Agnico Eagle Gold Explorer in the North Oulu Mining Summit September 2017
Forward Looking Statements The information in this presentation has been prepared as at August 28, 2017. Certain statements contained in this presentation constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian provincial securities laws and are referred to herein as forward-looking statements. When used in this presentation, the words anticipate, could, estimate, expect, forecast, future, plan, potential, will and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: statements concerning projected exploration expenditures, including costs and other estimates upon which such projections are based; statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future mineral reserves, mineral resources; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources; statements regarding the ability to obtain the necessary permits and authorizations in connection with exploration, development and mining operations and the anticipated timing thereof; statements regarding anticipated future exploration. Such statements reflect the Company s views as at the date of this presentation and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ( MD&A ) and the Company's Annual Information Form ( AIF ) for the year ended December 31, 2016 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2016 ( Form 40-F ) filed with the U.S. Securities and Exchange Commission (the "SEC") as well as: that there are no significant disruptions affecting operations; that production, permitting, development and expansion at each of Agnico Eagle's properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, foreign exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagle's expectations; that Agnico Eagle's current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Company's current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company s stock price; and risks associated with the Company s currency, fuel and by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company s ability to achieve the expectations set forth in the forward-looking statements contained in this presentation, see the AIF and MD&A filed on SEDAR at www.sedar.com and included in the Form 40-F filed on EDGAR at www.sec.gov, as well as the Company s other filings with the Canadian securities regulators and the SEC. Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Currency All amounts in this presentation are expressed in U.S. dollars except as otherwise noted. AGNICO EAGLE BARSELE GOLD PROJECT 2
AGNICO EAGLE MINES LIMITED North American Mining Company with 8 mines in 3 countries AGNICO EAGLE BARSELE GOLD PROJECT 3
Milestones 1957 Cobalt Consolidated Mining Company is reorganized and renamed to Agnico Mines Limited. Trading started on TSE. 1972 Agnico Mines Limited merges with Eagle Gold Mines Limited to form todays Agnico Eagle Mines Limited 1989 Agnico Eagle acquires the 100% of Dumagami project = LaRonde Mine 1993 Agnico Eagle acquires Goldex Mines, owner of the largest undeveloped gold deposit i Quebec 1994 Agnico Eagle begins trading on the New York Stock Exchange, symbol AEM 2005-2006, Agnico Eagle acquires Riddarhyttan Resources AB, owner of Suurikuusikko gold deposit in Finland and Pinos Altos in Mexico 2008 Gold production begins at Goldex mine in Val-d Or, Quebec 2009 Gold production begins at, Kittilä-, Lapa-, Pinos Altos mines 2010 Gold production begins at, Medowbanks mine in Nunavut and Creston Mascota Mexico 2012 Agnico Eagle approves the development and construction of the La India mine in Mexico 2014 Agnico Eagle acquired the Akasaba West gold-copper deposit and the Malartic mine (50% partnership with Yamana Gold) 2014 Agnico Eagle acquires Cayden Resources Inc for the advanced stage El Barqueño gold project, Mexico 2016 In February, Kittilä Mine celebrates pouring its one million ounce of gold since start up in 2009. In April, LaRhonde Mine celebrates pouring its 5 millionth ounce of gold since start up in 1988 2017 In February the Board of Directors approved the development of the Amaruq deposit and the construction of Meliadine project, Nunavut
Key facts We produced 1.66 million ounces of gold in 2016 and 4.8 million ounces of silver Strong track record of growing gold reserves and resources through exploration Gold reserves stand at 19.9 million ounces gold, 54 million ounces silver, 153,000t of zinc and 77,000 t of coper in reserves as of December 31, 2016.
