AGNICO-EAGLE REPORTS Q2 2009 RESULTS;
RECORD QUARTERLY GOLD PRODUCTION;
COMMERCIAL PRODUCTION ACHIEVED AT LAPA AND KITTILA MINES;
EXPANSION PROJECTS APPROVED AT GOLDEX AND PINOS ALTOS

Stock Symbol: AEM (NYSE and TSX) 
(All amounts expressed in U.S. dollars unless otherwise noted)

Toronto (July 29, 2009) � Agnico-Eagle Mines Limited ("Agnico-Eagle" or the �Company�) today reported quarterly net income of $1.2 million, or $0.01 per share, for the second quarter of 2009.  This result includes a non-cash foreign currency translation loss of $16.7 million, or $0.12 per share, as well as a stock option expense of $5.0 million, or $0.03 per share.  In the second quarter of 2008, the Company reported net income of $8.3 million, or $0.06 per share.  Excluding these non-cash items, net income increased significantly when compared to the second quarter of 2008 due to a large increase in gold revenue. 

Cash provided by operating activities in the second quarter of 2009 was $26.4 million, down from cash provided by operating activities of $92.8 million in the second quarter of 2008. The impact of significantly higher gold production, compared to the second quarter of 2008, was more than offset by changes in working capital largely related to a build-up of gold in inventory.  Excluding the large changes in working capital movements, cash provided by operating activities increased significantly when compared to the second quarter of 2008 due to the large growth in gold revenue.

�Agnico-Eagle�s production growth continues as second quarter gold production increased 76% over the second quarter of 2008.  Both the Kittila and Lapa mines achieved commercial production, while heap leach gold production at the Pinos Altos mine has commenced.  Furthermore, our Meadowbank project continues to remain on schedule for Q1 2010 start up.�, said Sean Boyd, Vice-Chairman and Chief Executive Officer.  �As we optimize our existing asset base we have approved expansions at the Goldex and Pinos Altos mines.  Agnico-Eagle remains one of the most compelling growth stories in the gold business.  Additionally, over the next several quarters we expect to release the results of two more expansion studies, at Meadowbank and Kittila, further adding to our production growth beyond 2010�, added Mr. Boyd.

Second quarter 2009 highlights include:

• Record Production � record gold production of 119,053 ounces.  First gold poured at Pinos Altos in July
• Good Cost Performance � LaRonde, Goldex and Lapa achieve good minesite cost performance
• Commercial Production At Lapa And Kittila � commercial production achieved as of May 1 at both mines
• Remaining Two New Gold Mines On Schedule � Pinos Altos and Meadowbank remain on schedule for initial production in third quarter 2009 and first quarter 2010, respectively
• Growth profile bolstered � expected after-tax internal rate of return (�IRR�) of 76% at Goldex expansion and 17% at Pinos Altos expansion at Creston Mascota

Payable gold production  in the second quarter of 2009 was a record 119,053 ounces at total cash costs per ounce  of $326.  This compares with gold production of 67,757 ounces in the second quarter of 2008 at total cash costs per ounce of $113. 

The increase in production, relative to the second quarter of 2008, is attributable to payable production from the Goldex, Lapa and Kittila mines, which were not in commercial production in that quarter.  The mill recovery rates at the Kittila mine have been increasing, resulting in commercial production being achieved in May.

For the first six months of 2009, Agnico-Eagle recorded net income of $55.6 million, or $0.36 per share, up from the $37.3 million, or $0.26 per share, recorded in the first half of 2008.  The increase in net income is primarily due to 78% higher gold production in 2009 due to the opening of new mines, somewhat offset by lower byproduct prices for zinc, silver and copper. 

For the first six months of 2009, Agnico-Eagle generated cash provided by operating activities of $75.2 million, down from $146.6 million in the first half of 2008.  The decrease was largely due to changes in working capital related to the build-up of gold in inventory.  Excluding these working capital changes, cash provided by operating activities increased when compared to the first half of 2008 due to increased gold revenues, offset partly by lower byproduct revenue.

Payable gold production in the first half of 2009 was a record 210,864 ounces, up 78% from 118,649 in the first six months of 2008.  The increase was due to the start-up of the new Goldex, Kittila and Lapa mines.

Full year production guidance remains unchanged at 550,000 ounces to 575,000 ounces of gold.

Conference Call  Tomorrow

The Company will host its quarterly conference call on Thursday, July 30, 2009 at 11:00 a.m. (E.D.T.).  Management will review the Company�s financial results for the second quarter 2009 and provide an update of its exploration and development activities.

Via Webcast:
A live audio webcast of the call will be available on the Company�s website homepage at www.agnico-eagle.com. 

Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3418 or Toll Free 1-800-731-6941. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call. 

Replay archive:
Please dial the toll-free access number 1-877-289-8525, passcode 21294138#.
The conference call will be replayed from Thursday, July 30, 2009 at 1:00 PM (E.D.T.) to Thursday, August 6, 2009 11:59 PM (E.D.T.). 

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

THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS. TO VIEW FULL DOCUMENT, PLEASE CLICK HERE.

About Agnico-Eagle

Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the United States.  Agnico-Eagle's LaRonde mine is Canada's largest operating gold mine in terms of reserves.  The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales.  It has paid a cash dividend for 27 consecutive years.

For further information:

Investor Relations
(416) 947-1212

or

Renmark Financial Communications Inc.
John Boidman: jboidman@renmarkfinancial.com
Henri Perron: hperron@renmarkfinancial.com
Media - Vanessa Napoli: vnapoli@renmarkfinancial.com
or Fran�o is Tr�panier: ftrepanier@renmarkfinancial.com
Tel.: 416-644-2020 or 514-939-3989
www.renmarkfinancial.com