AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS - SENIOR MANAGEMENT CHANGES; RECORD ANNUAL GOLD PRODUCTION, OPERATING CASH FLOW AND MINERAL RESERVES; NEW OPERATIONAL AND FINANCIAL GUIDANCE PROVIDED POST COMPLETION OF KIRKLAND LAKE GOLD MERGER; MINESITE AND PIPELINE PROJECTS CONTINUE TO ADVANCE

Stock Symbol: AEM (NYSE and TSX)

(All amounts expressed in U.S. dollars unless otherwise noted)

Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today announced senior management changes and reported fourth quarter and full year 2021 financial and operating results, as well as future operating guidance.

Ammar Al-Joundi has been appointed President and Chief Executive Officer, effective immediately.  Mr. Al-Joundi is a proven executive with a long history of mining industry experience who previously served as President of Agnico Eagle.  With this appointment, Mr. Al-Joundi joins the Company's board of directors (the "Board"). Anthony Makuch advised the Board that he has decided to step down as Chief Executive Officer and as a director of Agnico Eagle.

Mr. Al-Joundi has over 20 years of experience in mining, capital markets and banking, with specialization in finance and business strategy.  He joined Agnico Eagle as President in 2015, after serving as Chief Financial Officer at Agnico Eagle (from September 2010 to June 2012 ) and as Chief Financial Officer and Senior Executive Vice President at Barrick Gold Corporation (from July 2012 to February 2015).  Prior to joining Agnico Eagle in 2010, he spent 11 years at Barrick in various senior financial roles including Senior Vice-President of Finance, Senior Vice-President of Business Strategy and Capital Allocation, and Executive Director and CFO of Barrick South America .

"Ammar has the right mix of skill, experience and knowledge to execute the new Agnico Eagle's strategic plan to become the world's leading and highest quality senior gold producer," said Executive Chair Sean Boyd .  "We are confident that Ammar is the right leader to complete the integration of Agnico Eagle and Kirkland Lake Gold and, working closely with our combined Board members and executive team and our outstanding employees, he will help drive the Company's successes as we continue to work to create long-term value for the Company's shareholders and other key stakeholders," added Mr. Boyd.

The Agnico Eagle Board expresses its thanks to Mr. Makuch for steering Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") through this transformative transaction and for his contributions to Kirkland Lake Gold during his tenure.

Tony Makuch said: "We built Kirkland Lake Gold by acquiring, developing and operating high-quality assets in good jurisdictions with significant exploration upside.  Just as important, we build a business based on honesty, integrity, respect for all people and support for communities.  We have culminated all this with the merger of equals with Agnico Eagle and I am very proud to have been involved in creating the third largest global gold producer in the world.  I am leaving Agnico with a strong and dedicated leadership team and I believe they will continue to be successful.  I would like to thank the tremendous team of people at Kirkland Lake Gold for their years of hard work and support in building a truly special company."

Jeff Parr , Vice-Chair of Agnico Eagle and former Chair of Kirkland Lake Gold, said, "We want to thank Tony for his tremendous contribution to the success of Kirkland Lake Gold, building the company into a 1.4 million ounce per year producer with the industry's lowest unit costs and significant growth potential.  Tony's track record for enhancing the value of assets through investment in exploration, development and the optimization of performance is unsurpassed and we know he will continue to have great success in whatever venture he chooses next."

Agnico Eagle 2021 highlights:

• Record annual gold production – Payable gold production ¹ in the full year 2021 was 2,030,176 ounces (excluding 56,229 ounces of payable gold production at Hope Bay, and including 24,057 ounces and 1,956 ounces of pre-commercial gold production at the Tiriganiaq open pit at Meliadine and the Amaruq underground project, respectively) at production costs per ounce of $835 , total cash costs per ounce ² of $761 and all-in sustaining costs ("AISC") per ounce ³ of $1,038 . Production costs per ounce, total cash costs per ounce and AISC per ounce exclude the Hope Bay mine and the pre-commercial production ounces from Amaruq and Tiriganiaq
  
  
• Strong Quarterly production in spite of COVID-19 impacts – Payable gold production in the fourth quarter of 2021 was 501,227 ounces (excluding 705 ounces of payable gold production at Hope Bay, and including 1,608 ounces of pre-commercial gold production at the Amaruq underground project) at production costs per ounce of $892 , total cash costs per ounce of $812 and AISC per ounce of $1,126 . Production costs per ounce, total cash costs per ounce and AISC per ounce exclude the pre-commercial production ounces from Amaruq. Production and costs in the fourth quarter of 2021 were negatively affected by a reduction in operating activities in Nunavut largely due to a COVID-19 outbreak in mid-December 2021
  
  
• Several operational milestones achieved in the fourth quarter of 2021 and full year 2021 – In December 2021 , new monthly records for gold production were set at Kittila and Canadian Malartic. In 2021, new annual records for gold production were set at Meliadine, Kittila and Canadian Malartic, while the LaRonde Complex had its best year ever in terms of tonnage milled. Several production milestones were also reached in the fourth quarter of 2021, with the LaRonde Complex pouring its seven millionth ounce of gold, Goldex reached one million ounces of gold produced (since the 2013 restart) and Canadian Malartic reached six million ounces of gold produced (100% basis)
  
  
• COVID-19 still a concern, but risks appear manageable at this time – The Company has increased its efforts to monitor and manage risks associated with the Omicron variant of COVID-19. At this time, case counts appear to be dropping and the Company expects that it will be able to maintain budgeted production levels. The Company expects that its efforts to help protect the northern communities from this COVID-19 variant will have a slightly negative effect on production in the first quarter of 2022 as the Nunavut -based workforce ("Nunavummiut") were sent back to their communities in December 2021 . Plans are being reviewed to re-integrate the local workforce as soon as possible

"The fourth quarter of 2021 was Agnico Eagle's fifth consecutive quarter of over 500,000 ounces of gold production, which is particularly impressive given the impacts of COVID-19 during the latter part of the quarter.  On a full year basis, in 2021 the Company achieved records in gold production, operating cashflow and mineral reserves, all while delivering the best safety performance in the Company's 64-year history", said Ammar Al-Joundi , Agnico Eagle's President and Chief Executive Officer. "Looking forward, all of our mines, both those contributed by Agnico Eagle and Kirkland Lake Gold, are well positioned for another strong year in 2022, and well into the future.  Furthermore, the Company is investing more than ever before at our mines and in exploration to build an even stronger business, in what we believe are the best places in the world to mine for gold", added Mr. Al-Joundi.

The New Agnico Eagle – A best-in-class gold mining company with the largest gold production from Canada and well positioned internationally with profitable and prospective assets in Australia , Finland and Mexico .

• Merger with Kirkland Lake Gold Ltd. (the "Merger") – On February 8, 2022 , the Merger with Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") was completed
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• New three-year operational guidance – Payable gold production for 2022 is forecast to be approximately 3.2 to 3.4 million ounces with total cash costs per ounce expected to be between $725 and $775 and AISC per ounce expected to be between $1,000 and $1,050 .  Gold production for 2023 and 2024 is expected to be in a similar range to 2022 at approximately 3.2 to 3.4 million ounces of gold with relatively stable total cash costs per ounce and AISC per ounce compared to 2022.  As the expected Merger synergies are realized, both cost metrics are expected to then decline in 2023 and 2024.  Estimated capital expenditures for 2022 total approximately $1.4 billion , which includes approximately $703 million of sustaining capital ⁴ at the Company's operating mines and $710 million on growth projects ⁵ .  Not included in the 2022 estimated capital expenditures is approximately $131 million relating to capitalized exploration
  
  
• Strong Combined Mineral Reserve Base Totaling 44.6 Million Ounces of Gold – At December 31, 2021 , Agnico Eagle's proven and probable mineral reserves were a record 25.7 million ounces of gold (337 million tonnes grading 2.37 grams per tonne ("g/t") gold); measured and indicated mineral resources were 17.2 million ounces (353 million tonnes grading 1.52 g/t gold); and inferred mineral resources were 23.7 million ounces (272 million tonnes grading 2.72 g/t gold).  At December 31, 2021 , Kirkland Lake Gold's proven and probable mineral reserves were 18.9 million ounces of gold (584 million tonnes grading 1.01 g/t gold); measured and indicated mineral resources were 22.4 million ounces (647 million tonnes grading 1.08 g/t gold); and inferred mineral resources were 6.9 million ounces (94.0 million tonnes grading 2.28 g/t gold)
  
  
• Large exploration program planned for 2022 with a focus on minesite and pipeline opportunities – The exploration budget in 2022 is approximately $324 million ( $193 million of expensed exploration and $131 million of capitalized exploration), with a primary focus on the expansion of mineral reserves and mineral resources at operating mines (Detour, Macassa, Fosterville and Meliadine) and pipeline projects (the Odyssey and Hope Bay projects)
  
  
• Future Value Drivers
  
• Synergies and optimization opportunities expected to drive over $2B in value creation over the next 10 years – In 2022, the Company expects to realize Merger-related corporate and operational synergies of approximately $40 million to $60 million , of which $12 million have already been realized at the time of this news release.  In subsequent years, the Company expects to ramp up these synergies to approximately $165 million per year.  A further $590 million over 10 years are expected to be realized through strategic optimizations which include the development of the Amalgamated Kirkland ("AK") deposit at the Kirkland Lake camp with initial gold production potentially as early as 2024
  
  
• Detour Lake Mine – Successful exploration programs in 2020 and 2021 led to a significant increase in open-pit mineral resources in 2021. These new mineral resources and ongoing business improvement initiatives will be incorporated into a new technical report expected to be filed in the second quarter of 2022. This report is expected to show growth in mineral reserves and provide additional opportunities to enhance the future production profile of the mine
  
  
• Macassa Mine – Sinking of the #4 Shaft was completed in January 2022 , over a year earlier than initially planned. Completion of other #4 Shaft development activities are expected in late 2022. The #4 Shaft is expected to provide numerous benefits, including increased hoisting capacity, improved unit costs, better ventilation, and enhanced capabilities to pursue exploration potential across the Kirkland Lake camp. Gold production at Macassa is forecast to increase from 170,000 to 190,000 ounces in 2022 with a target to approximately 330,000 to 350,000 ounces in 2024. Production levels could potentially increase once the full benefit of the #4 Shaft is realized
  
  
• Fosterville Mine – Based on current exploration results, the Company's long-term goal for Fosterville is to establish the mine as a long-life asset through success in replacing mineral reserves. The Company believes there is potential to discover additional high-grade zones that could potentially support higher production levels and improvements in unit costs
  
  
• Odyssey Project – Underground development and surface construction activities remain on schedule and on budget as of the date hereof. In 2022, approximately 136,835 metres of surface and underground drilling is planned to infill and expand mineral reserves. From 2023 to 2028, gold production is forecast to be approximately 932,000 ounces at total cash costs of approximately $800 per ounce (all numbers on a 100% basis). Average annual payable production is expected to be approximately 545,400 ounces of gold from 2029 to 2039, with total cash costs per ounce of approximately $630
  
  
• Kittila Expansion Project – The mill expansion was completed ahead of schedule in late 2020 and shaft sinking is expected to be completed in the second half of 2022, with commissioning of the production hoist expected in late 2022 or early 2023. Completion of the shaft is expected to result in lower operating costs and provide additional drilling access to increase mineral reserves and mineral resources at depth. Estimated total expansion project costs remain within the previously disclosed range of €190 to €200 million
  
  
• Optimization and consolidation of mining assets and infrastructure in the Kirkland Lake gold camp – There are several development assets in the Kirkland Lake area with significant mineral reserves and mineral resources. Studies are underway to evaluate the potential to advance some of these assets into production (AK, Upper Beaver, Upper Canada ) either as standalone projects or by leveraging existing infrastructure at Macassa or the Holt processing complex
  
  
• Strong balance sheet allows for asset development and robust returns to shareholders, including a new share buyback program – With over $2.2 billion in liquidity, the Company is well positioned to fund its existing capital requirements and increase returns to shareholders. With this strong financial position, the Company announced today that, subject to the approval of the Toronto Stock Exchange (the "TSX), it intends to launch a normal course issuer bid to repurchase for cancellation up to 9 million of its common shares, for up to an aggregate amount of $500 million , representing approximately 2% of its 454.8 million common shares issued and outstanding as at February 23, 2022 .
  
  
• Quarterly dividend increased by 14% – A quarterly dividend of $0.40 per share has been declared (previous quarterly dividend was $0.35 )

Fourth Quarter 2021 Results Conference Call and Webcast Tomorrow

Agnico Eagle's senior management will host a conference call on Thursday, February 24, 2022 at 11:00 AM (E.S.T.) to discuss the Company's fourth quarter and full year financial and operating results, as well as operating plans following completion of the Merger.

Via Webcast:

A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com .

Via Telephone:

For those preferring to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392.  To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay Archive:

Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access code 093746#.  The conference call replay will expire on Friday, March 25, 2022 .

The webcast and presentation slides will be archived for 180 days on the Company's website.

Fourth Quarter 2021 Financial and Production Results

In the fourth quarter of 2021, net income was $101.1 million ( $0.41 per share).  This result includes non-cash mark-to-market gains on warrants of $12.8 million ( $0.05 per share), non-cash foreign currency translation losses of $12 .8 million ( $0.05 per share), derivative gains on financial instruments of $7.1 million ( $0.03 per share), transaction costs relating to the Merger with Kirkland Lake Gold of $7.0 million ( $0.03 per share), foreign currency translation losses on deferred tax liabilities and non-recurring tax adjustments of $6.5 million ( $0.03 per share) and various other adjustment losses of $3.8 million ( $0.02 per share).  Excluding these items would result in adjusted net income ⁶ of $111.3 million or $0.46 per share for the fourth quarter of 2021.  For the fourth quarter of 2020, the Company reported net income of $205.2 million or net income of $0.85 per share.

Included in the fourth quarter of 2021 net income, and not adjusted above, is a non-cash stock option expense of $3.6 million ( $0.01 per share) and workforce costs of employees affected by the COVID-19 pandemic (primarily Nunavut -based) of $2.2 million ( $0.01 per share).

For the full year 2021, the Company reported net income of $543.0 million , or net income of $2.23 per share.  This compares with the full year 2020, when net income was $511.6 million , or net income of $2.12 per share.

The decrease in net income in the fourth quarter of 2021 compared to the prior-year period is primarily due to lower operating margins ⁷ (lower average realized metal prices and higher production costs, partially offset by higher sales volumes), lower unrealized gains for non-cash items related to mark-to-market adjustments on financial instruments, higher amortization of property, plant and mine development resulting from higher production volumes at the Meadowbank Complex and the Meliadine and Kittila mines and higher exploration expenses, partially offset by lower environmental remediation costs.

