,809 ounces at a total cash costs per ounce on a by-product basis of $443 .  Total cash costs in the 2015 period were favourably impacted by higher production volumes and favourable foreign exchange rates.

For the first six months of 2015, La India produced 52,326 ounces of gold at total cash costs per ounce of $414 on a by-product basis.  This compares to 28,017 ounces at a total cash costs per ounce of $437 on a by-product basis in the first six months of 2014.

During the quarter, approximately 40% of the earthworks had been completed on the second phase leach pad.  An additional contractor is being used to expedite the process.  This leach pad expansion will provide the capacity for the current planned life-of-mine production at La India and approximately 5.0 million tonnes of additional stacking.  Construction of the Main Zone haul road is 65% complete, with work expected to be finished late in the third quarter of 2015.

Block model reconciliation remains favourable.  Infill drilling and technical evaluations are underway to develop a more predictive model.  Drilling is expected to be completed later this fall, and the information is expected to be incorporated into the year-end 2015 mineral reserve and mineral resource estimates.

A re-logging program has been completed on holes drilled between 2004 and 2011 on the Main Zone and the La India Zone.  This resulted in the delineation of new geological domains containing gold bearing sulphide mineralization.  Preliminary metallurgical testing of this material indicates that some transition and sulphide mineralization at La India may be heap leachable.  Follow-up work is in progress with the potential to reassign some of the sulphide mineral inventory back into the mineral resource category.

El Barqueno – Soltoro Acquisition Further Consolidates Land Position, Drilling Continues with a Focus on Resource Delineation

The El Barqueno property in Jalisco State, Mexico now covers a land position of 41,112 hectares.  Exploration by previous operators outlined several mineralized zones through surface exploration and diamond drilling, which in comparison is larger than the strike length of the mineralized systems at both the La India and Pinos Altos properties combined.

In early June 2015 , Agnico Eagle completed the acquisition of Soltoro Ltd., which added more than 30,000 hectares of property in the Barqueno district in Jalisco state, including the El Rayo silver-gold project and the El Tecolote property that are contiguous with and to the east of Agnico Eagle's El Barqueno property.

The Company believes that the El Barqueno and surrounding properties have the potential to host significant gold-silver mineralization that could be developed as a combination open pit and underground mine with heap leach and/or mill processing facilities.

In the second quarter of 2015, 60 holes totaling approximately 12,714 metres were drilled at El Barqueno.  Work primarily focused on the Pena de Oro , Azteca-Zapoteca and Angostura zones.

At Pena de Oro , drilling has been on 80 metre by 80 metre centres along a one kilometre strike length.  The mineralization shows good continuity and remains open along strike and at depth.  At Azteca-Zapoteca, mineralization extends for over one kilometre along strike and is also open at depth and along strike.  The Company last reported results from these target areas on June 9, 2015 , and additional results from these zones are expected to be released in the third quarter of 2015.

The initial 2015 drill program was completed in June and a supplemental program has been approved to infill the mineralized areas as well as to test extensions to the known mineralization.  Metallurgical and mineralogical studies have been commissioned to further increase the understanding of the mineral resource potential.

An inferred/indicated mineral resource is expected to be completed by the end of the year for the Peña de Oro and Azteca-Zapoteca areas to open-pit mineable depths (surface to 200 metres depth).  The Angostura prospect is also being studied for a potential inferred mineral resource estimate by year-end.

An additional 10,000-metre reconnaissance drill program is being proposed to commence in the third quarter of the year.  The program will be designed to test other new high-priority targets outside the main deposits such as the Zapote , Poncho East and West, Esperanza and Falco areas defined last year and earlier this year using prospecting, geological mapping and sampling, and geochemical (stream sediment and soil surveys) and geophysical (magnetic, radiometrics, and electromagnetic) surveys.

Dividend Record and Payment Dates for the Third Quarter of 2015

Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.08 per common share, payable on September 15, 2015 to shareholders of record as of September 1, 2015.   Agnico Eagle has declared a cash dividend every year since 1983.

