Agnico-Eagle Mines Limited -- Drilling Extends Laronde Deposit, Higher Gold Grades Encountered.

TORONTO--(BUSINESS WIRE)--Dec. 16, 1998--Agnico-Eagle Mines Limited (TSE:AGE) (ME:AGE) (NYSE:ARM) reports that the ongoing definition drilling program at the LaRonde Mine continues to increase the size of Zone 20 North.

In addition higher gold grades are being encountered in Zone 20 North. As a result, Agnico-Eagle is proceeding with a detailed study on increasing the production rate beyond the currently planned expansion rate of 3,600 tons per day. This study will review various production scenarios, construction scheduling and capital cost estimates.

"We are very encouraged by the recent drill results which demonstrate that the deposit at LaRonde continues to grow," says President and CEO Sean Boyd. "A larger deposit will likely have positive implications on any decision to increase the planned production rate at LaRonde," added Mr. Boyd.

Drilling from the 9th level (4,800 feet below surface) intersected Zone 20 North at a depth of 7,400 feet below surface (1,825 feet deeper than planned) and 1,560 feet west of Shaft No. 3. The drill hole encountered higher gold grades and it is the deepest economic intersection on the LaRonde property to date.

Three distinct zones were intersected with the following values:

Drill     True           Gold     Silver    Copper       Zinc
Hole    Thickness(ft)  (oz/ton)  (oz/ton)  (percent)   (percent)
----------------------------------------------------------------
3146-16    13.1          0.18      0.15        LV          LV

           26.2          0.22      1.25       0.79        0.09

            9.8          0.02      1.69       0.03       11.31

The previous deepest values were obtained in DDH 20-131A which averaged 0.15 ounces of gold per ton, 0.19 ounces of silver per ton, 0.32 percent copper over a true thickness of 27.9 feet and DDH 20-131H which intersected 0.13 ounces of gold per ton, 1.90 ounces of silver, 1.20 percent copper and 0.4 percent zinc over a true thickness of 60.7 feet. Both of these holes crossed Zone 20 North at a depth of 7,050 feet. The newest intersection is 350 feet deeper than DDH 20-131A and 650 feet to the west of DDH 20-131H. This latest deep drill hole result has the following implications:

1. Drilling has now traced Zone 20 North over a vertical distance of 5,100 feet. The zone is still open at depth and to the west.

2. The occurrence of a zone of gold mineralization within a footwall zone of 20 percent massive pyrite stringers and without accompanying copper mineralization has previously not been encountered within Zone 20 North. This is an entirely new occurrence.

3. The intersection continues to confirm the trend of silver/zinc mineralization on the upper horizons of Zone 20 North, grading to gold/copper mineralization at depth. The gold values within the 26.2-foot intersection were hosted by massive pyrite mineralization and were higher in grade than those previously encountered in Zone 20 North. The gold values within the intersection varied from a low of 0.15 ounces of gold per ton to a high of 0.39 ounces per ton. Similarly, the copper values ranged from a low of 0.2 percent to a high of 2.1 percent.

4. The drill hole will increase Zone 20 North's mineral resource total. The ore reserve and mineral resource will be recalculated upon completion of the 10th and 11th level drilling expected in February 1999.

Other definition drilling also continues to be encouraging. Four machines are currently active, drilling on the 7th, 8th and 10th levels. Some of the latest results from Zone 20 North are outlined below.

Drill              Width    Gold   Silver   Copper     Zinc
Hole                (ft)  (oz/ton) (oz/ton)(percent) (percent)
--------------------------------------------------------------
25-95(7th level)    15.7    0.38    4.80     0.33     3.10
3134-20(8th level)  60.4    0.03    3.00     0.02     8.40
3160-02(10th level) 19.7    0.13    4.94     0.80     9.70
                    39.4    0.02    1.39     0.01     6.97

As a result of the recent drilling success at depth, further deep drilling will be conducted from the 10th level (5,300 feet below surface) to test the area to the west and down plunge of drill hole 3146-16. A fifth drill is being mobilized to begin the definition drilling program on the 11th level (5,580 feet below surface). All of the above drilling will be incorporated in a revised ore reserve calculation, which is expected to be released in February 1999.

An updated longitudinal section of Zone 20 North, which highlights the aforementioned drill intercepts, can be viewed and downloaded from the following websites: www.agnico-eagle.com or www2.cdn-news.com/database/fax/1998/981216age.jpg