The increase in net income for the full year 2021, compared to the prior-year period, is primarily due to higher operating margins (higher sales volumes due to record gold production and higher average realized metal prices), lower environmental remediation costs and lower foreign currency translation loss.  These factors were partially offset by higher unrealized losses for non-cash items related to mark-to-market adjustments on financial instruments, higher amortization of property, plant and mine development from higher production volumes and the contribution of the Hope Bay mine, higher exploration expenses, higher general and administrative costs, which includes a health care donation of $8 million during the year, and higher income and mining taxes driven by higher operating margins.

In the fourth quarter of 2021, cash provided by operating activities was $261.7 million ( $336.2 million before changes in non-cash components of working capital), compared to the fourth quarter of 2020 when cash provided by operating activities was $403.5 million ( $386.8 million before changes in non-cash components of working capital).

For the full year 2021, cash provided by operating activities was a record $1,316.0 million ( $1,597.2 million before changes in non-cash components of working capital), compared to the full year 2020 when cash provided by operating activities was $1,192.1 million ( $1,211.1 million before changes in non-cash components of working capital).

The decrease in cash provided by operating activities (before changes in non-cash components of working capital) in the fourth quarter of 2021, compared to the prior-year period, is primarily due to a decrease in mine operating margins that resulted from lower average realized metal prices and higher production costs, partially offset by higher sales volumes.

The increase in cash provided by operating activities in the full year 2021, compared to the prior-year period, is primarily due to an increase in operating margins that resulted from higher sales volumes and higher average realized metals prices, partially offset by higher cash taxes related to the higher mine operating margins and payments for taxes related to the 2020 tax year in the first quarter of 2021.

In the fourth quarter of 2021, the Company's payable gold production was 501,227 ounces (excluding 705 ounces of payable gold production at Hope Bay, and including 1,608 ounces of pre-commercial gold production at the Amaruq underground project).  This compares to quarterly payable gold production of 501,445 ounces in the prior-year period (which included pre-commercial gold production of 10,995 ounces from the IVR pit at the Meadowbank Complex and 4,509 ounces from the Tiriganiaq open pit at Meliadine).  Including the Hope Bay mine, the Company's quarterly gold production was 501,932 ounces in the fourth quarter of 2021.

Gold production in the fourth quarter of 2021, when compared to the prior-year period, was essentially the same.  However, production in the fourth quarter of 2021 was negatively affected by a reduction in operating activities in Nunavut largely due to a COVID-19 outbreak in mid-December 2021 .

For the full year 2021, the Company's payable gold production was a record 2,030,176 ounces (excluding 56,229 ounces of payable gold production at Hope Bay, and including 24,057 ounces and 1,956 ounces of pre-commercial gold production at the Tiriganiaq open pit at Meliadine and Amaruq underground project, respectively).  This compares to payable gold production of 1,736,568 ounces in the prior-year period (which included pre-commercial gold production of 18,930 ounces from the Barnat deposit at Canadian Malartic, 10,995 ounces from the IVR pit at the Meadowbank Complex and 6,491 ounces from the Tiriganiaq open pit at Meliadine).  Including the Hope Bay mine, the Company's payable gold production was a record 2,086,405 ounces for the full year 2021.

The higher gold production for the full year 2021, when compared to the prior-year period, was primarily due to strong performance at the Company's mines, including higher gold grades and tonnage at the Canadian Malartic, Meliadine and Pinos Altos mines and the Meadowbank Complex, and higher tonnage at the LaRonde Complex and the Goldex and Kittila mines.  This was partially offset by lower production at the La India mine related mostly to water conservation efforts and at Creston Mascota, where only residual leaching occurred.  Gold production for the full year 2020 was negatively affected by COVID-19 related reductions in mining activities which affected seven of the Company's then eight operations.  A detailed description of the production at each mine is set out below.

Production costs per ounce in the fourth quarter of 2021 were $892 (excluding the Hope Bay mine), compared to $771 in the prior-year period (prior to the acquisition of the Hope Bay mine).  Total cash costs per ounce in the fourth quarter of 2021 were $812 (excluding the Hope Bay mine), compared to $701 in the prior-year period.  Including the Hope Bay mine, production costs per ounce were $929 and total cash costs per ounce were $814 in the fourth quarter of 2021.

Production costs per ounce for the full year 2021 were $835 (excluding the Hope Bay mine), compared to $838 in the prior-year period (prior to the acquisition of the Hope Bay mine).  Total cash costs per ounce for the full year 2021 were $761 (excluding the Hope Bay mine), compared to $775 in the prior-year period.  Including the Hope Bay mine, production costs per ounce were $853 and total cash costs per ounce were $770 in the full year 2021.

In the fourth quarter of 2021, production costs per ounce and total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne at various operations including at the LaRonde and Meadowbank Complexes and at the Pinos Altos and La India mines, and the strengthening of the Canadian dollar against the U.S. dollar.  A detailed description of the minesite costs per tonne at each mine is set out below.

For the full year 2021, production costs per ounce and total cash costs per ounce (excluding the Hope Bay mine) decreased when compared to the prior-year periods primarily due to higher gold production, partially offset by higher minesite costs per tonne at the LaRonde Complex and the Pinos Altos mine and the strengthening of the Canadian dollar against the U.S. dollar.

AISC per ounce in the fourth quarter of 2021 were $1,126 (excluding the Hope Bay mine), compared to $985 in the prior-year period.  Including the Hope Bay mine, AISC per ounce were $1,136 in the fourth quarter of 2021.  AISC per ounce for the full year 2021 were $1,038 (excluding the Hope Bay mine), compared to $1,051 in the prior-year period.  Including the Hope Bay mine, AISC per ounce were $1,059 in the full year 2021.

AISC per ounce (excluding the Hope Bay mine) in the fourth quarter of 2021 increased when compared to the prior-year period primarily due to higher total cash costs per ounce and higher sustaining capital expenditures.  AISC per ounce (excluding the Hope Bay mine) for the full year 2021 decreased when compared to the prior-year period primarily due to lower total cash costs per ounce, partially offset by higher sustaining capital expenditures at the LaRonde Complex, and the Canadian Malartic and the Goldex mines.

The 2021 guidance, excluding Hope Bay, was forecast to be 2.005 to 2.090 million ounces (midpoint of 2.048 million ounces) of gold at total cash costs per ounce of $700 to $750 and AISC per ounce of $950 to $1,000 per ounce.  Production costs, total cash costs per ounce and AISC per ounce exclude the pre-commercial production ounces from Amaruq and Tiriganiaq.

Strong financial position allows for asset development and robust returns to shareholders

Cash and cash equivalents and short-term investments decreased to $191.1 million at December 31, 2021 , from the September 30, 2021 balance of $243.6 million , primarily due to the increase of payments to suppliers (related to completion of the sealift season in Nunavut ).  As of December 31, 2021 , the outstanding balance on the Company's unsecured revolving bank credit facility was nil, and available liquidity under this facility was approximately $1.2 billion , not including the uncommitted $600 million accordion feature.  On December 22, 2021 , the Company amended its $1.2 billion unsecured revolving bank credit facility to improve pricing (reflecting the Company's strengthened credit profile), increase the uncommitted accordion feature from $300 million to $600 million and extend the maturity date from June 22, 2023 to December 22, 2026 .

Following completion of the Merger on February 8, 2022 , the Company's cash position increased to approximately $973 million .  On February 9, 2022 , Fitch Ratings announced that it changed the rating outlook on the Company's investment grade credit rating to "positive" from "stable" and confirmed the rating at BBB, further re-affirming the Company's strong balance sheet.

Approximately 36% of the Company's remaining 2022 estimated Canadian dollar exposure is hedged at an average floor price above 1.25 C$ /US$.  Approximately 26% of the Company's remaining 2022 estimated Mexican peso exposure is hedged at an average floor price above 20.15 MXP /US$.  Approximately 25% of the Company's remaining 2022 estimated Euro exposure is hedged at an average floor price of approximately 1.18 US$ /EUR.  The Company's remaining 2022 Australian dollar exposure is currently unhedged.  The Company's full year 2022 cost guidance is based on assumed exchange rates of 1.25 C$ /US$, 20.00 MXP /US$, 1.20 US$ /EUR and 1.32 A$ /US$.

Including the diesel purchased for the Company's Nunavut operations on the 2021 sealift (consumed to mid-year 2022), approximately 40% of the Company's diesel exposure for 2022 is hedged at an average price below the 2022 cost guidance assumption of C$0.90 per litre.  These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide protection against inflation for the 2022 sealift diesel costs.

The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging considerations are not factored into 2022 guidance.

Returns to Shareholders

With over $2.2 billion in liquidity, the Company is well positioned to fund its existing capital requirements and increase returns to shareholders.  With this strong financial position, the Company announced today that, subject to the approval of the TSX, it intends to launch a normal course issuer bid to repurchase for cancellation up to 9 million of its common shares, for up to an aggregate amount of $500 million , representing approximately 2% of its 454.8 million common shares issued and outstanding as at February 23, 2022 .

The Company will file a notice of intention with the TSX in this regard.  The Company may commence purchases under the bid, continuing for up to one year, after the TSX has accepted the notice of intention.  Repurchases will be made through the facilities of the TSX and the NYSE as well as through other designated exchanges and alternative trading systems in Canada in accordance with applicable regulatory requirements.  The price paid for such repurchased shares will be the market price of such shares at the time of acquisition or such other price as may be permitted by the TSX and United States securities laws.  All repurchased shares will be cancelled.  The timing and amount of any purchases under the program are subject to regulatory approvals and to management discretion based on factors such as market conditions and other factors.

Dividend Record and Payment Dates for the First Quarter of 2022

Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on March 15, 2022 to shareholders of record as of March 7 , 2022.  The quarterly dividend has increased 14% from the previous quarterly dividend of $0.35 .  Agnico Eagle has declared a cash dividend every year since 1983.

Expected Dividend Record and Payment Dates for the 2022 Fiscal Year

*Declared

Dividend Reinvestment Plan

Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan

Capital Expenditures

Total capital expenditures (including sustaining capital) in the fourth quarter of 2021 were $235.6 million (excluding Hope Bay).  Including Hope Bay, the total capital expenditures in fourth quarter of 2021 were $245.4 million .

The following table sets out capital expenditures (including sustaining capital) in the fourth quarter of 2021 and the full year 2021.

Demonstrating strong ESG performance

In December 2021 , as a result of an increase in COVID-19 cases at its Nunavut operations, the Company took precautionary steps to further protect the continued health of its Nunavut workforce and local residents in the communities in which it operates.  In collaboration with the Nunavut public health authorities, the Company sent home the Nunavummiut from the Meliadine, Meadowbank and Hope Bay operations as well as its Nunavut exploration projects.  Furthermore, as a result of the resurgence of COVID-19 cases, personnel levels at site were reduced in December 2021.  As a result, there was a reduction of activities at the Company's Nunavut operations for the remainder of December 2021.  Activities at the Meliadine mine were affected until mid-January 2022 and activities at the Meadowbank Complex were affected until early February 2022.  Both operations are back to operating at normal levels.  The Company is actively working with the Nunavut public health authorities on a reintegration plan with the objective to return the Nunavummiut to the Company's Nunavut operations later in the first quarter of 2022.  An operational update on each of the Company's Nunavut operations is set out below.

In the fourth quarter of 2021, there were 232 confirmed COVID-19 cases at the Company's operations.  The increased spread and transmissibility of the Omicron variant of COVID-19 significantly increased the confirmed COVID-19 cases in the last weeks of 2021 and the beginning of 2022.  Rigorous protocols and hygiene measures remain in place in order to keep the Company's employees and communities safe while the mines continue to operate during the pandemic.  This is a rapidly evolving situation and the Company is monitoring activities at its operations and reassesses its response on an ongoing basis.

Agnico Eagle's ESG practices and contributions to the local communities continued to be recognized by several organizations in 2021.  The following awards were received by the Company's operations:

• Agnico Eagle recognized on the Corporate Knights list of 2021 Global 100 Sustainable Corporations
• Supervisors at the LaRonde and Goldex mines received health & safety awards from the Quebec Mining Association for maintaining safe working environments as demonstrated by their teams passing milestones of up to 200,000 hours worked without a lost time accident
• The Kittila mine received the "Collaboration partner of the year" award from Visit Levi tourism association
• Agnico Eagle Mexico recognized with the 2021 "Human Rights Committed Company Award" by the Chihuahua State Human Rights Commission

Agnico Eagle and Kirkland Lake Gold Merger of Equals

On February 8, 2022 , the Merger with Kirkland Lake Gold was completed.  The combined company will continue as Agnico Eagle Mines Limited and will remain listed on the TSX and NYSE under the ticker "AEM".  In aggregate, Agnico Eagle issued approximately 209,274,263 common shares to former Kirkland Lake Gold shareholders as consideration for their shares. Set out below is the key senior management team, not previously announced.

David Smith , Chief Financial Officer : David will continue to lead the finance, Investor Relations and IT teams.  David is a Professional Engineer, with experience as a mining analyst and has held a variety of mining engineering positions in Canada and abroad.  He joined Agnico Eagle in 2005 and most recently served as Senior Vice President, Finance & Chief Financial Officer since 2012.

Jean Robitaille , Chief Transformation & Innovation Officer : Jean will continue to provide leadership in the areas of Business Strategy, Business Development, Capital Allocation, Business Improvement & Innovation, Project Evaluations and Technical Services & Studies. He has been with Agnico Eagle for over 30 years, working in senior executive roles in Technical Services, Project Development and Operations.  Since 2020, he served as Senior Vice President, Corporate Development, Business Strategy & Technical Services.

Natasha Vaz , Chief Operating Officer – Ontario , Australia & Mexico : Natasha will lead the operations and construction teams for Ontario , Australia and Mexico . Natasha is a Professional Engineer with over 15 years of operational and technical experience in the mining industry.  Natasha is the current chair of the Board of Directors of the Ontario Mining Association.  Most recently she served as Chief Operating Officer of Kirkland Lake Gold.

Dominique Girard , Chief Operating Officer – Nunavut , Quebec & Europe : Dominique will continue to lead the operations and construction teams for Nunavut , Quebec and Europe as well as the Canadian Procurement team.  Dominique is a mineral processing engineer whose career with Agnico Eagle began in 2000 and includes serving as VP Technical Services, VP Nunavut, General Manager at Meadowbank mine and Mill Superintendent at the Kittilä mine.  Most recently he served as Senior Vice President, Operations – Canada & Europe since 2020.

