Agnico-Eagle Mines Amends Credit Facility

On October 17, 2006, Agnico-Eagle Mines Limited (the Company) amended its existing credit facility with a syndicate of lenders, The Bank of Nova Scotia, as co-arranger, administrative agent and technical agent, Société Générale (Canada), as co-arranger and syndication agent, N M Rothschild & Sons Limited, as co-arranger and co-documentation agent, and The Toronto-Dominion Bank, as co-documentation agent (collectively, the Lenders).

The amount of the credit facility was increased from US$150 million to US$300 million and the term of the credit facility was extended by two years to December 2011. The company may, with consent of the lenders, extend the term of the credit facility for three additional one-year terms to December 2014. The security package under the credit facility was expanded to include direct security on the Lapa mine project in Quebec and security from the direct Swedish subsidiary of the company that indirectly owns the Kittila mine project in Finland.

Davies Ward Phillips & Vineberg LLP acted as counsel to the company with a team that included Scott Hyman, Robert Murphy, and Kamal Toor. Pierre Langlois, of Fraser Milner Casgrain LLP, acted as Quebec counsel to the company. Advokatfirman Vinge KB acted as Swedish counsel to the company with a team that included Sara Mindus and Susanne Kvist. Jari Tukainen, of Hannes Snellman, acted as Finnish counsel to the company.

Borden Ladner Gervais LLP acted as counsel to the lenders with a team led by Howard S. Silverman, which included Gus Karantzoulis, Claudine Millette, Catherine Guertin and Eric Savoie. Roschier Advokatbyra AB acted as Swedish and Finnish counsel to the lenders with a team that included Gunnar Westerlund, Charlotta Furuhjelm and Carin Eriksson.