Financial Results
Strong Financial Liquidity Support Next Phase of Growth As at June 30, 2017, the Company had strong liquidity with $952 milion in cash and cash equivalents and $2.2 billion in undrawn credit lines Low share count of 234 million fully diluted after 60 years of operating history
Second quarter highlight Operations continue to deliver strong performance Payable gold production in Q2 2017 was 427,743 ounces at total cash costs per ounce of $556 and all-in sustaining costs per ounce ( AISC ) of $785 Full year production guidance increased and unit cost forecasts reduced The 2017 production is expected to be 1.62 million ounces. Total cash costs per ounce are now expected to be $580 to $610 and AISC are expected to be $830 to $880 per ounce. Amaruq exploration program continues to yield positive results At Amaruq, infill drilling has been completed on the Whale Tail and V Zone deposits, and other target areas are now being explored. Significant results include: 6.9 g/t over 6 metres on the western extension of the planned Whale Tail pit and 20.4 g/t gold over 10.4 metres at the V Zone at 225 metres depth, beneath the planned pit outline Infill and exploration drilling expected to result in mineral resource additions and conversions at multiple properties Significant results include: 7.1 g/t gold over 33.5 metres at the Rimpi deposit at Kittila, Finland 23.7 g/t gold over 10.9 metres at LaRonde 3, Val d Or Canada 1.6 g/t gold over 18.2 metres near surface at the Bravo deposit at Creston Mascota
Operations
Canadian Malartic Canadian Malartic is a large-tonnage, low grade Archean gold system, consisting of a widespread shell of disseminated gold-bearing pyrite mineralization hosted by porphyritic felsic to intermediate intrusions and altered meta-sediments A 55,000-tonnes/day open-pit mine. Proven and probable reserves total 3.55 million ounces of gold (102 million tonnes at 1.08 grams/tonne gold)
Goldex Goldex is a large, relatively low-grade body defined by the intensity of stockwork veins and gold grades rather than by individual veins. Most of the gold occurs as microscopic particles associated with pyrite, while the rest of coarse native gold grains. Commercial production of the Goldex M and E Zones was achieved in October 2013. The operation uses largely the same underground infrastructure as the original 2008 mine, but different underground mining methods and reducing the mining rate.
Kittilä The Suurikuusikko Trend (4.5km) hosts the six main zones of the known gold reserves and resources. Kittila ore is refractory, making gold extraction relatively difficult because the gold is generally locked inside the two main sulphide minerals arsenopyrite and arsenic-rich pyrite. Underground mining operations began at Kittila in early 2010 at the Suuri and Roura deposits. The underground method is open stoping followed by delayed backfill. Approximately 13.5 km of tunnels are developed each year to ensure sufficient ore production is available to keep the mill supplied. After extraction, stopes are filled with cemented backfill or paste backfill
Lapa Gold mineralization is located in zones of deformation within the volcanic rocks. Gold is known to occur in three styles: as quartz veins, as tabular zones or as biotite-altered zones. The Contact Zone is the major economic lens of mineralization that has been traced for up to 600 metres, horizontally, and over 1,000 metres, vertically. The zone is currently open at depth in all directions Lapa hosts an underground mining operation accessed by a 1,369-metre-deep shaft. Two mining methods are used longitudinal retreat with cemented backfill, and locally transverse open stoping with cemented backfill. The dilution rate for mining the reserves averages 71%. The production rate averages 1,700 tonnes/day.
LaRonde Gold-copper and zinc-silver mineralization occurs in the form of massive and disseminated sulphide lenses. The presence of silver and base metals adds considerably to the value of LaRonde s gold ore, reducing the total cash cost to produce each ounce of gold. Five different mineralized horizons are known to exist adjacent to the Penna Shaft. Access to LaRonde s underground mining operation is through the 2.2-km-deep Penna Shaft, the deepest single-lift shaft in the Western Hemisphere. The LaRonde mine extension allows access to even deeper ore at the lower part of the orebody. Two mining methods are used at LaRonde longitudinal retreat with cemented rock or paste backfill, and transverse open stoping with cemented rock backfill, paste or unconsolidated backfill.
