Agnico-Eagle Mines Limited provided an update on its 2010 exploration program and planned exploration activities for the coming year. Since its last exploration results news release on September 08, 2010, the Company has continued an aggressive exploration program at its mines and its new Meliadine mine project.

Drilling during 2010 has confirmed that several of Agnico-Eagle's gold deposits continue to have significant exploration upside. It is expected that the exploration success will contribute to an increase in year end 2010 reserves to between 20 million and 21 million ounces of gold from the 2009 level of 18.4 million ounces. The new total will be presented with the Q4 financial results in February 2011.

Additionally, the Company plans to complete a feasibility study on an expansion in throughput at its Kittila mine in the third quarter of 2011. As a result, at that time, an interim reserve update is planned. The target for year end 2011 gold reserves is 21 million to 22 million ounces of gold.

Agnico-Eagle's $110 million exploration program for 2010 yielded significant results at numerous targeted areas, including Meliadine, Kittila, Goldex and Ellison. As a result of this success, a record $145 million exploration program has been budgeted for 2011 including more than 400 kilometres of drilling.

Highlights of the exploration program include:

Meliadine property

• New gold zone discovered at nearby Wesmeg
• New gold mineralization discovered at the Tiriganiaq zone at shallow depths. Gold mineralization also extended at depth to the west
• Hole M-10-920, on Tiriganiaq, returned 7.98 grams per tonne of gold ("gpt") over 39.3 metres while hole M-10-989 returned 9.12 gpt over 17.9 metres, including 16.64 gpt over 7.4 metres
• 2011 exploration budget of $67 million including, 90,000 metres of diamond drilling planned, extracting an underground bulk sample, new permanent accommodations at the exploration camp and upgrading infrastructure

Kittila mine

• Exploration advances gold mineralization 400 metres northward at depth in Roura Central
• Hole ROU-10-026 cut 3.98 gpt gold over 17.2 metres at a depth of almost 1,000 metres while hole ROU-10-026B intersected two mineralized intervals grading 7.25 gpt over 10.0 metres and 6.46 gpt over 12.8 metres, respectively, at a depth of approximately 840 metres below surface
• Deepest yet gold mineralization discovered at more than 1.4 kilometres below surface. Remains open at depth and on strike
• Exploration drilling from underground expected to begin in 2011

Goldex D Zone

• Exploration beneath the Goldex mine confirms continuity of the large D zone suggesting a significant extension of the life of the Goldex mine
• Style of mineralization, deposit size and grade are similar to the GEZ zone which is currently being mined
• Results include 1.69 gpt over 216.0 metres in drill hole 76-006, and drill hole 76-008 which returned 1.88 gpt over 181.5 metres

Regional programs

• Deep drilling at the Ellison property returned significant high-grade intercepts, confirming that the mineralization is an extension of IAMGOLD Corporation's Westwood deposit
• Drill hole 114-10-16J intersected the interpreted Westwood horizon and returned 8.0 gpt gold with 0.11% copper over an estimated true width of 13.3 metres.

"As we move into an optimization and production expansion phase at our existing mines, we have also stepped up our exploration efforts at these assets with a 30% increase in our 2011 exploration budget to a record $145 million," said Sean Boyd, Vice Chairman and Chief Executive Officer. "This increased exploration is focused on the conversion of our large gold resource to reserves and on providing information on several growth opportunities currently being evaluated," added Mr. Boyd.

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