Agnico Eagle Mines Limited · TSX:AEM
Agnico Eagle Mines — Merger or Acquisition (August 2005)
81 slides from Agnico Eagle Mines's merger presentation, Aug 24, 2005
Slide 1: National Bank Financial
. NATIONAL ae BANK ~~ 7 Ny FINANCIAL
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains certain “orward-looking statements" (within the meaning of the United States Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. There can ke no assurance that such statements will prove to be accura
Slide 3: U.S. Shareholders
U.S. Shareholders Agnico-Eagle has filed with the SEC a registration statement an Form F-4 containing an offer document regarding the offer. This presentatian does nat constitute an offer to purchase or sell or a solicitation of an offer to sell or purchase shares of Riddarhyttan or Agnico-Eagle to
Slide 4: Technical Update
— TECHNICAL UPDATE m OPERATIONS = LARONDE = GOLDEX m ADVANCED PROJECTS = LAPA = LARONDE I m ADVANCED EXPLORATION = RIDDARHYTTAN = PINOS ALTOS m EXPLORATION = BOUSQUET = NEVADA m SUMMARY
Slide 5: Global Growth Exploration
Expl Global Growth LaRond a Strong Fol @ Pro-mining environments with low political risk @ Projects well matched to our technical skills = Favourable geology with camp potential — growing gold resources @ Excellent infrastructure nearby = Large property positions & database — aggressive exploration
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Slide 7: 2005 Production and Costs
Gold (ounces) Silver (ounces in thousands) Zine (pounds in thousands) Copper (paunds in thousands) 117,081 2,302 85,488 7,694 Minesite costs perton (cs) $ 49 Total cash costs ($/oz) $ 84 Le otter
Slide 8: Low Cost LaRonde Mine Helps Fund Growth
Low Cost LaRonde Mine-Helps Fund Growth al H1, 2005 Financial Results a. Earnings (mil Earnings per share Cash flow provided by operating activities (mil $ 47.2 Cash & equivalents June 30, 2008 (mn
Slide 9: Full Year 2005 Forecast
Lo Full Year 2005 Forecast Assumptions (US$) | Breakdown 1 1 Gold ($/oz) $ 423 : Tons 2,910,000 | Tons per Day 7,975 Silver (S!oz) $ 7.03 | Payable Production: ; ‘Au (ounces) 250,000 to 260,000 Zine (ib) $ 0.57 | ‘Ag (ounces n thousands) 5,000 : Cu (pounds in thousands) 17,000 1 Copper ($b) $ 1.56 Z
Slide 10: 2005 Operating Budget - June
2005 Operating Budget - June Tons Produced Increase / Difference Decrease 2005 Budget June 2004 | June 2005 Tons milled | 1 442 926 1 466 715 + 23 789 2% 1 443 492 1495 115 1 406 423 + 1 443 489 oy Ore pass inventory = 12 000 tons
Slide 11: Production Update
Production Update Tons by Horizon +1900 000 + 400 000 1200000 @ ‘000000 § so0c00 | F 00000 400 000 200 000 {ii labuaea 168 104 215 Total la Forecast Horizon loReatzed Short Tons Horizon 155 194 26 Total [Budget 706,008 384,117 673,308 1443,400 Forecast 403,049 380,738 «882300 1,446,175 Realized agg7
Slide 12: Production Update
Production Update Dilution 194 215 2004 31% 15% 2005 Jan-May 40% 18% 2005 June 28% 8% Ore Recovery 194 Budget 215 Budget 2005 Jan-May 92% 94% 89% 99% 2005 June 92% 92% 86% 94%
Slide 13: Dilution Control
Dilution Control [Recovery HM) Dilution — — Ore limit iy ' |. 4.750 tons recovered
Slide 14: Forecast Level
Forecast Level 215 to 197
Slide 15: Increase gold production
Increase gold production Development Focus on high priority faces Cable bolting use Cmac and extra manpower Production drilling increase # of one shot blasts Use Machine Roger in difficult stopes Mucking 6 Yd Scoops used in stopes Purchase aSth 8 Yd Scoop Increase zone7 prod Priority management Unde
Slide 16: New Results
New Results ‘engine ieoing Hor © ew Resute S. Previows Resuts Ia Proven & Probable Reserves a Infered Rescue TI Indicated Resource sunt
Slide 17: LaRonde II
LaRonde Il | om toon =~. ou ® = > 7) @ o c ° = £ 2 a x lu 2 G =
Slide 18: Slide 18
Slide 19: New Gold Mine Under Construction: Goldex
New Gold Mine Under Construction Goldex
