Exploration Update On Kittila Project

TORONTO, ON - Agnico-Eagle Mines Limited reported on its recent exploration activities at the Kittila project in northern Finland, which have resulted in a significant addition to the inferred resource category.
The recent program at Kittila has added 4.9 million tonnes grading 6.4 grams per tonne, or 1.0 million ounces, in the inferred resource category. This brings the total mineral inventory at Kittila to 3.0 million ounces of probable reserves grading 5.1 grams per tonne from 18.2 million tonnes, 5.4 million tonnes grading 3.0 grams per tonne, or 0.5 million ounces, of indicated resources and a further 15.7 million tonnes grading 4.34 grams per tonne, or 2.2 million ounces, of inferred resources.
Highlights of the exploration activity include: 1) 1.0 million ounces of inferred gold resources were added at Kittila; 2) These new gold resources confirm the depth extension of the main Suuri deposit to approximately 1,100 metres below surface (approximately 300 metres below the current reserves and resources); 3) The grade of the new resource is 26 percent higher than the current gold reserve grade; 4) Additional drilling suggests that extensions of the Roura, Ketola and Etela zones are possible.
"The rapid expansion of the Kittila reserves and resources since we made our first investment in the property in 2004 is very encouraging. From a small amount of gold resources initially, the mineral inventory has grown impressively and it remains wide open for further expansion at depth and along strike" said Sean Boyd, Vice-Chairman and CEO. "As a result of this rapid growth in reserves and resources, a scoping study is now underway to examine the economics of increasing the planned production rate of the mine. This study should be completed in the first quarter of 2009" added Boyd.
The company's address is 145 King Street East, Suite 400, Toronto, ON M5C 2Y7, 416 947-1212, fax: 416 367-4681, email: [email protected].