Medowbank Gold deposits are found along two main structural features that cross the property the Meadowbank Trend and the Pipedream Lake (Northeast) Trend. Gold mineralization is commonly associated with intense quartz flooding, and the presence of sulphide minerals (pyrite and/or pyrrhotite). Meadowbank has conducted surface mining from a series of three pits all within 7 km of the processing plant. The 11,000-tonne/day gold processing plant uses conventional technology adjusted to the Arctic climate. Any free gold is removed by a gravity circuit. The remainder is leached using cyanide, with the gold captured using carbon-in-pulp technology and electrowinning cells. Gold-plated cathodes and gravity concentrate are smelted in an induction furnace and poured as doré bars.
Operations
Pinos Altos More than 55% of the current Pinos Altos mineral reserve is located in the steeply dipping Santo Niño vein zone, which is up to 40 metres thick and 2.5 km long. Pinos Altos is a series of open pits and an underground mine. Mining is by conventional open pit methods, using shovels and trucks to remove about 5 million tonnes of ore and waste in 2016, and about 2 million tonnes of ore and waste per year in future years. The underground mining method is sub-level stoping (paste backfill) to extract ore from the Santo Niño and Cerro Colorado deposits. Creston Mascota is an open-pit, heap-leach facility. It mines an average of 5,500 tonnes of ore/day and employs the same surface mining method as Pinos Altos
La India La India lies in a large area of intrusion-related alteration dominated by high-sulphidation epithermal-style gold mineralization. The gold mineralization is confined to zones of argillitic alteration originally containing sulphides and subsequently oxidized. The La India mine is a collection of deposits grouped into three open pits that are being mined over an estimated six-year life, providing ore for a heap leach pad. The mining rate is expected to be approximately 16,000 tonnes/day with a stripping ratio of approximately 1:1.
Agnico Eagle Finland September 2017
Financial Results
Kittilä Mine History
Kittilä Mine Geology Alteration: Carb, alb, chlor Shearing + brecciation Several ore zones Pinch and swell Submicroscopic refractory gold 75 % in arsenopyrite 21 % in pyrite 4 % free gold
Kittilä Mine Reserves and Resources As December 31, 2016 Au (g/t) Tonnage (000 s t) Au(000 s oz) Proven / probable reserves 4.64 30,055 4,479 Indicated resources 2.92 20,721 1,946 Inferred resources 4.05 11,059 1,442
Kittilä Mine Underground mine and open pits 7/2017
Kittilä Mine Drilling 895 000m drilled within mining concession (1987 2016) 741 000m drilled by Agnico Eagle (2006 2016) 223 000m production drilling (2007 2016) 518 000n Exploration drilling
Kittilä Mine Personnel AEF Contactors Total Geology 30 10 40 Mine Department 252 227 479 Mill 80 26 106 Maintenance 62 46 108 Administration 77 64 141 AEF Management 15 Senior staff 83 Staff 98 Workers 386 Projects 0 0 0 Exploration 17 13 30 AEF management 3 0 3 Total 521 386 907 As per July 31, 2017
Main businesses in Kittilä Tourism Tourism provides ca. 1100 jobs = 42 % of Kittilä s total workforce. During the high season 2000 jobs in total Kittilä mine Kittilä mine provides ca. 900 jobs in total. More than 50 % of employees are from Kittilä. More than 90 % of employees are from Lapland. The unemployment rate of Kittilä is 11 12 % on average; during the high season it is under 10 %.
Economic impact on the region In 2016, income tax paid by the Kittilä mine s employees amounted to ca. 8.6 million euros. Of this sum, the share of the municipal tax was approximately 6.1 million euros. Of this, the Kittilä municipality receives approximately 3 million euros. Income tax to the state paid by the Kittilä mine s employees amounts to ca. 2.5 million euros a year. Annual real estate tax paid by the mine amounts to ca. 340,000 euros a year. Annual royalty payment to the state amounts to ca. 3.2 3.6 million euros a year. Annual corporate tax to the state amounted to ca. 18 million euros in 2012 2013. In 2014 and 2015, the corporate tax was not paid. In 2016, the corporate tax amounted to ca. 1.5 million euros. Kittilä mine s revenue was 229 million euros in 2016. (For comparison: Tourism s revenue is ca. 200 million euros a year.)
