Agnico-Eagle Mines LimitedAnnual General Meeting

May 12, 2006

2

The information in this press release has been prepared as at May 11, 2006. Certain statements contained in this press release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. When used in this document, the words “anticipate”, “expect”, “estimate,” “forecast,” “planned” and similar expressions are intended to identify forward-looking statements.

Such statements include, without limitation: estimates of future mineral production and sales; estimates of future production costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs; statements as to the projected development of certain ore deposits, including estimates of exploration, development and other capital costs, and estimates of the timing of such development or decisions with respect to such development; estimates of reserves and resources, and statements regarding anticipated future exploration and feasibility study results; the anticipated timing of events with respect to the Company’s minesites, the anticipated timing of events with respect to the Company’s acquisition of the Pinos Altos property; and other statements regarding anticipated trends with respect to the Company’s capital resources and results of operations. Such statements reflect the Company’s views as at the date this press release was prepared and are subject to certain risks, uncertainties and assumptions. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to: the Company’s dependence upon its LaRonde mine for all of its current gold production; uncertainty of mineral reserve, mineral resource, mineral grade and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; gold and other metals price volatility; currency fluctuations; mining risks; and governmental and environmental regulation. For a more detailed discussion of such risks and other factors, see Company’s Annual Information Form and Annual Report on Form 20-F for the year ended December 31, 2005, as well as the Company’s other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Certain of the foregoing statements, primarily related to projects, are based on preliminary views of the Company with respect to, among other things, grade, tonnage, processing, mining methods, capital costs, and location of surface infrastructure and actualresults and final decisions may be quite different from those currently anticipated.

FORWARD LOOKING STATEMENT

3

CORPORATE STRATEGY

Potential to triple gold production by 2009

Growing gold reserves – now over 10 million ounces

Maintain a conservative and strong balance sheet

Fund existing projects while minimizing shareholder dilution

Keep full participation in rising precious metal prices

Building Value Through Production And Reserve Growth

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CORPORATE HIGHLIGHTS

Record quarterly revenue of $90.6 million

Record low total cash costs of minus $241 per ounce

Record quarterly earnings of $37.2 million or $0.35 per share

Cash position increased by $34 million to $155 million

Newest member of S&P/TSX 60 index

Another Quarter of Record Performance

5

0

2000

4000

6000

8000

10000

12000

14000

16000

1998 1999 2000 2001 2002 2003 2004 2005 2006F 2007F

Targeting additional reserve conversion at Pinos Altos and Suurikuusikko in 2006 and 2007

AEM’s gold reserves are significantly larger than its intermediate gold producing peers

GOLD RESERVES

Anticipating Further Strong Growth In Reserves

3.0 3.3 3.34.0

10.4

7.97.9

1.3

Target14 to 15

Total Agnico-Eagle Reserves (Millions of Ounces)

1999 2000 2001 2002 2003 2004 20051998

LaRonde

Goldex

Lapa

Suurikuusikko

2008 Est.

6

OPERATING RESULTS

Record Low Total Cash Costs

Gold (ounces) 64,235 55,310

Silver (ounces in thousands) 1,227 1,097

Zinc (tonnes) 18,462 18,661

Copper (tonnes) 2,053 1,810

Minesite costs per tonne (C$) $ 57 $ 53

Total cash costs ($/oz) $ (241) $ 67

Q12006

Q12005

All amounts are in US$, unless otherwise indicated

$(241)

Total Cash Costs($/oz)

$188$155

$182

$43$56

$269

2000 2001 2002 2003 2004 2005 Q1 2006

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FINANCIAL RESULTS

Record Earnings

Revenues from mining operations (millions) $ 90.6 $ 61.8

Earnings (millions) $ 37.2 $ 10.4

Earnings per share $ 0.35 $ 0.12

Q12006

Q12005

All amounts are in US$, unless otherwise indicated

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0

10

20

30

40

50

60

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Q12004

Q22004

Q32004

Q42004

Q12005

Q22005

Q32005

Q42005

Q12006

STEADY PERFORMANCE FROM LARONDE MINE

LaRonde is a Strong Foundation For Growth

Minesite Costs per Tonne Milled (C$) Tonnes per Day – LaRonde

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FULL YEAR 2006 - FORECAST

LaRonde is a Strong Foundation For Growth

Tonnes per day 7,300

Payable production: Au (ounces) 250,000

Ag (ounces in thousands) 5,700

Cu (tonnes) 9,100

Zn (tonnes) 72,500

Minesite costs / tonne (C$) $56-$58

Total cash costs / oz (US$)* Less than $0.00

* At current prices

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FINANCIAL POSITION

Increased Financial Strength

Cash and cash equivalents (millions) $ 155 $ 121

Long term debt (millions) $ nil $ 131

Common shares outstanding (millions) 111.4 97.8

Available bank lines (millions) $ 150 $ 150

March 312006

December 312005

All amounts are in US$, unless otherwise indicated

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Building Gold Productionand Reserves

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FinlandSuurikuusikko

U.S.A.Nevada

MexicoPinos Altos

CanadaToronto, HQ

CanadaLaRonde, Goldex & Lapa

GLOBAL GROWTH

Each project region has mining camp potential

Growth projects well matched to our technical skills

Excellent infrastructure nearby

Large property positions & database – open for expansion

Largest exploration budget in company history – $16 million

Extensive Gold Growth Pipeline

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0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2006 2007 2008 2009 2010 2011 2012 20130

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2006 2007 2008 2009 2010 2011 2012 2013