Eric Kallio , EVP, Exploration Strategy & Growth : Eric is a geologist with over 30 years of experience working in exploration, mine planning, scoping and feasibility studies in Canada and abroad and will lend this experience to promoting the growth of Agnico Eagle.  Eric has been instrumental in the discovery or advancement of several successful projects, including the Dome Mine Open Pit in Timmins ON, the Detour Gold Open Pit near Cochrane ON, the Island Gold project near Wawa, ON and discoveries by Lake Shore Gold in the Timmins gold camp.  Most recently he served as Senior Vice President, Exploration for Kirkland Lake Gold.

Guy Gosselin , EVP, Exploration : Guy will continue to lead the global exploration teams, including Australia , Canada , Europe , Mexico , South America and USA.  Guy is a Professional Engineer with over 25 years of experience and has been instrumental in leading the Agnico Eagle exploration team through the acquisition, growth and advancement of projects, particularly in Nunavut with the discovery of Amaruq and in the Abitibi.  He joined Agnico Eagle in 2000 and most recently served as Senior Vice President, Exploration since 2019.

Carol Plummer , EVP, Operational Excellence : Carol will provide leadership and foster collaboration in the areas of Health, Safety and Security, Environmental Management & Critical Infrastructure and Operational Sustainability (Budget/LOM) in order to help drive efficiencies and ensure operational and cultural alignment throughout the Company's regional and functional teams.  Carol is a Professional Engineer who joined Agnico Eagle in 2004 and has held several key positions, including Senior Vice-President Sustainability, Vice-President Corporate Development, Vice-President Project Development USA & Latin America and General Manager at the Lapa, Kittilä and LaRonde mines.  Since 2021 she served as Senior Vice President Sustainability, People & Culture.

Chris Vollmershausen , EVP Legal, General Counsel & Corporate Secretary : Chris will continue to lead the legal team at Agnico Eagle and provide strategic legal advice to the Company and the board of directors. Chris is a corporate securities lawyer and has held a number of executive roles at Agnico Eagle including Vice President, Legal.  He joined Agnico Eagle in 2014 and most recently served as Senior Vice President, Legal, General Counsel & Corporate Secretary since 2020.

New Agnico Eagle Three-Year Guidance

The new Agnico Eagle is announcing its inaugural detailed production and cost guidance for 2022 and mine by mine production forecasts for 2022 through 2024.  Gold production for 2022 is forecast to be approximately 3.2 to 3.4 million ounces.  The 2022 gold production forecast includes the full year of production at the Detour, Macassa and Fosterville mines.

The 2022 production guidance incorporates the impact of the Omicron variant of COVID-19 across the Company's operations year-to-date.  The Company continues to have rigorous protocols at all the operating regions and supports a global vaccination program.  However, operational activities could still be affected given the uncertainty surrounding the evolution of the virus and the measures taken by the Company, governments and others to contain the spread and impact of the virus.

Gold production for 2023 and 2024 is expected to be in a similar range to 2022 at approximately 3.2 to 3.4 million ounces of gold.  The production forecast for 2024 does not include potential production upside from pipeline projects such as the AK deposit, the Odyssey internal zones and the Akasaba project at the Goldex mine.  Collectively, if approved and developed, these projects could potentially add up to 100,000 ounces of gold to the 2024 forecast.

Total cash costs per ounce in 2022 are expected to be between $725 and $775 using an assumed C$/US$ foreign exchange rate of 1.25.  Although the Company expects some variability in operating costs from 2022 to 2024, average total cash costs per ounce are expected to remain relatively stable over that period (assuming a C$/US$ foreign exchange rate of 1.25).  The Company remains focused on reducing costs through productivity improvements and innovation initiatives at all of its operations.

AISC per ounce in 2022 are expected to be between $1,000 and $1,050 .  Although the Company expects some variability in operating costs from 2022 to 2024, the average AISC per ounce are expected to remain stable over that period (assuming a C$/US$ foreign exchange rate of 1.25).

Forecast total cash costs per ounce and AISC per ounce for 2022 to 2024 do not include any potential synergies resulting from the Merger.  As the expected Merger synergies, set out below, are realized both cost metrics are expected to decline over the same period.

Following the completion of the Merger, the Company now has six cornerstone production assets (the LaRonde and Meadowbank Complexes and the Detour, Fosterville , Meliadine and Canadian Malartic mines) each with annual production rates in 2022 expected to be in excess of 300,000 ounces of gold.

Solid Three-Year Guidance with Stable Costs

Mine by mine production and cost guidance for 2022, and mine by mine gold production forecasts for 2023 and 2024 are set out below.  Opportunities to further optimize and improve gold production and unit cost forecasts from 2022 through 2024 are being evaluated.

*Forecast total cash costs per ounce do not include any potential synergies resulting from the Merger and is based on the mid-point of 2022 production guidance

Currency and commodity price assumptions used for 2022 cost estimates and sensitivities are set out in the table below:

Depreciation Guidance

Agnico Eagle expects 2022 depreciation and amortization expense to be between $1.37 and $1.47 billion .

For financial reporting purposes, the Merger is determined to be a business combination with Agnico Eagle identified as the acquirer.  As a result, the purchase consideration is allocated to the identifiable assets and liabilities of Kirkland Lake Gold based on their fair values as of February 8, 2022 (the "Purchase Price Allocation").  The estimated 2022 depreciation and amortization expense has considered a preliminary fair value allocation to the Kirkland Lake Gold assets, however, the estimate is subject to change based on the finalization of the Purchase Price Allocation, which will take place within the twelve months following the acquisition date.

General & Administrative Cost Guidance

Agnico Eagle expects 2022 general and administrative expenses to be between $165 and $175 million , excluding share-based compensation.  In 2022, share based compensation expense is expected to be between $50 and $60 million (including non-cash stock option expense of between $10 and $15 million ).

The 2022 forecast for general and administrative expenses exclude corporate synergies set out in the "Optimization and Synergies Expected to Generate Significant Value" section of this news release.

Other Cost Guidance

In 2022, Agnico Eagle expects additional expenses of approximately $31 million related to site maintenance costs at Hope Bay and other expenses of approximately $13 million related to sustainable development activities in the Abitibi region of Quebec and COVID-19 costs.

Tax Guidance

For 2022, the Company expects its effective tax rates to be:

Canada – 40% to 45%
Mexico – 35% to 40%
Australia – 30%
Finland – 20%

The Company's overall effective tax rate is expected to be approximately 40% for the full year 2022.

Updated Three Year Operational Guidance Plan

Since the prior three-year gold production guidance issued on February 11, 2021 ("Previous Guidance") for 2022 and 2023, there have been several operating developments resulting in changes to the overall three-year production profile at several mines.  Descriptions of these operating developments, based on the mid-point of gold production guidance, are set out below.

ABITIBI REGION, QUEBEC

At the LaRonde Complex, the gold production guidance is in line with Previous Guidance for 2022 and lower in 2023.  The expected reduction in gold production in 2023 is primarily due to an adjustment to the mining rate and mining sequence at the LaRonde mine.  The optimized mining plan is expected to help secure the excavation of the high grade stopes in the East and West mines.  The lower grade stopes located in the junction area between the East and West mines are now expected to be mined in the later part of the mine life.

At the LaRonde Zone 5 ("LZ5") mine, the successful implementation of automated mining techniques has resulted in a consistent improvement in productivity in 2021 and the forecast production rate for 2022 is expected to be 3,200 tonnes per day ("tpd").

At Canadian Malartic (in which Agnico Eagle has 50% ownership), the lower production guidance in 2022 and 2023 as compared to Previous Guidance is primarily due to a reduction in the mill throughput to 51,500 tpd (100% basis).  This reduction is being carried out to optimize the processing plan to improve the production profile during the transition to the underground Odyssey project.  This optimization is also expected to result in enhanced financial metrics and cash flow.  The mill throughput is forecast to return to full capacity of approximately 60,000 tpd (on a 100% basis) in the second half of 2024 as the underground mining operations ramp up.

In 2022, approximately one-third of the production is expected to be sourced from the Canadian Malartic pit and two-thirds from the Barnat pit.

The Odyssey project is forecast to gradually start production in the first half of 2023, contributing approximately 23,000 ounces of gold in 2023 and 38,000 ounces of gold in 2024 (50% basis).

At Goldex, the production guidance is slightly lower than Previous Guidance for 2022 and 2023.  The production guidance in 2022 and 2023 reflects a more conservative mining rate in the South zone of 800 tpd, consistent mining rates from the Deep 1 area and the anticipated increase in the Rail-Veyor capacity to 7,500 tpd.

ABITIBI REGION, ONTARIO

At Detour, the production guidance is higher in 2022 and 2023, when compared to Previous Guidance, reflecting the continuous optimization of the operation.

The lower production guidance for the Macassa mine in 2022 and 2023, when compared to Previous Guidance, reflects a slower ramp up of mining activities than anticipated.  This slower ramp up is partly due to a re-evaluation of the development and mining sequence, compounded by the ongoing impact of reduced equipment availability caused by increased maintenance requirements, poor battery performance and delays in new battery delivery.

NUNAVUT

At Meliadine, the production guidance is lower than the Previous Guidance in 2022 and in 2023.  The lower production guidance in 2022 incorporates the impact of COVID-19 related reductions in mining activities in January 2022.  In 2023, the production guidance reflects minor adjustments to the mining sequence.

At the Meadowbank Complex, the production guidance is lower than Previous Guidance for 2022 and 2023.  The lower production guidance in 2022 incorporates the COVID-19 related suspension of mining and milling activities that commenced in December 2021 and gradual ramp-up into February 2022.  In addition, the Company has revised the open pit mining sequence and mining rate in 2022 and 2023 to 35 million tonnes per year, in line with current performance.  As a result, the ore processed and gold grades in 2022 and 2023 are slightly lower than previously anticipated.  The Company now forecasts gold production above 400,000 ounces per year starting in 2024.

Amaruq underground is forecast to contribute approximately 30,000 ounces of gold in 2022 and 100,000 ounces of gold in 2023 and in 2024.

Every year, the caribou migration is factored into the Company's production plan.  This migration can affect the ability to move materials on the road between Amaruq and Meadowbank and between Meadowbank and Baker Lake.  Wildlife management is an important priority and the Company is working with Nunavut stakeholders to optimize solutions to safeguard wildlife and minimize production disruptions.

AUSTRALIA

The improved production forecast for the Fosterville mine in 2022 and 2023 reflects higher confidence in the mine plan and successful mineral reserve replacement in 2021.

FINLAND

At Kittila, the lower production guidance for 2022 and 2023 compared to Previous Guidance is primarily due to revisions to the grade profile related to changes to the mining sequence which resulted from the delayed shaft commissioning.  Commissioning of the production hoist is now expected in late 2022 or early 2023.

MEXICO

At Pinos Altos , the production guidance is higher than the Previous Guidance in 2022 and 2023 largely due to an expected increase in throughput levels from the contribution of the Sinter and Reyna de Plata satellite deposits and higher gold grades at Pinos Altos.  The Company will continue the development of the Cubiro satellite deposit and prepare the operation for a production ramp-up in the second half of 2023.

At La India, the production guidance in 2022 and 2023 is higher than the Previous Guidance.  In 2022, the La India mine is expected to benefit from the delayed recovery of the gold ounces stacked on the heap leach in the second quarter of 2021.  This delay was due to the shortage of water, which affected heap leach kinetics.  In 2023, the higher gold production results from an optimization of the final pit bottom and an increase in mineral reserves at the El Realito deposit.

Total Capital Expenditure Forecast

Estimated capital expenditures for 2022 total approximately $1.4 billion , which includes approximately $703.3 million of sustaining capital at the Company's operating mines and $709.6 million on growth projects, as set out in the table below.  Additionally, approximately $11.3 million is expected to be spent on sustaining capitalized exploration and $119.4 million on non-sustaining capitalized exploration.  For additional detail on capitalized exploration, refer to the "2022 Exploration Program and Budget" section of this news release.

Using the Company's 2022 budget assumptions, annual sustaining capital expenditures for 2023 and in future years are expected to remain stable at approximately $675 to $725 million .  Based on the extensive list of high-quality development growth opportunities, which are discussed below, and depending on prevailing gold prices and the timing of project approvals, the Company expects that total development capital in future years could be approximately $625 to $675 million .  Overall, annual capital expenditures are expected to be approximately $1.3 to $1.4 billion through 2024.

2022 Exploration Program and Budget – Continuation of Aggressive Exploration Program at Detour Lake and Odyssey Underground Project to Advance Two Significant Future Contributors to Mineral Reserve Growth.  Large Program to Extend Life of Mine at LaRonde, Macassa, Meliadine, Amaruq, Fosterville and Kittila while Advancing Priority Pipeline Projects Hope Bay and Santa Gertrudis

As a result of continued exploration success at several projects, the Company has budgeted $324 million for exploration expenditures in 2022, comprised of $193 million for expensed exploration and $131 million for capitalized exploration.

The objective is to build on recent exploration success and identify additional mineral resources and convert mineral resources into mineral reserves.  This is part of the strategy to develop the full potential of existing operations and key projects in the Company's pipeline.

The priorities of the 2022 exploration program are the expansion of the Detour Lake pit, the underground Odyssey project at Canadian Malartic and campaigns at several assets: LaRonde Complex, Meliadine, Macassa, Fosterville , Kittila and Hope Bay.

At the LaRonde Complex, the Company expects to spend approximately $12.0 million for continued development of exploration drifts from the LaRonde 3 infrastructure towards the west below the LZ5 mine workings and for 43,500 metres of drilling into multiples targets including Zone 5, Zone 6, Zone 20N and the recently discovered Zone 20N Zn South with the aim of adding new mineral reserves and mineral resources to extend the mine life of the LaRonde Complex into the 2030s.

At the Goldex mine, the Company expects to spend approximately $5.6 million for 45,300 metres of drilling comprised of 39,300 metres of conversion drilling and 6,000 metres of exploration drilling, focused on the M Zone, West area, South Zone and at depth in the Deep 3 Zone.

At the Canadian Malartic mine, the Company expects to spend approximately $11.9 million (50% basis) for 136,800 metres (100% basis) of exploration and conversion drilling focused on aggressive infill drilling at the East Gouldie deposit to improve confidence in the mineral resource, to continue the conversion of inferred mineral resources to indicated mineral resources and to refine the geological model.  With ramp development under way as part of the Odyssey Mine project, the Company will be able to continue underground conversion drilling from the ramp in 2022.  In addition, the Company is planning to spend approximately $4.1 million (50% basis) on 21,900 metres (100% basis) of exploration drilling to expand mineralization towards the east in the East Gouldie horizon and the new Titan zone at depth on the Rand property.  Some drilling is also planned on the nearby East Amphi property to extend the Nessie and Kraken zones.

