(All amounts expressed in U.S. dollars unless otherwise noted)

AGNICO-EAGLE REPORTS SECOND QUARTER 2008 RESULTS

Toronto (July 23, 2008) � Agnico-Eagle Mines Limited (TSX: AEM / NYSE: AEM) ("Agnico-Eagle" or the �Company�) today reported quarterly net income of $8.3 million, or $0.06 per share for the second quarter of 2008.  This result includes a non-cash foreign currency translation loss of $1.2 million, or $0.01 per share.  Additionally, the non-cash stock option expense totaled $2.6 million, or $0.02 per share in the second quarter.  In the second quarter of 2007, the Company reported net income of $37.8 million, or $0.28 per share.  The reduction in net income was almost entirely due to the 56% decrease in the realized price of zinc, combined with a 7% decrease in zinc sales due to lower production, compared to the second quarter of 2007.  The decline in zinc production during the quarter is due to the focus of mining on the lower mine at LaRonde where the ore is more gold/copper rich and has lower zinc grades.

Second quarter 2008 cash provided by operating activities increased to $92.8 million from $79.8 million in the second quarter of 2007, largely due changes in working capital.

Second quarter 2008 highlights include:

• Strong Operating Results � good metal output and cost control contributed to solid operating earnings and strong cash flow at LaRonde from 59,452 ounces of gold
• Low Costs - Low total cash costs per ounce  at LaRonde of $113.  Excellent cost control at LaRonde with C$68 minesite costs per tonne 
• Progress On Gold Production Growth � new Goldex mine is now operating and approaching commercial production.  Kittila gold mine project preparing to open in the fourth quarter 2008 
• Expanding Gold Deposits � preliminary exploration results demonstrate the potential to continue to grow the gold deposits at Kittila, Pinos Altos and Meadowbank.  Scoping studies are underway on potential expansions at these sites and also on the recently opened Goldex mine 
• Health and Safety Excellence � the LaRonde team won the Quebec mine rescue competition for an unprecedented 4th year in a row

Payable gold production  in the second quarter of 2008 was 59,452 ounces (67,757 ounces including 8,305 ounces poured at Goldex during its commissioning) at total cash costs per ounce of $113.  This compares with payable gold production of 56,392 ounces, at total cash costs per ounce of minus $699, in the second quarter of 2007.  The increase in production was largely due to higher gold grades mined at LaRonde.  However, the total cash costs were significantly higher in the 2008 period as a result of much lower prices realized for zinc, combined with lower zinc grades mined at LaRonde. 

For the full year, gold production from LaRonde, Goldex and Kittila is now forecast to total 300,000 ounces to 320,000 ounces.  While LaRonde is operating slightly ahead of plan, the production ramp-up at Goldex has been slower than expected due to the slower than expected commissioning of the production hoist.  Also, delays in exotic piping delivery and some mechanical and electrical installations in the Kittila mill are expected to push start-up to the fourth quarter rather than September, as previously projected.

�Strong operational results were achieved once again this quarter from our LaRonde operation where gold output is ahead of forecast and operating costs are on budget.  With the new Goldex mine expected to reach commercial production in the third quarter and our new Kittila mine expected to open in the fourth quarter, we anticipate seeing improving financial results over the next several quarters�, said Sean Boyd, Vice-Chairman and Chief Executive Officer.  �However, the Company is not immune to the cost pressures being experienced throughout the mining industry.  The continued strength of the Canadian dollar and the Euro, combined with cost pressures for contract services, fuel, steel, cement and reagents are leading to higher estimates for capital and operating costs at our mines.  A normal course review is underway with revised estimates to be provided before year end�, added Mr. Boyd.

