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

TORONTO, April 29 /CNW/ - Agnico-Eagle Mines Limited ("Agnico- Eagle" or the "Company") today reported quarterly net income of $54.3 million, or $0.35 per share for the first quarter of 2009.

This result includes a tax recovery of $38.6 million, or $0.25 per share, a non-cash foreign currency translation gain of $7.5 million, or $0.05 per share, offset partly by stock option expense of $12.0 million, or $0.08 per share. In the first quarter of 2008, the Company reported net income of $28.9 million, or $0.20 per share.

First quarter 2009 cash provided by operating activities was $48.8 million, down from cash provided by operating activities of $54.6 million in the first quarter of 2008, primarily due to lower metal prices for gold, zinc, silver and copper, offset partly by higher gold production.

"Gold production in the first quarter achieved targets and rose 80% over the first quarter of 2008. While we remain on schedule to open up three new mines over the next few quarters, the production ramp up at our Kittila mine in Finland will be slower than expected", said Sean Boyd, Vice-Chairman and Chief Executive Officer. "Gold output in 2009 is anticipated to be 550,000 ounces to 575,000 ounces, rising to approximately 1.2 million ounces in 2010", added Mr. Boyd.

First quarter 2009 highlights include:

- Record Production - record gold production of 91,812 ounces

- Good Cost Control - per tonne targets achieved at both LaRonde and

Goldex

- Next Three New Gold Mines On Schedule - Lapa and Pinos Altos on

schedule for initial production in 2009. Meadowbank set to open in

first quarter of 2010

Payable gold production(1) in the first quarter of 2009 was a record 91,812 ounces at total cash costs per ounce(2) of $312. This compares with payable gold production of 50,892 ounces, at total cash costs per ounce of minus $399 in the first quarter of 2008.

The increase in production and total cash costs per ounce in the first quarter of 2009 is mainly due to the commencement of production at the new Goldex mine, where there are no byproducts produced from the orebody, and also due to lower realized prices for byproducts from the LaRonde mine.

Due to the slower than expected ramp up at the Kittila mine in the second quarter, the Company's gold production in 2009 is now expected to be between 550,000 ounces and 575,000 ounces at total cash costs per ounce of approximately $340. Prior guidance was 590,000 ounces of gold in 2009 at total cash costs per ounce of $325.

Annual General Meeting Tomorrow

The Annual General Meeting will begin on Thursday, April 30, 2009 at 11:00am (E.D.T.). The meeting will be held at Le Meridien King Edward Hotel, Vanity Ballroom located at 37 King Street East, Toronto, Canada. During the meeting we will provide an overview of our first quarter operating and financial results along with an update on our growth projects. For those unable to attend in person, there are several alternatives listed below.

Via Webcast:

A live audio webcast of the meeting 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 800-731-6941. To ensure your participation, please call

approximately five minutes prior to the scheduled start of the call.

Replay archive:

Please dial 416-640-1917 or toll-free 877-289-8525, passcode 21294136

(followed by the number sign).

The audio will be replayed from Thursday, April 30, 2009 at 1:00 PM

(E.D.T.) to Thursday, May 7, 2009 11:59 PM (E.D.T.). The webcast along

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

Growth Fully Funded - Cash Position Remains Strong

Cash and cash equivalents increased to $208.4 million at March 31, 2009 from the December 31, 2008 balance of $99.4 million. Long term debt is $415 million at March 31, 2009 from the December 31, 2008 amount of $200 million.

Capital expenditures in the quarter were $155 million, including $46 million at Pinos Altos, $44 million at Meadowbank, $28 million at Kittila, $20 million at Lapa and $15 million at LaRonde.

In 2009, full year capital expenditures are now expected to total approximately $540 million, up from the previous estimate of $450 million. The change is largely due to increased spending on freight, air transport, engineering and labour at the Meadowbank project in the Canadian Arctic ($60 million). Additionally, delays at Kittila have resulted in the further capitalization of pre-commercial production costs ($30 million).