At the Detour Lake mine, the Company expects to spend approximately $35.8 million for 194,000 metres of capitalized drilling to expand mineral resources at depth and to the west, and $10.1 million for 40,000 metres for exploration drilling to continue to investigate the Sunday Lake deformation zone to the east and west of the current pit's mineral resources.

At the Macassa mine, the Company expects to spend approximately $20.3 million for 99,900 metres in capitalized drilling and to develop exploration drifts to replace mineral reserves and mineral resources depletion.  Another $18.9 million is budgeted for exploration, including $10.4 million for 89,700 metres of exploration drilling to continue to investigate extensions of key targets at South Mine Complex (East, West, Upper and Lower), Main Break, '04 Break, Amalgamated Break and near-surface.  The remaining $8.6 million of exploration will be spent developing a 1.3 kilometre exploration ramp from the Near-Surface area in order to access, develop and infill with underground drilling the mineralization on the AK property.

For regional exploration in Ontario , the Company expects to spend a total of $19.1 million for 53,900 metres of drilling, including: $2.6 million for 12,200 metres for surface exploration drilling at the AK property for mineral resource conversion; $7.9 million for 15,800 metres of drilling at the Upper Beaver and Upper Canada deposits and other targets in the Kirkland Lake camp; and $8.7 million for the Taylor , Hislop , Holloway West and other properties in the Kirkland Lake and Timmins areas that are joint ventures with Melkior Resources, Mistango River Resources, OreFinders Resources and Wallbridge Mining.

At the Meliadine mine, the Company expects to spend approximately $8.4 million for 27,300 metres of capitalized drilling with a focus on conversion drilling at the Tiriganiaq, Normeg, Wesmeg and Pump deposits, as well as exploration drilling of the Tiriganiaq, Wesmeg, Pump and F-Zone deposits, which are all open at depth.

At the Meadowbank Complex, the Company expects to spend approximately $10.4 million for 42,800 metres of drilling comprised of 20,200 metres of conversion drilling and 22,700 metres of exploration drilling focused on testing open-pit extensions of mineralization and the potential for further underground deposits at the Amaruq satellite operation.  The Company expects to spend $9.1 million for 19,000 metres of drilling to investigate for new, near-surface satellite deposits close to the road and infrastructure around the Meadowbank/Amaruq area.  Any new open-pittable discoveries have the potential to extend the life of mine at Amaruq in conjunction with the extensions of higher-grade underground mineralization at Amaruq.

At the Hope Bay mine, the Company expects to complete 80,000 metres of drilling in a $32.2 million exploration program that will include $17.9 million to develop new exploration drifts and 29,000 metres of underground exploration drilling at the Doris deposit to explore the extensions of mineralization and to add mineral reserves and mineral resources in the BTD zone to the north and in the BCO, BCN and West Valley zones below the dike.  The Company expects to spend $14.3 million for 51,000 metres of surface drilling into exploration targets around the Doris Mine, between the Doris and Madrid deposits, and around the Madrid deposit with the objective of adding mineral reserves and mineral resources to the project.

At the Fosterville mine, the Company expects to spend approximately $34.6 million for 121,400 metres of capitalized drilling and the development of exploration drifts to replace mineral reserve depletion and to add mineral resources in the Cygnet, Lower Phoenix and Robbin's Hill areas.  Another $19.7 million is budgeted for 62,000 metres of underground and surface exploration with the aim of discovering additional high-grade mineralization at Fosterville.  An additional $2.9 million is budgeted for 20,000 metres of regional exploration drilling on properties surrounding the Fosterville mine and $4.2 million is budgeted for 9,800 metres of drilling in the Northern Territories mostly to test new targets at Pine Creek, Maud Creek , Mt Paqualin and Union Reefs.

At the Kittila mine, the Company expects to spend approximately $12.4 million for 69,600 metres of drilling focused on the Main zone in the Roura and Rimpi areas as well as the Sisar zone.  The drilling includes 46,800 metres of capitalized conversion drilling at the mine as described above and 22,800 metres of expensed exploration drilling.  The expensed drilling will be focused on targets beyond the current mineral reserve area, especially from 1,500 to 2,000 metres depth and at shallower depths in the area north of the mine.

At the Pinos Altos mine, the Company expects to spend approximately $3.5 million for 17,400 metres of expensed exploration drilling.  The two main objectives are to continue to infill and expand the mineral resource at Cubiro, and to test the depth potential of the Cerro Colorado , Santo Nino and Reyna East zones and other targets on the property.  Another $800,000 is budgeted for 5,000 metres of capitalized drilling.

At the La India mine, the Company expects to spend approximately $2.6 million for 13,000 metres of drilling to investigate for the extensions of oxide targets near the Main Zone and to grow and infill the Chipriona polymetallic sulphide deposit.

Project development and exploration costs for Santa Gertrudis in 2022 are estimated at approximately $19.0 million .  Regional exploration includes $13.2 million for approximately 35,500 metres of drilling focused on expanding the mineral resources and testing extensions of high-grade structures such as the Amelia deposit and exploring new targets, and $3.5 million for approximately 16,500 metres of drilling will primarily be for infilling open pit deposits.  Another $2.3 million are expected to be spent on internal studies and metallurgical work.

2022 Global Exploration Program and Corporate Development Budget

Future Value Drivers

Optimization and Synergies Expected to Generate Significant Value

Based on preliminary work done as part of the due diligence review of the Merger, the Company previously disclosed that synergies and optimization benefits related to the Merger were estimated to total $800 million before tax over the next five years and $2 billion over the next ten years.  While still preliminary, further work has identified synergy and optimization opportunities that have the potential to exceed these previous estimates.

Given the work and complexity involved in attaining these synergies, and given the volatile and inflationary price environment, these synergies have not been reflected in the production and cost guidance provided in this news release.  However, in 2022, the Company expects to realize Merger-related corporate and operational synergies of approximately $40 million to $60 million , of which $12 million have already been realized at the time of this news release.  Additional detail on the sources of these benefits is set out below.

Corporate Synergies

The Company originally estimated a ramp up to approximately $35 million per year in Merger-related corporate synergies (approximately $145 million over five years, $320 million over 10 years).  Work since the Merger has confirmed this initial estimate, including:

• Lower financing costs due to recognition of the Company's strengthened credit profile. The Company has already realized recurring savings of approximately $10 million annually through the optimization and re-structuring of its credit facilities and other treasury related items
• Projected savings in corporate payroll ( $8 to $12 million ) due to early retirements, elimination of overlapping roles, and not filling certain positions
• Lower combined information technology costs due to elimination of duplicate infrastructure and licensing ( $2 to $4 million )
• Other general and administrative savings ( $10 to $12 million ) on costs such as insurance, office space and general consultants. The Company has already realized an immediate one-time saving of $2 million on insurance costs

Actual corporate synergies for 2022 are forecast to be approximately $15 -25 million.  The Company believes there is opportunity to exceed the original $35 million annual synergy target in 2024 and beyond.

Operational Synergies

The Company originally estimated potential operational synergies in excess of $130 million per year ( $440 million over five years, $1.1 billion over 10 years) .  Work is underway to refine and confirm these potential synergies.  While realization of these synergies will be a multi-year endeavor, additional work since the Merger has identified opportunities to potentially exceed this initial estimate as set out below..

Procurement

The Company is currently reviewing procurement practices and evaluating the possibility that consolidating vendors would result in significant annual savings.  The Company is targeting approximately $35 - $50 million per year in savings, with more modest savings in 2022, and increased savings realized in later years.  The initial efforts will prioritize opportunities related to the Canadian operations due to their close proximity and will focus on savings related to warehousing and logistics, mobile equipment/parts, tires, explosives, mill reagents and consumables, cement, hydrocarbons and services.

Other Operational Synergies

The Company has identified a number of other opportunities for operational synergies, including:

• Implementing process improvements across the business resulting in higher recoveries, increased availability or lower operating costs
• Opening off-site operations and monitoring centres to increase operating hours and productivity
• Optimizing exploration programs and execution
• Leveraging Macassa's experience in equipment electrification at other operations to reduce operating costs and the Company's carbon footprint
• Extending the Company's automation expertise to the Macassa and Fosterville operations in order to drive productivity and efficiency
• Lowering consulting costs by consolidating and streamlining the technical services group
• Centralizing drillhole databases and modelling work to create exploration drilling, modelling and data management synergies
• Streamlining and combining assay laboratories in the Quebec and Ontario regions to increase efficiency and lower costs
• Lowering treatment fees for Detour, Macassa and Fosterville

The Company estimates the operational synergies and other cost reduction measures have the potential to reduce production costs by up to $10 per ounce in 2022 and with the potential reduction of up to $30 - $40 per ounce in later years.

Strategic Optimization

The Company is currently in the process of reviewing strategic opportunities to reduce current and future expenditures as part of its project pipeline (original estimate of up to $240 million over five years, $590 million over 10 years ).  The Company has identified two priority opportunities below.

Mining the AK deposit from Macassa infrastructure

The Company is evaluating the possibility of using the existing Macassa Near Surface Zone infrastructure to access the AK deposit.  Mining of the AK deposit through Macassa's infrastructure would be similar to the mining activity at LZ5 (at the LaRonde Complex).  Preliminary evaluations indicate that mining activities could begin as early as 2024 and production could average approximately 40,000 ounces per year, at total cash cost per ounce of $650 - $750 .  This production is expected to have a positive impact on cash flow generation at Macassa.  Permitting work is ongoing and the Company expects to make a production decision later in 2022.  Additional detail is provided later in this news release.

Upper Beaver project review

The Company is currently reviewing the concept of leveraging the Macassa infrastructure or the Holt Complex infrastructure and the shaft sinking experience at Macassa to enhance project returns at Upper Beaver.  The sinking of the Macassa #4 Shaft is now complete.  The Macassa internal team and shaft sinking equipment could be used at Upper Beaver and could result in potential savings of tens of millions of dollars.

Consolidation of Mining Assets and Infrastructure in the Kirkland Lake Gold Camp

Following the completion of the Merger, Agnico Eagle controls 1,917 mineral titles covering approximately 29,469 hectares (295 square kilometres) in the prolific Kirkland Lake gold camp, which has historically produced more than 25 million ounces of gold to the end of 2021.

The large property measures approximately 35 kilometres long by 17 kilometres wide, encompassing the Town of Kirkland Lake , an active gold mining town of 8,000 inhabitants, with ready transportation, power and infrastructure.

Following the Merger, the Company now owns the producing Macassa mine and mill and the Holt mining complex near Matheson, Ontario (approximately 60 kilometres northeast of Kirkland Lake ).  The Holt mill, which is currently on care and maintenance, has a capacity of 3,000 tpd and a fully permitted tailings storage facility.  The Company plans to evaluate the potential to integrate a number of satellite deposits with the existing infrastructure in the region.  The significant opportunities (100% owned) are set out below:

• AK deposit
• Upper Beaver deposit
• Other regional deposits – Upper Canada , Anoki-McBean and Bidgood
• Opportunities along the Main Break where the Company now controls six past producing mines

AK deposit could provide near-term incremental ore feed to the Macassa mill

The AK deposit consists of lode-style gold mineralization hosted by altered and pyritic Timiskaming volcanic and sedimentary rocks.  The deposit is hosted in one of many northeast-trending structures that lie between the Kirkland Lake Main Break and the Larder Lake-Cadillac Deformation Zone ("LCDZ").  The gold mineralization is of two types: gold-bearing quartz and quartz breccia veins, and gold within pyrite-altered host rocks.

The AK deposit is located very close to the Macassa property boundary and lies within a few hundred metres of the existing Macassa underground workings.  At year-end 2021, the AK deposit was estimated to contain 265,000 ounces of indicated mineral resources (1.3 million tonnes grading 6.51 g/t gold) and 406,000 ounces of inferred mineral resources (2.4 million tonnes grading 5.32 g/t gold).  Because of the proximity to the property boundary, the deformation zone hosting the AK deposit, which extends laterally and at depth, it has not been drill tested extensively.  This zone, along with the eastern trend of the Amalgamated Break, remain interesting targets for new discoveries.

In 2022, the Company plans to develop a 1.3 kilometre exploration ramp from the existing Macassa Near-Surface zones ("NSUR"), which is expected to cost approximately $8.6 million .  The exploration ramp is designed to provide access to carry out infill drilling and collect a bulk sample from the higher grade portions of the deposit.

Mining of the AK deposit is expected to be similar to the mining activity at LZ5 (at the LaRonde Complex).  An initial evaluation estimates that production from the AK deposit could begin as early as 2024 and ramp up over a seven-year period.  Production is forecast to average approximately 40,000 ounces per year with average cash total costs per ounce of approximately $650 - $750 .

The forecast parameters surrounding the Company's proposed AK deposit were based, in part, on the results of internal evaluations.  These evaluations include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the forecast production amounts set out in this news release will be realized.

Upper Beaver – Potential to be a long-life gold-copper producer

The Upper Beaver deposit is located approximately 27 kilometres from the Macassa mine, and 60 kilometres from the Holt mining complex.  Upper Beaver is a gold-copper deposit that is mainly hosted in the Upper Beaver alkalic intrusive complex and the surrounding basalts it intruded, and is associated with disseminated pyrite and chalcopyrite, and magnetite-sulphide veining associated with strong magmatic-hydrothermal alteration.  The mineralization occurs as elongated tabular bodies that strike northeast, dip steeply northwest and plunge 65 degrees to the northeast.  The mineralization has been defined along a 400-metre strike length from surface to a depth of 2,000 metres and it remains open at depth.

In 2021 at Upper Beaver, 163 holes totaling 58,691 metres were drilled in both the shallow conversion program between surface and 500 metres depth and the conversion and expansion drilling at depths between 800 and 1,500 metres that targeted the Porphyry, Footwall and Gap zones.  The conversion and expansion drilling continued to intersect significant high-grade mineralization, further expanding the Footwall and Porphyry zones at depth.  Recent results include a highlight intercept grading 8.7 g/t gold and 0.81% copper over 18.2 metres at 1,435 metres depth in the East Porphyry Zone.

