Agnico-Eagle options advanced stage exploration project in Northern Mexico (All amounts expressed in U.S. dollars unless otherwise noted) TORONTO, March 16 /PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited ("Agnico-Eagle") announced today that is has entered into an option agreement with Industrias Penoles S.A. de C.V. ("Penoles") to acquire the Pinos Altos project. Located in the Sierra Madre gold belt, 170 miles west of the capital of Mexico's Chihuahua state, the greater than 27,000-acre Pinos Altos property is directly accessible by paved highway. The property is also approximately 60 miles from a major electric power terminus and within 6 miles of a proposed extension of the grid. Penoles acquired the property in 1995 and drilling to date has outlined an indicated mineral resource of 4.4 million tons with a grade of 0.18 ounces of gold per ton and 3.82 ounces per ton of silver, containing 0.8 million ounces of gold and 16.9 million ounces of silver. In addition, the property has an inferred mineral resource of 2.5 million tons grading 0.18 ounces of gold per ton and 3.41 ounces of silver per ton, containing 0.4 million ounces of gold and 8.4 million ounces of silver. Penoles' work to date has also included metallurgical testing and initial work on the permitting for a potential mining operation. "Pinos Altos represents Agnico-Eagle's first entry into the highly prospective gold camps of Northern Mexico, an area we have actively scouted for three years," said Sean Boyd, President and Chief Executive Officer. "With its vast land package and open pit potential, Pinos Altos could provide a near-term step towards our objective of multi-mine production," added Mr. Boyd. Over 90% of the Pinos Altos mineral resource is located in the Santo Nino vein, along a regional fault zone that holds a number of other known deposits in the area. This Santo Nino vein zone has thicknesses of up to 150 feet over a length of 1.2 miles and a vertical extent of at least 1,800 feet. It remains open to the west and at depth. Under the terms of its option agreement with Penoles, Agnico-Eagle is required to invest $2.8 million, over the next five months (subject to extension and certain events), on a 55,000-foot diamond drilling program. The components of the program are expected to include open pit exploration and resource to reserve conversion, underground resource to reserve conversion and deep exploration drilling. After the five-month exploration program is completed, Agnico-Eagle will have a two-month period to exercise its option to purchase Penoles' 100% interest in the project. If Agnico-Eagle exercises its option, the purchase price will be approximately $65 million, to be satisfied with $39 million in cash and 1,809,350 shares of Agnico-Eagle, issued from treasury. Where to Find Maps Illustrations and maps related to this project can be viewed by using the following links: http://www.agnico-eagle.com/url/050223_PinosAltos_Location.pdf http://www.agnico-eagle.com/url/050223_PinosAltos_Geology.pdf Scientific Data The mineral resource estimate by Penoles was completed in June 2003 and was reviewed Marc H. Legault, P.Eng., Agnico-Eagle's Manager Project Evaluations and qualified person as defined by National Instrument 43-101. The data disclosed, including the sampling, analytical and test data underlying the mineral resource estimate, has been verified. The key assumptions and parameters used in the estimate are a gold price of $300 per ounce, a silver price of $4.75 per ounce, a 0.10 ounce per ton gold grade cut-off, and metallurgical recoveries of 92.39% for gold and 47.83% for silver. Gold assays were cut to 0.89 ounces per ton while silver assays were cut to 19.25 ounces per ton. Although more recent exploration information has been collected in the area where the mineral resource estimate was completed, it is the opinion of the qualified person that including this information would not materially change the estimate. We believe the estimate of mineral resources at Pinos Altos is not likely to be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Because Pinos Altos is not considered to be a material property for Agnico-Eagle, a technical report describing the resource estimate will not be filed with the securities regulatory authorities. About Agnico-Eagle Agnico-Eagle is a long established Canadian gold producer with operations located in northwestern Quebec and exploration and development activities in eastern Canada and the southern United States. Agnico-Eagle's LaRonde Mine in Quebec is Canada's largest gold deposit. 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 25 consecutive years. DATASOURCE: Agnico-Eagle Mines Limited CONTACT: David Smith, Director, Investor Relations, (416) 947-1212

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