Agnico Eagle Mines Limited provided an update on the Detour Lake mine, located in Ontario. The company has recently completed an updated mineral reserve and mineral resource estimate ("MRMR") and an updated life of mine plan (the "2024 Life Of Mine Plan" or the "2024 LOMP") for its Detour Lake mine as at March 31, 2024. The 2024 LOMP builds on the Company's previously filed technical report on Detour Lake (2021) as well as the mine plan update released by the Company in July 2022 (the "2022 LOMP").

The 2024 LOMP updates the open pit mine production profile and incorporates updated costing. The Company has also completed a preliminary economic assessment (the "2024 PEA") which contemplates the concurrent operation of the open pit and a proposed underground mining project (the "Underground Project"), combined with mill throughput optimization to 29 million tonnes per annum ("Mtpa"). The 2024 PEA demonstrates that the Underground Project and the mill optimization have the potential to increase the Detour Lake mine's overall production to an average of approximately one million ounces of gold per year over a 14 year period, starting in 2030.

Pathway to produce one million ounces per year at Detour Lake: The PEA 2024 delivers on the Company's objectives to increase returns and lengthen the mine life. The Underground Project provides earlier access to a high grade core of mineralization at depth below the reserve pit through underground development and displaces lower grade open pit production to the end of life. The project also sets the stage for future underground expansion along the western plunge of the mineralization.

The updated MRMR delineates a subset of the mineral resources with a gold cut-off grade of 1.22 grams per tonne ("g/t"), which is amenable to underground mining within, and proximal to, the open pit mineral resource. The mineral resource estimate from the high-grade mineralized corridors totals 1.2 million ounces of gold (19.0 million tonnes grading 1.93 g/t gold) of indicated mineral resource and 7.1 million ounces of gold (107.7 million tonnes grading 2.05 g/t gold) of inferred mineral resource. In the 2024 PEA, the Underground Project incorporates in the mine plan approximately 55% of the in-situ high-grade mineral resources, including approximately 0.7 million ounces of gold in indicated mineral resources (9.0 million tonnes grading 2.36 g/t of gold) and 3.9 million ounces in gold of inferred mineral resources (48.5 million tonnes grading 2.50 g/t of gold).

Relative to the 2022 LOMP, the life of mine payable gold production increases by 27% to 22 million ounces of gold in the 2024 PEA, including an increase of 0.7 million ounces of gold from the open pit and the addition of 4.0 million ounces of gold from the Underground Project. The 2024 PEA assumes an underground mining rate of approximately 11,200 tonnes per day ("tpd") (equivalent to 4.0 Mtpa) starting in 2030, combined with a mill expansion to 79,450 tpd (equivalent to an annualized 29 Mtpa) starting in 2028. Annual production is expected to increase by approximately 43% or 300,000 ounces of gold per year, from 2030 to 2043 to approximately one million ounces per year when compared to average annual production in years 2024 to 2029.

The 2024 PEA extends Detour Lake's mine life by two years to 2054. The Company believes that there is a good upside potential for additional exploration to add ounces to the mine plan in future years, which could result in an increase in production in the period between 2044 and 2054 or extend the life of the mine. The large MRMR base provides a foundation for the Company's production profile for decades to come.

The Underground Project and mill optimization bring value forward and improve valuation: Overall, the inclusion of a portion of the large mineable mineral resource, increased mill throughput rate and current high gold price environment contribute significantly to increase the economic value of Detour Lake, more than offsetting inflationary cost increases since the 2022 LOMP. The average total cash costs for the Underground Project, combined with the mill optimization to 29 Mtpa, are expected to be $690 per ounce. Development capital expenditures for the Underground Project and mill optimization to 29 Mtpa are forecast to be approximately $731 million.

Sustaining capital expenditures are forecast to be approximately $631 million over the life of the Underground Project, or between $40 million to $45 million per year from 2030 to 2043. The Underground Project and mill throughput optimization to 29 Mtpa are expected to generate an after-tax internal rate of return ("IRR") of approximately 18% using a gold price assumption of $1,900 per ounce and a C$/US$ foreign exchange rate of 1.34. At current gold prices of approximately $2,300 per ounce and a C$/US$ foreign exchange rate of 1.34, the Underground Project and mill throughput optimization to 29 Mtpa are expected to generate an after-tax IRR of approximately 25%.