DECEMBER 2023- NEWSLETTER

Agnico Eagle Mines is pleased to provide an update on our activities in the Kirkland Lake area and the Upper Beaver Project in our December 2023 newsletter.

Agnico Eagle is a senior Canadian gold mining company with more than 65 years of experience, operating mines in Canada, Australia, Finland, and Mexico and employs more than 16,000 people worldwide.

KIRKLAND LAKE REGIONAL EXPLORATION AND LEGACY SITES UPDATE:

EXPLORATION

Agnico Eagle is delighted to present the Regional Exploration Team’s 2023 highlights! A new focus led to regional projects encompassing soil, outcrop, and tree bark sampling, coupled with meticulous mapping. Notably, small drill programs were completed at Upper Canada and Kirkland Lake in the second half of the year. The year will conclude with a drone geophysics survey at the Sourdough area, east of Upper Beaver, weather conditions permitting. Otherwise, the survey will take place early in the new year. In anticipation of an even more focused 2024, the Exploration Team is preparing for activities that may include intensified mapping, passive seismic and drone surveys, and exploration drilling at Macassa Mine, located in Kirkland Lake, to explore long-term potential. Stay tuned as our journey continues!

LEGACY SITES

In 2023, Agnico Eagle continued the monitoring and investigation of closed sites to ensure infrastructure remains safe and to support rehabilitation plans. Agnico Eagle also completed maintenance and rehabilitation work at various sites, which included:

• Swastika: Investigation and design for the closure of horizontal openings (adit)
• Bidgood: Investigation drilling and stability assessment of historical underground workings
• Upper Canada and McBean Property: Installation of additional monitoring wells for water quality monitoring, investigation drilling for stability assessment and vegetation brushing of facilities have started this fall and is ongoing.
• Sylvanite: Completion of rehabilitation of an historical open stope by backfilling

Numerous site visits and monitoring was also completed, including water sampling and dam inspections.

UPPER BEAVER PROJECT UPDATE:

PROJECT OVERVIEW

Agnico Eagle is planning to develop and operate a new underground gold and copper mine with a small open pit and processing facility at the Upper Beaver Project site, located approximately 5km northeast of Dobie, Ontario, in the Gauthier and McVittie townships. Currently, the Project is in the Exploration phase, with the goal of beginning an Advanced Exploration Program in 2024, pending internal approval.

The zoning by-law amendment applications, submitted to the Townships of Gauthier and Larder Lake as a requirement for the Advanced Exploration program, were passed by their respective Councils. Agnico Eagle received the final approval from both townships in October 2023.

Related to the mine project design, although the base case scenario continues to include a mill and tailings storage facilities on site during production, other alternatives are still under evaluation. Agnico Eagle expects to consolidate the results of various internal evaluations early in 2024 and report results through the first half of 2024. Any alternatives retained for the Project will be addressed in the Impact Statement.

CURRENT SITE ACTIVITIES

A modest number of activities have begun at site in preparation for the anticipated start of the Advanced Exploration program in 2024. This work included geotechnical and geomechanical drilling, completed in December, to confirm infrastructure requirements, inform detailed engineering, and to gather additional information about the rock conditions to serve mining design optimization.

Vegetation brushing and tree cutting began in November on Agnico Eagle private property and will continue along Beaverhouse Road early in the new year to widen and straighten certain road sections. This work is in preparation of road upgrades anticipated in 2024 to improve safety and access for the upcoming Advanced Exploration Program. During the work, access to Beaverhouse Lake will be maintained to all users, safety precautions will be in place, and road obstructions, if any, will be brief and temporary to ensure the least inconvenience for everyone.

Information about site activities was summarized in a notice sent on October 19 that can also be found on our website at: Notification of Site Activities October 2023 – Upper Beaver Project – Agnico Eagle Mines Ltd.

FEDERAL IMPACT ASSESSMENT PROCESS: 

In April 2022, the Impact Assessment Agency of Canada (IAAC) released the Notice of Commencement of an Impact Assessment and the final Guidelines which outline the specific factors to be considered in the assessment of the Project while providing direction to Agnico Eagle on required information and studies. Agnico Eagle is currently working on the preparation of the Impact Statement. The team is diligently working on finalizing engineering designs/concepts required to assess potential impacts and evaluating potential alternatives and their associated potential impacts and mitigation measures. The continuation of baseline studies is also ongoing, as well as engagement with Indigenous Nations and the Public.

BASELINE STUDIES

To support the Federal Impact Assessment, baseline studies have been ongoing at the site since 2021 to determine the environmental, socio-economic, and human health conditions prior to Project development. Additional work for aquatics and terrestrial programs were completed in 2023 to increase areal and temporal coverage, and to include newly listed Species at Risk (SAR).