Slide 20: Goldex Base Case $400 Gold
20 Base case $400 gold, 1.30 CS$/US$ Base case IRR 15% after tax Capital cost $135 million Minesite operating costs C$17/ton Starting H2, 2008 Estimated average annual production of 170,000 oz. Estimated average total cash costs 0: $200/0z Probable reserve of 22.1 million tons at 0.07 oz/ton, or 1.6
Slide 21: Goldex Key Attributes
New Gold Mine under Construction Goldex KEY ATTRIBUTES Most Advanced Project in Agnico-Eagle’s Pipeline Short Pre-production Period - 3 Years Simple Orebody Geometry — Utilizing Existing Infrastructure Economies of Scale Metallurgically Simple Synergies with nearby LaRonde — Operating Staff Explorat
Slide 22: Goldex Possible Risks
New Gold Mine under Construction Goldex POSSIBLE RISKS m Low Grade m= Ground Stability m= Capex Estimate = Tailings Pond Location
Slide 23: Goldex Feasibility 2005
a a New Gold Mine under Construction Goldex, 4* FEASIBILITY 2005
Slide 24: Raising Program
[5 lewel(-11005f & Raising Prog olde 4 tovel (1250 ° ° 24-302 Flot Hole raise 200) ° u See 24-300 lot Hole reise 60) Se 0.067 opt / 582.6 Ft 500 el emo 3 2,017 ft of raises 24-300 it Hole raise 90) 2 0.054 opt? 535.4 fi 19,489 ft of DDH ° 0 ° 0 °° ° of? 6.000 e1 2.06! ° 0 °) ° c ° ° er fe) o 9 4 lev
Slide 25: NQ Pilot Hole Core
NQ Pilot Hole Core
Slide 26: Raise Chipping
Building feEBBtrenatt Raise Chipping 4
Slide 27: Stockpiles Oct. 27th, 2004
Stockpiles Oct. 27th, 2004 2,025 muck samples: 12 to 18 kg each FE=
Slide 28: Sampling Results - Bulk Sample 2004
Sampling Results - Bulk Sample 2004. Goldex Pilot DDH Wall Chips Muck Tons Total u-g 0.065 opt 0.085 opt 0.065opt 18,389 Mill (final results) 0.0810pt 18,210 t DDH and muck sampling under estimate the grade
Slide 29: Ore Reserves
ORE RESERVES PROBABLE RESERVES = 22.1 million tons at 0.07 oz/ton or 1.6 million ounces Goldex extensively sampled, based on: m 329 Diamond Drill Holes m= 40,401 Core Samples = 2,600 Chip Samples = 145,000 Tons of Bulk Sampling
Slide 30: General Arrangement
3 iar <) Building 5 GENERAL ARRANGEMENT
Slide 31: General Arrangement
GENERAL ARRANGEMENT 2 3
Slide 32: Mining Method
MINING METHO (Longitudinal view)
Slide 33: Mining Method
MINING METHOD (Longitudinal view)
Slide 34: Mining Method
MINING METHOD Typical 20-25t Scoop Goldex
Slide 35: Metallurgical
METALLURGICAL Shaking Tables Induction Furnas
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Slide 37: Capital Costs
Capital Costs Mine Surface Plant 13$ | 136 | 38 29§ Shaft 2s | 1s | 2¢ 206 Mine Development us | 13s | es | 3¢ 35 $ Mine Constr. & Closure 18 7$ 4s | 18 3s | 17s Mobile Equipments 6s EY 3¢ 178 Concentrator tes | 31s | 58 52§ Tailings & Closure 18 7$ 1s | 2¢ 128 Working Capital & 7$ as |] 15 as | 78
Slide 38: Operating Costs
Operating Costs Waste Dev. 0.26 Sit 0.07 Sit Ore Dev. 0.77 $it 0.66 Sit Stoping 4.46 Sit 3.04 Sit UIG Services 3.00 $it 4.78 Sit ho Milling 5.53 Sit 5.88 Sit | 35% ADM & Tech. Serv. 1.75 Sit 2.54 Sit | 15% a 15.77 Sit 16.97 Sit +8%
Slide 39: Financial Evaluation
Financial Evaluatio Gold = 400 Us $/oz Exchange rate = 1.3 Gold = 520 C$/oz Capex 265 C$/oz IRR 12% 15 % Net Cashflow 189 M C$ 202 M C$
Slide 40: 2005 Goldex Study
2005 Goldex Study SS l200 000 1180 000 1160 000 !140 000 1420 000 i100 000 80 000 60 000 40.000 20.000 0 Goldex 2005 --- Ounces Produced
Slide 41: Ore Value & Operating Cost
Ore Value & Operating Cost (c$/T) re Value @ 360 US $/oz (510 C$) Average = 16.97 C$A Operating Cost
Slide 42: Operating Cost US $/oz
Operating Cost US $/oz Average = 201 US $/oz PRHHFRHOR HOHE OE Years
Slide 43: Capital Cost Sensitivities
CAPITAL COST SENSITIVITIES $300 | $325 | $350 | $375 | $400 | $425 | $450 | $475 | $500 10% | 3.4% | 6.7% | 11.2% | 14.6% | 17.6% | 20.6% | 23.5% | 26.0% | 27.8% S% | 25% | 6.4% | 10.0% | 13.3% | 16.3% | 19.2% | 22.0% | 24.4% | 26.2% Base case | 1.6% | 5.4% | 8.9% | 12.2% | 15.0% | 17.9% | 20.6% | 2