The Company is undertaking its annual life of mine planning exercise based on its most recently published mineral reserves (February 2008).  The results are expected to be released in the fourth quarter of 2008.  At current currency exchange rates and considering industry-wide cost escalation, capital expenditures over the 2008 to 2010 period could be approximately 40% over the estimates provided in Agnico-Eagle�s press release of December 10, 2007.  Of this potential increase, approximately 40% would be attributable to the difference in currently prevailing exchange rates, versus the three year trailing average rates that were used in the 2007 forecast.  The other 60% would be due to increases in fuel, steel, cement, chemical reagents, engineering and contractor costs, as experienced industry wide. 

The Company is also studying several internal growth opportunities that could add further value to the asset base through increases to the gold production profile.  These include scoping studies on the large underground gold resource below Meadowbank�s Goose Island pit, the potential for expansion of the Pinos Altos reserves at depth and to the west of the Santo Nino pit, the 0.4 million ounce gold inferred resource at the Creston Mascota deposit (near Pinos Altos), and the deep underground mineralization at Kittila, which is currently being delineated.  Each of these deposits remains open for further expansion.  Additionally, the Company is already examining options to increase the production rate at its new Goldex mine.

�With several of our key gold deposits increasing in size, additional production growth is possible beginning in 2010.  The internal growth opportunities, combined with a conservative and measured approach to acquisitions will allow us to  steadily build per share value while maintaining a low political risk profile� said Mr. Boyd.

For the first six months of 2008, net income was $37.3 million, or $0.26 per share versus $62.7 million, or $0.49 per share, in the first six months of 2007.  The decrease was largely due to 35% lower zinc prices between the comparative periods.

For the first six months of 2008, cash provided by operating activities was $146.6 million, up from $135.9 million in the first half of 2007.  The increase was largely due to changes in working capital.

Conference Call Tomorrow

The Company will host its quarterly conference call on Thursday, July 24, 2008 at 11:00 a.m. (E.D.T.).  Management will review the Company�s financial results for the second quarter 2008 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 416-644-3415 or Toll Free 1-800-732-9307.  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 21276635#.
The conference call will be replayed from Thursday, July 24, 2008 at 1:30 PM (E.D.T.) to Thursday, July 31, 2008 11:59 PM (E.D.T.). 

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

LaRonde Mine - Strong Production and Cost Control Performance Continues

The LaRonde mill processed an average of 7,281 tonnes of ore per day in the second quarter of 2008, compared with an average of 7,470 tonnes per day in the second quarter of 2007.  LaRonde has now been operating at an average of more than 7,300 tonnes per day for more than four and a half years, continuing to demonstrate the reliability of this world class mine.

Minesite costs per tonne were C$68 in the second quarter.  These costs are slightly lower than the C$71 per tonne experienced in the second quarter of 2007, largely due to the benefit of the accelerated lateral development which was completed over the past year.

For the first six months of 2008, the minesite costs per tonne were on plan at C$66, as compared to the first six months of 2007 when the minesite costs per tonne were $67.  The slightly lower cost is largely due to the benefit of the accelerated lateral development, as discussed above.  

On a per ounce basis, net of byproduct credits, LaRonde�s total cash costs per ounce remained very low by industry standards, at $113 in the second quarter.  This compares with the results of the second quarter of 2007 when total cash costs per ounce were minus $699.  The increase in total cash costs is due to much lower byproduct revenues resulting mainly from lower realized prices, and payable production, for zinc.  Zinc production was lower due to the ongoing transition to the lower mine where the gold/copper grades are higher and the zinc/silver grades tend to be lower.

For the first six months of 2008, LaRonde�s total cash costs per ounce were minus $123, as compared to the first half of 2007 when the total cash costs per ounce were minus $490.  The higher costs were largely due to lower byproduct revenues, as discussed above.

Additionally, commercial lead concentrate from the new mill circuit was produced for the first time in May.