The 2021 exploration results are expected to have a positive impact on the next mineral reserve and mineral resource estimate to be included in an internal technical evaluation of the Upper Beaver deposit expected to be completed in 2022.  The Company believes that with ongoing exploration, there is strong potential to delineate additional mineral resources at depth and proximate to the known deposit areas.  The mineral reserves and mineral resources presented below are unchanged from December 31, 2020 .

As of December 31, 2021 , Upper Beaver had approximately 1.4 million ounces of gold and 20,000 tonnes of copper in underground probable mineral reserves (8.0 million tonnes grading 5.43 g/t gold and 0.25% copper); 403,000 ounces of gold and 5,100 tonnes of copper in underground indicated mineral resources (3.6 million tonnes grading 3.45 g/t and 0.14% copper); and 1.4 million ounces of gold and 17,300 tonnes of copper in underground inferred mineral resources (8.7 million tonnes grading 5.07 g/t and 0.20% copper). For a detailed discussion of mineral reserves and mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in this news release.

The Company is evaluating different scenarios on how to best mine the deposit that starts from surface and remains open below 1.8 kilometres.  In the 1930s, the Upper Beaver deposit was mined from surface to 400 metres depth, exploiting narrow high-grade zones containing gold and copper.  The Company believes that Upper Beaver has the potential to be a low-cost mine with annual production in the range of 150,000 ounces to 200,000 ounces of gold and moderate capital outlays.

Following completion of the Merger, the Company also has more processing options available including building a standalone mill and tailings facility at site or using an existing mill and tailings facility at either the Macassa mine or the Holt mining complex.

The above options will be reviewed in the Upper Beaver internal technical evaluation which is expected to be completed later this year.

Other regional deposits could support a centralized milling complex

The Upper Canada deposit lies approximately 6 km southwest of the Upper Beaver property, and 1.6 km north of the main LCDZ, within a 300 to 400-m-wide strongly altered deformation corridor.  Host rocks are primarily volcanic (trachyte) tuffs and sediments that have been intruded by syenite bodies.  Gold mineralization is associated with intensely altered shear zones with fine pyrite and ancillary sulphide mineralization. En-echelon higher-grade lenses are present within a broader envelope of lower grade mineralization.

Upper Canada was in production from the 1930s to the 1970s and produced 1.5 million ounces.  Drilling by various owners over the last few decades has defined a wider zone around the old narrow workings hosting the current mineral resources.

At year-end 2021, the Upper Canada deposit was estimated to contain 104,000 ounces of gold in open pit indicated mineral resources (2.0 million tonnes grading 1.62 g/t) and 618,000 ounces of gold in underground indicated mineral resources (8.4 million tonnes grading 2.28 g/t).  In addition, there are 1.8 million ounces of gold in underground inferred mineral resources (8.7 million tonnes grading 3.21 g/t).

The combined indicated mineral resources at the property's Anoki-McBean deposit have been estimated at 1.9 million tonnes grading 5.33 g/t gold (containing 320,000 ounces of gold) as of December 31, 2021 , and there are additional inferred mineral resources, all at underground depths.

For additional details on the Upper Canada , Anoki-McBean mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in this news release.

Work is ongoing to evaluate the potential to develop the regional deposits as potential ore feed to existing milling infrastructure in the region.

Opportunities along the past producing Main Break

Agnico Eagle now controls six of the original producing mines along the Main Break in the Kirkland Lake mining camp.  The underground workings of these mines are all interconnected and tie into production areas at the Macassa mine.

The gold mineralization at Macassa and the other past producing mines is found along breaks or faults, in veins as quartz filled fractures, as breccias and as sulphide rich (pyrite) zones.  There are multiple mineralized breaks, named the '04, '05, No.6, Kirkland Lake Main and the Kirkland Lake North and South branches.  The breaks strike 60° to the northeast and dip 70-80° south in keeping with the Timiskaming trend.  The trend of the gold mineralization in the Kirkland Lake camp conforms to the 60° westerly plunge of the syenite intrusives.

The Company plans to continue to work with the historical data to assess the potential of longer-term exploration targets along the Main Break.  The near-term focus will be to assess the mineral potential to the east and along the Main Break below the 5800 Level at Macassa and east onto the Kirkland Minerals and Teck-Hughes properties.  Any significant discoveries on these properties could provide incremental sources of ore for the Macassa mill.

Detour Lake – Ongoing Exploration Success Expected to Drive Future Mineral Reserve Growth and Provide Additional Opportunities to Enhance Production

The Detour Lake open pit mine is located in northeastern Ontario , approximately 300 kilometres northeast of Timmins and 185 kilometres by road northeast of Cochrane , within the northernmost portion of the Abitibi Greenstone Belt.  The Detour Lake operation has a mine life of approximately 22 years with expected average gold production of 659,000 ounces per year.

Detour Lake was acquired by Kirkland Lake Gold on January 31, 2020 , through its acquisition of Detour Gold Corporation.  At the time of the acquisition, Kirkland Lake Gold identified significant opportunities to generate value through growth in mineral resources and mineral reserves, as well as through initiatives aimed at expanding and optimizing mining and milling operations and tailings impoundment facilities.

On March 30, 2021 , Kirkland Lake Gold released an updated technical report (the "2021 Detour Lake Technical Report") for the Detour Lake mine.  The report estimated gold production of 680,000 to 720,000 ounces from 2021 to 2024, increasing to approximately 800,000 ounces in 2025, with AISC per ounce averaging $775 from 2021 to 2025 and $821 over the 22-year life of mine plan.  The 2021 Detour Lake Technical Report did not include any of the exploration results from the period after Detour Lake was acquired by Kirkland Lake Gold, nor did it include the full impact of business improvement initiatives undertaken following the acquisition.

A highlight of the program to create value at Detour Lake has been the exploration success achieved since the acquisition in 2020.  A key exploration focus was the Saddle Zone, which is located between the existing Main Pit and the planned West Pit.  The Saddle Zone had previously been under explored and contained no mineral reserves and only limited mineral resources.  Other key targets included the extension at depth of both the Main Pit and planned West Pit as well as areas west of the existing West Pit mineral reserves, which was also an area that had seen limited previous drilling.

Exploration results in 2020 and 2021 demonstrate the existence of a broad and continuous corridor of mineralization extending over 4.0 kilometres from the Main Pit through the Saddle Zone to the planned West Pit location to a depth of at least 800 metres below surface with the system remaining open.

Exploration results have also expanded the mineralized corridor to at least 400 metres west of the planned West Pit, with the corridor remaining open.  In addition, drill results have identified broad zones of higher-grade mineralization below the current pit shells for the Main Pit and West Pit, indicating the potential to add both open-pit and, potentially underground, mineral reserves and mineral resources.  In 2021, Kirkland Lake Gold carried out a $41.2 million exploration program at Detour Lake.

On September 2, 2021 , Kirkland Lake Gold released an updated mineral resource estimate (the "Mid-Year 2021 Mineral Resource Estimate"), which incorporated drilling results at Detour Lake up to July 26 , 2021.  The new estimate included a 10.1 million ounce increase in measured and indicated open-pit mineral resources to 14.7 million ounces of gold (572.0 million tonnes at 0.80 g/t).  The 14.7 million ounces of open-pit measured and indicated mineral resources consists of 12.2 million ounces of gold (386.5 million tonnes at 0.98 g/t) established using a 0.50 g/t cut-off grade and 2.5 million ounces of gold (185.5 million tonnes at 0.42 g/t) of lower-grade mineral resources established using cut-off grades between 0.35 – 0.50 g/t.

Under previous mine plans, the low-grade mineral resources represented material that was expected to be mined as waste, whereas the Mid-Year 2021 Mineral Resource Estimate anticipated they would be mined, stockpiled and processed in later years strategically as mill availability increases.

Mineral reserves and mineral resources as at December 31, 2021 did not include the impact of the Mid-Year 2021 Mineral Resource Estimate, nor any of the drilling results conducted after the Mid-Year 2021 Mineral Resource Estimate.  At December 31, 2021 , mineral reserves at Detour Lake were estimated at 15.0 million ounces of gold (573.3 million tonnes at 0.82 g/t), representing mineral reserves as at December 31, 2020 less the impact of production depletion during 2021.  The 15.0 million ounces of mineral reserves at December 31, 2021 includes 13.1 million ounces of gold (426.8 million tonnes at 0.96 g/t) established using a 0.50 g/t cut-off grade and 1.9 million ounces of gold (146.5 million tonnes at 0.41 g/t) using a cut-off grade of less than 0.50 g/t.  Open pit measured and indicated mineral resources were estimated at 14.7 million ounces of gold (572.0 million tonnes at 0.80 g/t) and inferred mineral resources were estimated at 1.2 million ounces of gold (52.4 million tonnes at 0.71 g/t).

Production at Detour Lake in 2021 totaled a record 712,824 ounces of gold, a 38% increase from the 516,757 ounces of gold for the 11 months in 2020 after Detour Lake was acquired by Kirkland Lake Gold.  The 712,824 ounces of production was above the mid-point of the original full-year 2021 guidance of 680,000 to 720,000 ounces and was in line with improved guidance of 700,000 to 720,000 ounces (announced on November 3 , 2021).  The strong production results in full-year 2021 were supported by record quarterly production in the fourth quarter of 2021 of 210,980 ounces of gold, driven by record mill throughput of 6,303,150 tonnes and a record grade of 1.14 g/t gold.

Outlook

On February 23, 2022 , three-year production guidance for Detour Lake was issued including 700,000 to 730,000 ounces of gold per year in 2022 to 2024.  The Mid-Year 2021 Mineral Resource Estimate, combined with a planned update in mineral resources, and ongoing business improvement initiatives will be incorporated into a new technical report and life-of-mine plan expected to be filed in the second quarter of 2022.  This report is expected to show growth in mineral reserves and provide additional opportunities to enhance the future production at the Detour Lake mine.

Macassa Mine – Completion of the #4 Shaft Project in 2022 Expected to Provide Numerous Benefits Leading to Ongoing Production Increases Through 2024 and Beyond

The 100% owned Macassa mine is located in the historic gold mining region of Kirkland Lake, Ontario and remains one of the highest-grade gold mines in the world.  Production at Macassa first commenced in 1933, with the mine being operated continuously until 1999, when operations were suspended due to low gold prices.  Production resumed in 2002 with the discovery of the South Mine Complex ("SMC") in 2005.  The SMC is a high-grade zone that resulted in significant grade improvement at the mine and an increase in production levels above historic averages.  Macassa was among the first mines globally to introduce battery-electric vehicles ("BEVs"), with the first BEVs introduced in 2012.  Currently, approximately 90% of the mine production fleet is BEVs, which results in low greenhouse gas emissions.

Since the discovery of the SMC, Macassa has continued to achieve significant exploration success, both in expanding the SMC and identifying new areas of high-grade mineralization along both the Main Break and Amalgamated Break, the two main faults extending through the Kirkland Lake camp.

In January 2018 , Kirkland Lake Gold announced plans to sink a new 6,400-foot shaft with a capacity of 4,000 tpd (ore and waste) (the "#4 Shaft" project) for the Macassa mine.  The decision to sink a new shaft reflected the mine's track record for replacing mineral reserves, continued favourable results from exploration drilling and the advancement of mining operations in the SMC to the east, and further to depth, away from the existing #3 Shaft.  In addition, the new shaft will increase ventilation resulting in improved working conditions through reduced heat and humidity, de-risk the operation with less reliance on the existing #3 shaft, which is timber lined, support enhanced exploration capabilities and result in production growth by increasing hoisting capacity from the mine to utilize excess capacity in the Macassa mill.

Once the #4 Shaft is completed, the ore hoisting capacity at the mine is expected to effectively double, to approximately 2,000 tpd.  Ventilation in the deep portion of the Macassa mine will increase to approximately 750,000 cubic feet per minute ("cfm") from approximately 300,000 cfm currently.  In addition, the #4 Shaft is more centrally located within the past-producing Kirkland Lake camp than the existing #3 Shaft and will support future exploration development along the Main and Amalgamated breaks.

The surface infrastructure phase of the #4 Shaft project was completed in July 2019 , with sinking commencing in early August of that year.  The sinking phase of the project advanced ahead of schedule and was completed on January 12, 2022 , over a year earlier than initially anticipated.  At the time of this news release, construction of the loading pocket and other related infrastructure, as well as development to connect the new shaft to current mining operations, were advancing as planned.  Completion of these activities are expected in late 2022, ahead of the original schedule and under budget.

In 2021, exploration expenditures totaled $38.2 million , with drilling continuing to extend the SMC in multiple directions.  In addition, exploration work has also identified new zones of high-grade mineralization along the Amalgamated Break.  In 2020, a corridor of high-grade mineralization extending at least 700 metres along strike and 300 metres high was identified along the historic Main Break below the adjacent Kirkland Minerals property.  The Company plans to follow-up on this high-potential target once underground exploration development into the area is completed.  Mineral reserves at December 31, 2021 , were estimated at 1.86 million ounces of gold (3.55 million tonnes at 16.3 g/t).

Production at Macassa in 2021 totaled 210,192 ounces of gold, a 15% increase from 183,037 ounces in 2020.  Production for the year was below the initial guidance of 220,000 to 255,000 ounces, however it achieved the top end of revised guidance released on November 3, 2021 , as part of Kirkland Lake Gold's third quarter 2021 results.  The reduction in production guidance on November 3, 2021 , largely reflected the ongoing impact of reduced equipment availability caused by increased maintenance requirements, poor battery performance and delays in new battery delivery, with the result being lower production, reduced operating development metres and a lower average grade resulting largely from changes to mine sequencing.

Outlook

On February 23, 2022 , the Company issued three-year production guidance for Macassa of 170,000 to 190,000 ounces in 2022, 200,000 to 220,000 ounces in 2023 and 330,000 to 350,000 ounces in 2024.  Production levels could potentially increase once the full benefit of the #4 Shaft is realized.

The updated production guidance is the result of a review of the Macassa operation that focused on:

• Assessing opportunities to incorporate the AK Zone into the mine plan following the Merger
• Addressing ongoing performance and supply chain issues related to batteries and the battery-powered haul fleet
• Evaluating future plans for the near-surface ramp and mineralized zones, such as AK
• Reviewing the development program and the mining sequence in several areas of the underground mine

Fosterville Mine – Exploration Drilling Continues to Target Mineral Reserve Replacement and Growth as well as the Potential Discovery of New High-Grade Zones

The Fosterville mine is located approximately 20 kilometres northeast of Bendigo in Victoria , Australia.  Kirkland Lake Gold acquired Fosterville as part of a business combination with Newmarket Gold Inc. in November 2016.  At the time of the transaction, Fosterville had annual gold production of approximately 150,000 ounces with mineral reserves of 388,000 ounces of gold (1.7 million tonnes at 7.3 g/t gold).

