Exhibit 99.2

LOGO

Annual Audited Consolidated Financial Statements(Prepared in Accordance with International Financial Reporting Standards)

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON  INTERNAL CONTROL OVER FINANCIAL REPORTING

To
the Board of Directors (the "Board") and Shareholders of Agnico Eagle Mines Limited:

We
have audited Agnico Eagle Mines Limited's internal control over financial reporting as of December 31, 2014, based on criteria established inInternal
Control  Integrated Frameworkissued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (the "COSO
criteria"). Agnico Eagle Mines Limited's management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control
over financial reporting included in the accompanying management certification report on internal control over financial reporting. Our responsibility is to express an opinion on Agnico Eagle Mines
Limited's internal control over financial reporting based on our audit.

We
conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A
company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that: (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that revenues and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

As
indicated in the accompanying Management Certification, management's assessment of, and conclusion on the effectiveness of, internal control over financial reporting did not include the internal
controls of Canadian Malartic Corporation, which is included in the 2014 consolidated financial statements of Agnico Eagle Mines Limited and constituted $2,141.7 million and
$1,590.6 million of total assets and net assets, respectively, as of December 31, 2014 and $189.9 million and $8.9 million of revenues from mining operations and net loss,
respectively, for the year then ended. Our audit of internal control over financial reporting of Agnico Eagle Mines Limited also did not include an evaluation of the internal control over financial
reporting of Canadian Malartic Corporation.

In
our opinion, Agnico Eagle Mines Limited maintained, in all material respects, effective internal control over financial reporting as of December 31, 2014 based on the COSO criteria.

We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Agnico Eagle Mines Limited as of
December 31, 2014, December 31, 2013 and January 1, 2013, and the consolidated statements of income (loss) and comprehensive income (loss), equity and cash flows for each of the
years ended December 31, 2014 and December 31, 2013, and our report dated March 25, 2015 expressed an unqualified opinion thereon.

|                |  | /s/ERNST & YOUNG LLP              
|--------------- |  | ----------------------------------
|Toronto, Canada |  | Chartered Professional Accountants
|March 25, 2015  |  | Licensed Public Accountants       

2AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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MANAGEMENT CERTIFICATION

Management of Agnico Eagle Mines Limited ("Agnico Eagle" or the "Company") is responsible for establishing and maintaining adequate internal control over
financial reporting. Internal control over financial reporting is a process designed by, or under the supervision of, the Company's Chief Executive Officer and Chief Financial Officer and effected by
the Company's Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

On
June 16, 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana") jointly acquired 100.0% of the issued and outstanding shares of Osisko Mining Corporation ("Osisko") by way of a
court-approved plan of arrangement (the "Arrangement") under theCanada Business Corporations Act. Under the Arrangement, Agnico Eagle and Yamana
each indirectly acquired 50.0% of Osisko's issued and outstanding shares. Management has not evaluated the internal controls of Canadian Malartic Corporation (the successor to Osisko) in
accordance with Question 3 of the Securities and Exchange Commission's Management's Report on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports
Frequently Asked Questions. As a result, management's evaluation of the Company's internal control over financial reporting did not include an evaluation of the internal controls of Canadian Malartic
Corporation and management's conclusion regarding the effectiveness of the Company's internal control over financial reporting does not extend to the internal controls of Canadian Malartic
Corporation.

Inclusion
of Canadian Malartic Corporation in the Company's 2014 consolidated financial statements constituted $2,141.7 million and $1,590.6 million of total assets and net assets,
respectively, as of December 31, 2014 and $189.9 million and $8.9 million of revenues from mining operations and net loss, respectively, for the year then ended.

The
Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of the Company's internal control over financial reporting as of
December 31, 2014. In making this assessment, the Company's management used the criteria outlined by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control  Integrated
Frameworkissued in 2013. Based on its assessment, management concluded that, as of
December 31, 2014, the Company's internal control over financial reporting was effective.

The
effectiveness of the Company's internal control over financial reporting as of December 31, 2014 has been audited by Ernst & Young LLP, an independent registered public
accounting firm, as stated in their report that appears herein.

|Toronto, Canada
March 25, 2015 |  | By | /s/SEAN BOYDSean Boyd Vice Chairman, President and
Chief Executive Officer          
|------------------------------ |  | -- | ------------------------------------------------------------------------------------
|                               |  | By | /s/DAVID SMITHDavid Smith Senior Vice-President, Finance and
Chief Financial Officer

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   3

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To
the Board and Shareholders of Agnico Eagle Mines Limited:

We
have audited the accompanying consolidated balance sheets of Agnico Eagle Mines Limited as of December 31, 2014, December 31, 2013 and January 1, 2013, and the related
consolidated statements of income (loss) and comprehensive income (loss), equity and cash flows for each of the years ended December 31, 2014 and December 31, 2013. These financial
statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We
conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In
our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Agnico Eagle Mines Limited at
December 31, 2014, December 31, 2013 and January 1, 2013 and the consolidated results of its operations and its cash flows for each of the years ended December 31, 2014 and
December 31, 2013 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We
have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Agnico Eagle Mines Limited's internal control over financial reporting
as of December 31, 2014, based on criteria established inInternal Control  Integrated Frameworkissued by
the Committee of Sponsoring Organizations of the Treadway Commission in 2013 and our report dated March 25, 2015 expressed an unqualified opinion thereon.

|                |  | /s/ERNST & YOUNG LLP              
|--------------- |  | ----------------------------------
|Toronto, Canada |  | Chartered Professional Accountants
|March 25, 2015  |  | Licensed Public Accountants       

4AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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AGNICO EAGLE MINES LIMITED        CONSOLIDATED BALANCE SHEETS(thousands of United States dollars, except share amounts)

|                                        |                                                                 | As at
December 31,
2014                                                                                |           | As at
December 31,
2013 |           | As at
January 1,
2013 |          
|--------------------------------------- | --------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | --------- | ----------------------- | --------- | --------------------- | ---------
|                                        |                                                                 |                                                                                                        |          
|ASSETS                                  |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|Current assets:                         |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        | Cash and cash equivalents                                       |                                                                                                        | $         | 177,537                 |           | $                     | 139,101  
|                                        |                                                                
|                                        | Short-term investments                                          |                                                                                                        |           | 4,621                   |           |                       | 2,217    
|                                        |                                                                
|                                        | Restricted cash (note 7)                                        |                                                                                                        |           | 33,122                  |           |                       | 28,723   
|                                        |                                                                
|                                        | Trade receivables (notes 6 and 18)                              |                                                                                                        |           | 59,716                  |           |                       | 67,300   
|                                        |                                                                
|                                        | Inventories (note 8)                                            |                                                                                                        |           | 446,660                 |           |                       | 345,083  
|                                        |                                                                
|                                        | Income taxes recoverable (note 24)                              |                                                                                                        |           | 1,658                   |           |                       | 18,682   
|                                        |                                                                
|                                        | Available-for-sale securities (notes 6 and 9)                   |                                                                                                        |           | 56,468                  |           |                       | 74,581   
|                                        |                                                                
|                                        | Fair value of derivative financial instruments (notes 6 and 21) |                                                                                                        |           | 4,877                   |           |                       | 5,590    
|                                        |                                                                
|                                        | Other current assets (note 10(a))                               |                                                                                                        |           | 123,401                 |           |                       | 116,992  
|                                        |                                                                
|Total current assets                    |                                                                 |                                                                                                        | 908,060   |                         |           | 798,269               |          
|                                        |                                                                
|Non-current assets:                     |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        | Restricted cash (note 7)                                        |                                                                                                        |           | 20,899                  |           |                       |         
|                                        |                                                                
|                                        | Goodwill (note 5)                                               |                                                                                                        |           | 582,461                 |           |                       | 39,017   
|                                        |                                                                
|                                        | Property, plant and mine development (note 11)                  |                                                                                                        |           | 5,301,496               |           |                       | 3,694,461
|                                        |                                                                
|                                        | Other assets (note 10(b))                                       |                                                                                                        |           | 27,622                  |           |                       | 48,334   
|                                        |                                                                
|Total assets                            |                                                                 | $                                                                                                      | 6,840,538 |                         | $         | 4,580,081             |          
|                                        |                                                                
|LIABILITIES AND EQUITY                  |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|Current liabilities:                    |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        | Accounts payable and accrued liabilities (note 12)              |                                                                                                        | $         | 206,180                 |           | $                     | 173,374  
|                                        |                                                                
|                                        | Reclamation provision (note 13)                                 |                                                                                                        |           | 6,769                   |           |                       | 3,452    
|                                        |                                                                
|                                        | Dividends payable                                               |                                                                                                        |           |                        |           |                       |         
|                                        |                                                                
|                                        | Interest payable (note 15)                                      |                                                                                                        |           | 13,816                  |           |                       | 13,803   
|                                        |                                                                
|                                        | Income taxes payable (note 24)                                  |                                                                                                        |           | 19,328                  |           |                       | 7,523    
|                                        |                                                                
|                                        | Finance lease obligations (note 14)                             |                                                                                                        |           | 22,142                  |           |                       | 12,035   
|                                        |                                                                
|                                        | Current portion of long-term debt (note 15)                     |                                                                                                        |           | 52,182                  |           |                       |         
|                                        |                                                                
|                                        | Fair value of derivative financial instruments (notes 6 and 21) |                                                                                                        |           | 8,249                   |           |                       | 323      
|                                        |                                                                
|Total current liabilities               |                                                                 |                                                                                                        | 328,666   |                         |           | 210,510               |          
|                                        |                                                                
|Non-current liabilities:                |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        | Long-term debt (note 15)                                        |                                                                                                        |           | 1,322,461               |           |                       | 987,356  
|                                        |                                                                
|                                        | Reclamation provision (note 13)                                 |                                                                                                        |           | 249,917                 |           |                       | 184,009  
|                                        |                                                                
|                                        | Deferred income and mining tax liabilities (note 24)            |                                                                                                        |           | 832,201                 |           |                       | 453,411  
|                                        |                                                                
|                                        | Other liabilities (note 16)                                     |                                                                                                        |           | 38,803                  |           |                       | 27,389   
|                                        |                                                                
|Total liabilities                       |                                                                 |                                                                                                        | 2,772,048 |                         |           | 1,862,675             |          
|                                        |                                                                
|EQUITY                                  |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        | Common shares (note 17):                                        |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                
|                                        |                                                                 | Outstanding  215,192,887 common shares issued, less 956,653 shares held in a trust or by a depositary |           |                         | 4,599,788 |                       |          
|                                        |                                                                
|                                        | Stock options (notes 17 and 19)                                 |                                                                                                        |           | 200,830                 |           |                       | 184,078  
|                                        |                                                                
|                                        | Warrants                                                        |                                                                                                        |           |                        |           |                       |         
|                                        |                                                                
|                                        | Contributed surplus                                             |                                                                                                        |           | 37,254                  |           |                       | 37,254   
|                                        |                                                                
|                                        | Retained earnings (deficit)                                     |                                                                                                        |           | (779,382                | )         |                       | (800,074 
|                                        |                                                                
|                                        | Accumulated other comprehensive income (loss)                   |                                                                                                        |           | 10,000                  |           |                       | 2,141    
|                                        |                                                                
|Total equity                            |                                                                 |                                                                                                        | 4,068,490 |                         |           | 2,717,406             |          
|                                        |                                                                
|Total liabilities and equity            |                                                                 | $                                                                                                      | 6,840,538 |                         | $         | 4,580,081             |          
|                                        |                                                                
|Commitments and contingencies (note 26) |                                                                 |                                                                                                        |           |                         |           |                       |          
|                                        |                                                                

On behalf of the Board:

|GRAPHIC                     |  | GRAPHIC                          
|--------------------------- |  | ---------------------------------
|Sean Boyd CPA, CA, Director |  | Mel Leiderman FCPA, FCA, Director

See accompanying notes

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   5

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AGNICO EAGLE MINES LIMITED

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

(thousands of United States dollars, except per share amounts)

|                                                                       |                                                      |                                                                                     | Year Ended
December 31, |  
|---------------------------------------------------------------------- | ---------------------------------------------------- | ----------------------------------------------------------------------------------- | ----------------------- | -
|                                                                       |                                                      |                                                                                     |                        
|                                                                       |                                                      |                                                                                     | 2014                    |  
|                                                                       |                                                      |                                                                                     |                        
|REVENUES                                                               |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|Revenues from mining operations (note 18)                              |                                                      | $                                                                                   | 1,896,766               |  
|                                                                       |                                                     
|COSTS, EXPENSES AND OTHER INCOME                                       |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|Production(i)                                                          |                                                      |                                                                                     | 1,004,559               |  
|                                                                       |                                                     
|Exploration and corporate development                                  |                                                      |                                                                                     | 56,002                  |  
|                                                                       |                                                     
|Amortization of property, plant and mine development (note 11)         |                                                      |                                                                                     | 433,628                 |  
|                                                                       |                                                     
|General and administrative                                             |                                                      |                                                                                     | 118,771                 |  
|                                                                       |                                                     
|Impairment loss on available-for-sale securities (note 9)              |                                                      |                                                                                     | 15,763                  |  
|                                                                       |                                                     
|Finance costs (note 15)                                                |                                                      |                                                                                     | 73,393                  |  
|                                                                       |                                                     
|Loss on derivative financial instruments (note 21)                     |                                                      |                                                                                     | 6,156                   |  
|                                                                       |                                                     
|Gain on sale of available-for-sale securities (note 9)                 |                                                      |                                                                                     | (5,635                  | )
|                                                                       |                                                     
|Environmental remediation (note 13)                                    |                                                      |                                                                                     | 8,214                   |  
|                                                                       |                                                     
|Impairment loss (note 23)                                              |                                                      |                                                                                     |                        |  
|                                                                       |                                                     
|Foreign currency translation loss                                      |                                                      |                                                                                     | 3,781                   |  
|                                                                       |                                                     
|Other (income) expenses                                                |                                                      |                                                                                     | (7,004                  | )
|                                                                       |                                                     
|Income (loss) before income and mining taxes                           |                                                      |                                                                                     | 189,138                 |  
|                                                                       |                                                     
|Income and mining taxes expense (recovery) (note 24)                   |                                                      |                                                                                     | 106,168                 |  
|                                                                       |                                                     
|Net income (loss) for the year                                         |                                                      | $                                                                                   | 82,970                  |  
|                                                                       |                                                     
|Net income (loss) per share  basic (note 17)                          |                                                      | $                                                                                   | 0.43                    |  
|                                                                       |                                                     
|Net income (loss) per share  diluted (note 17)                        |                                                      | $                                                                                   | 0.39                    |  
|                                                                       |                                                     
|Cash dividends declared per common share                               |                                                      | $                                                                                   | 0.32                    |  
|                                                                       |                                                     
|COMPREHENSIVE INCOME (LOSS)                                            |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|Net income (loss) for the year                                         |                                                      | $                                                                                   | 82,970                  |  
|                                                                       |                                                     
|Other comprehensive income (loss):                                     |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|Items that may be subsequently reclassified to net income (loss):      |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|                                                                       | Available-for-sale securities and other investments: |                                                                                     |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Unrealized loss                                                                     |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Reclassification to impairment loss on available-for-sale securities (note 9)       |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Reclassification to realized gain on sale of available-for-sale securities (note 9) |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Income tax impact of reclassification items (note 24)                               |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Income tax impact of other comprehensive income (loss) items (note 24)              |                         |  
|                                                                       |                                                     
|                                                                       |                                                      |                                                                                     | 7,859                   |  
|                                                                       |                                                     
|Items that will not be subsequently reclassified to net income (loss): |                                                      |                                                                                     |                         |  
|                                                                       |                                                     
|                                                                       | Pension benefit obligations:                         |                                                                                     |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Remeasurement losses of pension benefit obligations (note 16(a))                    |                         |  
|                                                                       |                                                     
|                                                                       |                                                      | Income tax impact (note 24)                                                         |                         |  
|                                                                       |                                                     
|                                                                       |                                                      |                                                                                     | (625                    | )
|                                                                       |                                                     
|Other comprehensive income for the year                                |                                                      |                                                                                     | 7,234                   |  
|                                                                       |                                                     
|Comprehensive income (loss) for the year                               |                                                      | $                                                                                   | 90,204                  |  
|                                                                       |                                                     

Note:

See accompanying notes

6AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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AGNICO EAGLE MINES LIMITED        CONSOLIDATED STATEMENTS OF EQUITY(thousands of United States dollars, except share and per share amounts)

|                                  |                                                                                                                    | Common Shares
Outstanding |            |   |           |           |   |         |        |   |        |         |   |        |        |  
|--------------------------------- | ------------------------------------------------------------------------------------------------------------------ | ------------------------- | ---------- | - | --------- | --------- | - | ------- | ------ | - | ------ | ------- | - | ------ | ------ | -
|                                  |                                                                                                                    |                           |            |   |           |           |   |         |        |   |        |         |   |        |        |  
|
|                                  |                                                                                                                    |                          
|Balance December 31, 2012         |                                                                                                                    | 172,102,870               |            | $ | 3,241,922 |           | $ | 157,875 |        | $ | 24,858 |         | $ | 15,665 |        | $
|                                 
|Net loss for the year             |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Other comprehensive income        |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Total comprehensive (loss) income |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Transactions with owners:         |                                                                                                                    |                           |            |   |           |           |   |         |        |   |        |         |   |        |        |  
|                                  | Shares issued under employee stock option plan (notes 17 and 19(a))                                                |                           | 213,500    |   |           | 9,765     |   |         | (3,292 | ) |        |        |   |        |       |  
|                                 
|                                  | Stock options (notes 17 and 19(a))                                                                                 |                           |           |   |           |          |   |         | 29,495 |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued under incentive share purchase plan
(note 19(b))                                                     |                           | 812,946    |   |           | 23,379    |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued under dividend reinvestment plan                                                                     |                           | 858,107    |   |           | 25,837    |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Warrant expiry                                                                                                     |                           |           |   |           |          |   |         |       |   |        | (24,858 | ) |        | 21,589 |  
|                                 
|                                  | Dividends declared ($0.66 per share)                                                                               |                           |           |   |           |          |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Restricted share unit plan (notes 17 and 19(c))                                                                    |                           | (33,448    | ) |           | (6,896    | ) |         |       |   |        |        |   |        |       |  
|                                 
|Balance December 31, 2013         |                                                                                                                    | 173,953,975               |            | $ | 3,294,007 |           | $ | 184,078 |        | $ |       |         | $ | 37,254 |        | $
|                                 
|Net income for the year           |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Other comprehensive (loss) income |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Total comprehensive income        |                                                                                                                    |                          |            |   |          |           |   |        |        |   |       |         |   |       |        |  
|                                 
|Transactions with owners:         |                                                                                                                    |                           |            |   |           |           |   |         |        |   |        |         |   |        |        |  
|                                  | Shares issued under employee stock option plan (notes 17 and 19(a))                                                |                           | 582,925    |   |           | 21,083    |   |         | (4,089 | ) |        |        |   |        |       |  
|                                 
|                                  | Stock options (notes 17 and 19(a))                                                                                 |                           |           |   |           |          |   |         | 20,841 |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued under incentive share purchase plan
(note 19(b))                                                     |                           | 517,721    |   |           | 15,543    |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued under dividend reinvestment plan                                                                     |                           | 262,360    |   |           | 7,654     |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued for joint acquisition of Osisko (note 5)                                                             |                           | 34,794,843 |   |           | 1,164,237 |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Common shares held by a depositary relating to convertible debentures previously issued by Osisko (notes 5 and 17) |                           | (871,680   | ) |           | (29,166   | ) |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Shares issued for Cayden acquisition (note 5)                                                                      |                           | 4,853,875  |   |           | 121,655   |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Dividends declared ($0.32 per share)                                                                               |                           |           |   |           |          |   |         |       |   |        |        |   |        |       |  
|                                 
|                                  | Restricted share unit plan (notes 17 and 19(c))                                                                    |                           | 142,215    |   |           | 4,775     |   |         |       |   |        |        |   |        |       |  
|                                 
|Balance December 31, 2014         |                                                                                                                    | 214,236,234               |            | $ | 4,599,788 |           | $ | 200,830 |        | $ |       |         | $ | 37,254 |        | $
|                                 

See accompanying notes

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   7

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AGNICO EAGLE MINES LIMITED        CONSOLIDATED STATEMENTS OF CASH FLOWS(thousands of United States dollars)

|                                                                                             |                                                                |   | Year Ended
December 31, |        
|-------------------------------------------------------------------------------------------- | -------------------------------------------------------------- | - | ----------------------- | -------
|                                                                                             |                                                                |   |                        
|                                                                                             |                                                                |   | 2014                    |        
|                                                                                             |                                                                |   |                        
|OPERATING ACTIVITIES                                                                         |                                                                |   |                         |        
|                                                                                             |                                                               
|Net income (loss) for the year                                                               |                                                                | $ | 82,970                  |        
|                                                                                             |                                                               
|Add (deduct) items not affecting cash:                                                       |                                                                |   |                         |        
|                                                                                             |                                                               
|                                                                                             | Amortization of property, plant and mine development (note 11) |   |                         | 433,628
|                                                                                             |                                                               
|                                                                                             | Deferred income and mining taxes (note 24)                     |   |                         | 37,058 
|                                                                                             |                                                               
|                                                                                             | Gain on sale of available-for-sale securities (note 9)         |   |                         | (5,635 
|                                                                                             |                                                               
|                                                                                             | Stock-based compensation (note 19)                             |   |                         | 37,565 
|                                                                                             |                                                               
|                                                                                             | Impairment loss on available-for-sale securities (note 9)      |   |                         | 15,763 
|                                                                                             |                                                               
|                                                                                             | Impairment loss (note 23)                                      |   |                         |       
|                                                                                             |                                                               
|                                                                                             | Foreign currency translation loss                              |   |                         | 3,781  
|                                                                                             |                                                               
|                                                                                             | Other                                                          |   |                         | 23,430 
|                                                                                             |                                                               
|Adjustment for settlement of reclamation provision                                           |                                                                |   | (4,160                  | )      
|                                                                                             |                                                               
|Changes in non-cash working capital balances:                                                |                                                                |   |                         |        
|                                                                                             |                                                               
|                                                                                             | Trade receivables                                              |   |                         | 17,237 
|                                                                                             |                                                               
|                                                                                             | Income taxes                                                   |   |                         | 30,771 
|                                                                                             |                                                               
|                                                                                             | Inventories                                                    |   |                         | (1,354 
|                                                                                             |                                                               
|                                                                                             | Other current assets                                           |   |                         | 787    
|                                                                                             |                                                               
|                                                                                             | Accounts payable and accrued liabilities                       |   |                         | (3,391 
|                                                                                             |                                                               
|                                                                                             | Interest payable                                               |   |                         | (126   
|                                                                                             |                                                               
|Cash provided by operating activities                                                        |                                                                |   | 668,324                 |        
|                                                                                             |                                                               
|INVESTING ACTIVITIES                                                                         |                                                                |   |                         |        
|                                                                                             |                                                               
|Additions to property, plant and mine development (note 11)                                  |                                                                |   | (475,412                | )      
|                                                                                             |                                                               
|Acquisition of Cayden Resources Inc., net of cash and cash equivalents acquired (note 5)     |                                                                |   | 3,477                   |        
|                                                                                             |                                                               
|Acquisition of Osisko Mining Corporation, net of cash and cash equivalents acquired (note 5) |                                                                |   | (403,509                | )      
|                                                                                             |                                                               
|Acquisition of Urastar Gold Corporation, net of cash and cash equivalents acquired (note 5)  |                                                                |   |                        |        
|                                                                                             |                                                               
|Net (purchases) sales of short-term investments                                              |                                                                |   | (2,404                  | )      
|                                                                                             |                                                               
|Net proceeds from sale of available-for-sale securities and warrants (note 9)                |                                                                |   | 44,692                  |        
|                                                                                             |                                                               
|Purchase of available-for-sale securities and warrants (note 9)                              |                                                                |   | (27,246                 | )      
|                                                                                             |                                                               
|Decrease (increase) in restricted cash (note 7)                                              |                                                                |   | 8,783                   |        
|                                                                                             |                                                               
|Cash used in investing activities                                                            |                                                                |   | (851,619                | )      
|                                                                                             |                                                               
|FINANCING ACTIVITIES                                                                         |                                                                |   |                         |        
|                                                                                             |                                                               
|Dividends paid                                                                               |                                                                |   | (54,065                 | )      
|                                                                                             |                                                               
|Repayment of finance lease obligations (note 14)                                             |                                                                |   | (21,453                 | )      
|                                                                                             |                                                               
|Sale-leaseback financing (note 14)                                                           |                                                                |   | 1,027                   |        
|                                                                                             |                                                               
|Proceeds from long-term debt (note 15)                                                       |                                                                |   | 1,010,000               |        
|                                                                                             |                                                               
|Repayment of long-term debt (note 15)                                                        |                                                                |   | (724,050                | )      
|                                                                                             |                                                               
|Long-term debt financing (note 15)                                                           |                                                                |   | (2,127                  | )      
|                                                                                             |                                                               
|Repurchase of common shares for restricted share unit plan (notes 17 and 19(c))              |                                                                |   | (7,518                  | )      
|                                                                                             |                                                               
|Proceeds on exercise of stock options (note 19(a))                                           |                                                                |   | 16,994                  |        
|                                                                                             |                                                               
|Common shares issued (note 17)                                                               |                                                                |   | 10,428                  |        
|                                                                                             |                                                               
|Cash provided by financing activities                                                        |                                                                |   | 229,236                 |        
|                                                                                             |                                                               
|Effect of exchange rate changes on cash and cash equivalents                                 |                                                                |   | (7,505                  | )      
|                                                                                             |                                                               
|Net increase (decrease) in cash and cash equivalents during the year                         |                                                                |   | 38,436                  |        
|                                                                                             |                                                               
|Cash and cash equivalents, beginning of year                                                 |                                                                |   | 139,101                 |        
|                                                                                             |                                                               
|Cash and cash equivalents, end of year                                                       |                                                                | $ | 177,537                 |        
|                                                                                             |                                                               
|SUPPLEMENTAL CASH FLOW INFORMATION                                                           |                                                                |   |                         |        
|                                                                                             |                                                               
|Interest paid (note 15)                                                                      |                                                                | $ | 67,632                  |        
|                                                                                             |                                                               
|Income and mining taxes paid                                                                 |                                                                | $ | 51,302                  |        
|                                                                                             |                                                               

See accompanying notes

8AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

1.   CORPORATE INFORMATION

Agnico
Eagle Mines Limited ("Agnico Eagle" or the "Company") is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development. The
Company's mining operations are located in Canada, Mexico and Finland and has exploration activities in Canada, Europe, Latin America and the United States. Agnico Eagle is a public company
incorporated and domiciled in Canada with its head and registered office located at 145 King Street East, Suite 400, Toronto, Ontario, M5C 2Y7. The Company is listed on the
Toronto Stock Exchange and the New York Stock Exchange. Agnico Eagle sells its gold production into the world market.

These
consolidated financial statements were authorized for issuance by the Board of Directors on March 25, 2015.

2.   BASIS OF PRESENTATION





ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   9

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AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

2.   BASIS OF PRESENTATION (Continued)



3.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



10AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   11

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12AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   13

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14AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   15

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16AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   17

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18AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   19

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20AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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Recently Issued Accounting Pronouncements

IFRS 9  Financial Instruments

In July 2014, the IASB issued IFRS 9 Financial Instrumentswhich brings
together the classification and measurement, impairment and hedge accounting phases of the IASB's project to replace
IAS 39 Financial Instruments: Recognition and Measurement. Application of the standard is mandatory for
annual periods beginning on or after January 1, 2018, with early adoption permitted. Agnico Eagle is evaluating the impact of the adoption of IFRS 9 on the Company's consolidated
financial statements along with the timing of adoption.

IFRS 15  Revenue from Contracts with Customers

In May 2014, the IASB issued IFRS 15 Revenue from Contracts with
Customers, which establishes principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and
uncertainty of revenue and cash flows arising from a contract with a customer. Application of the standard is mandatory for annual reporting periods beginning on or after January 1, 2017, with
earlier adoption permitted. Agnico Eagle is evaluating the impact of the adoption of IFRS 15 on the Company's consolidated financial statements along with the timing of adoption.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   21

---





AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

4.   SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The
preparation of these consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated
financial statements and accompanying notes. Management believes that the estimates used in the preparation of the consolidated financial statements are reasonable; however, actual results may differ
materially from these estimates. The key areas where significant judgments, estimates and assumptions have been made are summarized below.

Proven and Probable Mineral Reserves

Proven and probable mineral reserves are estimates of the amount of ore that can be economically and legally extracted from the Company's mining properties. The estimates are
based on information compiled by appropriately qualified persons as defined under the Canadian Securities Administrators' National
Instrument 43-101 Standards of Disclosure for Mineral Projects("NI 43-101"). Such an analysis
relating to the geological and technical data on the size, depth, shape and grade of the ore body and suitable production techniques and recovery rates requires complex geological judgments to
interpret the data. The estimation of recoverable proven and probable mineral reserves is based upon factors such as estimates of foreign exchange rates, commodity prices, future capital requirements
and production costs, along with geological assumptions and judgments made in estimating the size and grade of the ore body.

As
the economic assumptions used may change and as additional geological information is acquired during the operation of a mine, estimates of proven and probable mineral reserves may change. Such
changes may impact the Company's consolidated balance sheets and consolidated statements of income (loss) and comprehensive income (loss), including:



Exploration and Evaluation Expenditures

The application of the Company's accounting policy for exploration and evaluation expenditures requires judgment to determine whether future economic benefits are likely to
arise and whether activities have reached a stage that permits a reasonable assessment of the existence of proven and probable mineral reserves.

Production Stage of a Mine

As each mine is unique in nature, significant judgment is required to determine the date that a mine enters the production stage. The Company considers the factors outlined in
note 3 to these consolidated financial statements to make this determination.

Contingencies

Contingencies can be either possible assets or possible liabilities arising from past events which, by their nature, will be resolved only when one or more uncertain future
events occur or fail to occur. The assessment of the existence and potential

22AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



impact
of contingencies inherently involves the exercise of significant judgment and the use of estimates regarding the outcome of future events.

Reclamation Provisions

Environmental remediation costs will be incurred by the Company at the end of the operating life of the Company's mining properties. Management assesses its reclamation
provision each reporting period or when new information becomes available. The ultimate environmental remediation costs are uncertain, and cost estimates can vary in response to many factors,
including estimates of the extent and costs of reclamation activities, technological changes, regulatory changes, cost increases as compared to the inflation rates, and changes in discount rates.
These uncertainties may result in future actual expenditures differing from the amount of the current provision. As a result, there could be significant adjustments to the provisions established that
would affect future financial results. The reclamation provision as at the reporting date represents management's best estimate of the present value of the future environmental remediation
costs required.

Income and Mining Taxes

Management is required to make estimates regarding the tax basis of assets and liabilities and related deferred income and mining tax assets and liabilities, amounts recorded
for uncertain tax positions, the measurement of income and mining tax expense, and estimates of the timing of repatriation of income. Several of these estimates require management to make assessments
of future taxable profit and, if actual results are significantly different than the Company's estimates, the ability to realize the deferred income and mining tax assets recorded on the consolidated
balance sheets could be affected.

Impairment of Goodwill and Non-current Assets

The Company evaluates each asset or CGU (excluding goodwill, which is assessed annually regardless of indicators) in each reporting period to determine if any indicators of
impairment exist. When completing an impairment test, the Company calculates the estimated recoverable amount of CGUs, which requires management to make estimates and assumptions with respect to items
such as future production levels, operating and capital costs, long-term commodity prices, foreign exchange rates, discount rates, exploration potential, and closure and environmental remediation
costs. These estimates and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will have an impact on these projections, which may impact
the recoverable amount of assets or CGUs. Accordingly, it is possible that some or the entire carrying amount of the assets or CGUs may be further impaired or the impairment charge reduced with the
impact recognized in the consolidated statements of income (loss) and comprehensive income (loss).

Joint Arrangements

Judgment is required to determine when the Company has joint control of a contractual arrangement, which requires a continuous assessment of the relevant activities and when
the decisions in relation to those activities require unanimous consent. Judgment is also continually required to classify a joint arrangement as either a joint operation or
a joint venture when the arrangement has been structured through a separate vehicle. Classifying the arrangement requires the Company to assess its rights and obligations arising from the arrangement.
Specifically, the Company considers the legal form of the separate vehicle, the terms of the contractual arrangement and other relevant facts and circumstances. This assessment often requires
significant judgment, and a different conclusion on joint control, or whether the arrangement is a joint operation or a joint venture, may have a material impact on the accounting treatment.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   23

---



Management
evaluated its joint arrangement with Yamana to each acquire 50.0% of the shares of Osisko under the principles of IFRS 11Joint
Arrangements. The Company concluded that the arrangement qualified as a joint operation upon considering the following significant factors:



5.   ACQUISITIONS

Cayden Resources Inc.

On November 28, 2014, the Company acquired all of the issued and outstanding common shares of Cayden Resources Inc. ("Cayden"), including common shares issuable
on the exercise of Cayden's outstanding options and warrants, pursuant to a court-approved plan of arrangement under theBusiness Corporations Act(British Columbia). Cayden is an exploration company focused on the discovery of precious metals in Mexico.

The
total purchase price of $122.1 million was comprised of $0.5 million in cash and 4,853,875 Agnico Eagle common shares issued from treasury. The Cayden acquisition was
accounted for as an asset acquisition and transaction costs associated with the acquisition totaling $3.2 million were capitalized to the mining properties acquired.