Cash Position Remains Strong, Despite Large Investments in Gold Growth; Advanced Negotiations on Larger Bank Facility

Cash and cash equivalents decreased to approximately $150.0 million at June 30, 2008 from the March 31, 2008 balance of $294.4 million.  As expected, all of the Company�s operating cash flow and a portion of its existing cash balances were reinvested in its gold growth projects.  During the quarter, Agnico-Eagle added $92.8 million of cash provided by operating activities.  Capital expenditures in the quarter totaled $266.6 million, including $67.2 million on the construction of Meadowbank, $18.7 million on Goldex, $66.7 million at Kittila, $10.6 million on the LaRonde Extension, $72.6 million at Pinos Altos and $20.5 million at Lapa.

In addition, during the second quarter, a $50 million strategic investment was made in Gold Eagle Mines Ltd.   Also, in the second quarter, the Company drew $75 million under its credit facility to help fund its growth investments.

To help maintain a conservative financial profile and superior liquidity, the Company is in advanced negotiations regarding the possibility of increasing the size of its bank credit facilities.  The current facility is $300 million with only $75 million drawn at June 30, 2008.

New Goldex Mine Now Operating; Four More New Gold Mines Under Construction

At the 100% owned Goldex mine in northwestern Quebec, proven and probable reserves are 1.6 million ounces of gold (23.1 million tonnes grading 2.2 grams per tonne).  Current reserves are estimated to be sufficient for a nine year mine life with expected annual production averaging 175,000 ounces.  With a large additional resource, the mine remains open for expansion.  Please see the table titled �Detailed Mineral Reserve and Resource Data � December 31, 2007� later in this press release for further detail.

The initial ore was fed into the Goldex mill in the third week of April and commercial production (70% capacity for 30 consecutive days) is expected to be declared in the third quarter.  Approximately 8,300 ounces of gold were poured during the second quarter.  The full production rate of 6,900 tonnes per day is expected by the fourth quarter 2008. 

A total of 38,659 metres of production drilling, representing 0.9 million tonnes of ore, were completed during the second quarter.  According to plan, a total of 1.4 million tonnes have been drilled so far in 2008.  Approximately 130,000 tonnes of ore are broken underground.   

Largely due to the slower than expected commissioning of the production hoist, the underground operation at Goldex has been slower to ramp-up than previously expected.  As a result, 2008 production at Goldex is now expected to total 60,000 ounces to 70,000 ounces rather than the previously expected 90,000 ounces. 

Construction commenced at the 100% owned Kittila mine project in northern Finland in the second quarter of 2006.  The project is expected to produce an average of 150,000 ounces of gold per year over its estimated mine life of 13 years.  Initial start-up is expected in the fourth quarter.  Kittila has probable gold reserves of 3.0 million ounces (18.2 million tonnes grading 5.1 grams per tonne). 

During the second quarter, an amended environmental permit was received.  Kittila now has all the necessary permits to construct and operate the mine.

Pit blasts in ore began in May.  At June 30, 2008, the ore stockpiles totaled 62,000 tonnes with average grade of 4.7 grams of gold per tonne.

The construction of the processing plant is ongoing.  During the quarter the focus was on electrical, piping and the lining of the autoclave.  The oxygen plant for the autoclave is complete, while  SAG mill installation is nearing completion.

A delay in start-up of Kittila is now anticipated.  This is due to slower than expected progress in the mill as a result of later than anticipated equipment deliveries and installation.  Gold production in 2008 is now expected to be 20,000 ounces to 30,000 ounces rather than the previous estimate of 50,000 ounces.

Considering the growth in reserves and resources to date, the Company has begun to contemplate future increases to the production rate and also methods to access the deeper mineralization at Kittila.  An exploration update, with the main focus on Kittila, is expected this quarter. 
 
At the 100% owned Lapa mine project in northwestern Quebec, the final phase of construction commenced in the second quarter of 2006.  Proven and probable gold reserves of 1.1 million ounces (3.8 million tonnes grading 8.9 grams per tonne) are expected to support estimated annual production of 125,000 ounces per year over an anticipated mine life of seven years. 

Lateral and vertical raise development is well underway with a lateral advance of more than 1,800 metres, and raise development of 1,385 metres completed during the second quarter.  Construction of the surface service facilities is proceeding well.  Initial production from Lapa is expected to begin in mid-2009.