A key consideration in the decision to acquire Fosterville was strong exploration potential.  Exploration had demonstrated a trend towards improving grades within the host sulphide mineralization as it progressed down-plunge, and it identified a new form of mineralization; high-grade quartz veins containing significant amounts of visible gold starting at a depth of approximately 800 metres from surface.

In 2017 to 2018, considerable exploration success was achieved, both growing mineral reserves and increasing average grades, ultimately leading to the establishment of the ultra-high-grade Swan Zone as one of the world's highest grade gold zones.  In 2019 to 2020, the mine carried out extensive exploration programs, resulting in the continued discovery of high-grade quartz veins with visible gold mineralization at multiple targets (albeit at reduced grades than had been intersected in the Swan Zone).  Among the priority targets at Fosterville were the Lower Phoenix System further down-plunge from the Swan Zone, the adjacent Harrier gold system to the south, the Cygnet structure, approximately 125 metres in the footwall to the Swan Zone, and Robbin's Hill, a new gold system identified approximately 4.0 kilometres north of the existing Fosterville mine.

In 2021, Kirkland Lake Gold carried out an $80.5 million exploration program at Fosterville , including development of a twin exploration drive from the Fosterville mine to Robbin's Hill.  Key exploration results in 2021 included the intersection of high-grade quartz with visible gold 500 metres further down-plunge from the Swan Zone in Lower Phoenix, in a series of splay structures sub-parallel to Swan Zone at Cygnet, and 1,000 metres down-plunge from the deepest mineral reserves at Robbin's Hill.  At December 31, 2021 , mineral reserves at Fosterville were estimated at 1.86 million ounces of gold (5.6 million tonnes at 10.3 g/t), while Robbin's Hill was estimated to contain probable mineral reserves of approximately 157,000 ounces of gold (1.05 million tonnes at 4.7 g/t).

Production at Fosterville in 2021 totaled 509,601 ounces of gold, over 100,000 ounces higher than the low end of the original production guidance for 2021 of 400,000 – 425,000 ounces (and in line with revised guidance of approximately 500,000 ounces announced on November 3 , 2021).  Higher than planned gold production in 2021 mainly reflected a consistent trend of grade outperformance during the year.

Outlook

On February 23, 2022 , the Company issued three-year production guidance for Fosterville of 390,000 to 410,000 ounces in 2022, 360,000 to 390,000 ounces in 2023 and 230,000 to 265,000 ounces in 2024.  Both the 2022 and 2023 levels are improved from previous guidance in December 2020.  The reduction in expected production in 2024 compared to 2021 level reflects the transition to lower grades due to the re-emergence of the host sulphide mineralization as the dominant mineralization at the bottom of the Swan Zone.  The reduction also reflects plans to advance lower-grade areas of the mine to extend the production life of the Swan Zone while exploration drilling continues to target mineral reserve replacement and growth as well as the potential discovery of new high-grade zones.

Based on current exploration results, the Company's long-term goal for Fosterville is to establish the mine as a long-life asset through the successful replacement of mineral reserves.  The Company believes there is potential to discover additional high-grade zones that could potentially support higher production levels and improvements in unit costs.

Odyssey Project – Underground Development and Surface Construction Activities Remain on Schedule and on Budget

Agnico Eagle and Yamana Gold Inc. ("Yamana") each have a 50% interest in the Canadian Malartic GP (the "Partnership") which owns and operates the Canadian Malartic mine and the Odyssey project in northwestern Quebec.  In February 2021 , the Partnership approved the construction of the underground Odyssey project, located east of the current mining operation, upon completion of an internal preliminary economic assessment.  The results of this study were incorporated into the technical report for the Canadian Malartic operation titled "NI 43-101 Technical Report, Canadian Malartic Mine, Québec, Canada " (the "CM Report").  The CM Report was filed on SEDAR on March 25, 2021 .

On a 100% basis, the preliminary economic assessment includes 410,000 ounces of gold in indicated mineral resources (6.2 million tonnes grading 2.07 g/t gold) and 6.9 million ounces of gold in inferred mineral resources (75.9 million tonnes grading 2.82 g/t gold) that represent approximately half of the Odyssey project's year-end 2020 total of 859,000 ounces of gold in the indicated category (13.3 million tonnes grading 2.0 g/t gold) and 13.6 million ounces of gold in the inferred category (177.5 million tonnes grading 2.4 g/t gold).  The development of this project combines the exploitation of four main mining zones by ramp and shaft: Odyssey North, Odyssey South, East Malartic and East Gouldie.

Based on current mineral reserves, production from the Canadian Malartic and Barnat open pits extends to 2029.  Run-of–mine ore from the pit is expected to decrease starting in 2022, as the ore production from the underground starts gradually in 2023 to reach a rate of 3,500 tpd in 2024.  The underground is expected to reach full production of approximately 19,000 tpd by 2031.

Capital expenditures from 2021 to 2028 are expected to total approximately $1.34 billion (on a 100% basis), which includes $1,144 million in initial capital expenditures and $191 million in additional development capital expenditures.  The gradual transition from open pit to underground mining allows for capital expenditures to be spread over eight years.  In addition, proceeds from the early production, which is expected to begin in 2023, will significantly reduce the external cash requirements for the construction of the project

From 2023 to 2028, gold production is forecast to be approximately 932,000 ounces at total cash costs of approximately $800 per ounce (all numbers on a 100% basis).  Average annual payable production is approximately 545,400 ounces of gold from 2029 to 2039, with total cash costs per ounce of approximately $630 .  Sustaining capital expenditures are expected to gradually decline from 2029 to 2039, with an expected average of approximately $56 million per year.

The forecast parameters surrounding the Company's proposed operations at the Odyssey project were based on the CM Report, which is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized.  The basis for the CM Report and the qualifications and assumptions made by the qualified person who undertook the CM Report are set out in this news release under the caption "Scientific and Technical Information".

Recent activities

Underground development in 2021 was in line with expectations with 1,487 linear metres of ramp completed and 2,081 equivalent metres of lateral development achieved.  An exploration drift has been installed on Level 16 and ramp access is now down to level 26, which is approximately half the depth extent of the Odyssey South deposit.  Development is expected to ramp up from the current level of 425 metres per month to approximately 860 metres per month in the second half of 2022.  To facilitate the increased development rate, the Partnership will be adding its own development crews and additional underground equipment (both diesel and electric) in the second quarter of 2022.

Production via the ramp is expected to begin gradually at Odyssey South in the first half of 2023, increasing to up to 3,500 tpd in 2024.  Collaring of the shaft and installation of the headframe was initiated in 2021 and shaft sinking activities are expected to begin in the fourth quarter of 2022.  The shaft will have an estimated depth of 1,800 metres and the first loading station is expected to be commissioned in 2027 with modest production from East Gouldie.  The East Malartic shallow area and Odyssey North are scheduled to enter into production in 2029 and 2030, respectively.

Surface construction activities are progressing well with the maintenance garage and warehouse erected and fully enclosed at the end of 2021.  The garage is expected to be fully functional by April 2022.  Work on the foundations for the first phase of the paste plant started in February and the plant is expected to be fully functional in the first quarter of 2023.

In 2021, twelve surface drills completed 123,680 metres of drilling and two underground drills completed 9,722 metres of drilling.  The focus of the surface drilling was to infill and extend the East Gouldie deposit and test the Odyssey internal zones.  The underground drilling was primarily focused on conversion of mineral resources at the Odyssey South deposit.

At East Gouldie, the 2021 drilling campaign confirmed the higher-grade nature of the core of the deposit and extended the boundaries of the known mineralization.  At year-end 2021 approximately 1.5 million ounces (11.9 million tonnes grading 3.88 g/t gold) had been converted to indicated mineral resources and an additional 1.2 million ounces (10.7 million tonnes at 3.4 g/t gold) had been added to inferred mineral resources.  The above mineral resources are on a 100% basis and have not been factored into the current mine plan at Odyssey.  Additional details on the mineral resources are presented in the mineral reserve and mineral resource section of this news release.

Recent underground drill results in the Odyssey Internal Zone and the Jupiter Zone continue to demonstrate the potential to add mineral resources in close proximity to the Odyssey North and Odyssey South deposits.  Drill hole MEV21-213R intersected mineralization in this internal zone and returned three intercepts yielding 3.2 g/t over 20.8 metres (core length) at 558 metres depth, 3.9 g/t over 9.9 metres (core length) at 641 metres depth and 3.9 g/t over 8.7 metres (core depth) at 1,095 metres depth.

Mineral resources from the Odyssey internal zones are not currently included in the mine plan due to the increased geological complexity of these zones.  Additional infill drilling of these zones from underground is planned to increase geological understanding, which could present opportunities for additional production during the underground ramp-up period.  In addition, mineral resources from the East Malartic deposit at depth could represent another opportunity for future inclusion in the mine plan, which could extend the life of the underground project.  Infill drilling and additional engineering is required to evaluate the economic potential of these mineral resources.

Fifteen drills are currently operating at site and approximately 137,000 metres of surface and underground drilling is planned to infill and expand mineral resources in 2022.  Additional details on the 2022 drill program are presented in the exploration program and budget section of this news release.

Opportunities to further enhance the Odyssey project will continue to be evaluated as the development program advances, including opportunities for increased conversion of mineral resources and extension of the higher-grade East Goudie deposit, which have the potential to significantly extend mine life and improve the gold production profile in the transition from open pit to underground mining.  Infill drilling and additional engineering is required to evaluate the economic potential of these mineral resources.

The East Gouldie eastern extension continues to be investigated up to the eastern boundary of the Canadian Malartic property and onto the adjacent Rand Malartic where the zone was intersected more than 1.2 km away from the current mineral resources limit.

Kittila Expansion Project – Shaft Sinking Expected to be Completed in the Second Half of 2022

In February 2018 , the Company approved a major expansion project at Kittila to increase the mill throughput by 25% to 2.0 million tonnes per annum ("mtpa"), and sink a 1,040 metre deep production shaft.  The mill expansion was completed ahead of schedule and on budget in 2020 at a cost of €29.5 million.

Work on the shaft commenced in 2019, and despite logistical issues associated with COVID-19, work has been progressing well.  In the third quarter of 2021, the phase 1 of the new main level (at 900 metres depth) was commissioned.  Phase 1 included the underground lunch room, social facilities, supervisor offices and parking area.  In phase 2, the maintenance garage and storage facilities will be commissioned.

At year-end 2021, total progress on the project was estimated at 90%.  Progress included:

• Underground Rockline – 95%
• Shaft sinking – 69%
• Shaft bottom – 97%
• Headframe and hoists – 89%

Shaft sinking is expected to be completed in the second half of 2022.  Commissioning of the production hoist is expected in late 2022 or early 2023.  The service hoist is expected to be completed in the first quarter of 2023.  The overall total expansion project costs are expected to remain within the previously disclosed estimated range of €190 to €200 million, however the global COVID-19 situation may have an effect both on costs and schedule.

With the completion of the shaft, the Company anticipates a potential decline in the minesite costs per tonne.  As a result of the mill expansion the cost per tonne was lowered by approximately €4 in 2021 as compared to 2020.  An additional €3-4 per tonne savings is expected when the shaft is commissioned due to lower ore handling costs. Production is expected to remain stable at around 245,000 to 250,000 ounces per year.  In the first quarter of 2022, the Company expects to initiate permitting activities to increase the mill throughput to 2.3 mtpa by 2026.  With the increased milling rate, production could potentially increase to approximately 275,000 to 300,000 ounces per year in 2026.

The Kittila orebody remains open at depth and exploration in 2021 delineated a new target area below the proposed shaft bottom with results of up to 5.5 g/t gold over 15.6 metres at 1,097 metres depth.  In addition, significant intersections were encountered at depth in the Sisar area, including 6.3 g/t over 13.6 metres at 1,948 metres depth.

Pipeline Development Projects Provide Future Production Optionality

Hope Bay – Current Focus is on Exploration Activities to Develop an Optimal Production Strategy Around the Geological Potential of the Land Package

On February 2, 2021 , Agnico Eagle acquired TMAC Resources Inc. ("TMAC").  As a result, the Company acquired a 100% interest in the Hope Bay Property, which is located in the Kitikmeot region of Nunavut , approximately 685 kilometres northeast of Yellowknife and 125 kilometres southwest of Cambridge Bay.  The land package includes portions of the Hope Bay and Elu greenstone belts.  The 80-kilometre long Hope Bay greenstone belt hosts three gold deposits (Doris, Madrid and Boston ) with historical mineral reserves and mineral resources and over 90 regional exploration targets.  The Company believes that Hope Bay is similar in scale and scope to its Meliadine property.

The property contains significant infrastructure including:

• Underground mine development at the Doris and Boston deposits
• A fully enclosed conventional processing plant (with a 2,000 tpd design capacity) and a tailings impoundment area at Doris
• A gravel airstrip at Doris capable of handling Boeing 737 aircraft and a secondary gravel airstrip at Boston
• A port with a laydown facility and fuel storage at Roberts Bay
• An all-weather road network, a diesel power plant and an office-accommodations complex

TMAC established strong relationships with Inuit residents and organizations and the Government of Nunavut.  An Inuit Impact and Benefits Agreement is in place with the Kitikmeot Inuit Association.  Historically, a portion of the workforce has come from Nunavut and TMAC was also successful in sourcing workers from across Canada , with a large component coming from Western Canadian labour markets.

Focus in 2021 was on Understanding the Existing Operation and Ramping-up Exploration

Agnico Eagle took over the mining operations in February 2021 and production continued until the end of September 2021.  The primary objective in 2021 was to operate the mine on a cash flow neutral basis, while developing a better understanding of the mill circuit, underground conditions and initial exploration potential at Doris and Madrid .

Mining operations ran continuously, while the mill was operated using a three week on and a three week off rotation.  Following two COVID-19 outbreaks in September and October, the Company stopped milling operations in the fourth quarter of 2021 and focused on site activities to support exploration efforts at Doris and Madrid.  Total gold production in 2021 was 56,229 ounces at a total cash cost per ounce of $1,063 and AISC per ounce of $1,750 .

Exploration activities commenced in February 2021 and continued into the fourth quarter of 2021, with more than 81,000 metres of drilling completed on the Doris and Madrid deposits.  Results from the 2021 program indicated that both deposits are open in multiple directions.

The Hope Bay project has seen significant historical exploration activity, including more than one million metres of drilling with approximately 90% of the drilling occurring on the established deposits of Doris, Madrid and Boston.  As a result, the project hosts a large historical mineral resource.  These historical mineral resources have now been reviewed and incorporated into the Company's 2021 year-end mineral reserve and mineral resource statement.