The
following table sets out the allocation of the purchase price to assets acquired and liabilities assumed, based on management's estimates of fair value:

|Total purchase price:                                  |  |   |         |   | 
|------------------------------------------------------ |  | - | ------- | - | 
|                                                      
|Cash paid for acquisition                              |  | $ | 476     |   | 
|                                                      
|Agnico Eagle common shares issued for acquisition      |  |   | 121,655 |   | 
|                                                      
|Total purchase price to allocate                       |  | $ | 122,131 |   | 
|                                                      
|Fair value of assets acquired and liabilities assumed: |  |   |         |   | 
|                                                      
|Mining properties                                      |  | $ | 117,178 |   | 
|                                                      
|Cash and cash equivalents                              |  |   | 3,953   |   | 
|                                                      
|Trade receivables(i)                                   |  |   | 141     |   | 
|                                                      
|Income taxes recoverable                               |  |   | 1,942   |   | 
|                                                      
|Other current assets                                   |  |   | 129     |   | 
|                                                      
|Plant and equipment                                    |  |   | 68      |   | 
|                                                      
|Accounts payable and accrued liabilities               |  |   | (1,280  | ) | 
|                                                      
|Net assets acquired                                    |  | $ | 122,131 |   | 
|                                                      

Note:

24AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



Osisko Mining Corporation

On
June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of the issued and outstanding shares of Osisko by way of a court-approved plan of arrangement (the "Arrangement") under
theCanada Business Corporations Act.

Under
the Arrangement, Agnico Eagle and Yamana each indirectly acquired 50.0% of Osisko's issued and outstanding shares. As part of the Arrangement, the Canadian Malartic mine in Quebec was
transferred to the newly formed Canadian Malartic GP in which each of Agnico Eagle and Yamana have an indirect 50.0% interest. Agnico Eagle and Yamana will also jointly explore the Kirkland
Lake assets, the Hammond Reef project and the Pandora and Wood-Pandora properties through their indirect joint ownership of Canadian Malartic Corporation (the successor to Osisko).

Each
outstanding share of Osisko was exchanged under the Arrangement for: (i) C$2.09 in cash (Agnico Eagle's 50.0% share was C$1.045); (ii) 0.07264 of an Agnico Eagle common share
(a value of C$2.64 based on the closing price of C$36.29 for Agnico Eagle common shares on the Toronto Stock Exchange as of June 16, 2014); (iii) 0.26471 of a Yamana common share;
and (iv) 0.1 of one common share of Osisko Gold Royalties Ltd., a company that was newly formed in connection with the Arrangement and is now traded on the Toronto Stock Exchange.

Pursuant
to the Arrangement, the following assets of Osisko were transferred to Osisko Gold Royalties Ltd.: (i) a 5.0% net smelter royalty on the Canadian Malartic mine;
(ii) C$157.0 million in cash; (iii) a 2.0% net smelter royalty on the Kirkland Lake assets, the Hammond Reef project, and certain other exploration properties retained by Canadian
Malartic Corporation; (iv) all assets and liabilities of Osisko in its Guerrero camp in Mexico; and (v) certain other investments and assets.

Agnico
Eagle has recognized its interest in the assets, liabilities, revenues and expenses of Osisko in accordance with the Company's rights and obligations prescribed by the Arrangement, as the joint
arrangement was determined to be a joint operation under IFRS.

Agnico
Eagle's transaction costs associated with the acquisition totaling $16.7 million were expensed through the general and administrative line item of the consolidated statements of income
(loss) and comprehensive income (loss) during year ended December 31, 2014.

Agnico
Eagle's share of the June 16, 2014 preliminary purchase price of Osisko was comprised of the following:

|Cash paid for acquisition                                 |  | $ | 462,728   | 
|--------------------------------------------------------- |  | - | --------- | 
|                                                         
|Agnico Eagle common shares issued for acquisition         |  |   | 1,135,071 | 
|                                                         
|Total Agnico Eagle preliminary purchase price to allocate |  | $ | 1,597,799 | 
|                                                         

A fair value approach was applied by management in developing preliminary estimates of the fair value of identifiable assets and liabilities contributed to the
newly formed Osisko joint operation. Preliminary estimates of fair value represent all information available as of the acquisition date. However, estimates of fair value may be materially adjusted
during the measurement period as new information about the facts and circumstances that existed as of the acquisition date is obtained.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   25

---



The
following table sets out the allocation of Agnico Eagle's share of the purchase price to attributable assets acquired and liabilities assumed pursuant to the Arrangement, based on management's
preliminary estimates of fair value:

|Fair value of assets acquired and liabilities assumed: |  |   |           |   | 
|------------------------------------------------------ |  | - | --------- | - | 
|                                                      
|Property, plant and mine development                   |  | $ | 1,452,148 |   | 
|                                                      
|Goodwill(i)                                            |  |   | 543,444   |   | 
|                                                      
|Cash and cash equivalents                              |  |   | 59,219    |   | 
|                                                      
|Restricted cash                                        |  |   | 35,528    |   | 
|                                                      
|Trade receivables(ii)                                  |  |   | 9,653     |   | 
|                                                      
|Inventories                                            |  |   | 51,477    |   | 
|                                                      
|Other current assets                                   |  |   | 11,420    |   | 
|                                                      
|Accounts payable and accrued liabilities               |  |   | (49,391   | ) | 
|                                                      
|Reclamation provision                                  |  |   | (20,776   | ) | 
|                                                      
|Long-term debt                                         |  |   | (151,333  | ) | 
|                                                      
|Deferred income and mining tax liabilities             |  |   | (343,590  | ) | 
|                                                      
|Net assets acquired                                    |  | $ | 1,597,799 |   | 
|                                                      

Notes:

The joint acquisition of Osisko is a strategic fit with the Company's skill set and its other operating assets in the area. The Company believes that goodwill
associated with the joint acquisition of Osisko arose principally because of the following factors: (1) the value implicit in the Company's ability to sustain and/or grow its business by
increasing proven and probable mineral reserves and mineral resources through new discoveries; and (2) the requirement to record a deferred tax liability for the difference between the assigned
values and the tax bases of assets acquired and liabilities assumed in a business combination at amounts that do not reflect fair value.

The
Company's indirect 50.0% interest in Canadian Malartic GP resulted in revenues from mining operations of $189.9 million and a net loss of $15.8 million between the
June 16, 2014 completion of the Arrangement and December 31, 2014.

26AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



Pro formaresults of operations for the Company assuming the joint acquisition of Osisko described above had occurred as of January 1,
2014 are set out below:

|                                                     |  | Year Ended
December 31,
2014 |          
|---------------------------------------------------- |  | ---------------------------- | ---------
|                                                     |  |                             
|Pro formarevenue from mining operations for the year |  | $                            | 2,055,990
|                                                    
|Pro formanet income for the year                     |  | $                            | 41,866   
|                                                    

The Company'spro formanet income for the year has been adjusted for the following material,
non-recurring items: Agnico Eagle transaction costs totaling $16.7 million expensed through the general and administrative line item of the Company; a $79.1 million loss incurred on the
transfer of assets to Osisko Gold Royalties Ltd. expensed through the other (income) expense line item of Osisko; and the deduction of acquisition-related fees totaling $46.1 million
expensed through the general and administrative line item of Osisko. All other adjustments are related to the application of preliminary estimates of fair value to Osisko assets acquired and
liabilities assumed and the alignment of accounting policies consistent with those made to Osisko's results in the post-acquisition period.

Urastar Gold Corporation

On May 16, 2013, the Company completed the acquisition of all of the issued and outstanding common shares of Urastar Gold Corporation ("Urastar") pursuant to a
court-approved plan of arrangement under theBusiness Corporations Act(British Columbia) for cash consideration of $10.1 million. The Urastar
acquisition was accounted for as a business combination and goodwill of $9.8 million was recognized on the Company's consolidated balance sheets.

The
transaction costs associated with the acquisition totaling $0.7 million were expensed through the general and administrative line item of the consolidated statements of income (loss) and
comprehensive income (loss) during the year ended December 31, 2013.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   27

---



The
following table sets out the allocation of the purchase price to assets acquired and liabilities assumed, based on management's estimates of fair value:

|Total purchase price:                                  |  |   |        |   | 
|------------------------------------------------------ |  | - | ------ | - | 
|                                                      
|Cash paid for acquisition                              |  | $ | 10,127 |   | 
|                                                      
|Fair value of assets acquired and liabilities assumed: |  |   |        |   | 
|                                                      
|Mining properties                                      |  | $ | 1,994  |   | 
|                                                      
|Goodwill                                               |  |   | 9,802  |   | 
|                                                      
|Cash and cash equivalents                              |  |   | 76     |   | 
|                                                      
|Trade receivables                                      |  |   | 731    |   | 
|                                                      
|Other current assets                                   |  |   | 12     |   | 
|                                                      
|Plant and equipment                                    |  |   | 2      |   | 
|                                                      
|Accounts payable and accrued liabilities               |  |   | (791   | ) | 
|                                                      
|Other liabilities                                      |  |   | (1,573 | ) | 
|                                                      
|Deferred income and mining tax liabilities             |  |   | (126   | ) | 
|                                                      
|Net assets acquired                                    |  | $ | 10,127 |   | 
|                                                      

The Company believes that goodwill for the Urastar acquisition arose principally because of the value implicit in the Company's ability to grow its business by
increasing proven and probable mineral reserves and mineral resources through new discoveries.

Pro formaresults of operations for the Company assuming the acquisition of Urastar described above had occurred as of January 1, 2013 are
detailed below. On apro formabasis, there would have been no effect on the Company's consolidated revenues.

|                                    |  | Year Ended
December 31,
2013 |          |  
|----------------------------------- |  | ---------------------------- | -------- | -
|                                    |  |                             
|Pro formanet loss for the year      |  | $                            | (689,199 | )
|                                   
|Pro formanet loss per share  basic |  | $                            | (3.99    | )
|                                   

6.   FAIR VALUE MEASUREMENT

Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and
liabilities for which fair value is measured or disclosed in the

28AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



consolidated
financial statements are categorized within the fair value hierarchy, described, as follows, based on the lowest-level input that is significant to the fair value measurement as
a whole:



The
fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

For
items that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing their classification at the end
of each reporting period.

During
the year ended December 31, 2014, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value
measurements.

The
Company's financial assets and liabilities include cash and cash equivalents, short-term investments, restricted cash, trade receivables, available-for-sale securities, accounts payable and
accrued liabilities, long-term debt (including convertible debentures issued by Osisko and now an obligation of Canadian Malartic GP) and derivative financial instruments.

The
fair values of cash and cash equivalents, short-term investments, restricted cash and accounts payable and accrued liabilities approximate their carrying values due to their short-term nature.

Long-term
debt (excluding convertible debentures issued by Osisko and now an obligation of Canadian Malartic GP) is recorded on the consolidated balance sheets at amortized cost and the fair
value is provided in note 15 to these consolidated financial statements for disclosure purposes only.

The
following table sets out the Company's financial assets and liabilities measured at fair value on a recurring basis as at December 31, 2014 using the fair value hierarchy:

|                                               |  | Level 1 |        | Level 2 |   | Level 3 |  | Total |       
|---------------------------------------------- |  | ------- | ------ | ------- | - | ------- |  | ----- | ------
|                                               |  |        
|Financial assets:                              |  |         |        |         |   |         |  |       |       
|                                              
|Trade receivables                              |  | $       |       |         | $ | 59,716  |  | $     |      
|                                              
|Available-for-sale securities                  |  |         | 51,653 |         |   | 4,815   |  |       |      
|                                              
|Fair value of derivative financial instruments |  |         |       |         |   | 4,877   |  |       |      
|                                              
|Total financial assets                         |  | $       | 51,653 |         | $ | 69,408  |  | $     |      
|                                              
|Financial liabilities:                         |  |         |        |         |   |         |  |       |       
|                                              
|Convertible debentures                         |  | $       |       |         | $ |        |  | $     | 34,678
|                                              
|Fair value of derivative financial instruments |  |         |       |         |   | 8,249   |  |       |      
|                                              
|Total financial liabilities                    |  | $       |       |         | $ | 8,249   |  | $     | 34,678
|                                              

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   29

---



The following table sets out the Company's financial assets and liabilities measured at fair value on a recurring basis as at December 31, 2013 using the
fair value hierarchy:

|                                               |  | Level 1 |        | Level 2 |   | Level 3 |  | Total |  
|---------------------------------------------- |  | ------- | ------ | ------- | - | ------- |  | ----- | -
|                                               |  |        
|Financial assets:                              |  |         |        |         |   |         |  |       |  
|                                              
|Trade receivables                              |  | $       |       |         | $ | 67,300  |  | $     | 
|                                              
|Available-for-sale securities                  |  |         | 74,581 |         |   |        |  |       | 
|                                              
|Fair value of derivative financial instruments |  |         |       |         |   | 5,590   |  |       | 
|                                              
|Total financial assets                         |  | $       | 74,581 |         | $ | 72,890  |  | $     | 
|                                              
|Financial liabilities:                         |  |         |        |         |   |         |  |       |  
|                                              
|Fair value of derivative financial instruments |  | $       |       |         | $ | 323     |  | $     | 
|                                              

The following table sets out the Company's financial assets and liabilities measured at fair value on a recurring basis as at January 1, 2013 using the
fair value hierarchy:

|                                               |  | Level 1 |        | Level 2 |   | Level 3 |  | Total |  
|---------------------------------------------- |  | ------- | ------ | ------- | - | ------- |  | ----- | -
|                                               |  |        
|Financial assets:                              |  |         |        |         |   |         |  |       |  
|                                              
|Trade receivables                              |  | $       |       |         | $ | 67,750  |  | $     | 
|                                              
|Available-for-sale securities                  |  |         | 44,719 |         |   |        |  |       | 
|                                              
|Fair value of derivative financial instruments |  |         |       |         |   | 2,112   |  |       | 
|                                              
|Total financial assets                         |  | $       | 44,719 |         | $ | 69,862  |  | $     | 
|                                              
|Financial liabilities:                         |  |         |        |         |   |         |  |       |  
|                                              
|Fair value of derivative financial instruments |  | $       |       |         | $ | 277     |  | $     | 
|                                              

Valuation Techniques

Trade Receivables

Trade receivables from provisional invoices for concentrate sales are valued using quoted forward rates derived from observable market data based on the month of expected
settlement (classified within Level 2 of the fair value hierarchy).

Available-for-sale Securities

Available-for-sale securities representing shares of publicly traded entities are recorded at fair value using quoted market prices (classified within Level 1 of the
fair value hierarchy). Available-for-sale securities representing shares of non-publicly traded entities are recorded at fair value using external broker-dealer quotations (classified within
Level 2 of the fair value hierarchy).

30AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

6.   FAIR VALUE MEASUREMENT (Continued)

Derivative Financial Instruments

Derivative financial instruments classified within Level 2 of the fair value hierarchy are recorded at fair value using external broker-dealer quotations or option
pricing models that utilize a variety of inputs that are a combination of quoted prices and market-corroborated inputs. Derivative financial instruments are classified as at fair value through the
consolidated statements of income (loss).

Convertible Debentures

Convertible debentures issued by Osisko and now an obligation of Canadian Malartic GP are reported at fair value and classified within Level 3 of the fair value
hierarchy and constitute contracts which may result in the payment of cash and issuance of publicly-traded shares. Fair value was calculated with consideration given to the influence of a variety of
inputs including quoted market prices and interest rates. Convertible debentures are included in the current portion of long-term debt line item in the consolidated balance sheets.

7.   RESTRICTED CASH

As
part of the Company's insurance programs fronted by a third party provider and reinsured through the Company's internal insurance program, the third party provider requires that cash of
$5.8 million be restricted as at December 31, 2014 (December 31, 2013  $6.9 million; January 1,
2013  $4.7 million).

As
part of the Company's tax planning, $32.0 million was contributed to a qualified environmental trust ("QET") in December 2011 to fulfill the requirement of financial security for
costs related to the environmental remediation of the Goldex mine. During the year ended December 31, 2014, $0.1 million
(2013  $2.8 million) was withdrawn from the QET to fund the environmental remediation expenditures. As at December 31, 2014, $15.5 million
(December 31, 2013  $16.8 million; January 1, 2013  $20.7 million) remained in the QET.

At
December 31, 2014, cash of $11.8 million (December 31, 2013  nil; January 1, 2013  nil) was
restricted representing 50.0% of amounts held by a depositary to satisfy obligations in connection with the senior unsecured convertible debentures previously issued by Osisko that are now the
obligation of Canadian Malartic GP.

As
at December 31, 2014, cash of $20.9 million (December 31, 2013  nil; January 1, 2013  nil)
was restricted representing 50.0% of the deposits in respect of environmental guarantees in the Province of Quebec made by Canadian Malartic GP in connection with its ownership of the Canadian
Malartic mine.