However, with its cash balance of $208 million, $130 million of available bank lines, and strong operating cash flows, Agnico-Eagle is fully funded for the development and exploration of its pipeline of gold projects in Canada, Finland and Mexico.

LaRonde Mine - Strong Production and Cost Control Performance Continues

The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Overall, proven and probable gold reserves at LaRonde total approximately 5.0 million ounces from 35.8 million tonnes grading 4.3 grams per tonne ("g/t"). Life of mine average annual gold production is expected to be approximately 320,000 ounces per year through 2022. First production is expected from the new internal shaft of the LaRonde Extension in 2011.

The LaRonde mill processed an average of 7,203 tonnes of ore per day in the first quarter of 2009, compared with an average of 7,431 tonnes per day in the corresponding period of 2008. LaRonde has now been operating at a steady state of approximately 7,200 tonnes per day for almost six years, continuing to demonstrate the reliability of this world class mine.

On a per ounce basis, net of byproduct credits, LaRonde's total cash costs per ounce were $294 in the first quarter on production of 51,339 ounces of gold. This compares with the results of the first quarter of 2008 when total cash costs per ounce were minus $399 on production of 50,892 ounces of gold. The increase in total cash costs is largely due to significantly lower byproduct metal prices.

Minesite costs per tonne(3) were approximately C$72 in the first quarter. These costs are on budget but higher than the C$65 per tonne experienced in the first quarter of 2008. The increase is largely due to the sharp increase in the cost of consumables which began to occur mid-2008.

LaRonde Extension - Shaft Sinking Well Advanced

During the first quarter of 2009, approximately 120 metres of shaft sinking was completed on the new internal shaft. Shaft sinking performance has been good with the shaft down to a depth of approximately 2,680 metres out of a total planned depth of 2,880 metres. Shaft sinking is expected to be completed during the fourth quarter of 2009 with preproduction development starting thereafter. The project is on schedule to start production in 2011.

Goldex Mine - Achieving Targets

The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 23.8 million tonnes grading 2.1 g/t. Life of mine average annual gold production is expected to be approximately 160,000 ounces per year through 2017. However, it is expected that the mine life may be extended as the reserves mined in 2008 were fully replaced by exploration drilling. Also, several nearby satellite zones of mineralization are being considered for mining, which could further extend the mine life.

The Goldex mine continues to steadily ramp up production. The mill processed an average of 6,770 tonnes per day in the first quarter of 2009, compared with 6,141 tonnes per day in the fourth quarter of 2008. The design capacity for the plant is approximately 6,900 tonnes per day. This rate has periodically been exceeded in 2009.

First quarter 2009 gold production was 35,959 ounces at total cash costs per ounce of $338. This compares with the fourth quarter of 2008 when gold production was 31,972 ounces at total cash costs per ounce of $323. The mine achieved commercial production in August 2008.

During the first quarter of 2009, approximately 950,000 tonnes of ore were blasted at Goldex compared with approximately 650,000 tonnes hoisted. This difference is necessary as the mining method used at Goldex requires some of the broken ore to be temporarily left within the mining block as ground support. As a result of this method, production blasting is expected to be completed in 2012, while the anticipated mine life extends through 2017.

Minesite costs per tonne at Goldex were approximately C$25 in the first quarter, up slightly from C$24 in the fourth quarter of 2008.

A scoping study is underway to examine the possibility of increasing the capacity of the mine from 6,900 tonnes per day to at least 8,000 tonnes per day. This may require additions to the crushing and grinding circuit and additions to the mining fleet. Results of the study are expected to be released this quarter.

Kittila Mine - Commercial Production Now Expected in the Third Quarter of

2009

The 100% owned Kittila mine in northern Finland poured its first gold in January 2009. Proven and probable gold reserves total 3.2 million ounces from 21.4 million tonnes grading 4.7 g/t. Life of mine average annual gold production is expected to be approximately 150,000 ounces per year through 2023.