Other Expected Dividend and Record Dates for 2015

Dividend Reinvestment Plan

Please follow the link below for information on the Company's dividend reinvestment program.Dividend Reinvestment Plan

About Agnico Eagle

Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957.  Its eight mines are located in Canada , Finland and Mexico , with exploration and development activities in each of these countries as well as in the United States and Sweden . The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983. 

Note Regarding Certain Measures of Performance

This news release discloses certain measures, including ''total cash costs per ounce'' and ''minesite costs per tonne'', "all-in sustaining costs per ounce" and "adjusted net income" that are not recognized measures under IFRS.  These data may not be comparable to data presented by other gold producers.  For a reconciliation of these measures to the most directly comparable financial information presented in the consolidated financial statements prepared in accordance with IFRS and for an explanation of how management uses these measures, see "Reconciliation of Non-GAAP Financial Performance Measures" below.  The total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues).  The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced.  The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis except that no adjustment is made for by-product metal revenues.  Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.  The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company's mining operations.  Management also uses these measures to monitor the performance of the Company's mining operations.  As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash-generating capabilities at various gold prices.  All-in sustaining costs are used to show the full cost of gold production from current operations.  The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options) and reclamation expenses divided by the amount of gold produced.  The all-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis except that no adjustment is made for by-product metal revenues.  The Company's methodology for calculating all-in sustaining costs may not be similar to the methodology used by other producers that disclose all-in sustaining costs.  The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.  Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates, and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices.  Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS.

Management also performs sensitivity analyses in order to quantify the effects of fluctuating exchange rates and metal prices.  This news release also contains information as to estimated future total cash costs per ounce, all-in sustaining costs and minesite costs per tonne.  The estimates are based upon the total cash costs per ounce, all-in sustaining costs and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined.  It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.

Forward-Looking Statements

The information in this news release has been prepared as at July 29, 2015.   Certain statements contained in this document constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws and are referred to herein as "forward-looking statements".  When used in this document, the words "anticipate", "estimate", "expect", "forecast", "planned", "will" and similar expressions are intended to identify forward-looking statements.  Such statements include without limitation: the Company's forward-looking production guidance, including estimated ore grades, project timelines, drilling results, metal production, life of mine estimates, production, total cash costs per ounce, minesite costs per tonne, all-in sustaining costs and cash flows; the estimated timing and conclusions of technical reports and other studies; the methods by which ore will be extracted or processed; statements concerning expansion projects, recovery rates, mill throughput, and projected exploration expenditures, including costs and other estimates upon which such projections are based; estimates of depreciation expense, general and administrative expense and tax rates; the impact of maintenance shutdowns; statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future mineral reserves, mineral resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future mining costs, total cash costs, minesite costs, all-in sustaining costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's mine sites and statements and information regarding the sufficiency of the Company's cash resources and other statements and information regarding anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and the Company's Annual Information Form ("AIF") for the year ended December 31, 2104 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2014 ("Form 40-F") filed with the U.S. Securities and Exchange Commission (the "SEC") as well as: that there are no significant disruptions affecting operations; that production, permitting and expansion at each of Agnico Eagle's properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagle's expectations; that Agnico Eagle's current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Company's current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information.  Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company's stock price; and risks associated with the Company's by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the AIF and MD&A filed on SEDAR at www.sedar.com and included in the Form 40-F filed on EDGAR at www.sec.gov , as well as the Company's other filings with the Canadian securities regulators and the SEC.  Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.

Original Article: http://ir.agnicoeagle.com/English/investor-relations/news-releases/news-release-details/2015/Agnico-Eagle-Reports-Second-Quarter-2015-Results-Strong-Operational-Performance-Continues-Vault-Extension-and-Goldex-Deep-1-Approved-for-Production-Amaruq-Drilling-Infills-and-Expands-Scope-of-Mineralization/default.aspx