On
December 30, 2013, the Company deposited $5.0 million into a restricted account in connection with a Subscription Agreement to acquire 5,000 shares of Tocqueville Bullion
Reserve, Ltd. at a price of $1,000 per share. The acquisition was completed subsequent to year end on January 2, 2014.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   31

---



8.   INVENTORIES

|                                                   |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013
|-------------------------------------------------- |  | ----------------------- | ------- | ----------------------- | - | ---------------------
|                                                   |  |                        
|Ore in stockpiles and on leach pads                |  | $                       | 51,970  |                         | $ | 33,504               
|                                                  
|Concentrates and dore bars                         |  |                         | 111,912 |                         |   | 58,419               
|                                                  
|Supplies                                           |  |                         | 282,778 |                         |   | 253,160              
|                                                  
|Total current inventories                          |  | $                       | 446,660 |                         | $ | 345,083              
|                                                  
|Non-current ore in stockpiles and on leach pads(i) |  |                         | 25,125  |                         |   | 46,179               
|                                                  
|Total inventories                                  |  | $                       | 471,785 |                         | $ | 391,262              
|                                                  

Note:

During the year ended December 31, 2014, a charge of $4.6 million (2013  $3.2 million) was recorded
within production costs to reduce the carrying value of inventories to its net realizable value.

9.   AVAILABLE-FOR-SALE SECURITIES

|                                                                   |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013 |  
|------------------------------------------------------------------ |  | ----------------------- | ------- | ----------------------- | - | --------------------- | -
|                                                                   |  |                         |        
|Cost                                                               |  | $                       | 74,928  |                         | $ | 111,169               |  
|                                                                   | 
|Accumulated impairment losses                                      |  |                         | (30,090 | )                       |   | (40,653               | )
|                                                                   | 
|Unrealized gains in accumulated other comprehensive income (loss)  |  |                         | 11,815  |                         |   | 11,530                |  
|                                                                   | 
|Unrealized losses in accumulated other comprehensive income (loss) |  |                         | (185    | )                       |   | (7,465                | )
|                                                                   | 
|Total estimated fair value of available-for-sale securities        |  | $                       | 56,468  |                         | $ | 74,581                |  
|                                                                   | 

During the year ended December 31, 2014, the Company received proceeds of $41.4 million
(2013  $0.2 million) and recognized a gain before income taxes of $5.6 million (2013  $0.1 million)
on the sale of certain available-for-sale securities.

During
the year ended December 31, 2014, the Company recorded an impairment loss of $15.8 million (2013  $32.5 million) on certain
available-for-sale securities that were determined to have an impairment that was significant or prolonged.

32AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



10. OTHER ASSETS



|                                                                   |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|------------------------------------------------------------------ |  | ----------------------- | ------- | ----------------------- | - | --------------------- | 
|                                                                   |  |                        
|Federal, provincial and other sales taxes receivable               |  | $                       | 70,143  |                         | $ | 71,053                | 
|                                                                  
|Prepaid expenses                                                   |  |                         | 39,608  |                         |   | 35,396                | 
|                                                                  
|Insurance receivable                                               |  |                         | 113     |                         |   | 1,369                 | 
|                                                                  
|Receivables from employees                                         |  |                         | 395     |                         |   | 780                   | 
|                                                                  
|Retirement compensation arrangement plan refundable tax receivable |  |                         |        |                         |   |                      | 
|                                                                  
|Other                                                              |  |                         | 13,142  |                         |   | 8,394                 | 
|                                                                  
|Total other current assets                                         |  | $                       | 123,401 |                         | $ | 116,992               | 
|                                                                  



|                                                |  | As at
December 31,
2014 |        | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|----------------------------------------------- |  | ----------------------- | ------ | ----------------------- | - | --------------------- | 
|                                                |  |                        
|Non-current ore in stockpiles and on leach pads |  | $                       | 25,125 |                         | $ | 46,179                | 
|                                               
|Other assets                                    |  |                         | 2,497  |                         |   | 2,155                 | 
|                                               
|Total other assets                              |  | $                       | 27,622 |                         | $ | 48,334                | 
|                                               

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   33

---



11. PROPERTY, PLANT AND MINE DEVELOPMENT

|                                             |  | Mining
Properties |            | Plant and
Equipment |   | Mine
Development
Costs |   | Construction
in Progress |           | Total |   |         
|-------------------------------------------- |  | ----------------- | ---------- | ------------------- | - | ---------------------- | - | ------------------------ | --------- | ----- | - | --------
|                                             |  |                  
|As at January 1, 2013                        |  | $                 | 1,138,680  |                     | $ | 2,189,152              |   | $                        | 695,406   |       | $ | 197,051 
|                                            
|Additions                                    |  |                   | 157,511    |                     |   | 65,069                 |   |                          | 155,022   |       |   | 233,958 
|                                            
|Capitalized borrowing costs                  |  |                   |           |                     |   |                       |   |                          |          |       |   | 3,518   
|                                            
|Disposals                                    |  |                   |           |                     |   | (15,603                | ) |                          |          |       |   |        
|                                            
|Acquisitions                                 |  |                   | 1,994      |                     |   | 2                      |   |                          |          |       |   |        
|                                            
|Amortization                                 |  |                   | (28,342    | )                   |   | (245,886               | ) |                          | (38,447   | )     |   |        
|                                            
|Impairment loss                              |  |                   | (449,590   | )                   |   | (328,798               | ) |                          | (36,236   | )     |   |        
|                                            
|Transfers between categories(i)              |  |                   |           |                     |   | 19,966                 |   |                          | 57,252    |       |   | (77,218 
|                                            
|As at December 31, 2013                      |  |                   | 820,253    |                     |   | 1,683,902              |   |                          | 832,997   |       |   | 357,309 
|                                            
|Additions                                    |  |                   | 94,081     |                     |   | 203,605                |   |                          | 163,912   |       |   | 43,780  
|                                            
|Capitalized borrowing costs                  |  |                   |           |                     |   | 1,056                  |   |                          |          |       |   | 650     
|                                            
|Disposals                                    |  |                   | (2,526     | )                   |   | (6,142                 | ) |                          |          |       |   |        
|                                            
|Acquisitions                                 |  |                   | 904,403    |                     |   | 664,991                |   |                          |          |       |   |        
|                                            
|Amortization                                 |  |                   | (79,363    | )                   |   | (290,530               | ) |                          | (90,882   | )     |   |        
|                                            
|Transfers between categories(i)              |  |                   | 1,534      |                     |   | 305,512                |   |                          | (175,889  | )     |   | (131,157
|                                            
|As at December 31, 2014                      |  | $                 | 1,738,382  |                     | $ | 2,562,394              |   | $                        | 730,138   |       | $ | 270,582 
|                                            
|As at January 1, 2013:                       |  |                   |            |                     |   |                        |   |                          |           |       |   |         
|                                            
|Cost                                         |  | $                 | 2,019,192  |                     | $ | 3,094,535              |   | $                        | 975,176   |       | $ | 197,051 
|                                            
|Accumulated amortization and net impairments |  |                   | (880,512   | )                   |   | (905,383               | ) |                          | (279,770  | )     |   |        
|                                            
|Net carrying amount  January 1, 2013        |  | $                 | 1,138,680  |                     | $ | 2,189,152              |   | $                        | 695,406   |       | $ | 197,051 
|                                            
|As at December 31, 2013:                     |  |                   |            |                     |   |                        |   |                          |           |       |   |         
|                                            
|Cost                                         |  | $                 | 2,178,697  |                     | $ | 3,138,194              |   | $                        | 1,187,449 |       | $ | 357,309 
|                                            
|Accumulated amortization and net impairments |  |                   | (1,358,444 | )                   |   | (1,454,292             | ) |                          | (354,452  | )     |   |        
|                                            
|Net carrying amount  December 31, 2013      |  | $                 | 820,253    |                     | $ | 1,683,902              |   | $                        | 832,997   |       | $ | 357,309 
|                                            
|As at December 31, 2014:                     |  |                   |            |                     |   |                        |   |                          |           |       |   |         
|                                            
|Cost                                         |  | $                 | 3,176,189  |                     | $ | 4,334,707              |   | $                        | 1,175,472 |       | $ | 270,582 
|                                            
|Accumulated amortization and net impairments |  |                   | (1,437,807 | )                   |   | (1,772,313             | ) |                          | (445,334  | )     |   |        
|                                            
|Net carrying amount  December 31, 2014      |  | $                 | 1,738,382  |                     | $ | 2,562,394              |   | $                        | 730,138   |       | $ | 270,582 
|                                            

Note:

34AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



Geographic Information:

|                                           |  | As at
December 31,
2014 |           | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|------------------------------------------ |  | ----------------------- | --------- | ----------------------- | - | --------------------- | 
|                                           |  |                        
|Northern Business:                         |  |                         |           |                         |   |                       | 
|Canada                                     |  | $                       | 3,418,287 |                         | $ | 1,942,979             | 
|                                          
|Finland                                    |  |                         | 825,292   |                         |   | 762,717               | 
|                                          
|Southern Business:                         |  |                         |           |                         |   |                       | 
|Mexico                                     |  |                         | 1,047,669 |                         |   | 978,496               | 
|                                          
|United States                              |  |                         | 10,248    |                         |   | 10,269                | 
|                                          
|Total property, plant and mine development |  | $                       | 5,301,496 |                         | $ | 3,694,461             | 
|                                          

12. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

|                                               |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|---------------------------------------------- |  | ----------------------- | ------- | ----------------------- | - | --------------------- | 
|                                               |  |                        
|Trade payables                                 |  | $                       | 91,120  |                         | $ | 80,242                | 
|                                              
|Wages payable                                  |  |                         | 36,263  |                         |   | 35,881                | 
|                                              
|Accrued liabilities                            |  |                         | 36,099  |                         |   | 16,366                | 
|                                              
|Other liabilities                              |  |                         | 42,698  |                         |   | 40,885                | 
|                                              
|Total accounts payable and accrued liabilities |  | $                       | 206,180 |                         | $ | 173,374               | 
|                                              

In 2014 and 2013, the other liabilities balance consisted primarily of various employee payroll tax withholdings and other payroll taxes.

13. RECLAMATION PROVISION

Agnico
Eagle's reclamation provision includes both asset retirement obligations and environmental remediation liabilities. Reclamation provision estimates are based on current legislation, third party
estimates, management's estimates and feasibility study calculations. Assumptions based on current economic conditions, which the Company believes are reasonable, have been used to estimate the
reclamation provision. However, actual reclamation costs will ultimately depend on future economic conditions and costs for the necessary reclamation work. Changes in reclamation provision estimates
during the period reflect changes in cash flow estimates as well as assumptions including discount and inflation rates. The discount rates used in the calculation of the reclamation provision at
December 31, 2014 ranged between 1.03% and 2.54% (December 31, 2013  between 1.40% and 3.49%).

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   35

---



The
following table reconciles the beginning and ending carrying amounts of the Company's asset retirement obligations. The settlement of the obligation is estimated to occur through to 2041.

|                                                                     |  | Year Ended
December 31, 2014 |         | Year Ended
December 31, 2013 |   |        
|-------------------------------------------------------------------- |  | ---------------------------- | ------- | ---------------------------- | - | -------
|                                                                     |  |                             
|Asset retirement obligations  long-term, beginning of year          |  | $                            | 171,472 |                              | $ | 173,708
|                                                                    
|Asset retirement obligations  current, beginning of year            |  |                              | 1,029   |                              |   | 4,630  
|                                                                    
|Current year additions and changes in estimate, net                  |  |                              | 69,420  |                              |   | (2,868 
|                                                                    
|Current year attributable additions upon joint acquisition of Osisko |  |                              | 20,776  |                              |   |       
|                                                                    
|Current year accretion                                               |  |                              | 5,173   |                              |   | 4,456  
|                                                                    
|Liabilities settled                                                  |  |                              | (1,714  | )                            |   | (853   
|                                                                    
|Foreign exchange revaluation                                         |  |                              | (20,678 | )                            |   | (6,572 
|                                                                    
|Reclassification from long-term to current, end of year              |  |                              | (2,863  | )                            |   | (1,029 
|                                                                    
|Asset retirement obligations  long-term, end of year                |  | $                            | 242,615 |                              | $ | 171,472
|                                                                    

The following table reconciles the beginning and ending carrying amounts of the Company's environmental remediation liability. The settlement of the obligation
is estimated to occur through to 2020.

|                                                                   |  | Year Ended
December 31, 2014 |        | Year Ended
December 31, 2013 |   |       
|------------------------------------------------------------------ |  | ---------------------------- | ------ | ---------------------------- | - | ------
|                                                                   |  |                             
|Environmental remediation liability  long-term, beginning of year |  | $                            | 12,537 |                              | $ | 12,033
|                                                                  
|Environmental remediation liability  current, beginning of year   |  |                              | 2,423  |                              |   | 12,186
|                                                                  
|Current year additions and changes in estimate, net                |  |                              | 563    |                              |   | 1,005 
|                                                                  
|Liabilities settled                                                |  |                              | (3,202 | )                            |   | (9,045
|                                                                  
|Foreign exchange revaluation                                       |  |                              | (1,113 | )                            |   | (1,219
|                                                                  
|Reclassification from long-term to current, end of year            |  |                              | (3,906 | )                            |   | (2,423
|                                                                  
|Environmental remediation liability  long-term, end of year       |  | $                            | 7,302  |                              | $ | 12,537
|                                                                  

14. LEASES





36AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





|                    |  | Minimum
Finance
Lease
Payments |        | Interest |   | Present
Value |  | Minimum
Finance
Lease
Payments |        | Interest |   | Present
Value |  | Minimum
Finance
Lease
Payments |       | Interest |   | Present
Value | 
|------------------- |  | ------------------------------ | ------ | -------- | - | ------------- |  | ------------------------------ | ------ | -------- | - | ------------- |  | ------------------------------ | ----- | -------- | - | ------------- | 
|
|                    |  |                               
|Within 1 year       |  | $                              | 23,587 |          | $ | 1,445         |  | $                              | 22,142 |          | $ | 12,776        |  | $                              | 741   |          | $ | 12,035        | 
|                   
|Between 1  5 years |  |                                | 22,232 |          |   | 1,095         |  |                                | 21,137 |          |   | 12,482        |  |                                | 639   |          |   | 11,843        | 
|                   
|Total               |  | $                              | 45,819 |          | $ | 2,540         |  | $                              | 43,279 |          | $ | 25,258        |  | $                              | 1,380 |          | $ | 23,878        | 
|                   



ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   37

---







|                    |  | As at
December 31,
2014 |       | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|------------------- |  | ----------------------- | ----- | ----------------------- | - | --------------------- | 
|                    |  |                        
|Within 1 year       |  | $                       | 1,051 |                         | $ | 1,783                 | 
|                   
|Between 1  3 years |  |                         | 1,619 |                         |   | 1,854                 | 
|                   
|Between 3  5 years |  |                         | 1,452 |                         |   | 1,652                 | 
|                   
|Thereafter          |  |                         | 1,549 |                         |   | 2,470                 | 
|                   
|Total               |  | $                       | 5,671 |                         | $ | 7,759                 | 
|                   

During the year ended December 31, 2014, $1.2 million (year ended December 31,
2013  $1.6 million) of operating lease payments were recognized in the consolidated statements of income (loss).

15. LONG-TERM DEBT

|                                        |  | As at
December 31,
2014 |           | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|--------------------------------------- |  | ----------------------- | --------- | ----------------------- | - | --------------------- | 
|                                        |  |                        
|Credit Facility(i)                      |  | $                       | 492,470   |                         | $ | 192,611               | 
|                                       
|2012 Notes(i)                           |  |                         | 198,549   |                         |   | 198,378               | 
|                                       
|2010 Notes(i)                           |  |                         | 596,966   |                         |   | 596,367               | 
|                                       
|Attributable convertible debentures(ii) |  |                         | 34,679    |                         |   |                      | 
|                                       
|Other attributable debt instruments     |  |                         | 51,979    |                         |   |                      | 
|                                       
|Total debt                              |  |                         | 1,374,643 |                         |   | 987,356               | 
|                                       
|Less: current portion                   |  |                         | 52,182    |                         |   |                      | 
|                                       
|Total long-term debt                    |  | $                       | 1,322,461 |                         | $ | 987,356               | 
|                                       

The fair value of long-term debt (excluding convertible debentures issued by Osisko that are now an obligation of Canadian Malartic GP) is determined by
applying a discount rate, reflecting the credit spread based on the Company's credit rating, to future related cash flows. As at December 31, 2014, the Company's long-term debt had a fair value
of $1,498.4 million (December 31, 2013  $1,103.9 million; January 1,
2013  $968.7 million).

38AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



Scheduled Debt Principal Repayments

|                                    |  | 2015 |        | 2016 |   | 2017   |  | 2018 |         | 2019 |   | 2020 and
Thereafter |  | Total |        
|----------------------------------- |  | ---- | ------ | ---- | - | ------ |  | ---- | ------- | ---- | - | ------------------- |  | ----- | -------
|                                    |  |     
|Credit Facility                     |  | $    |       |      | $ |       |  | $    |        |      | $ |                    |  | $     | 500,000
|                                   
|2012 Notes                          |  |      |       |      |   |       |  |      |        |      |   |                    |  |       |       
|                                   
|2010 Notes                          |  |      |       |      |   |       |  |      | 115,000 |      |   |                    |  |       |       
|                                   
|Attributable convertible debentures |  |      |       |      |   |       |  |      | 32,325  |      |   |                    |  |       |       
|                                   
|Other attributable debt instruments |  |      | 17,503 |      |   | 17,238 |  |      | 17,238  |      |   |                    |  |       |       
|                                   
|Total                               |  | $    | 17,503 |      | $ | 17,238 |  | $    | 164,563 |      | $ |                    |  | $     | 500,000
|                                   

Credit Facility

On June 22, 2010, the Company amended and restated one of its two unsecured revolving bank credit facilities (the "Credit Facility") and terminated its other
unsecured revolving bank credit facility, increasing the amount available from an aggregate $900.0 million to $1,200.0 million.