Mechanically, the mill at Kittila is complete and operating with mill availability exceeding 90%, in line with its design parameters. However, gold recovery optimization is taking longer than originally anticipated.

Two metallurgical issues have recently been identified which are reducing mill recoveries. Indications are that a gold chloride compound is being formed in the autoclave, along with the activation of organic carbon. These are not uncommon issues with this type of circuit. As a result, the plant commissioning phase has been extended to vary the process conditions in the pressure oxidation circuit. The Company still expects this metallurgical remediation process will allow Kittila to achieve its design gold recoveries of more than 83% in the mill over the life of the mine.

Underground mine development continues according to plan. The surface ore stockpiles now total approximately 213,000 tonnes grading 5.3 g/t.

A scoping study is underway examining the possibility of significantly increasing the designed production rate at Kittila. This plan involves sinking a shaft on the property. Results of the study are expected to be released in the fourth quarter of 2009 and will incorporate the most recent exploration drilling. Nine drills are currently working on resource conversion and other exploration around the current reserves.

Agnico-Eagle is hosting the Grand Opening at the Kittila mine on June 4, 2009. Investors, analysts, employees, government officials and media are expected to attend the celebration for the Company's first international gold mine.

Lapa - Produces First Gold

The 100% owned Lapa mine in northwestern Quebec began production in April 2009. Proven and probable gold reserves total 1.1 million ounces from 3.8 million tonnes grading 8.8 g/t. Life of mine average annual gold production is expected to be approximately 115,000 ounces per year through 2015.

The first ore was fed into the Lapa circuit at the LaRonde mill in April 2009. Coarse gold has been extracted from the gravity circuit and the first gold pour is expected this week. This ore was sourced from the low grade ore stockpile as is normal in the mill commissioning phase.

However, production mining has now commenced. To date, three mining blocks, or stopes, have been extracted. The overall average mucked grade of these three stopes was 12.2 grams per tonne compared with their expected reserve grade of 8.7 grams per tonne. The higher grade needs to be confirmed when this ore is processed in the mill in the next several weeks.

Pinos Altos Construction Progressing as Expected

The 100% owned Pinos Altos mine project in northern Mexico is expected to begin production in the third quarter of 2009. Proven and probable gold reserves total 3.6 million ounces and 100 million ounces of silver from 41.8 million tonnes grading 2.7 g/t of gold and 74.6 g/t silver. Life of mine average annual gold production is expected to be approximately 175,000 ounces per year through 2022. Over this period, annual silver production is expected to average 2.6 million ounces.

Construction of the new Pinos Altos mine project is well advanced. All of the critical components have been delivered to the mine site and mechanical and electrical installations are proceeding according to plan. The first ore will be placed on the leach pads during the second quarter of 2009. Commissioning of the milling circuit and first gold production are expected before the end of the third quarter of 2009.

Open pit stripping continued at better than planned rate with 4.2 million tonnes mined, including initial stripping at the Oberon de Weber pit.

Underground development productivity improved by approximately 19% over the previous quarter. Performance is expected to continue to improve with the new mining equipment that was delivered to the site at the beginning of 2009.

Meadowbank Project Remains on Schedule for Q1 2010 Start Up

The 100% owned Meadowbank mine project in Nunavut, northern Canada, is expected to begin production in the first quarter of 2010. Proven and probable gold reserves total 3.6 million ounces from 32.8 million tonnes grading 3.5 g/t. Life of mine average annual gold production is expected to be approximately 350,000 ounces through 2019.

Construction of the new Meadowbank mine project is well advanced. Completion of the mill, power plant and service buildings late last year has permitted construction to proceed as planned over the winter. Highlights include the completion of the SAG mill foundations and the initiation of dewatering of Second Portage Lake. Commissioning of the mill and first gold production are expected before the end of the first quarter of 2010.