At December 31, 2021 , it was estimated that Hope Bay contained probable mineral reserves of 3.33 million ounces (16.0 million tonnes at 6.50 g/t gold), indicated mineral resources of 0.97 million ounces (8.8 million tonnes grading 3.43 g/t gold), and inferred mineral resources of 1.68 million ounces (10.2 million tonnes at 5.09 g/t gold).  For additional details see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in this news release.

Longer-term Focus will be on Exploration and Evaluation of Larger Production Scenarios

In 2022 and 2023, production activities will remain suspended and the primary focus at Hope Bay will be on exploration.  Some site activities will also be carried out to support the exploration program and maintain the site for a potential future restart of mining activities.  The Hope Bay budget for 2022 is approximately $80 million (of which $77.8 million will be expensed) and includes $32.2 million for exploration (including approximately 951 metres of underground development at Doris), $31.3 million for site maintenance and $14.3 million for projects and studies (including approximately $9 million for a new water treatment plant).

Agnico Eagle believes that there is excellent potential to increase mineral reserves and mineral resources at all of the deposit areas and regionally.  The Doris structure is open at depth and could extend all the way to Madrid.  Doris hosts a number of zones with significant intersections encountered to date including:

• BTD Extension – 9.0 g/t gold over 8.5 metres at 9 metres depth
• DCN South – 4.4 g/t over 13.5 metres at 126 metres depth
• BCN – 17.1 g/t gold over 4.9 metres at 431 metres depth
• BCO – 6.7 g/t gold over 11.5 metres at 540 metres depth

At Madrid , all of the deposits are open in all directions, and there is good potential to infill the gaps between the known zones and add to mineral reserves and mineral resources. In addition, the Madrid grades appear to be more consistent.  In 2022, drilling will focus on the Naartok, Suluk, and Suluk South zones, and in 2023, drilling will move to the Patch 7 and Wolverine zones.  Significant intersections encountered to date at Madrid include:

• Naartok – 12.4 g/t gold over 4.2 metres at 637 metres depth
• Suluk – 10.8 g/t gold over 9.3 metres at 685 metres depth
• Patch 7 – 14.5 g/t gold over 7.7 metres at 480 metres depth

Exploration drilling below the mineral resources at Boston by TMAC in 2019 intersected high-grade mineralization, including 24.5 g/t gold over 3.5 metres at approximately 550 metres depth.  Historical drilling by a previous operator also intersected significant mineralization at approximately 1,000 metres below surface (56.6 g/t gold over 8.8 metres).  Continued drilling has the potential to add to the Boston mineral resources.

Select drill results from the Doris, Madrid and Boston deposits

The Company believes that there is also good exploration potential elsewhere within the Hope Bay and Elu greenstone belts.  The majority of historical and recent exploration has focused on defining and expanding the known deposits.  To date, over 90 regional exploration targets have been delineated, of which 40 have been defined by surface mapping and sampling, and geophysical and geochemical surveys.

Additional details on the drilling program at Hope Bay are set out in the 2022 exploration budget section in this news release.  During the course of the year, the Company will be evaluating exploration priorities and metres allocated on each program and may adjust the allocation.

Internal evaluations are underway regarding the potential to operate a 4,000 tpd mine at Hope Bay that could ultimately produce 250,000 to 300,000 ounces of gold per year at reasonable costs and capital spending levels for at least 12 to 15 years.  Current studies are only evaluating production from the Doris and Madrid deposits.  Development of the Boston deposit could potentially enhance both the mine life and production profile.

The Company is also evaluating whether to retrofit the existing Doris mill or build a new mill closer to the Madrid Deposit.  Key permits and approvals required to construct and mine the Doris, Madrid and Boston deposits at up to 4,000 tpd are already in place.  However, any significant changes to the operational plans may require amendments to the existing permits.

Hammond Reef – Production Optionality in a Higher Gold Price Environment

The 100% owned Hammond Reef property in northwestern Ontario covers approximately 32,070 hectares and is located approximately 260 kilometres west of Thunder Bay.  The property is accessible via secondary gravel roads from the town of Atikokan , which is located approximately 30 kilometres to the southwest.

The Hammond Reef deposit is a high tonnage, low grade gold deposit that is primarily hosted in variably sheared and altered granitoid rocks.  Gold mineralization is typically associated with fine grained pyrite mineralization that is often associated with fractures, veinlets and veins filled with various combinations of chlorite, calcite and quartz.

A positive internal technical study at Hammond Reef was completed by the Company in 2020, which resulted in the declaration of the first mineral reserves for the project on December 31 , 2020.  Open pit probable mineral reserves are estimated at 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold).  In addition, the project contains 0.8 million ounces of measured mineral resources (47.1 million tonnes grading 0.54 g/t gold) and 1.5 million ounces of indicated mineral resources (86.3 million tonnes grading 0.53 g/t gold).

If approved for development in the future, mining activities are expected to be carried out in two open pits and the plant will utilize a conventional milling process with a design capacity of 30,000 tpd, and an average recovery of 89.1%.  Tailings will be contained in a conventional tailings storage facility.

Average annual gold production over the expected 12 year mine life is forecast to be approximately 272,000 ounces at average total cash costs per ounce of $748 and average AISC per ounce of $806 .  Initial capital costs are approximately $1.0 billion .

Additional details on the project were included in the Company's news release dated February 11 , 2021.  Resource sharing agreements with local First Nations are in place and the project has received environmental approval from both Federal and Provincial agencies.  Studies will continue in 2022 to optimize the project and further advance the final permits required for construction and operation.

Gold Mineral Reserves Increase to Record Level of 25.7 Million Ounces in 2021, Driven by Hope Bay Acquisition and Positive Outcomes at LaRonde

At December 31, 2021 , the Company's proven and probable mineral reserve estimate (net of 2021 gold production) totaled 337 million tonnes of ore grading 2.37 g/t gold, containing approximately 25.7 million ounces of gold.  This is an increase of approximately 1.6 million ounces of gold (7%) and a 10% increase in grade compared with the prior year.

The ore extracted from mines in 2021 contained 2.3 million ounces of gold in-situ (32.4 million tonnes grading 2.18 g/t gold), excluding production from Creston Mascota.

Highlights from the December 31, 2021 mineral reserve estimate include:

• At Hope Bay, a declaration of underground proven mineral reserves of 15,000 ounces of gold (78,000 tonnes grading 6.03 g/t gold) and probable mineral reserves of 3.3 million ounces of gold (15.9 million tonnes grading 6.50 g/t gold) in the first mineral reserve estimate since the Company acquired the project
  
  
• At the LaRonde Complex, successful conversion drilling more than replaced 2021 production leading to a net growth of 30,000 ounces of gold after production depletion

The Company's December 31, 2021 gold mineral reserves are set out below, compared with the gold mineral reserves a year earlier:

Data set out in the table above and certain other data in this news release have been rounded to the nearest thousand and discrepancies in total amounts are due to rounding.  For detailed mineral reserves and mineral resources data see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in the Appendix.  Mineral reserves are in-situ, taking into account all mining recoveries and dilutions, before mill or heap-leach recoveries.

The economic parameters used to estimate mineral reserves and mineral resources for all properties are set out in the table below.  The Company's economic parameters follow the method accepted by the US Securities and Exchange Commission (the "SEC") by setting the  maximum price allowed to be the lesser of the three–year moving average and current spot price, which is a common industry standard.

Assumptions used for the December 31, 2021 mineral reserve and mineral resource estimates reported by the Company

The above metal price assumptions are below the three-year historic gold and silver price averages (from January 1, 2019 to December 31, 2021 ) of approximately $1,654 per ounce and $20.63 per ounce, respectively.  For longer term projects that have not been approved for development, such as the Hope Bay and Hammond Reef projects, the Company believes that it is appropriate to use a gold price assumptions for mineral reserve estimation that is more reflective of the current gold price environment.  The mineral resources are estimated using 75% of the mineral reserves cut-off grades, except for the Hammond Reef and Hope Bay properties where 80% of the mineral reserves cut-off grades are used.

The largest contribution to the increase in ounces of gold in mineral reserves is related to the declaration at Hope Bay of underground proven mineral reserves of 15,000 ounces of gold (78,000 tonnes grading 6.03 g/t gold) and underground probable mineral reserves of 3.3 million ounces of gold (15.9 million tonnes grading 6.50 g/t gold) in the first mineral reserve estimate since the Company acquired the project in February 2021 and launched an aggressive exploration drilling campaign.  Hope Bay was not included in Agnico Eagle's mineral reserves and mineral resources estimate at year-end 2020.

At the LaRonde Complex, a combination of successful conversion drilling and economic studies, more than offset the 399,000 ounces of gold mined in situ, resulting in a net increase of approximately 30,000 ounces of gold in mineral reserves.

The Canadian Malartic mine saw a decrease of approximately 446,000 ounces of gold in proven and probable mineral reserves (reflecting Agnico Eagle's 50% interest) as 396,000 ounces of gold were mined in situ as the Canadian Malartic open pit entered its final years of operation.  Continued exploration success at the Odyssey, East Gouldie and East Malartic underground deposits, collectively known as the Odyssey Mine project, suggest that a significant portion of the underground Odyssey Mine project may be converted into mineral reserves in the future, to replace the ore currently being mined at the adjacent Canadian Malartic and Barnat pits.

At the Kittila mine, conversion drilling resulted in an increase of approximately 189,000 ounces of gold in mineral reserves.  With the mining of a record 276,000 ounces of in-situ gold in 2021 as well as the decrease of 185,000 ounces of gold due to an increase in the cut-off grade parameters and other adjustments, the result was an overall decrease in mineral reserves of 273,000 ounces of gold at Kittila.

In addition to gold, Agnico Eagle's proven and probable mineral reserves include by-product metals of approximately 28 million ounces of silver at the Pinos Altos , LaRonde and La India mines (34.2 million tonnes grading an average of 25.34 g/t silver); 169,300 tonnes of zinc and 39,300 tonnes of copper at the LaRonde mine (15.3 million tonnes grading 1.11% zinc and 0.26% copper); 25,900 tonnes of copper at the Akasaba West project (5.4 million tonnes grading 0.48% copper); and 20,000 tonnes of copper at the Upper Beaver project (8.0 million tonnes grading 0.25% copper).

At a gold price 10% higher than the assumed gold price (leaving other assumptions unchanged), the Company estimates there would be an approximate 7.7% increase in the gold contained in proven and probable mineral reserves.  Conversely, at a gold price 10% lower than the assumed gold price (leaving other assumptions unchanged), the Company estimates there would be an approximate 8.5% decrease in the gold contained in proven and probable mineral reserves.

Measured and Indicated Mineral Resources Increase by 12% to 17.3 Million Ounces of Gold with the Declaration of Initial Indicated Mineral Resources at East Gouldie, the Acquisition of Hope Bay and Successful Conversion Drilling at Goldex and Chipriona

At December 31, 2021 , the Company's measured and indicated mineral resources totaled 17.3 million ounces of gold (353 million tonnes grading 1.52 g/t gold), comprised of 69 million tonnes grading 0.92 g/t gold of measured mineral resources and 284 million tonnes grading 1.62 g/t gold in indicated mineral resources.  This represents a 12% (1.9 million ounce) increase in ounces of gold and a 9% increase in grade (from 1.40 g/t gold) compared to a year earlier (see the Company's news release dated February 11, 2021 for details regarding the Company's December 31, 2020 measured and indicated mineral resource estimate).

Highlights from the December 31, 2021 measured and indicated mineral resource estimate include:

• Declaration of initial underground indicated mineral resources at the Odyssey project's East Gouldie deposit of 745,000 ounces of gold (6.0 million tonnes grading 3.88 g/t gold) (reflecting Agnico Eagle's 50% interest)
  
  
• Acquisition of Hope Bay and the subsequent incorporation of the most recent drilling since the last estimate as well as the Company's mineral resources classification criteria resulted in the addition of indicated mineral resources totaling 967,000 ounces of gold (8.8 million tonnes grading 3.43 g/t gold) at Hope Bay
  
  
• Successful conversion drilling at the open-pittable Chipriona polymetallic sulphide deposit and the addition of the sulphide mineral resources of the La India property resulted in an increase in indicated mineral resources to 260,000 ounces of gold plus 18.0 million ounces of silver and 34,100 tonnes of zinc (6.4 million tonnes grading 1.26 g/t gold, 87.3 g/t silver and 0.53% zinc) at year-end 2021.

Inferred Mineral Resources Increase by 2% to 23.7 Million Ounces, Due to Successful Exploration Drilling at East Gouldie and Kittila and the Acquisition of Hope Bay

At December 31, 2021 , the Company's inferred mineral resources totaled 272 million tonnes grading 2.72 g/t gold, or approximately 23.7 million ounces of gold.  This represents an approximate 2% (359,000 ounces) increase in ounces of gold and a 6% increase in grade from the December 2020 inferred mineral resource estimate (see the Company's news release dated February 11, 2021 for details regarding the Company's December 2020 inferred mineral resource estimate).

Highlights from the December 31, 2021 inferred mineral resource estimate include:

• At East Gouldie (50% basis), despite 745,000 ounces of inferred mineral resources being converted into indicated mineral resources, the inferred mineral resources decreased by only 163,000 ounces due to the addition of 582,000 ounces of new inferred mineral resources following an aggressive exploration campaign
  
  
• Acquisition of Hope Bay in 2021 and exploration program added inferred mineral resources of 1.7 million ounces of gold (10.2 million tonnes grading 5.09 g/t gold)
  
  
• Deepening of the Kittila mineral resources limit by approximately 560 metres to 2,100 metres depth due to successful exploration drilling in recent years added 0.7 million ounces of gold (4.2 million tonnes grading 5.09 g/t gold). However, this gain was offset by an increase in the cut-off grade parameters and the application of optimized mineable shapes to report the inferred mineral resources with internal dilution.

With this significant improvement to the reporting method at Kittila, 96% of the Company's total ounces in underground inferred mineral resource as of December 31, 2021 demonstrate spatial continuity of the mineralization within a potentially mineable shape.

The year-end 2021 mineral resource estimate excludes mineral resources at the Kylmäkangas deposit in Finland , which was sold by the Company in June 2021 , and had inferred mineral resources of 250,000 ounces of gold (1.9 million tonnes grading 4.11 g/t gold) at year-end 2020.

For a detailed discussion of mineral reserves and mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in the Appendix.

