AUGUST 2024
PROJECT DEVELOPMENT UPDATE

Agnico Eagle Mines Limited (Agnico Eagle) is pleased to provide this follow up communication regarding the Upper Beaver Project announcement included in the Company’s second quarter press release dated July 31, 2024. The press release can be found here: Agnico Eagle – Second Quarter Press Release

Agnico Eagle

Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. We are proud of our reputation as a leader in safety and sustainability, as well as the prosperity we bring to our employees, their families and the communities in which we operate. The Company was founded in 1957 in the Cobalt Coleman area and has maintained deep roots in Northeastern Ontario and in the Abitibi region of Quebec, where it has a combined five operating mines.

Upper Beaver Gold Project

The Company is currently evaluating opportunities to develop, operate and eventually reclaim an underground and open pit, gold-copper mine, processing facility and related infrastructure at the Upper Beaver Project site. Upper Beaver is part of Agnico Eagle’s Kirkland Lake camp, and is located approximately 5 km northeast of Dobie, Ontario. The proposed mine would be built on the site of a former producing mine, expanding on its historical underground workings. The Upper Beaver Project is now moving into the Advanced Exploration phase.

The following image shows the mine development phases and potential timeline for the Project:

Advanced Exploration

Agnico Eagle has approved moving into the Advanced Exploration Phase at the Upper Beaver Project to increase confidence in the feasibility of the Project prior to making a potential development decision. All required permits, closure plan and financial assurance have been filed and completed with provincial authorities for the Advanced Exploration Phase.

The Advanced Exploration Phase will include the development of an exploration ramp and an exploration shaft to establish underground drilling platforms and to collect bulk samples. The exploration ramp and exploration shaft will be sized to accommodate the potential production phase. The bulk samples will be taken from the two most representative geological zones of the Upper Beaver deposit, with the objective of testing selective mining assumptions of the deposit and validating mining parameters and grade variability at greater depth. The existing Beaverhouse Road will be used to access the Project. Public access to Beaverhouse Lake will be maintained and safety precautions are in place – the Company continues to assess the potential of implementing an alternate access road to Beaverhouse Lake for the public via Fork Lake Road.

Preparatory work commenced in early 2024, including engineering work, procurement opportunities and site preparation activities. Activities currently ongoing include the preparation of pads, foundations and water management facilities, as well as site access road upgrades.

With the recent approval of Advanced Exploration, the second half of 2024 anticipates construction work related primarily to the completion of the upgrade to the access road to the site (Beaverhouse Road), site surface preparation and construction of site facilities, including the commencement of the exploration shaft headframe and hoist building construction. Excavation of the ramp and shaft sinking are expected to start in the second half of 2025.

Safety and mitigation measures have already been implemented and will continue as the work moves forward.

Impact Assessment & Advisory Committee

In preparation for a potential development decision, a Detailed Project Description was submitted to the Impact Assessment Agency of Canada (IAAC) in September 2021. This Detailed Project Description included a mill and tailings storage facilities (TSF) on the Project site and the IAAC confirmed that an impact assessment under the Impact Assessment Act will be required for the Project. In April 2022, the IAAC released the Notice of Commencement of an Impact Assessment and the final Tailored Impact Statement Guidelines (TISG).

With the completion of the positive internal evaluation for the Project in June 2024 based on a standalone mill and TSF and the approval of moving into the Advanced Exploration Phase, the Company will now pursue this Impact Assessment and preparation of the Impact Statement.

The Company believes that community input is essential during the preparation of the Impact Statement and in shaping the design phase of the Upper Beaver Project. While certain components are driven by technical requirements, we recognize that other aspects of the Project can be adjusted to reflect the unique dynamics of the Project’s environment and the needs of local and surrounding communities. The preparation of the Impact Statement will require additional engagement activities in the coming months.

To facilitate this, we invite and encourage everyone interested to participate in future events. The Company is also in the process of planning a virtual meeting this fall to establish an advisory committee for those who wish to be actively involved in the Project’s development. We are seeking a representative mix of interested local people, community organizations, varied age demographics, as well as a diversity and a balance of viewpoints. If you are interested in joining the committee, we invite you to fill out the following candidate form: Upper Beaver Advisory Committee Candidate Interest Form.

An advisory committee frequently asked questions with answers document has also been shared on our website here: https://upperbeaver.agnicoeagle.com/documents-downloads

Stay Informed

The Upper Beaver Project team uses various communication channels to inform communities of the Project’s progress and ongoing activities at site. Newsletters are distributed a minimum of 3 times per year to an email alert distribution list, as well as monthly notifications of site activities that are distributed via email to the closest neighbours. Invitations to engagement events are also shared via the email distribution list, local radio and the Company’s and partner’s social media platforms. Communications are also posted on the Project’s dedicated website under the news and events section here: News and Events – Upper Beaver Project – Agnico Eagle Mines Limited.