However, the project continues to be affected by cost pressure for freight, air transport, engineering and labour. In spite of this cost pressure, the project returns are still expected to be robust.

Pre-stripping in the Portage pit is underway with approximately 530,000 tonnes of waste rock hauled during the first quarter of 2009. Approximately 15,500 metres of drilling in waste was completed in the Portage pit area. Additionally, the permanent 1,500 metre long airstrip at the minesite was completed and commissioned.

In the first quarter of 2009, approximately 11,500 metres of exploration drilling was completed. Four drills are dedicated to the mining area and three drills are working on exploration targets. Results will be presented in an upcoming exploration update.

A scoping study is underway which is considering an increase in the average daily production rate from 8,500 tonnes per day to 10,000 tonnes per day. This would increase the average annual gold production to more than 400,000 ounces. Results of the study are expected in the third quarter of 2009.

Analyst Presentation

Agnico-Eagle will be hosting a project update for Equity Analysts on May 29 at the corporate head office in Toronto. The update will comprise presentations on each of the Company's six mines as well as the exploration focus in 2009. Interested parties should contact Hazel Winchester at hwinchester(at)agnico-eagle.com, or 416 847 3717. All presentation materials will also be posted on the Company's website.

AEM Warrants Listed

As of April 30, 2009, a total of 8.6 million Agnico-Eagle common share purchase warrants will be listed and posted for trading on the Toronto Stock Exchange. The trading symbol will be AEM.WT.U with the CUSIP number 008474 14 0. The trading currency is US dollars.

These warrants were issued as part of the $290 million private placement which closed on December 3, 2008.

Each warrant entitles the holder thereof to purchase one common share at an exercise price of US$47.25 per share at any time prior to 4:30 p.m. (Toronto time) until December 2, 2013.

Registration of interests in and transfers of Warrants shall be made through the book-based system operated by CDS Clearing and Depository Services Inc. The Warrants will be evidenced by one or more Warrants certificate(s) for an amount representing the aggregate number of such Warrants outstanding from time to time.

The Warrants will be governed by the terms of a warrant indenture dated April 4, 2009 between the Company and Computershare Trust Company of Canada, as warrant agent. The warrant indenture will provide for appropriate adjustments to the Warrants in the event of stock dividends, subdivisions, consolidations and other forms of capital reorganization.

About Agnico-Eagle

Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Quebec and Finland, 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.

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(1) Payable production of a mineral means the quantity of mineral

produced during a period contained in products that are sold by the

Company, whether such products are sold during the period or held as

inventory at the end of the period.

(2) Total cash costs per ounce is a non-GAAP measure. For reconciliation

of this measure to production costs, as reported in the financial

statements, see Note 2 to the financial statements at the end of this

press release.

(3) Minesite costs per tonne is a non-GAAP measure. For reconciliation of

this measure to production costs, as reported in the financial

statements, see Note 1 to the financial statements at the end of this

news release.

AGNICO-EAGLE MINES LIMITED

SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS

(thousands of United States dollars, except where noted, US GAAP basis)

(Unaudited)

Three months ended

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March 31,

---------

2009 2008

---- ----

Gross profit (exclusive of amortization

shown below)

LaRonde......................................... $37,647 $75,483

Goldex.......................................... 18,466 -

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Operating margin................................ 56,113 75,483

Amortization.................................... 12,130 7,030

Corporate....................................... 14,647 17,279

Income before tax............................... 29,336 51,174

Tax provision................................... (25,005) 22,266

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Net earnings.................................... $54,341 $28,908

----------- -----------

----------- -----------

Net earning per share........................... $0.35 $0.20

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Operating cash flow............................. $48,823 $54,587

Realized price per sales volume (US$):

Gold (per ounce).............................. $969 $1,089

Silver (per ounce)............................ $13.53 $19.91

Zinc (per tonne).............................. $1,213 $2,530

Copper (per tonne)............................