Kirkland Lake Gold's Gold Mineral Reserves Totaled 18.9 Million Ounces at Year-End 2021; Strong Growth in Detour Lake Mineral Reserves Anticipated in Technical Report and Life-of-Mine Plan Expected to be Released in 2022

Highlights from Kirkland Lake Gold's December 31, 2021 mineral reserve estimate include:

• 15 million ounces of gold in proven and probable mineral reserves at Detour Lake at year-end 2021. Strong growth in mineral reserves at Detour Lake is expected in new mineral reserve estimate to be included as part of 2022 technical report and life-of-mine plan expected in the second quarter of 2022
  
  
• Successful conversion drilling at Fosterville during 2021 resulted in the addition of 569,361 ounces of gold in proven and probable mineral reserves, which resulted in net growth of mineral reserves of 44,000 ounces of gold after production depletion of 525,361 ounces of gold

At December 31, 2021 , Kirkland Lake Gold's proven and probable mineral reserves (net of 2021 gold production) totaled 583.5 million tonnes grading 1.01 g/t gold, containing approximately 18.9 million ounces of gold, comprised of proven mineral reserves of 81.7 million tonnes grading 1.41 g/t gold (3.7 million ounces of gold) and probable mineral reserves of 502 million tonnes grading 0.94 g/t gold (15.2 million ounces of gold).

This compares with proven and probable mineral reserves at December 31, 2020 of 604.6 million tonnes grading 1.03 g/t gold, containing approximately 20.1 million ounces of gold, comprised of proven mineral reserves of 85.0 million tonnes grading 1.50 g/t gold and probable mineral reserves of 519.6 million tonnes grading 0.96 g/t gold.

The decrease in Kirkland Lake Gold's total proven and probable mineral reserves at year-end 2021 compared to the previous year largely reflected total mine production of 1.5 million ounces of gold in-situ (25.1 million tonnes grading 1.87 g/t gold).  The impact of production depletion was partially offset by the successful conversion of a large proportion of indicated mineral resources to mineral reserves at Fosterville , with net growth in mineral reserves of 44,000 ounces after production depletion.

The mineral reserves for Detour Lake at year-end 2021 are the mineral reserves that were estimated at December 31, 2020 reduced by depletion of approximately 741,000 ounces from mine production during 2021.  A new mineral reserve estimate for Detour Lake, reflecting the impact a 10.1-million-ounce increase in open-pit measured and indicated mineral resources announced as part of the Mid-Year 2021 Mineral Resource Estimate update on September 2, 2021 , as well as the full impact of exploration success achieved throughout all of 2021, is expected to be released in the second quarter of 2022 as part of a new technical report and life-of-mine plan for Detour Lake.

Kirkland Lake Gold's gold mineral reserves at December 31, 2021 are set out below, compared with the gold mineral reserves a year earlier:

Data in the table above and certain other data in this section of the news release have been rounded to the nearest thousand, and any discrepancies in total amounts are due to rounding.  For detailed mineral reserves and mineral resources data see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in the Appendix.  Mineral reserves are in-situ.

The economic parameters used to estimate mineral reserves and mineral resources for all Kirkland Lake Gold properties as at December 31, 2021 are set out in the table below.

Assumptions used for Kirkland Lake Gold's December 31, 2021 mineral reserve estimate

The above metal price assumptions are below the three-year historic gold price average (from January 1, 2019 to December 31, 2021 ) of approximately $1,654 per ounce.

Mineral reserves at Detour Lake at December 31, 2021 include proven mineral reserves of 80.3 million tonnes grading 1.13 g/t gold for approximately 2.9 million ounces of gold and probable mineral reserves of 493.0 million tonnes grading 0.76 g/t gold for approximately 12.1 million ounces of gold.

In 2021, Detour Lake achieved record production with a total of 24.1 million tonnes of ore grading 1.00 g/t gold being processed containing approximately 778,000 ounces of gold in-situ.  The reduction in mineral reserves of approximately 741,000 ounces of gold at year-end 2021 resulted from the mine depletion partially offset by the impact of positive production reconciliations.

Kirkland Lake Gold's Mid-Year 2021 Mineral Resource Estimate incorporated drilling results to July 26, 2021 and included a tripling of open-pit measured and indicated mineral resources.  Based on the considerable exploration success throughout 2021 and mineral resource growth achieved to date, Kirkland Lake Gold expects that a significant proportion of mineral resources at Detour Lake may be converted into mineral reserves in the next mineral reserve estimate, expected before the end of the second quarter of 2022

At Fosterville , proven mineral reserves were 1.2 million tonnes grading 17.31 g/t gold for 679,000 ounces of gold and probable mineral reserves were 5.4 million tonnes grading 7.67 g/t gold for 1.3 million ounces of gold at December 31 , 2021.  The December 31, 2021 mineral reserve estimate represents a 44,000 ounce increase in proven and probable mineral reserves from year-end 2020 after depletion of 525,361 ounces of gold mined in situ and successful conversion drilling during 2021.  Positive grade reconciliations observed in 2021 also contributed to the mineral reserve increase by reducing the impact of mine depletion when compared with the prior year-end mineral reserves.

At Macassa, proven mineral reserves totaled 237,000 tonnes grading 15.30 g/t gold for 116,000 ounces of gold and probable mineral reserves totaled 3.3 million tonnes grading 16.32 g/t gold for 1.7 million ounces of gold at December 31 , 2021.  The 513,000 ounce decrease in proven and probable gold mineral reserves from the previous year reflected mine production during 2021 totaling approximately 214,000 ounces of gold in-situ as well as the impact of re-interpretations and revisions to estimation parameters which reduced mineral reserves by approximately 300,000 ounces of gold.

Kirkland Lake Gold's Measured and Indicated Mineral Resources Increased by 79% to 22.4 Million Ounces of Gold Due to Exploration Success at Detour Lake and Fosterville

Highlights from Kirkland Lake Gold's December 31, 2021 measured and indicated mineral resources estimate include:

• Addition of 10.1 million ounces of new measured and indicated mineral resources at the Detour Lake mine reflecting significant new drilling and exploration success at the Future West Pit and Saddle Zones (Mineral resources as at December 31, 2021 were not updated from Mid-Year 2021 Mineral Resource Estimate)
  
  
• Addition of 150,000 ounces of new measured and indicated mineral resources at the Fosterville mine due to exploration success at the Lower Phoenix and Robbin's Hill Deposits

At December 31, 2021 , Kirkland Lake Gold's total measured and indicated mineral resources were estimated at 22.4 million ounces of gold (647.3 million tonnes grading 1.08 g/t gold), which is a 79% increase in ounces (9.9 million ounces) compared to the 12.5 million ounces (207.1 million tonnes grading 1.88 g/t gold) estimated at December 31 , 2020.  Total measured mineral resources were 34.1 million tonnes grading 2.33 g/t gold (2.6 million ounces of gold) and total indicated mineral resources were 613.2 million tonnes grading 1.01 g/t gold (19.9 million ounces of gold) as at December 31 , 2021.  ( See Kirkland Lake Gold's news release dated February 25, 2021 for details regarding Kirkland Lake Gold's December 2020 measured and indicated mineral resource estimate).

For the Detour Lake mine, measured mineral resources were 25.8 million tonnes grading 1.53 g/t gold (1.3 million ounces of gold) and indicated mineral resources were 549.1 million tonnes grading 0.79 g/t (14.0 million ounces of gold) as at December 31 , 2021.  (Mineral resources were not updated from the Mid-Year 2021 Mineral Resource Estimate).  Detour Lake's combined measured and indicated mineral resources totaled 15.2 million ounces of gold (574.9 million tonnes grading 0.83 g/t gold) at year-end 2021, which is a 194% increase in ounces (10.1 million ounces) compared to the 5.2 million ounces (134.1 million tonnes grading 1.20 g/t gold) estimated at December 31 , 2020.  The increase in measured and indicated mineral resources was driven by significant drilling success achieved since Detour Lake was acquired by Kirkland Lake Gold on January 31 , 2020.  Drilling conducted in 2021 after the mid-year mineral resource update was not incorporated in the December 31, 2021 mineral resource estimate, and will be incorporated in a new mineral resource estimate for Detour Lake expected to be released in the second quarter of 2022.

For the Fosterville mine complex including Robbin's Hill, measured mineral resources were 1.1 million tonnes grading 4.4 g/t gold (156,000 ounces of gold) and indicated mineral resources were 10.2 million tonnes grading 5.2 g/t gold (1.7 million ounces of gold) as at December 31, 2021 .

Total measured and indicated mineral resources at Fosterville were 1.9 million ounces of gold (11.3 million tonnes grading 5.14 g/t gold) at December 31, 2021 including a combined 1.5 million ounces of gold at the Lower Phoenix and Harrier deposits (8.9 million tonnes grading 5.26 g/t gold) and 355,000 ounces of gold at the Robbin's Hill deposit (2.4 million tonnes grading 4.69 g/t gold).  The December 31, 2021 estimate for Fosterville represents a 9% increase in gold ounces (150,000 ounces) and 5% decrease in grade from the 1.7 million ounces (9.8 million measured and indicated tonnes grading 5.44 g/t gold) estimated at December 31 , 2020.  Approximately 83% of the overall increase in gold ounces (124,000 ounces) was at the Lower Phoenix and Harrier deposits, with the remainder (26,000 ounces) coming from the Robbin's Hill deposit.  The  increase in measured and indicated mineral resources in both areas was largely due to successful exploration and conversion drilling of previously defined inferred mineral resource as well as a reduction of cut-off grades for certain zones based on a re-evaluation of mining approaches.

At the Macassa mine, measured mineral resources were 252,000 tonnes grading 16.2 g/t gold (131,000 ounces of gold) and indicated mineral resources were 1.6 million tonnes grading 12.1 g/t gold (640,000 ounces of gold) at December 31 , 2021.  Total measured and indicated mineral resources were estimated at 770,000 ounces of gold (1.9 million tonnes grading 12.61 g/t gold) at December 31, 2021 compared to 792,000 ounces (1.92 million tonnes grading 12.85 g/t) as at December 31 , 2020.  The slight decrease in measured and indicated mineral resources largely resulted from lower than expected levels of conversion drilling being completed due to drilling contractor workforce shortages as well as the impact of revisions to estimation parameters.

Kirkland Lake Gold's measured and indicated mineral resources at December 31, 2021 included an adjustment to remove 271,000 ounces gold from measured and indicated mineral resources at the Holt Complex as well as assets in the Northern Territory of Australia.  Operations at the Holt Complex and the Northern Territory assets were suspended in early 2020.

Kirkland Lake Gold's Inferred Mineral Resources of 6.9 Million Ounces at December 31, 2021 Remain Largely Unchanged

Highlights from Kirkland Lake Gold's December 31, 2021 inferred mineral resource estimate include:

• Inferred mineral resources at Macassa increased by 367,000 ounces, or 48%, largely due to exploration success and the re-classification of measured and indicated mineral resources to inferred mineral resources
  
  
• Growth in inferred mineral resources by 363,000 ounces, or 78%, at the Robbin's Hill deposit at Fosterville largely offset the impact of converting existing inferred mineral resources into measured and indicated mineral resources at the Lower Phoenix and Harrier deposits

At December 31, 2021 , Kirkland Lake Gold's inferred mineral resources were estimated at 6.9 million ounces of gold (93.8 million tonnes grading 2.28 g/t gold), compared to 6.9 million ounces of gold (92.9 million tonnes grading 2.32 g/t) as at December 31, 2020 .

Inferred mineral resources for the Detour Lake mine were estimated at 1.3 million ounces of gold (53.3 million tonnes at an average grade of 0.78 g/t gold) at December 31, 2021 . This compares with the 1.6 million ounces (53.3 million tonnes grading 0.94 g/t gold) of inferred mineral resources at Detour Lake as at December 31 , 2020.  The year-over-year decrease was mainly attributable to the conversion of inferred mineral resources to the indicated mineral resource category as part of the mid-year 2021 mineral resource estimate.  Drilling conducted in 2021 after the Mid-Year Mineral Resource Estimate was not incorporated in the year-end 2021 mineral resource estimate, and will be incorporated in a new mineral resource update for Detour Lake expected to be released in the second quarter of 2022.

Inferred mineral resources for the Fosterville mine complex at December 31, 2021 totaled 1.7 million ounces of gold (9.3 million tonnes grading 5.72 g/t gold), compared to 1.7 million ounces of gold (8.6 million tonnes grading 6.35 g/t gold) at year-end 2020.  Included in the total inferred mineral resource were 874,000 ounces (5 million tonnes grading 5.48 g/t gold) from the Lower Phoenix and Harrier deposits and 830,000 ounces (4.3 million tonnes grading 5.98 g/t gold) from the Robbin's Hill deposit.  The December 31, 2021 inferred mineral resource estimate for Lower Phoenix and Harrier was 404,000 ounces lower when compared to December 31, 2020 , with the decrease mainly reflecting the conversion of mineral resources from the inferred category to the measured and indicated categories.

Inferred mineral resources at Robbin's Hill increased by 363,000 ounces, or a 78% increase from 467,000 ounces (2.4 million tonnes grading 6.01 g/t gold) in the previous year with the increase largely resulting from exploration success down-plunge of previous mineral reserves and mineral resources.

Inferred mineral resources for the Macassa mine at December 31, 2021 were estimated at 1.1 million ounces of gold (2.4 million tonnes grading 14.77 g/t gold), or a 48% increase in gold ounces (367,000 ounces) from 763,000 ounces (1.4 million tonnes grading 16.42 g/t gold) estimated at December 31 , 2020.  The increase in inferred mineral resources reflects the identification of new mineralization that was not sufficiently drilled in 2021 to be converted to indicated mineral resources as well as the re-classification of some mineral resources from measured and indicated to inferred due to revisions to estimation parameters.

The distribution of Kirkland Lake Gold's mineral resources by property at December 31, 2021 is set out in the following table

For a detailed discussion of mineral reserves and mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2021 )" in the Appendix.

ABITIBI REGION, QUEBEC

Agnico Eagle is currently Quebec's largest gold producer with a 100% interest in the LaRonde Complex (which includes the LaRonde and LZ5 mines) and the Goldex mine and a 50% interest in the Canadian Malartic mine.  These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.

LaRonde Complex – Seven Millionth Ounce of Gold Poured; Automation Drives Consistent Increase in Mining Rate at LZ5; Record Tonnes Milled in 2021

The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.  The LZ5 property lies adjacent to and west of the LaRonde mine and previous operators exploited the zone by open pit mining.  The LZ5 mine achieved commercial production in June 2018 .