Various baseline studies have been ongoing throughout 2023 including surface and groundwater quality, surface water flows and elevations, groundwater elevations, ambient light readings, and noise monitoring.

As part of the terrestrial baseline, a cougar monitoring program was developed in response to community concerns. Installation of cameras began in December at and around the Project area . Further information about the addition of this program can be found in the Community Engagement Section of this newsletter.

These pictures include Wildlife recording equipment, flow measurement and surface water sampling.

UPPER BEAVER GOLD PROJECT COMMUNITY ENGAGEMENT:

At Agnico Eagle, we firmly believe that community contributions play a pivotal role in shaping the design phase of the project. While certain components are guided by technical considerations, we recognize that other aspects can be adjusted to align with the unique dynamics of the project’s environment, and the concerns and needs of the local and surrounding communities.

We are excited to highlight the achievements in our 2023 community engagement efforts as summarized below:

• ONLINE COMMUNITY SURVEY: The online community survey, available from June 5th to August 31st, garnered 21 responses, offering valuable insights into community perspectives on the project and land use in the Upper Beaver area. The key highlights report is now available on our website. Explore the report here: 2023 Online Community Survey Highlights Report

• PROJECT UPDATE AND BASELINE INFO SESSION: Additionally, the Project update and Baseline Information session held on June 17th in Larder Lake facilitated direct engagement with the Upper Beaver Gold Project. The open session provided participants with an opportunity to speak with the project team and baseline subject matter experts. The session also included an interactive workshop on land use, which served as a platform for participants to actively contribute their knowledge and insights on land use and to discuss alternate road accesses to Beaverhouse Lake related to the project’s potential Advanced Exploration and Production phases. Explore the report here: June 2023 Info Session Summary Report

• TERRESTRIAL BASELINE ADDITION: We are pleased to share the introduction of a Cougar monitoring program which was a direct response to concerns raised by the public. To this date, our previous field studies have not indicated the presence of cougar activity; however, in a dedicated effort to address community concerns, Agnico Eagle developed a Cougar monitoring program. Agnico Eagle then hosted a virtual meeting with a select group of interested participants where the program details were shared, and valuable feedback was sought. This included discussions regarding camera installation locations based on previous sightings identified by participants. The program commenced in December and incorporated many of the recommendations provided.

• WORKSHOP ON ALTERNATIVES: Held on November 14, the primary goal of this workshop was to present various project component alternatives studied in the impact assessment, aiming to gather community feedback, document anticipated social, environmental, and economic impacts, and foster collaborative efforts to enhance the Project. Responding to community requests, Agnico Eagle hosted this hybrid workshop, combining both online and in-person participation. The success of the hybrid event was supported by the presence of a facilitator who ensured balanced involvement of both online and in-person participants. An early project overview was offered for those who may not be familiar with the project to better facilitate their informed participation in the alternatives discussion.

The 3 main topics discussed included ore processing and transportation options, road access and road safety, and Beaverhouse Lake accessibility and facilities. The topics chosen were selected based on valuable community feedback obtained from previous engagement activities. The workshop, attended by nearly 40 participants, received active participation from many contributors. We’ve compiled valuable insights, and a comprehensive summary report is now accessible on our website. Explore the full report here: Nov 14, 2023 Alternatives Workshop Summary Report

November 14th, 2023, Alternatives Workshop (Project Overview)

Agnico Eagle extends heartfelt appreciation to all contributors who played a vital role in the success of our 2023 engagement events. Your valuable feedback is pivotal in cultivating a meaningful and mutually beneficial partnership between Agnico Eagle and the communities it serves. All input has been documented and will be thoughtfully considered in the project design and preparation of the Impact Statement.

NEXT STEPS:

Looking ahead as the Project progresses, Agnico Eagle is unwavering in its commitment to maintaining open communication channels, delivering regular updates, and actively involving the community. For those who couldn’t participate in past events, be assured that additional engagement activities are in the works for 2024. These may encompass updates to municipal councils, further workshops on potential impacts, mitigation measures, and more.

Stay tuned to our various communication channels for further information on upcoming events. If you are not already receiving emails from us, you can sign up for our email alerts here: Contact Us – Upper Beaver Project – Agnico Eagle Mines Ltd.

TALK TO US – WE’RE HERE TO HELP YOU STAY INFORMED:

We welcome your ongoing feedback, input, and observations as we continue to progress the Upper Beaver Gold Project. Your insight can help us improve our planning and contribute to the development of the best possible Project for everyone.