Kittilä population
Agnico Eagle Sweden September 2017
Barsele Project General Location Located at the intersection of the Skellefte-belt and the Gold Line metallogenic trends in Sweden Agnico Eagle has a 55% interest with an option for an additional 15% interest through the completion of a pre-feasibility study. Located approximately 600 km due north of Stockholm & 40 km southeast of Storuman, a small town situated in Västerbottens Län, which is a regional district of Northern Sweden. AGNICO EAGLE BARSELE GOLD PROJECT 31
Barsele Project Good infrastructure AGNICO EAGLE BARSELE GOLD PROJECT 32
Barsele Project General Location Property status 31 350 ha 20 claims 2 exploitation concessions AGNICO EAGLE BARSELE GOLD PROJECT 33
Barsele Project General Location Exploration work 2015 - Data compilation work and target generation Regional field mapping and sampling Trenching Detailed structural mapping Surface till sampling Base of till / Rock chip sampling 156 drill holes totaling (70 373m) during period October 2015 July 2017 Ground geophysical survey to examine potential at depth Environmental, metallurgical and geotechnical studies AGNICO EAGLE BARSELE GOLD PROJECT 34
Barsele Project Geological Setting Potential for Additional Mineralization Along a 7 Kilometre Strike Length Project area covers a sequence of Proterozoic aged metasedimentary and metavolcanic rocks that have been intruded by three main phases of granitoid rocks Early granitoids (tonalites and granodiorite) are the most important from a mineralization perspective AGNICO EAGLE BARSELE GOLD PROJECT 35
Barsele Project Composite Schematic Longitudinal Section Initial total inferred mineral resources of 21.7Mt grading 1.72g/t totaling 1.2 million oz. Detailed information on mineral reserves and mineral resources can be found in Agnico s February 15, 2017 news release AGNICO EAGLE BARSELE GOLD PROJECT 36
Notes to Investors Regarding The use of Mineral Resources Cautionary Note to Investors Concerning Estimates of Inferred Mineral Resources This presentation uses the term inferred mineral resources. Investors are advised that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. Inferred mineral resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable. Scientific and Technical Data Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Agnico Eagle reports mineral reserve and mineral resource estimates in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Best Practice Guidelines for Exploration and Best Practice Guidelines for Estimation of Mineral Resources and Mineral Reserves in accordance with the Canadian securities regulatory authorities' (the "CSA") National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). These standards are similar to those used by the SEC s Industry Guide No. 7, as interpreted by Staff at the SEC ("Guide 7"). However, the definitions in NI 43-101 differ in certain respects from those under Guide 7. Accordingly, mineral reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. Under the requirements of the SEC, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. A "final" or "bankable" feasibility study is required to meet the requirements to designate mineral reserves under Industry Guide 7. Agnico Eagle uses certain terms in this presentation, such as "measured", "indicated", "inferred" and "resources" that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. In prior periods, mineral reserves for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines. These guidelines require the use of prices that reflect current economic conditions at the time of mineral reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices. Given the current commodity price environment, Agnico Eagle has decided to use price assumptions that are below the three-year averages. The assumptions used for the December 2016 mineral reserves estimate reported by the Company for the Barsele Project were $1,150 per ounce gold, $16.50 per ounce silver, $0.95 per pound zinc, $2.15 per pound copper and foreign exchange rates of C$1.20 per $1.00 and $1.15 per 1.00. The mineral resources at all properties are estimated using 75% of the cut-off grades used to estimate the mineral reserves. NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves, "probable mineral reserves, "measured mineral resources, "indicated mineral resources and "inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable. A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study. The effective date for all of the Company's mineral resource and mineral reserve estimates in this presentation is December 31, 2016. Other important operating information can be found in the Company's AIF and Form 40-F. The scientific and technical information relating to Agnico Eagle s mineral reserves and mineral resources contained herein has been approved by Daniel Doucet, Eng., Senior Corporate Director, Reserve Development. Mr. Doucet is a "Qualified Person" for the purposes of NI 43-101. AGNICO EAGLE BARSELE GOLD PROJECT 37
Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com