On
July 20, 2012, the Company further amended the Credit Facility, extending the maturity date from June 22, 2016 to June 22, 2017 and amending pricing terms.

On
September 5, 2014, the Company further amended the Credit Facility, extending the maturity date from June 22, 2017 to June 22, 2019 and amending pricing terms.

At
December 31, 2014, the Credit Facility was drawn down by $500.0 million (December 31, 2013  $200.0 million; January 1,
2013  $30.0 million). Amounts drawn down, together with outstanding letters of credit under the Credit Facility, resulted in Credit Facility availability
of $699.0 million at December 31, 2014.

2012 Notes

On July 24, 2012, the Company closed a $200.0 million private placement of guaranteed senior unsecured notes (the "2012 Notes") which, on issuance, had a
weighted average maturity of 11.0 years and weighted average yield of 4.95%.

The
following table sets out details of the individual series of the 2012 Notes:

|         |  | Principal |         | Interest Rate |       | Maturity Date |          
|-------- |  | --------- | ------- | ------------- | ----- | ------------- | ---------
|         |  |          
|Series A |  | $         | 100,000 |               | 4.87% |               | 7/23/2022
|        
|Series B |  |           | 100,000 |               | 5.02% |               | 7/23/2024
|        
|Total    |  | $         | 200,000 |               |       |               |          
|        

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   39

---



2010 Notes

On April 7, 2010, the Company closed a $600.0 million private placement of guaranteed senior unsecured notes (the "2010 Notes") which, on issuance, had a
weighted average maturity of 9.84 years and weighted average yield of 6.59%.

The
following table sets out details of the individual series of the 2010 Notes:

|         |  | Principal |         | Interest Rate |       | Maturity Date |         
|-------- |  | --------- | ------- | ------------- | ----- | ------------- | --------
|         |  |          
|Series A |  | $         | 115,000 |               | 6.13% |               | 4/7/2017
|        
|Series B |  |           | 360,000 |               | 6.67% |               | 4/7/2020
|        
|Series C |  |           | 125,000 |               | 6.77% |               | 4/7/2022
|        
|Total    |  | $         | 600,000 |               |       |               |         
|        

Acquisition of Osisko

In connection with its joint acquisition of Osisko on June 16, 2014, Canadian Malartic GP was assigned and assumed certain outstanding debt obligations of Osisko
relating to the Canadian Malartic mine. Agnico Eagle's indirect attributable share of such debt instruments is as follows:

Covenants

Payment and performance of Agnico Eagle's obligations under the Credit Facility, 2012 Notes and 2010 Notes is guaranteed by each of its significant subsidiaries and certain of
its other subsidiaries (the "Guarantors").

The
Credit Facility contains covenants that limit, among other things, the ability of the Company to incur additional indebtedness, make distributions in certain circumstances and sell material
assets.

The
2012 Notes and 2010 Notes contain covenants that restrict, among other things, the ability of the Company to amalgamate or otherwise transfer its assets, sell material assets, carry on a business
other than one related to mining and the ability of the Guarantors to incur indebtedness.

40AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

15. LONG-TERM DEBT (Continued)

The
Credit Facility, 2012 Notes and 2010 Notes also require the Company to maintain a total net debt to EBITDA ratio below a specified maximum value.

The
CMGP Loan requires Canadian Malartic GP to maintain a minimum EBITDA to interest expense ratio and a maximum debt to EBITDA ratio.

The
Company was in compliance with all covenants contained in the Credit Facility, 2012 Notes and 2010 Notes as at December 31, 2014. Canadian Malartic GP was in compliance with all CMGP Loan
covenants as at December 31, 2014.

Interest on Long-term Debt

Total
long-term debt interest costs incurred during the year ended December 31, 2014 were $56.9 million (2013  $58.0 million).

Total
borrowing costs capitalized to property, plant and mine development during the year ended December 31, 2014 were $1.7 million
(2013  $3.5 million) at a capitalization rate of 1.28% (2013  1.48%).

During
the year ended December 31, 2014, cash interest paid on the Credit Facility was $7.5 million (2013  $1.8 million), cash standby fees
paid on the Credit Facility were $5.1 million (2013  $4.8 million) and cash interest paid on the 2010 Notes and 2012 Notes was $49.4 million
(2013  $49.4 million).

16. OTHER LIABILITIES

Other
liabilities consist of the following:

|                                                            |  | As at
December 31,
2014 |        | As at
December 31,
2013 |   | As at
January 1,
2013
|----------------------------------------------------------- |  | ----------------------- | ------ | ----------------------- | - | ---------------------
|                                                            |  |                        
|Long-term portion of capital lease obligations (note 14(a)) |  | $                       | 21,137 |                         | $ | 11,843               
|                                                           
|Pension benefit obligations (note 16(a))                    |  |                         | 17,507 |                         |   | 15,278               
|                                                           
|Other                                                       |  |                         | 159    |                         |   | 268                  
|                                                           
|Total other liabilities                                     |  | $                       | 38,803 |                         | $ | 27,389               
|                                                           





ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   41

---





|                                                                         |  |   | Year Ended December 31, |   |  
|------------------------------------------------------------------------ |  | - | ----------------------- | - | -
|                                                                         |  |  
|
|                                                                         |  |  
|Reconciliation of the Executives Plan assets:                            |  |   |                         |   |  
|                                                                        
|Executives Plan assets, beginning of year                                |  | $ | 2,346                   |   | $
|                                                                        
|Agnico Eagle's contributions                                             |  |   | 372                     |   |  
|                                                                        
|Benefit payments                                                         |  |   | (239                    | ) |  
|                                                                        
|Interest on Executives Plan assets                                       |  |   | 111                     |   |  
|                                                                        
|Net return on Executives Plan assets excluding interest                  |  |   | (111                    | ) |  
|                                                                        
|Effect of exchange rate changes                                          |  |   | (201                    | ) |  
|                                                                        
|Executives Plan assets, end of year                                      |  |   | 2,278                   |   |  
|                                                                        
|Reconciliation of Executives Plan defined benefit obligation:            |  |   |                         |   |  
|                                                                        
|Defined benefit obligation, beginning of year                            |  |   | 11,298                  |   |  
|                                                                        
|Service cost                                                             |  |   | 470                     |   |  
|                                                                        
|Benefit payments                                                         |  |   | (239                    | ) |  
|                                                                        
|Interest cost                                                            |  |   | 550                     |   |  
|                                                                        
|Actuarial losses (gains) arising from changes in economic assumptions    |  |   | 1,581                   |   |  
|                                                                        
|Actuarial (gains) losses arising from changes in demographic assumptions |  |   | (164                    | ) |  
|                                                                        
|Actuarial (gains) losses arising from Executives Plan experience         |  |   | (584                    | ) |  
|                                                                        
|Effect of exchange rate changes                                          |  |   | (1,017                  | ) |  
|                                                                        
|Defined benefit obligation, end of year                                  |  |   | 11,895                  |   |  
|                                                                        
|Net defined benefit liability, end of year                               |  | $ | 9,617                   |   | $
|                                                                        



|                                            |  |   | Year Ended December 31,
|------------------------------------------- |  | - | -----------------------
|                                            |  |  
|
|                                            |  |  
|Service cost                                |  | $ | 470                    
|                                           
|Interest cost on defined benefit obligation |  |   | 550                    
|                                           
|Interest on Executives Plan assets          |  |   | (111                   
|                                           
|Pension expense                             |  | $ | 909                    
|                                           

42AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





|                                                            |  |   | Year Ended December 31,
|----------------------------------------------------------- |  | - | -----------------------
|                                                            |  |  
|
|                                                            |  |  
|Actuarial losses relating to the defined benefit obligation |  | $ | 833                    
|                                                           
|Net return on Executives Plan assets excluding interest     |  |   | 111                    
|                                                           
|Total remeasurements of the net defined benefit liability   |  | $ | 944                    
|                                                           



|                                         |  | As at December 31,
|---------------------------------------- |  | ------------------
|                                         |  |                   
|
|                                         |  |                   
|Assumptions:                             |  |                   
|                                        
|Rate of return on Executives Plan assets |  | 4.9%              
|                                        
|Discount rate  beginning of year        |  | 4.9%              
|                                        
|Discount rate  end of year              |  | 4.0%              
|                                        
|Rate of compensation increase            |  | 3.0%              
|                                        



|                                                   |  |   | As at
December 31,
2014 |   | 
|-------------------------------------------------- |  | - | ----------------------- | - | 
|                                                   |  |  
|Change in assumption:                              |  |   |                         |   | 
|                                                  
|0.5% increase in discount rate                     |  | $ | (851                    | ) | 
|                                                  
|0.5% decrease in discount rate                     |  |   | 943                     |   | 
|                                                  
|0.5% increase in the rate of compensation increase |  |   | 110                     |   | 
|                                                  
|0.5% decrease in the rate of compensation increase |  |   | (109                    | ) | 
|                                                  

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   43

---





17. EQUITY

Common Shares

The Company's authorized share capital includes an unlimited number of common shares with no par value. As at December 31, 2014, Agnico Eagle's issued common shares
totaled 215,192,887 (December 31, 2013  174,181,163; January 1, 2013  172,296,610), less
956,653 common shares held in a trust or by a depositary to satisfy obligations in connection with the senior unsecured convertible debentures previously issued by Osisko that are now the
obligation of Canadian Malartic GP (December 31, 2013  227,188 common shares held in a trust; January 1,
2013  193,740 common shares held in a trust).

84,973 common
shares are held in a trust in connection with the Company's restricted share unit ("RSU") plan (December 31,
2013  227,188 common shares held in a trust). The trust has been evaluated under
IFRS 10 Consolidated Financial Statementsand is consolidated in the accounts of the Company, with shares
held in trust offset against the Company's issued shares in its consolidated financial statements. The common shares purchased and held in a trust are excluded from the basic net income (loss) per
share calculations until they have vested. All of the non-vested common shares held in a trust are included in the diluted net income (loss) per share calculations, unless the impact is anti-dilutive.

As
part of the Company's joint acquisition of Osisko on June 16, 2014 (see note 5 to these consolidated financial statements for details), 871,680 Agnico Eagle
common shares are held by a depositary to satisfy obligations under the senior unsecured convertible debentures previously issued by Osisko (now an obligation of Canadian Malartic GP) if converted in
the future. These Agnico Eagle common shares held by a depositary are not currently considered outstanding as they will not be voted and as accrued dividends may, at Agnico Eagle's discretion, revert
back to the Company. These common shares are excluded from the calculation of basic net income (loss) per share and are included in the calculation of diluted net income (loss) per share, unless the
impact is anti-dilutive.

44AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



The
following table sets out the maximum number of common shares that would be outstanding if all dilutive instruments outstanding at December 31, 2014 were exercised:

|Common shares outstanding at December 31, 2014                                                             |  | 214,236,234 | 
|---------------------------------------------------------------------------------------------------------- |  | ----------- | 
|                                                                                                          
|Employee stock options                                                                                     |  | 11,913,210  | 
|                                                                                                          
|Common shares held in a trust in connection with the RSU plan (note 19(c))                                 |  | 84,973      | 
|                                                                                                          
|Common shares held by a depositary relating to convertible debentures previously issued by Osisko (note 5) |  | 871,680     | 
|                                                                                                          
|Total                                                                                                      |  | 227,106,097 | 
|                                                                                                          

Net Income (Loss) Per Share

The
following table sets out the weighted average number of common shares used in the calculation of basic and diluted net income (loss) per share:

|                                                                              |                                                                                                                           |   | Year Ended December 31,
|----------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | - | -----------------------
|                                                                              |                                                                                                                           |  
|
|                                                                              |                                                                                                                           |  
|Net income (loss) for the year  basic                                        |                                                                                                                           | $ | 82,970                 
|                                                                             
|Net income (loss) for the year  diluted                                      |                                                                                                                           | $ | 75,625                 
|                                                                             
|Weighted average number of common shares outstanding  basic (in thousands)   |                                                                                                                           |   | 195,223                
|                                                                             
|                                                                              | Add: Dilutive impact of common shares held by a depositary relating to convertible debentures previously issued by Osisko |   |                        
|                                                                             
|                                                                              | Add: Dilutive impact of common shares related to the RSU plan                                                             |   |                        
|                                                                             
|                                                                              | Add: Dilutive impact of employee stock options                                                                            |   |                        
|                                                                             
|Weighted average number of common shares outstanding  diluted (in thousands) |                                                                                                                           |   | 196,201                
|                                                                             
|Net income (loss) per share  basic                                           |                                                                                                                           | $ | 0.43                   
|                                                                             
|Net income (loss) per share  diluted                                         |                                                                                                                           | $ | 0.39                   
|                                                                             

Diluted net income (loss) per share have been calculated using the treasury stock method. In applying the treasury stock method, outstanding employee stock
options with an exercise price greater than the average quoted market price of the common shares for the period outstanding are not included in the calculation of diluted net income (loss) per share
as the impact would be anti-dilutive.

The
dilutive impact of convertible debentures previously issued by Osisko, including both their impact on diluted net income and the dilutive impact of related common shares held by a depositary in
connection with any conversion thereof, has been included in the calculation of net income per share for the year ended December 31, 2014.

For
the year ended December 31, 2014, 9,102,210 employee stock options were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive.

For
the year ended December 31, 2013, the impact of any additional shares issued under the employee stock option plan or shares related to the RSU plan were excluded from the calculation of net
loss per share as their impact would have been anti-dilutive due to the net loss recorded for the year.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   45

---



18. REVENUES FROM MINING OPERATIONS AND TRADE RECEIVABLES

Agnico
Eagle is a gold mining company with mining operations in Canada, Mexico and Finland. The Company earns a significant proportion of its revenues from the production and sale of gold in both dore
bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of by-product metals. The revenue from by-product metals is primarily generated by production
at the LaRonde mine in Canada (silver, zinc and copper) and the Pinos Altos mine in Mexico (silver).

The
cash flow and profitability of the Company's operations are significantly affected by the market price of gold and, to a lesser extent, silver, zinc and copper. The prices of these metals can
fluctuate significantly and are affected by numerous factors beyond the Company's control.

During
the year ended December 31, 2014, three customers each contributed more than 10.0% of total revenues from mining operations for a combined total of approximately 65.0% of revenues from
mining operations in the Northern and Southern business units. As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of
customers for the sale of its product.

Trade
receivables are recognized once the transfer of ownership for the metals sold has occurred and reflect the amounts owing to the Company in respect of its sales of dore bars or concentrates to
third parties prior to the satisfaction in full of the payment obligations of the third parties. As at December 31, 2014, the Company had $59.7 million (December 31,
2013  $67.3 million; January 1, 2013  $67.8 million) in receivables relating to provisionally priced
concentrate sales. For the year ended December 31, 2014, the Company recognized mark-to-market losses of $0.8 million (2013  $0.3 million)
on concentrate receivables.

|                                      |  |   | Year Ended December 31,
|------------------------------------- |  | - | -----------------------
|                                      |  |  
|
|                                      |  |  
|Revenues from mining operations:      |  |   |                        
|                                     
|Gold                                  |  | $ | 1,807,927              
|                                     
|Silver                                |  |   | 62,466                 
|                                     
|Zinc                                  |  |   | 9,901                  
|                                     
|Copper                                |  |   | 16,479                 
|                                     
|Lead(i)                               |  |   | (7                     
|                                     
|Total revenues from mining operations |  | $ | 1,896,766              
|                                     

Note:

In 2014, precious metals (gold and silver) accounted for 98.6% of Agnico Eagle's revenues from mining operations
(2013  97.7%). The remaining revenues from mining operations consisted of net by-product metal revenues. In 2014, these net by-product metal revenues as a
percentage of total revenues from mining operations were 0.5% from zinc (2013  1.0%) and 0.9% from copper (2013  1.3%).

46AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



19. STOCK-BASED COMPENSATION





|                                 |  | Number of
Stock
Options |   | Weighted
Average
Exercise
Price |       | Number of
Stock
Options |            | Weighted
Average
Exercise
Price |   
|-------------------------------- |  | ----------------------- | - | ------------------------------- | ----- | ----------------------- | ---------- | ------------------------------- | --
|
|                                 |  |                        
|Outstanding, beginning of year   |  | 11,283,535              |   | C$                              | 56.02 |                         | 10,587,126 |                                 | C$
|                                
|Granted                          |  | 3,187,500               |   |                                 | 28.07 |                         | 2,803,000  |                                 |   
|                                
|Exercised                        |  | (582,925                | ) |                                 | 31.46 |                         | (213,500   | )                               |   
|                                
|Forfeited                        |  | (250,750                | ) |                                 | 53.08 |                         | (540,206   | )                               |   
|                                
|Expired                          |  | (1,724,150              | ) |                                 | 62.64 |                         | (1,352,885 | )                               |   
|                                
|Outstanding, end of year         |  | 11,913,210              |   | C$                              | 48.84 |                         | 11,283,535 |                                 | C$
|                                
|Options exercisable, end of year |  | 7,503,335               |   | C$                              | 55.98 |                         | 7,248,295  |                                 | C$
|                                



ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   47

---





|                  |  | Number
Outstanding |  | Weighted
Average
Remaining
Contractual
Life |  | Weighted
Average
Exercise
Price |       | Number
Exercisable |           | Weighted
Average
Exercise
Price |   
|----------------- |  | ------------------ |  | ------------------------------------------- |  | ------------------------------- | ----- | ------------------ | --------- | ------------------------------- | --
|
|                 
|C$28.03  C$59.71 |  | 9,725,131          |  | 2.45 years                                  |  | C$                              | 42.66 |                    | 5,315,256 |                                 | C$
|                 
|C$60.72  C$83.08 |  | 2,188,079          |  | 1.01 years                                  |  |                                 | 76.31 |                    | 2,188,079 |                                 |   
|                 
|C$28.03  C$83.08 |  | 11,913,210         |  | 2.18 years                                  |  | C$                              | 48.84 |                    | 7,503,335 |                                 | C$
|                 



|                                                  |  | Year Ended December 31,
|------------------------------------------------- |  | -----------------------
|                                                  |  |                        
|
|                                                  |  |                        
|Risk-free interest rate                           |  | 1.52%                  
|                                                 
|Expected life of stock options (in years)         |  | 2.6                    
|                                                 
|Expected volatility of Agnico Eagle's share price |  | 42.5%                  
|                                                 
|Expected dividend yield                           |  | 3.82%                  
|                                                 



48AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---







20. CAPITAL AND FINANCIAL RISK MANAGEMENT

The
Company's activities expose it to a variety of financial risks: market risk (including interest rate risk, commodity price risk and foreign currency risk), credit risk, and liquidity risk. The
Company's overall risk management policy is to support the delivery of the Company's financial targets while minimizing the potential adverse effects on the Company's performance.

Risk
management is carried out by a centralized treasury department under policies approved by the Board of Directors. The Company ensures that financial activities are governed by policies and
procedures and that financial risks are identified, measured and managed in accordance with its policies and risk tolerance.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   49

---









|              |  |   | Year Ended December 31,
|------------- |  | - | -----------------------
|              |  |  
|
|              |  |  
|1.0% Increase |  | $ | (3,548                 
|             
|1.0% Decrease |  | $ | 3,548                  
|             









50AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





|                |  |   | Impact on Income Before Income and Mining Taxes and Equity
|--------------- |  | - | ----------------------------------------------------------
|                |  |  
|
|                |  |  
|Canadian dollar |  | $ | 22,147                                                    
|               
|Euro            |  | $ | 5,249                                                     
|               
|Mexican peso    |  | $ | 2,471                                                     
|               





|                                       |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|-------------------------------------- |  | ----------------------- | ------- | ----------------------- | - | --------------------- | 
|                                       |  |                        
|Cash and cash equivalents              |  | $                       | 177,537 |                         | $ | 139,101               | 
|                                      
|Short-term investments                 |  |                         | 4,621   |                         |   | 2,217                 | 
|                                      
|Restricted cash                        |  |                         | 54,021  |                         |   | 28,723                | 
|                                      
|Trade receivables                      |  |                         | 59,716  |                         |   | 67,300                | 
|                                      
|Derivative financial instrument assets |  |                         | 4,877   |                         |   | 5,590                 | 
|                                      
|Total                                  |  | $                       | 300,772 |                         | $ | 242,931               | 
|                                      

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   51

---









|               |  | As at
December 31,
2014 |           | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|-------------- |  | ----------------------- | --------- | ----------------------- | - | --------------------- | 
|               |  |                        
|Long-term debt |  | $                       | 1,374,643 |                         | $ | 987,356               | 
|              
|Total equity   |  |                         | 4,068,490 |                         |   | 2,717,406             | 
|              
|Total          |  | $                       | 5,443,133 |                         | $ | 3,704,762             | 
|              



21. DERIVATIVE FINANCIAL INSTRUMENTS

Currency Risk Management

The Company utilizes foreign exchange economic hedges to reduce the variability in expected future cash flows arising from changes in foreign currency exchange rates. The
Company is primarily exposed to currency fluctuations relative to the US Dollar as a portion of the Company's operating costs and capital expenditures are denominated in foreign currencies; primarily
the Canadian dollar, the Euro and the Mexican Peso. These potential currency fluctuations increase the volatility of, and could have a significant impact on, the Company's production costs. The
economic hedges relate to a portion of the foreign currency denominated cash outflows arising from foreign currency denominated expenditures. The Company does not apply hedge accounting to these
arrangements.

As
at December 31, 2014, the Company had outstanding foreign exchange zero cost collars. The purchase of US dollar put options was financed through selling US dollar call options at a higher
level such that the net premium payable to
the different counterparties by the Company was nil. At December 31, 2014, the zero cost collars related to $24.0 million of 2015 expenditures and the Company recognized mark-to-market
adjustments in the loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss). Mark-to-market gains (losses) related to foreign
exchange derivative financial instruments are recorded at fair value based on broker-dealer quotations that utilize period end forward pricing of the applicable foreign currency to calculate
fair value.

52AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





AGNICO EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2014

21. DERIVATIVE FINANCIAL INSTRUMENTS (Continued)

The Company's other foreign currency derivative strategies in 2014 and 2013 consisted mainly of writing US dollar call options with short maturities to generate premiums that
would, in essence, enhance the spot transaction rate received when exchanging US dollars for Canadian dollars. All of these derivative transactions expired prior to year end such that no derivatives
were outstanding as at December 31, 2014 or December 31, 2013. The call option premiums were recognized in the loss on derivative financial instruments line item of the consolidated
statements of income (loss) and comprehensive income (loss).

Commodity Price Risk Management

To mitigate the risks associated with fluctuating diesel fuel prices, the Company uses derivative financial instruments as economic hedges of the price risk on a portion of
diesel fuel costs associated with the Meadowbank mine's diesel fuel exposure as it relates to operating costs. There were derivative financial instruments outstanding at December 31, 2014
relating to 14.0 million gallons of heating oil. Derivative financial instruments that expired in 2013 and totaled 10.5 million gallons of heating oil were entered into at an average
price of $2.99 per gallon, which was approximately 55.0% of the Meadowbank mine's expected 2013 diesel fuel operating costs. The related mark-to-market adjustments prior to settlement were recognized
in the loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss). No heating oil derivative financial instruments were
outstanding at December 31, 2013. The Company does not apply hedge accounting to these arrangements.

Mark-to-market
gains (losses) related to heating oil derivative financial instruments are based on broker-dealer quotations that utilize year end forward pricing to calculate fair value.

As
at December 31, 2014 and December 31, 2013, there were no metal derivative positions. The Company may from time to time utilize short-term financial instruments as part of its
strategy to minimize risks and optimize returns on its by-product metal sales.

The
following table sets out a summary of the amounts recognized in the loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive
income (loss):

|                                                           |  |   | Year Ended December 31,
|---------------------------------------------------------- |  | - | -----------------------
|                                                           |  |  
|
|                                                           |  |  
|Premiums realized on written foreign exchange call options |  | $ | 2,725                  
|                                                          
|Realized loss on warrants                                  |  |   | (4,263                 
|                                                          
|Unrealized gain (loss) on warrants(i)                      |  |   | 3,426                  
|                                                          
|Realized gain on currency and commodity derivatives        |  |   | 20                     
|                                                          
|Unrealized loss on currency and commodity derivatives(i)   |  |   | (8,064                 
|                                                          
|Total loss on derivative financial instruments             |  | $ | (6,156                 
|                                                          

Note:

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   53

---



22. SEGMENTED INFORMATION

Agnico Eagle operates in a single industry, namely exploration for and production of gold. The Company's primary operations are in Canada, Mexico and Finland. The Company
identifies its reportable segments as those operations whose operating results are reviewed by the Chief Operating Decision Maker ("CODM"), the Chief Executive Officer for the purpose of allocating
resources and assessing performance and that represent more than 10.0% of the combined revenue from mining operations, income or loss or total assets of all operating segments. Each of the Company's
significant operating mines and projects are considered to be separate operating segments. Certain operating segments that do not meet the quantitative thresholds are still disclosed when the Company
believes that the information is useful. The CODM also reviews segment income (defined as revenues from mining operations less production costs, exploration and corporate development expenses and
impairment losses) on a mine-by-mine basis. The following are the Company's reportable segments organized according to their relationship with the Company's three business units and reflect how the
Company manages its business and how it classifies its operations for planning and measuring performance:

|Northern Business: |  | LaRonde mine, Lapa mine, Goldex mine, Meadowbank mine, Canadian Malartic mine, Meliadine project and Kittila mine                                      
|------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------------
|                  
|Southern Business: |  | Pinos Altos mine, Creston Mascota deposit at Pinos Altos and La India mine                                                                             
|                  
|Exploration:       |  | United States Exploration office, Europe Exploration office, Canada Exploration offices, Latin America Exploration office and Cayden acquisition assets
|                  

Revenues from mining operations and production costs for the reportable segments are reported net of intercompany transactions.

Corporate
and other assets and specific income and expense items are not allocated to reportable segments.

54AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



|Year Ended December 31, 2014:          |                                                      | Revenues from
Mining
Operations |           | Production
Costs |   | Exploration and
Corporate
Development |   | Segment
Income
(Loss) |         |  
|-------------------------------------- | ---------------------------------------------------- | ------------------------------- | --------- | ---------------- | - | ------------------------------------- | - | --------------------- | ------- | -
|                                      
|Northern Business:                     |                                                      |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|LaRonde mine                           |                                                      | $                               | 308,794   |                  | $ | (188,736                              | ) | $                     |        |  
|                                      
|Lapa mine                              |                                                      |                                 | 115,254   |                  |   | (61,056                               | ) |                       |        |  
|                                      
|Goldex mine                            |                                                      |                                 | 125,574   |                  |   | (64,836                               | ) |                       |        |  
|                                      
|Meadowbank mine                        |                                                      |                                 | 575,856   |                  |   | (270,824                              | ) |                       |        |  
|                                      
|Canadian Malartic mine (note 5)        |                                                      |                                 | 189,900   |                  |   | (113,916                              | ) |                       |        |  
|                                      
|Kittila mine                           |                                                      |                                 | 176,520   |                  |   | (116,893                              | ) |                       |        |  
|                                      
|Total Northern Business                |                                                      |                                 | 1,491,898 |                  |   | (816,261                              | ) |                       |        |  
|                                      
|Southern Business:                     |                                                      |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|Pinos Altos mine                       |                                                      |                                 | 251,783   |                  |   | (123,342                              | ) |                       |        |  
|                                      
|Creston Mascota deposit at Pinos Altos |                                                      |                                 | 59,573    |                  |   | (28,007                               | ) |                       |        |  
|                                      
|La India mine                          |                                                      |                                 | 93,512    |                  |   | (36,949                               | ) |                       |        |  
|                                      
|Total Southern Business                |                                                      |                                 | 404,868   |                  |   | (188,298                              | ) |                       |        |  
|                                      
|Exploration                            |                                                      |                                 |          |                  |   |                                      |   |                       | (56,002 | )
|                                      
|Segments totals                        |                                                      | $                               | 1,896,766 |                  | $ | (1,004,559                            | ) | $                     | (56,002 | )
|                                      
|Total segments income                  |                                                      |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|Corporate and other:                   |                                                      |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Amortization of property, plant and mine development |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | General and administrative                           |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Impairment loss on available-for-sale securities     |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Finance costs                                        |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Loss on derivative financial instruments             |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Gain on sale of available-for-sale securities        |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Environmental remediation                            |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Foreign currency translation loss                    |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|                                       | Other income                                         |                                 |           |                  |   |                                       |   |                       |         |  
|                                      
|Income before income and mining taxes  |                                                      |                                 |           |                  |   |                                       |   |                       |         |  
|                                      

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   55

---



|
|

|Year Ended December 31, 2013:          |                                                      | Revenues from
Mining
Operations |           | Production
Costs |   | Exploration and
Corporate
Development |   | Impairment
Loss |         | Segment
Income
(Loss) |   |           
|-------------------------------------- | ---------------------------------------------------- | ------------------------------- | --------- | ---------------- | - | ------------------------------------- | - | --------------- | ------- | --------------------- | - | ----------
|                                      
|Northern Business:                     |                                                      |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|LaRonde mine                           |                                                      | $                               | 329,900   |                  | $ | (228,640                              | ) | $               |        |                       | $ |          
|                                      
|Lapa mine                              |                                                      |                                 | 141,167   |                  |   | (69,371                               | ) |                 |        |                       |   | (67,894   
|                                      
|Goldex mine                            |                                                      |                                 | 21,418    |                  |   | (15,339                               | ) |                 |        |                       |   |          
|                                      
|Meadowbank mine                        |                                                      |                                 | 591,473   |                  |   | (318,414                              | ) |                 |        |                       |   | (307,503  
|                                      
|Meliadine project                      |                                                      |                                 |          |                  |   |                                      |   |                 |        |                       |   | (639,291  
|                                      
|Kittila mine                           |                                                      |                                 | 209,723   |                  |   | (97,934                               | ) |                 |        |                       |   |          
|                                      
|Total Northern Business                |                                                      |                                 | 1,293,681 |                  |   | (729,698                              | ) |                 |        |                       |   | (1,014,688
|                                      
|Southern Business:                     |                                                      |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|Pinos Altos mine                       |                                                      |                                 | 303,203   |                  |   | (116,959                              | ) |                 |        |                       |   |          
|                                      
|Creston Mascota deposit at Pinos Altos |                                                      |                                 | 41,522    |                  |   | (19,425                               | ) |                 |        |                       |   |          
|                                      
|Total Southern Business                |                                                      |                                 | 344,725   |                  |   | (136,384                              | ) |                 |        |                       |   |          
|                                      
|Exploration                            |                                                      |                                 |          |                  |   |                                      |   |                 | (44,236 | )                     |   |          
|                                      
|Segments totals                        |                                                      | $                               | 1,638,406 |                  | $ | (866,082                              | ) | $               | (44,236 | )                     | $ | (1,014,688
|                                      
|Total segments loss                    |                                                      |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|Corporate and other:                   |                                                      |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Amortization of property, plant and mine development |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | General and administrative                           |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Impairment loss on available-for-sale securities     |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Finance costs                                        |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Loss on derivative financial instruments             |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Gain on sale of available-for-sale securities        |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Environmental remediation                            |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Foreign currency translation loss                    |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|                                       | Other expenses                                       |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      
|Loss before income and mining taxes    |                                                      |                                 |           |                  |   |                                       |   |                 |         |                       |   |           
|                                      

|
|

56AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



|                                       |  |   | Total Assets as at
|-------------------------------------- |  | - | ------------------
|                                       |  |  
|
|                                       |  |  
|Northern Business:                     |  |   |                   
|                                      
|LaRonde mine                           |  | $ | 856,489           
|                                      
|Lapa mine                              |  |   | 74,131            
|                                      
|Goldex mine                            |  |   | 205,101           
|                                      
|Meadowbank mine                        |  |   | 660,278           
|                                      
|Canadian Malartic mine (note 5)        |  |   | 2,099,815         
|                                      
|Meliadine project                      |  |   | 487,901           
|                                      
|Kittila mine                           |  |   | 931,335           
|                                      
|Total Northern Business                |  |   | 5,315,050         
|                                      
|Southern Business:                     |  |   |                   
|                                      
|Pinos Altos mine                       |  |   | 573,786           
|                                      
|Creston Mascota deposit at Pinos Altos |  |   | 84,176            
|                                      
|La India mine                          |  |   | 543,297           
|                                      
|Total Southern Business                |  |   | 1,201,259         
|                                      
|Exploration                            |  |   | 144,580           
|                                      
|Corporate and other                    |  |   | 179,649           
|                                      
|Total assets                           |  | $ | 6,840,538         
|                                      

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   57

---



The following table sets out the changes in the carrying amount of goodwill by segment for the year ended December 31, 2013:

|                                     |  | Meliadine
Project |          | La India Mine |   | Total  |  |  
|------------------------------------ |  | ----------------- | -------- | ------------- | - | ------ |  | -
|                                     |  |                  
|Cost:                                |  |                   |          |               |   |        |  |  
|                                    
|Balance at January 1, 2013           |  | $                 | 200,064  |               | $ | 29,215 |  | $
|                                    
|Acquisition of Urastar (note 5)      |  |                   |         |               |   | 9,802  |  |  
|                                    
|Balance at December 31, 2013         |  |                   | 200,064  |               |   | 39,017 |  |  
|                                    
|Accumulated impairment:              |  |                   |          |               |   |        |  |  
|                                    
|Balance at January 1, 2013           |  |                   |         |               |   |       |  |  
|                                    
|Impairment loss                      |  |                   | (200,064 | )             |   |       |  |  
|                                    
|Balance at December 31, 2013         |  |                   | (200,064 | )             |   |       |  |  
|                                    
|Carrying amount at December 31, 2013 |  | $                 |         |               | $ | 39,017 |  | $
|                                    