At the 100% owned LaRonde mine in northwestern Quebec, construction commenced in the second quarter of 2006 on the new infrastructure to access the deep ore (the LaRonde Extension).  Proven and probable reserves of 5.0 million ounces (34.9 million tonnes grading 4.4 grams per tonne) are expected to support a mine life through 2021.  Annual gold production is anticipated to average 340,000 ounces over the remaining 14 year mine life, with the LaRonde Extension beginning production in 2011. 

During the second quarter, sinking of the internal shaft for the Extension began.  As planned, approximately 80 metres of advance was achieved.  Also, the fresh air intake at Level 218 and the exhaust raise excavation were started during the period.

At the 100% owned Pinos Altos mine project in northern Mexico, the property has probable gold reserves of 2.5 million ounces (24.7 million tonnes grading 3.2 grams per tonne).  Additionally, the property contains a large silver reserve of over 73.1 million ounces (from the same 24.7 million tonnes grading 92.2 grams per tonne).  The project was approved for construction in August 2007.  Average annual production is expected to be approximately 190,000 ounces of gold over an estimated 12 year mine life with start-up expected in the third quarter of 2009.

A new land and royalty agreement was finalized with the Pinos Altos landowner in May 2008. 

Project construction is underway.  Open pit stripping has commenced and had achieved the planned rate of 25,000 tonnes per day by the end of the second quarter.  Construction of the processing plant is expected to begin in September.

The construction of a 2,800 metre underground exploration ramp commenced in March 2007 and has advanced approximately 1,400 metres.  Additionally, the development of the production decline has advanced approximately 650 metres.

Three surface exploration drills and two underground exploration drills are currently operating at Pinos Altos.  Preliminary results of this program are planned to be released in the third quarter.  Based on the results obtained to date, there is good potential for expanding reserves at depth and along strike to the west of the Santo Nino pit.

Exploration drilling also continues on the Creston/Mascota area.  This region, approximately 10 kilometres northwest of the main Santo Nino deposit at Pinos Altos, currently has an inferred gold resource of 7.7 million tonnes grading 1.4 grams per tonne gold and 16.2 grams per tonne silver.   The resource could possibly be processed via heap leach although a milling option is also being contemplated.  Baseline engineering, community and environmental work has commenced. An initial scoping study, on what could be a stand-alone mining operation, is expected to be completed by the end of 2008.

Agnico-Eagle�s 100% owned Meadowbank project in Nunavut has probable gold reserves of 3.5 million ounces (29.3 million tonnes grading 3.7 grams per tonne).  With a large additional gold resource, the project remains open for expansion.  Initial gold production is anticipated in the first quarter 2010.  Annual gold production is currently estimated to average 360,000 ounces over the estimated nine year life of the mine. 

The final amended water License B was approved and received during the second quarter 2008.  Subsequently, the final water License A was approved and received.  Meadowbank now has all the necessary permits to operate the mine.

The all-weather road from the deep-water port at Baker Lake to the Meadowbank project site was also completed in the second quarter of 2008. 

Construction of the permanent camp facilities is underway and approximately 290 beds are now available. 

Pre-stripping of the Portage pit is underway, with the waste used in road construction and stockpiled for dyke construction.  Construction of the processing plant, power plant and service buildings are underway.

Agnico-Eagle is currently in the early stages of examining the underground mining potential at the southern end of the Meadowbank deposit, specifically below the Goose Island and Goose South deposits.  Currently three drills are operating.  The gold-bearing mineralization has been encountered to a depth of 500 metres and an exploration update on this project is expected later this year.

About Agnico-Eagle

Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States.  Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit 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 26 consecutive years.

THIS PRESS RELEASE CONTAINS FINANCIAL STATEMENTS.  CLICK HERE TO VIEW ORIGINAL PDF VERSION OF THIS RELEASE.

For further information:
David Smith; VP, Investor Relations
(416) 947-1212

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