Slide 44: Grade Sensitivities
GRADE SENSITIVITIES $300 | $325 | $350 | $375 | $400 | $425 | $450 | $475 | $500 +10% | 6.1% | 9.8% | 13.4% | 16.6% | 19.5% | 22.4% | 25.1% | 27.1% | 28.8% 45% =| 3.9% | 7.7% | 11.2% | 14.5% | 17.3% | 20.2% | 22.9% | 25.1% | 26.8% Base case | 1.6% | 5.4% | 8.9% | 12.2% | 15.0% | 17.9% | 20.6% | 23.0
Slide 45: Operating Cost Sensitivities
$300 | $325 | $350 | $375 | $400 | $425 | $450 | $475 | $500 10% AT% | 8.3% | 11.7% | 14.8% | 17.5% | 20.3% | 22.9% | 25.0% | 26.6% 5% 3.2% | 6.9% | 10.3% | 13.5% | 16.3% | 19.1% | 21.8% | 24.0% | 25.7% Base case operating costs | 1.6% | 5.4% | 8.9% | 12.2% | 15.0% | 17.9% | 20.6% | 23.0% | 24.7% +5
Slide 46: Experienced Project Team
EXPERIENCED PROJECT TEAM Project Manager — Rosaire Emond, P.Eng. Mine Superintendent — Christian Provencher, P.Eng. Construction Manager — Pierre Bureau, P.Eng. Project Metallurgist - Paul Cousin, P.Eng. Mill Superintendent — Julie Fournier, P.Eng. Planning Engineer — Hughes Destenay, P.Eng. Senior
Slide 47: Independent Review
Independent Review Roscoe Postle Associates In: CONCLUSION “In RPA’s opinion, the GOLDEX Feasibility Study is a reasonable representation of the proposed project. The proposed mine will be one of the lowest grade mines in the industry and, therefore will be more sensitive to the kind of risks that a
Slide 48: Independent Review - Recommendations
Independent Review — Roscoe Postle Associates Inc. RECOMMENDATIONS m Reserves — Compare to Standard Kriged Block Model = Verify whether Dilution Used is too Low = Validate Recovery of 93.6 % = Capital Costs —- Contingency too Low
Slide 49: Independent Review - Agnico-Eagle Response
INDEPENDENT REVIEW — Roscoe Postle Associates Inc. AGNICO-EAGLE RESPONSE m Reserves = Standard block model run = Estimated grade higher (0.075 opt vs. 0.074 opt) = Resource classification confirmed = Dilution (20% vs. 10%) = Overall grade would decrease from 0.070 opt to 0.067 opt = Negative impact
Slide 50: Summary & Conclusions
UMMARY & CONCLUSIONS “Agnico-Eagle’s Board Recommends Placing Goldex Into Production” m Robust Economics = Experienced Mine Building Team = Pro — Mining Region = Qualified Labour Available @ Straightforward Metallurgy & Mine Plan = Short Lead Time = Financed Internally
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Slide 52: Regional Geology
Regional Geology
Slide 53: Lapa: Potentially the Second New Mine
Potentially the Second New Mine Probable reserve of 4.5 million tons at 0.26 oz/ton, or 1.2 million oz ™ Indicated resource of 0.8 million tons at 0.16 oz/ton, or 0.13 million OZ ™@ Inferred resource of 1.9 million tons at 0.22 oz/ton, or 0.41 million oz ™ $80 million shaft sinking program in progre
Slide 54: Ounce Distribution
Ounce Distribution 300m => 33% of total ounces 240m ¢ 31% of total ounces 240m = = (— 36% of total ounces
Slide 55: Ounces Produced
Ounces Produced Lapa Ounces Payable (Reserves) 160,000 T cut +208 140,000 Cut 10%] 120,000 i 400,000 Cut Grade 80,000 60,000 40,000 20,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017| Years
Slide 56: Longitudinal Section
Longitudinal Section “eo Present Depth = fi Phase 1 (piace ern) °° ee towtsza Fate SE Longitudinal Section Looking West + Sinking advance — 10 ft per day + Potentially 24 new mine + Feasibility complete in H2 2006
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Slide 58: Large gold reserve
= Large gold reserve — continuing resource conversion = Higher NSR values at depth in polymetallic envelope = Pre-feasibility expected in third quarter 2005 — internal winze vs. new shaft = Detailed engineering of preferred option by year Polymetalic end, 2005 ~— zone 20n Potential Higher Grade Enve
Slide 59: LaRonde II
LaRonde Il @ Winze is the preferred option @ Will extend Laronde’s mine life rather than augment LaRonde | production m ADVANTAGES @ Technically simpler @ Lower Capex — use existing infrastructure @ Shorter lead time @ Lower risk