The following table sets out the changes in the carrying amount of goodwill by segment for the year ended December 31, 2014:

|                                     |  | Meliadine
Project |          | La India Mine |   | Canadian
Malartic Mine |  | Total |         | 
|------------------------------------ |  | ----------------- | -------- | ------------- | - | ---------------------- |  | ----- | ------- | 
|                                     |  |                  
|Cost:                                |  |                   |          |               |   |                        |  |       |         | 
|                                    
|Balance at December 31, 2013         |  | $                 | 200,064  |               | $ | 39,017                 |  | $     |        | 
|                                    
|Joint acquisition of Osisko (note 5) |  |                   |         |               |   |                       |  |       | 543,444 | 
|                                    
|Balance at December 31, 2014         |  |                   | 200,064  |               |   | 39,017                 |  |       | 543,444 | 
|                                    
|Accumulated impairment:              |  |                   |          |               |   |                        |  |       |         | 
|                                    
|Balance at December 31, 2013         |  |                   | (200,064 | )             |   |                       |  |       |        | 
|                                    
|Balance at December 31, 2014         |  |                   | (200,064 | )             |   |                       |  |       |        | 
|                                    
|Carrying amount at December 31, 2014 |  | $                 |         |               | $ | 39,017                 |  | $     | 543,444 | 
|                                    

58AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



The following table sets out capital expenditures by segment:

|                                       |  |  
|-------------------------------------- |  | -
|
|                                       |  |  
|
|                                       |  |  
|Northern Business:                     |  |  
|                                      
|LaRonde mine                           |  | $
|                                      
|Lapa mine                              |  |  
|                                      
|Goldex mine                            |  |  
|                                      
|Meadowbank mine                        |  |  
|                                      
|Canadian Malartic mine                 |  |  
|                                      
|Meliadine project                      |  |  
|                                      
|Kittila mine                           |  |  
|                                      
|Total Northern Business                |  |  
|                                      
|Southern Business:                     |  |  
|                                      
|Pinos Altos mine                       |  |  
|                                      
|Creston Mascota deposit at Pinos Altos |  |  
|                                      
|La India mine                          |  |  
|                                      
|Total Southern Business                |  |  
|                                      
|Corporate and other                    |  |  
|                                      
|Total capital expenditures             |  | $
|                                      

The following table sets out revenues from mining operations by geographic area:

|                                      |  |  
|------------------------------------- |  | -
|
|                                      |  |  
|
|                                      |  |  
|Canada                                |  | $
|                                     
|Mexico                                |  |  
|                                     
|Finland                               |  |  
|                                     
|Total revenues from mining operations |  | $
|                                     

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   59

---



The following table sets out non-current assets by geographic area:

|                         |  | Non-current Assets as at |          
|------------------------ |  | ------------------------ | ---------
|
|                         |  |                         
|Canada                   |  | $                        | 3,986,008
|                        
|Mexico                   |  |                          | 1,095,160
|                        
|Finland                  |  |                          | 841,062  
|                        
|United States            |  |                          | 10,248   
|                        
|Total non-current assets |  | $                        | 5,932,478
|                        

23. IMPAIRMENT LOSSES AND REVERSALS

Impairment Losses

The Company performs goodwill impairment tests on an annual basis as at December 31 each year. In addition, the Company assesses for indicators of impairment at each
reporting period end and if an indicator of impairment is identified, goodwill and non-current assets are tested for impairment at that time. If an indicator of impairment exists, the recoverable
amount of the asset is calculated in order to determine if any impairment loss is required. An impairment loss is recognized for any excess of the carrying amount of the asset over its recoverable
amount.

The
estimated recoverable amount of the Canadian Malartic CGU as at December 31, 2014 was determined on the basis of fair value less costs to dispose of the mine. The estimated recoverable
amount of the Canadian Malartic mine was calculated by discounting the estimated future net cash flows over the estimated life of the mine using a discount rate of 7.6%, commensurate with the
estimated level of risk associated with the Canadian Malartic mine. The recoverable amount calculation was based on an estimate of future production levels applying gold prices of $1,300 per ounce
(in real terms), foreign exchange rates of US$0.88:C$1.00 to US$0.91:C$1.00, an inflation rate of 2.0%, and
capital, operating and reclamation costs based on applicable life-of-mine plans. The Canadian Malartic mine's estimated recoverable amount exceeded its carrying amount at December 31, 2014. The
discounted cash flow approach uses significant unobservable inputs and is therefore considered a Level 3 fair value measurement under the fair value hierarchy.

As
at December 31, 2013, the Company identified the continued decline in the market price of gold as an indicator of potential impairment for the Company's long-lived assets. As a result of the
identification of this indicator, the Company estimated the recoverable amounts of all CGUs using updated assumptions and estimates and concluded that the Lapa mine, Meadowbank mine and Meliadine
project were impaired.

60AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



The
following impairment losses were recorded as at December 31, 2013 as a result of the impairment evaluation:

|                                      |                   |  | As at December 31, 2013 |          
|------------------------------------- | ----------------- |  | ----------------------- | ---------
|                                      |                   | 
|
|                                      |                   | 
|Property, plant and mine development: |                   |  |                         |          
|                                     
|                                      | Lapa mine         |  | $                       | 136,618  
|                                     
|                                      | Meadowbank mine   |  |                         | 770,733  
|                                     
|                                      | Meliadine project |  |                         | 841,932  
|                                     
|                                      | Total             |  | $                       | 1,749,283
|                                     
|Goodwill:                             |                   |  |                         |          
|                                     
|                                      | Meliadine project |  | $                       | 200,064  
|                                     
|Total impairment loss                 |                   |  |                         |          
|                                     

The estimated recoverable amount of the Lapa mine CGU was $74.0 million as at December 31, 2013, representing the fair value less costs to dispose
of the mine. The estimated recoverable amount of the Lapa mine was calculated by discounting the estimated future net cash flows over the estimated life of the mine using a discount rate of 5.5%
(in nominal terms), commensurate with the estimated level of risk associated with the Lapa mine. The recoverable amount calculation was based on an estimate of future production levels applying
gold prices of $1,238 to $1,300 per ounce (in real terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, an inflation rate of 2.0%, an average gold recovery rate of 78.3% and
capital, operating and reclamation costs based on applicable life-of-mine plans. As the Lapa mine's carrying amount exceeded its estimated recoverable amount at December 31, 2013, an impairment
loss of $67.9 million was recognized. The Lapa mine impairment loss was allocated $7.2 million to mining properties, $24.4 million to plant and equipment and $36.3 million
to mine development costs. The discounted cash flow approach uses significant unobservable inputs and is therefore considered a Level 3 fair value measurement under the fair value hierarchy.

The
estimated recoverable amount of the Meadowbank mine CGU was $490.0 million as at December 31, 2013, representing the fair value less costs to dispose of the mine. The estimated
recoverable amount of the Meadowbank mine was calculated by discounting the estimated future net cash flows over the estimated life of the mine using a discount rate of 6.5% (in nominal terms),
commensurate with the estimated level of risk associated with the Meadowbank mine. The recoverable amount calculation was based on an estimate of future production levels applying gold prices of
$1,238 to $1,300 per ounce (in real terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, an inflation rate of 2.0%, an average gold recovery rate of 92.3% and capital, operating
and reclamation costs based on applicable life-of-mine plans. As the Meadowbank mine's carrying amount exceeded its estimated recoverable amount at December 31, 2013, an impairment loss of
$307.5 million was recognized. The Meadowbank mine impairment loss was allocated $3.1 million to mining properties and $304.4 million to plant and equipment. The discounted cash
flow approach uses significant unobservable inputs and is therefore considered a Level 3 fair value measurement under the fair value hierarchy.

Estimated
after-tax discounted future net cash flows of reporting units with goodwill, including the Meliadine and La India projects, were calculated as at December 31, 2013. The estimated
recoverable amount of the Meliadine project was $400.0 million as at December 31, 2013, representing the fair value less costs to dispose of the project. The estimated recoverable amount
for the Meliadine project was calculated by discounting the estimated future net cash flows over the

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   61

---



estimated
life-of-mine using a discount rate of 8.0% (in nominal terms), commensurate with the estimated level of risk associated with the Meliadine project. The recoverable amount calculation
was based on an estimate of future production levels applying gold prices of $1,238 to $1,300 per ounce (in real terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, an inflation
rate of 2.0%, an average gold recovery rate of 95.1% and capital, operating and reclamation costs based on applicable life-of-mine plans. As the Meliadine project's carrying amount exceeded its
estimated recoverable amount at December 31, 2013, an impairment loss of $639.3 million was recognized, of which $200.1 million was allocated to write down goodwill to nil with
the balance allocated to mining properties. No goodwill impairment loss was required relating to the La India project as at December 31, 2013. The discounted cash flow approach uses significant
unobservable inputs and is therefore considered a Level 3 fair value measurement under the fair value hierarchy.

Estimated
after-tax discounted future net cash flows of reporting units with goodwill were calculated as at January 1, 2013. The estimated recoverable amount for the Meliadine project was
calculated by discounting the estimated future net cash flows over the estimated life-of-mine using a discount rate of 6.8% (in nominal terms), commensurate with the estimated level of risk
associated with the Meliadine project. The recoverable amount calculation was based on an estimate of future production levels applying gold prices of $1,400 per ounce (in real terms), foreign
exchange rates of US$0.94:C$1.00 to US$1.00:C$1.00, an inflation rate of 2.0%, an average gold recovery rate of 95.0% and capital, operating and reclamation costs based on applicable life-of-mine
plans. The estimated recoverable amount exceeded the carrying amount at January 1, 2013. The discounted cash flow approach uses significant unobservable inputs and is therefore considered a
Level 3 fair value measurement under the fair value hierarchy.

Discount
rates were based on each asset group's weighted average cost of capital, of which the two main components are the cost of equity and the after-tax cost of debt. Cost of equity was calculated
based on the capital asset pricing model, incorporating the risk-free rate of return based on Government of Canada marketable bond yields as at the valuation date, the Company's beta coefficient
adjustment to the market equity risk premium based on the volatility of the Company's return in relation to that of a comparable market portfolio, plus a size premium and Company-specific risk factor.
Cost of debt was determined by applying an appropriate market indication of the Company's borrowing capabilities and the corporate income tax rate applicable to each asset group's jurisdiction.

Impairment Reversals

On October 19, 2011, the Company suspended mining operations and gold production at the Goldex mine due to geotechnical concerns with the rock above the mining horizon.
As a result, the Company undertook immediate investigation and remediation efforts. As at September 30, 2011, the Company recognized an impairment loss of $237.1 million relating to the
value of property, plant and mine development assets and $16.6 million relating to the underground ore stockpile. Additionally, the remaining proven and probable mineral reserves were
reclassified as mineral resources. Operations in the Goldex Extension Zone ("GEZ") remain suspended indefinitely.

Exploration
drilling continued on several mineralized zones on the Goldex mine property near the GEZ after mining operations were suspended in October 2011. A team of independent consultants and
Agnico Eagle staff performed a thorough review, including a preliminary economic assessment, to determine whether future mining operations on the property, including the M and E Zones, would be
viable. After a review of the preliminary economic assessment, Agnico Eagle's Board of Directors approved the M and E Zones for development on July 25, 2012. A NI 43-101 compliant
technical report and a feasibility study supporting the exploitation of the M and E Zones at the Goldex mine was prepared by Agnico Eagle in the fourth quarter of 2012. The feasibility study supported
the first proven and probable mineral reserves at the Goldex mine since the suspension of operations at the GEZ. Commercial production was achieved at the Goldex mine's M and E Zones in
October 2013.

The
Company completed a comparison of the carrying amount versus the recoverable amount of the Goldex mine at its IFRS transition date of January 1, 2013.
IAS 36 Impairment of Assetsindicates that an impairment loss recognized in a prior

62AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



period
can be reversed only if there is a change in the estimates used to determine the mine's recoverable amount since the last impairment loss was recognized. Consequently, the reversal of an
impairment loss should reflect an increase in the service potential of an asset since the date the entity last recorded an impairment loss.

The
identification of ore bodies at the Goldex mine that may be successfully mined and are supported by feasibility studies are indicators for the reversal (or partial reversal) of the
impairment loss recognized in 2011. The feasibility study represents an observable indication that the value of related assets has increased significantly and a favourable change to the extent and
manner in which the asset is expected to be used. There is significant judgment involved in the determination of whether a previously recognized impairment loss should be reversed.

The
Company recognized an impairment loss on the Goldex mine as no future value could be attributed to its assets beyond their residual values as at September 30, 2011. Accordingly, the
capitalized costs associated with the mine site and the related property, plant and mine development assets were written down to their residual values. Upon reviewing the assets that were previously
impaired, the Company determined that certain property, plant and mine development assets would be used to generate cash inflows at the newly developed M and E Zones.

The
estimated recoverable amount of the Goldex mine CGU was determined as at January 1, 2013 using a discounted cash flow analysis to estimate fair value less costs to dispose of the mine.
Significant assumptions used to estimate the recoverable amount of the Goldex mine included a discount rate of 5.0% (in nominal terms), gold prices of $1,473 to $1,665 per ounce (in real
terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, an inflation rate of 2.0%, an average gold recovery rate of 93.0% and capital, operating and reclamation costs based on updated
life-of-mine plans. As the Goldex mine CGU's estimated recoverable amount exceeded the previous carrying amount less amortization that would have been recognized had the assets not been impaired, an
impairment reversal of $109.7 million was recognized to increase the carrying amount of related plant and equipment to an amortized cost of $163.8 million.

24. INCOME AND MINING TAXES

Income and mining taxes expense (recovery) is made up of the following components:

|                                                 |                                                   |   | Year Ended December 31,
|------------------------------------------------ | ------------------------------------------------- | - | -----------------------
|                                                 |                                                   |  
|
|                                                 |                                                   |  
|                                                
|Current income and mining taxes                  |                                                   | $ | 69,110                 
|                                                
|Deferred income and mining taxes:                |                                                   |   |                        
|                                                
|                                                 | Origination and reversal of temporary differences |   |                        
|                                                
|                                                 | Imposition of new tax laws                        |   |                        
|                                                
|Total income and mining taxes expense (recovery) |                                                   | $ | 106,168                
|                                                

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   63

---



The income and mining taxes expense (recovery) is different from the amount that would have been calculated by applying the Canadian statutory income tax rate
as a result of the following:

|                                                                    |                                                            |   | Year Ended December 31, |        |  
|------------------------------------------------------------------- | ---------------------------------------------------------- | - | ----------------------- | ------ | -
|                                                                    |                                                            |  
|
|                                                                    |                                                            |  
|Combined federal and composite provincial tax rates                 |                                                            |   | 26.0%                   |        |  
|                                                                   
|Expected income tax expense (recovery) at statutory income tax rate |                                                            | $ | 49,082                  |        | $
|                                                                   
|Increase (decrease) in income and mining taxes resulting from:      |                                                            |   |                         |        |  
|                                                                   
|                                                                    | Mining taxes                                               |   |                         | 28,857 |  
|                                                                   
|                                                                    | Tax law changes                                            |   |                         |       |  
|                                                                   
|                                                                    | Impact of foreign tax rates                                |   |                         | (7,462 | )
|                                                                   
|                                                                    | Permanent differences                                      |   |                         | 14,042 |  
|                                                                   
|                                                                    | Impact of foreign exchange on deferred income tax balances |   |                         | 21,649 |  
|                                                                   
|Total income and mining taxes expense (recovery)                    |                                                            | $ | 106,168                 |        | $
|                                                                   

The statutory rate is lower in 2014 than in 2013 due to a change in the provincial allocation arising from operations.

