Stock Symbols: AEM (NYSE and TSX)

    TORONTO, July 31 /eMediaWorld/ - Agnico-Eagle Mines Limited
("Agnico-Eagle" or the "Company") announced that it purchased 12,222,222
common shares of Stornoway Diamond Corporation ("Stornoway") at a price of
C$0.90 per common share from treasury. Stornoway used the proceeds of the
private placement to redeem the C$10 million principal amount of
convertible debentures held by Agnico-Eagle and to pay to Agnico-Eagle a
C$1 million amendment fee in connection with the amendment of the
debentures to permit early redemption. Agnico-Eagle received an additional
527,947 common shares of Stornoway in satisfaction of accrued but unpaid
interest on the debentures prior to their redemption. As a result of the
transactions, Agnico-Eagle increased its holdings in Stornoway from
27,520,809 common shares (approximately 13.6% of the issued and outstanding
common shares) to 40,270,978 common shares (approximately 17.7% of the
issued and outstanding common shares). Agnico-Eagle acquired the Stornoway
shares for investment purposes only and has no present intention to acquire
further Stornoway securities and may, from time to time, increase or
decrease its ownership of or control over securities of Stornoway in
response to market conditions, the business and prospects of Stornoway or
other factors.

    About Agnico-Eagle

    Agnico-Eagle is a long established Canadian gold producer with
operations located in Quebec and exploration and development activities in
Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine
is Canada's largest gold deposit in terms of reserves. The Company has full
exposure to higher gold prices consistent with its policy of no forward
gold sales. It has paid a cash dividend for 26 consecutive years.
Agnico-Eagle's registered office is located at 145 King Street East, Suite
400, Toronto, Ontario M5C 2Y7.