QUEBEC GOLD PRODUCTION GROWTH

More Growth to Come From Finland and Mexico

LaRonde Goldex LaRonde II Lapa

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LARONDE II

Gold reserves of 19.2 million tonnes at 6.0 g/t, or 3.6 million ounces

Planned operation of 6,000 tonnes per day, maximizing existing infrastructure

Average annual gold production of 320,000 oz/year at total cash costs of approximately $230/oz

Initial production startup expected in 2011

Long Life Gold Reserves – Under Construction

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LARONDE II

Base case IRR 13.3% after tax

Assumes $450 gold, $1.40 copper, $0.55 zinc, $6.50 silver, 1.25 C$/US$

Positive IRR at gold prices below $350 per ounce

Capital cost $210 million – expected start-up 2011

Ongoing sustaining capital of $10 million to $12 million per annum

Funded from existing cash and cash flows

Long Life Gold Reserves – Under Construction

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GOLDEX MINE

Gold reserves of 1.6 million ounces – deposit remains open

Base case IRR 15% after tax, $400 gold, 1.30 C$/US$

Underground and surface construction in progress

Capital cost $135 million– expected start-up H2, 2008

Estimated average annual production of 170,000 oz at total cash costs of approximately $200/oz

New Gold Mine Under Construction

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AdditionalPotential

CurrentReserves

Shaft depth over 700 m

MineralResource

Phase 1Phase 2

1,500 metres from

surface

LAPA

Gold reserves of 1.2 million oz

Grade upside exists. Uncut grade 12.0 g/tvs. 8.9 g/t cut

Ore exposed on Level 69

Sampling and grade validation in progress

Definition drilling completed on upper part of contact zone

Additional $80 million to reach full production – shaft to 1,300 metre depth

Acceleration of shaft and mine construction being considered

Estimated production in mid to late 2008 – averaging 125,000 oz/year

$30 Million Underground Program in Progress

Level 69Zone Exposed

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SUURIKUUSIKKO PROJECT - FINLAND

Potential to be Europe’s Largest Gold Mine

Feasibility study complete, production decision anticipated June, 2006

Senior management and construction team in place

Map source: GTK, geological survey of Finland

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SUURIKUUSIKKO PROJECT

Shear hosted disseminated gold deposit

Explored 5 km or 1/3 of strike length

Drilled to only 800 metre depth

2006 exploration budget $5 million

Large Gold Reserve And Resource Open For Expansion

Probable Reserve 5.3 13.8 2.32

Measured Resource 3.8 0.2 0.02

Indicated Resource 4.2 1.7 0.23

Inferred Resource 4.4 6.7 0.93

Gradeg/t

Tonnes(millions)

Ounces(millions)

Reserves

Resources

Approx. Open Pit Outline

WEST CORRIDOR

Ketola Etelä Main West Zone

665 mUnexplored

Unexplored

4.0 km

EAST CORRIDOR

Main East ZoneCentral Rouravaara

785 m

Northern Rouravaara

Unexplored

UnexploredUnexplored Unexplored

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PINOS ALTOS – MEXICO

Indicated gold resource of 12.5 million tonnes at 3.9 g/t, or 1.6 million oz

Inferred gold resource of 3.2 million tonnes at 5.2 g/t, or 0.5 million oz

Indicated silver resource of 12.5 million tons at 102 g/t, or 41.0 million oz

Inferred silver resource of 3.2 million tons at 111 g/t, or 11.6 million oz

Growing Gold and Silver Resource

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Feasibility study complete by Q2, 2007

Contemplating 3,000 tonne per day operation via open pit and underground

Senior management in place

Estimated capex $150 million

PA-05-52

PA-05-39

PA-05-81PA-05-39A

PA-05-77 PA-05-64

PA-05-53 PA-05-40

PA-05-80

SN1925-53

SN1925-58

PA-05-79A

Santo Niño

Cerro Colorado

Oberon de WeberEl Apache

N60°Looking NE

N70°Looking NE

E-W Looking N

OPENOPENOPEN

PA-05-49

Au eq*width(ppm*m)

<55 – 1010 – 2525 – 50> 50

Previously Released

Drillhole in Progress

New Results

Growing Gold and Silver Resource

PINOS ALTOS – MEXICO

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TIMELINE AND UPCOMING NEWS

June 2006Lapa bankable feasibility study – third party review completed

Suurikuusikko bankable feasibility study - third party review completed

Suurikuusikko site visit – June 13-15

July 2006

Second quarter financial and operating results July 26 after market close

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INVESTMENT HIGHLIGHTS

LaRonde generating record earnings and cash flows

Four growth projects have potential to triple gold production by 2009

Existing projects provide potential to increase gold reserves to 14 million to 15 million ounces by 2008

Highest exploration budget in Company history - $16 million

Early Stages of Growth Story – Potential Increase In Valuation Multiple

-100%

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400%

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600%

Jan06Jan05

Share Price - AEM vs HUI Gold Index

HUI

AEM

Jan04Jan03Jan02

Agnico-Eagle Mines Limited

Executive and Registered Office:

145 King Street East, Suite 500Toronto, Ontario, Canada, M5C 2Y7

Tel: 416-947-1212Toll-Free: 888-822-6714 Fax: 416-367-4681

Email: info@agnico-eagle.comWeb: www.agnico-eagle.com

Trading Symbols: AEM / TSX & NYSEWarrants: TSX: AEM.WT.U / NASDAQ: AEMLW

Sean BoydVice Chairman and Chief Executive Officer

Ebe ScherkusPresident and Chief Operating Officer

David GarofaloVice President, Finance and Chief Financial Officer

Investor Relations Contact:David Smith – Director, Investor Relations