The
following table sets out the components of Agnico Eagle's net deferred income and mining tax liabilities:

|                                                 |  | As at
December 31,
2014 |           | As at
December 31,
2013 |   | As at
January 1,
2013 |   |  
|------------------------------------------------ |  | ----------------------- | --------- | ----------------------- | - | --------------------- | - | -
|                                                 |  |                        
|Mining properties                                |  | $                       | 1,084,758 |                         | $ | 658,662               |   | $
|                                                
|Net operating and capital loss carry forwards    |  |                         | (123,933  | )                       |   | (114,142              | ) |  
|                                                
|Mining taxes                                     |  |                         | (54,643   | )                       |   | (42,394               | ) |  
|                                                
|Reclamation provisions and other liabilities     |  |                         | (73,981   | )                       |   | (48,715               | ) |  
|                                                
|Total deferred income and mining tax liabilities |  | $                       | 832,201   |                         | $ | 453,411               |   | $
|                                                

64AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



|                                                                                     |  |   | Year Ended December 31, |  |  
|------------------------------------------------------------------------------------ |  | - | ----------------------- |  | -
|                                                                                     |  |  
|
|                                                                                     |  |  
|Deferred income and mining tax liabilities  beginning of year                       |  | $ | 453,411                 |  | $
|                                                                                    
|Income and mining tax impact recognized in net income (loss)                         |  |   | 33,884                  |  |  
|                                                                                    
|Income tax impact recognized in other comprehensive income                           |  |   | 1,316                   |  |  
|                                                                                    
|Attributable deferred income and mining tax liabilities jointly acquired from Osisko |  |   | 343,590                 |  |  
|                                                                                    
|Deferred income and mining tax liabilities  end of year                             |  | $ | 832,201                 |  | $
|                                                                                    

The Company operates in different jurisdictions and, accordingly, it is subject to income and other taxes under the various tax regimes in the countries in
which it operates. The tax rules and regulations in many countries are highly complex and subject to interpretation. The Company may be subject in the future to a review of its historic income and
other tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules and regulations to the Company's
business conducted within the country involved.

The
deductible temporary differences and unused tax losses in respect of which a deferred tax asset has not been recognized in the consolidated balance sheets are as follows:

|                                                                    |  | As at
December 31,
2014 |         | As at
December 31,
2013 |   | As at
January 1,
2013 | 
|------------------------------------------------------------------- |  | ----------------------- | ------- | ----------------------- | - | --------------------- | 
|                                                                    |  |                        
|Net capital loss carry forwards                                     |  | $                       | 83,353  |                         | $ | 56,500                | 
|                                                                   
|Other deductible temporary differences                              |  |                         | 204,293 |                         |   | 205,360               | 
|                                                                   
|Unrecognized deductible temporary differences and unused tax losses |  | $                       | 287,646 |                         | $ | 261,860               | 
|                                                                   

Capital loss carry forwards and other deductible temporary differences have no expiry date.

Income
taxes of $2,648.5 million have not been recorded for undistributed income as at December 31, 2014 (December 31,
2013  $2,124.5 million; January 1, 2013  $1,967.7 million) as the Company is able to control the
timing of the remittance, and it is probable there will be no remittance in the foreseeable future.

The
Company is subject to taxes in Canada, Mexico and Finland, each with varying statutes of limitations. Prior taxation years generally remain subject to examination.

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   65

---



25. EMPLOYEE BENEFITS AND COMPENSATION OF KEY MANAGEMENT PERSONNEL

During the year ended December 31, 2014, employee benefits expense was $493.3 million (2013  $503.2 million).
Included within this amount is compensation for key management personnel. There were no material related party transactions in 2014 or 2013 other than compensation of key management personnel. Key
management personnel include the members of the Board of Directors and the senior leadership team. Compensation for key management personnel was as follows:

|                                                   |  |   | Year ended December 31,
|-------------------------------------------------- |  | - | -----------------------
|                                                   |  |  
|
|                                                   |  |  
|Salaries, short-term incentives and other benefits |  | $ | 6,629                  
|                                                  
|Post-employment benefits                           |  |   | 2,009                  
|                                                  
|Share-based payments                               |  |   | 4,688                  
|                                                  
|Total                                              |  | $ | 13,326                 
|                                                  

26. COMMITMENTS AND CONTINGENCIES

As part of its ongoing business and operations, the Company has been required to provide assurance in the form of letters of credit for environmental and site restoration
costs, custom credits, government grants and other general corporate purposes. As at December 31, 2014, the total amount of these guarantees was $172.3 million.

Certain
of the Company's properties are subject to royalty arrangements. The following are the most significant royalty arrangements:



The
Company regularly enters into various earn-in and shareholder agreements, often with commitments to pay net smelter return and other royalties.

66AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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The
Company had the following purchase commitments as at December 31, 2014, of which $2.8 million related to capital expenditures:

|           |  |   | Purchase
Commitments | 
|---------- |  | - | -------------------- | 
|           |  |  
|2015       |  | $ | 15,873               | 
|          
|2016       |  |   | 9,946                | 
|          
|2017       |  |   | 7,294                | 
|          
|2018       |  |   | 5,864                | 
|          
|2019       |  |   | 5,172                | 
|          
|Thereafter |  |   | 27,878               | 
|          
|Total      |  | $ | 72,027               | 
|          

27. SUBSEQUENT EVENTS

Dividends Declared

On February 11, 2015, Agnico Eagle announced that the Board approved the payment of a quarterly cash dividend of $0.08 per common share (a total value of approximately
$17.1 million), paid on March 16, 2015 to holders of record of the common shares of the Company on March 2, 2015.

Sale of Probe Mines Limited Common Shares and Warrants

On January 27, 2015, the Company completed the sale of 7,320,200 common shares and 2,347,951 common share purchase warrants of Probe Mines Limited
("Probe") pursuant to a previously announced purchase agreement. Total proceeds of C$43.4 million were comprised of cash consideration of C$5.00 per Probe common share and C$2.90 per Probe
common share purchase warrant and a total gain on sale of C$33.6 million was recognized. Upon the closing of the transaction, Agnico Eagle holds no common shares and 3,277,049 common
share purchase warrants of Probe.

Malartic CHL Prospect

On February 22, 2015, Agnico Eagle entered into a binding letter of intent (the "LOI") with Canadian Malartic GP, Yamana and Abitibi Royalties Inc.
("Abitibi") regarding the Malartic CHL prospect, adjacent to the Canadian Malartic mine. Pursuant to the LOI, and subject to certain conditions, Abitibi agreed to sell its 30.0% interest in the
Malartic CHL prospect to the purchasers in exchange for 459,197 Agnico Eagle common shares and 3,549,695 Yamana common shares for total consideration of approximately
C$35.0 million (based on the respective closing prices of such shares on the Toronto Stock Exchange on February 20, 2015, the date immediately prior to the public announcement by Abitibi
of entering into the LOI) and 3.0% net smelter return royalties to Abitibi and Osisko Gold Royalties Ltd. on the Malartic CHL prospect. The completion of the transactions contemplated under the
LOI was conditional upon, among other things, the execution of a definitive acquisition agreement and the termination, settlement and release of all prior agreements, claims and proceedings relating
to the Malartic CHL prospect, including the proceedings previously instituted by Abitibi against Osisko (the predecessor to Canadian Malartic Corporation). Subsequently, Abitibi and the
purchasers entered into a definitive acquisition agreement dated March 19, 2015, completed the transactions with Abitibi on the terms contemplated under the LOI. In accordance with the terms of
a Release, Discharge and Transaction Agreement dated March 19, 2015 entered into concurrent with the

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   67

---



closing
of the transactions by Abitibi, Agnico Eagle, Yamana, Canadian Malartic GP and Canadian Malartic Corporation (as the successor to Osisko), each of the parties released and discharged
the others with respect to all proceedings previously commenced by Abitibi with respect to the Malartic CHL prospect, all without admission of any liability by any party.

28. ONGOING LITIGATION

Securities Class Action Lawsuits

On March 8, 2012 and April 10, 2012, a Notice of Action and Statement of Claim (collectively, the "Ontario Claim") were issued by William Leslie, AFA
Livforsakringsaktiebolag and certain other entities against the Company and certain of its current and former officers, some of whom also are or were directors of the Company. On September 27,
2012, the plaintiffs issued a Fresh as Amended Statement of Claim. The Fresh as Amended Statement of Claim alleges that the Company's public disclosure concerning water flow issues at its Goldex mine
was misleading. The Ontario Claim was issued by the plaintiffs on behalf of all persons and entities who acquired securities of the Company during the period March 26, 2010 to
October 19, 2011, excluding persons resident or domiciled in the Province of Quebec at the time they purchased or acquired such securities. The plaintiffs seek, among other things, damages of
C$250.0 million. On
April 17, 2013 an Order was granted on consent certifying the action and granting leave for the claims under Section 138 of theSecurities
Act(Ontario) to proceed. The Company intends to vigorously defend the action on the merits. No amounts have been recorded for any potential liability arising from
this matter.

On
March 28, 2012, the Company and certain of its current and former officers, some of whom also are or were directors of the Company, were named as respondents in a Motion for Leave to
Institute a Class Action and for the Appointment of a Representative Plaintiff (the "Quebec Motion"). The action is on behalf of all persons and entities with fewer than 50 employees
resident in Quebec who acquired securities of the Company between March 26, 2010 and October 19, 2011. The proposed class action is for damages of C$100.0 million arising as a
result of allegedly misleading disclosure by the Company concerning its operations at the Goldex mine. On October 15, 2012, the plaintiffs served an amended Quebec Motion seeking leave to
commence an action under theSecurities Act(Quebec) in addition to seeking authorization to institute a class action. On October 1, 2013, the
Quebec court certified the class action on terms identical to those set out in the consent Order granted in Ontario on April 17, 2013. No date has been set for the hearing to argue the class
action on the merits. The Company intends to vigorously defend the action on the merits. No amounts have been recorded for any potential liability arising from this matter.

Canadian Malartic Corporation Litigation

On June 6, 2014, Clifton Star Resources Inc. ("Clifton") instituted proceedings against Osisko (now Canadian Malartic Corporation) seeking, among other
things, an order that Osisko pay Clifton C$22.5 million in damages. In the proceedings, Clifton alleged, among other things, that Osisko was obligated to lend Clifton C$22.5 million
(the "Loan") on or around December 1, 2002 pursuant to a December 10, 2009 commitment letter and a December 10, 2009 Duparquet Mining Camp Option and Joint Venture
Agreement, each between Clifton and Osisko, and that Osisko's failure to advance the Loan resulted in damages to Clifton. Clifton further alleged that the Loan was intended to be used to make payments
under certain option agreements between Clifton and third parties which entitled Clifton to acquire shares of such third parties that owned interests in the concessions comprising the Duparquet
Project. Following the joint acquisition of Osisko by Agnico Eagle and Yamana on June 16, 2014, Agnico Eagle and Yamana engaged in discussions with Clifton to advance the settlement of such
claims. Effective March 2, 2015, Canadian Malartic Corporation ("CMC") (the successor to Osisko) entered into a settlement agreement with Clifton, pursuant to which CMC paid Clifton
approximately C$5.3 million in consideration for a full and final release of all claims arising from the facts described in the Clifton proceedings, the whole without any admission of liability
by CMC. Concurrently, under two separate non-brokered private placements, each of Agnico Eagle and Yamana subscribed for 4,772,786 common shares of Clifton at a price of C$0.60 per share, for
total proceeds to Clifton of approximately

68AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---



C$5.7 million.
As a result of the closing of the private placement, Agnico Eagle now holds 4,772,786 common shares of Clifton representing, as of March 2, 2015, approximately 9.9%
of Clifton's issued and outstanding common shares.

29. TRANSITION TO IFRS

Agnico Eagle has adopted IFRS effective July 1, 2014. The Company's transition date is January 1, 2013 (the "transition date") and has prepared its opening
IFRS consolidated balance sheet as at that date. These consolidated financial statements have been prepared in accordance with the accounting policies described in note 3 to these consolidated
financial statements.





ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   69

---





|                                 |                                      | References |       | Common
Shares |           | Stock
Options |   | Warrants |       | Contributed
Surplus |        | Retained
Earnings |   | Accumulated
Other
Comprehensive
Loss |   | Total
Equity |       |        
|-------------------------------- | ------------------------------------ | ---------- | ----- | ------------- | --------- | ------------- | - | -------- | ----- | ------------------- | ------ | ----------------- | - | ------------------------------------ | - | ------------ | ----- | -------
|                                 |                                      |           
|Equity as reported under US GAAP |                                      |            |       | $             | 3,241,922 |               | $ | 148,032  |       | $                   | 24,858 |                   | $ | 15,665                               |   | $            | 7,046 |        
|                                
|Adjustments to reported equity:  |                                      |            |       |               |           |               |   |          |       |                     |        |                   |   |                                      |   |              |       |        
|                                
|                                 | Property, plant and mine development |            | (i    | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | (13,542
|                                
|                                 | Reclamation provisions               |            | (iii  | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | (42,190
|                                
|                                 | Reversal of impairments              |            | (v    | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | 109,684
|                                
|                                 | Cumulative translation adjustment    |            | (vi   | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | (16,244
|                                
|                                 | Share-based payments                 |            | (vii  | )             |           |              |   |          | 9,843 |                     |        |                  |   |                                      |  |              |       | (9,843 
|                                
|                                 | Income and mining taxes              |            | (viii | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | (27,216
|                                
|                                 | Other, net                           |            | (ix   | )             |           |              |   |          |      |                     |        |                  |   |                                      |  |              |       | (7,103 
|                                
|Equity as reported under IFRS    |                                      |            |       | $             | 3,241,922 |               | $ | 157,875  |       | $                   | 24,858 |                   | $ | 15,665                               |   | $            | 592   |        
|                                

70AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

---





|                                 |                                      | References |       | Common
Shares |           | Stock
Options |   | Contributed
Surplus |       | Deficit |        | Accumulated
Other
Comprehensive
Income (Loss) |   | Total
Equity |          |  
|-------------------------------- | ------------------------------------ | ---------- | ----- | ------------- | --------- | ------------- | - | ------------------- | ----- | ------- | ------ | --------------------------------------------- | - | ------------ | -------- | -
|                                 |                                      |           
|Equity as reported under US GAAP |                                      |            |       | $             | 3,294,007 |               | $ | 174,470             |       | $       | 37,254 |                                               | $ | (513,441     | )        | $
|                                
|Adjustments to reported equity:  |                                      |            |       |               |           |               |   |                     |       |         |        |                                               |   |              |          |  
|                                
|                                 | Property, plant and mine development |            | (i    | )             |           |              |   |                     |      |         |        |                                              |   |              | (10,172  | )
|                                
|                                 | Production stripping costs           |            | (ii   | )             |           |              |   |                     |      |         |        |                                              |   |              | 45,372   |  
|                                
|                                 | Reclamation provisions               |            | (iii  | )             |           |              |   |                     |      |         |        |                                              |   |              | (44,941  | )
|                                
|                                 | Impairment of assets                 |            | (iv   | )             |           |              |   |                     |      |         |        |                                              |   |              | (480,035 | )
|                                
|                                 | Reversal of impairments              |            | (v    | )             |           |              |   |                     |      |         |        |                                              |   |              | 101,977  |  
|                                
|                                 | Cumulative translation adjustment    |            | (vi   | )             |           |              |   |                     |      |         |        |                                              |   |              | (16,244  | )
|                                
|                                 | Share-based payments                 |            | (vii  | )             |           |              |   |                     | 9,608 |         |        |                                              |   |              | (9,465   | )
|                                
|                                 | Income and mining taxes              |            | (viii | )             |           |              |   |                     |      |         |        |                                              |   |              | 134,503  |  
|                                
|                                 | Other, net                           |            | (ix   | )             |           |              |   |                     |      |         |        |                                              |   |              | (7,628   | )
|                                
|Equity as reported under IFRS    |                                      |            |       | $             | 3,294,007 |               | $ | 184,078             |       | $       | 37,254 |                                               | $ | (800,074     | )        | $
|                                

ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   71

---





|                                   |                                      | References |       | Year Ended
December 31,
2013 |          |         
|---------------------------------- | ------------------------------------ | ---------- | ----- | ---------------------------- | -------- | --------
|                                   |                                      |           
|Net loss as reported under US GAAP |                                      |            |       | $                            | (406,526 | )       
|                                  
|Adjustments to reported net loss:  |                                      |            |       |                              |          |         
|                                  
|                                   | Property, plant and mine development |            | (i    | )                            |          | 3,370   
|                                  
|                                   | Production stripping costs           |            | (ii   | )                            |          | 45,372  
|                                  
|                                   | Reclamation provisions               |            | (iii  | )                            |          | (2,753  
|                                  
|                                   | Impairment of assets                 |            | (iv   | )                            |          | (480,035
|                                  
|                                   | Reversal of impairments              |            | (v    | )                            |          | (7,707  
|                                  
|                                   | Share-based payments                 |            | (vii  | )                            |          | 378     
|                                  
|                                   | Income and mining taxes              |            | (viii | )                            |          | 161,719 
|                                  
|                                   | Other, net                           |            | (ix   | )                            |          | (523    
|                                  
|Net loss as reported under IFRS    |                                      |            |       | $                            | (686,705 | )       
|                                  





|                                                     |            | Reference |     | Year Ended
December 31,
2013 |        |       
|---------------------------------------------------- | ---------- | --------- | --- | ---------------------------- | ------ | ------
|                                                     |            |          
|Other comprehensive income as reported under US GAAP |            |           |     | $                            | 12,170 |       
|                                                    
|Adjustments to reported other comprehensive income:  |            |           |     |                              |        |       
|                                                    
|                                                     | Other, net |           | (ix | )                            |        | (2,319
|                                                    
|Other comprehensive income as reported under IFRS    |            |           |     | $                            | 9,851  |       
|                                                    





72AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
STATEMENTS

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ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AGNICO
EAGLE   73

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74AGNICO EAGLE ANNUAL AUDITED CONSOLIDATED FINANCIAL
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