Slide 60: LaRonde II
LaRonde Il @ STUDIES COMPLETED @ Rock Mechanics ™ Access Options @ Ventilation = Mine Development & Infrastructure @ Mining Rate & Sequence m TO COMPLETE ™ Access — Winze Option @ Feasibility December 2005
Slide 61: Winze Options
Winze Options
Slide 62: Slide 62
Slide 63: Bid proceeding as planned
= Bid proceeding as planned © Gold Deposit Prospective Regions. Major city @ If bid successful, expected to be completed in 2005 @ = Suurikuusikko resource continues to grow @ 6 drills in operation = Adjacent to major infrastructure
Slide 64: If The Bid Is Successful
If The Bid Is Successful: + Complete acquisition and merger + Accelerate drill program + Convert resources to reserves
Slide 65: Results of the Extensive Exploration Programme
Results of the Extensive Exploration Programme 2004-2005 a 2008-08 — The xdioazoue™ of Grade * thickness on" 2006-08 5 The a ; Expenditures for the extensive exploration programme: USD 7.0 The Eastern Zone SF
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Slide 67: Pinos Altos Location Map
XK Location Map High Grade Precious Metal: Indicated gold resource* of 4.4 million tons at 0.18 oziton, or 0.8 million oz Inferred gold resource of 2.5 million tons at 0.18 oziton, or 0.4 million oz Chihuahua @ Indicated silver resource* of 4.4 million tons at 3.8 oz/ton, or 17 million oz Inferred s
Slide 68: Drill Hole Location
Drill Hole Location Plan View [aromas congome — 9 sano uo ance [ant grime > Prone snaenty wetorts gnimete « Pinos Altos, co ‘winzone sync Lins Longin va ton
Slide 69: Composite Longitudinal Section Pinos Altos
Composite Longitudinal Section pings Altes
Slide 70: $2.8 Million Work Plan 2005 Pinos Altos
$2.8 Million Work Plan 2005 Pinos Altés MONTHS [> |= | sem | ot | ter | ati pen pit exploration and resource corversion (24,c00 feet ceiling) Underground reserve confirmation and resource conversion (15,400 feet driling] Deep exploration (1800 fest eilling) Underground rehabilitation, enginaering an
Slide 71: Longitudinal Section
Longitudinal Section Santo Nifio Zone « Pinos Altos PASS ies I PA05.05 0.13 036 113.5 PA05.08 PA05.08 (028833 %0.0 | orf S88 7e5.9 PA.O5-28 In Progress V.G. PA05.04 0.00 0.54 33.5 PA05.06 (o2d 387 ii8.0 0-05-10. Jor'Bs (108.3) -—paae2t PAO5-15 NS.R. PA.05-17 0.14 ap. 40.0 PA05.02 0.94537 / 148 PA05-
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Slide 73: Exploration update Bousquet-Ellison
Exploration update Bousquet-Ellison |= Ra ee Few TE June Expl. Results Division Bousquet . jad SEE SEL, Ben
Slide 74: Slide 74
Slide 75: Cortez Trend Area
Cortez Trend Area Lander and Eureka Counties, Nevada Current Projects m@ NSR North and South ™ Norma Sass (Norma Sass, Lander Ranch and Blue Nugget Claims) @ Trend Project
Slide 76: Cortez Trend Area
Cortez Trend Area Lander and Eureka Counties, Nevada a View looking southwest across the Pipeline structural corridor
Slide 77: Cortez Trend Area
Cortez Trend Area ‘iew looking northwest along the Cortez structural corridor
Slide 78: Norma Sass property
Norma Sass property + early-stage exploration project + located immediately south of the Gold Acres open pit mine and west of the Pipeline Mine *represents one of Nevada’s best remaining exploration targets +previous drilling at Norma Sass encountered ore-grade gold values hosted by favorable lower-
Slide 79: wn a) o is} = = ° z
wn a) o 0 is} = = ° z
Slide 80: Looking NNE
Looking NNE*
Slide 81: Searchable text section of graphics
Searchable text section of graphics shown above [ GRAPHIC] [LOGO] TECHNICAL UPDATE August 23 rd , 2005 [LOGO] [GR APHIC] Forward Looking Statement Building from Strength [LOGO] This presentation contains certain “forward-looking statements” (within the meaning of the United States Private Securities
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