Sean Boyd, CEO of Agnico-Eagle (TSX:AEM, NYSE:AEM) said today on BNN's Power Breakfast that his company would seek to boost production by 50% this year. He says the company is spending CA$ 65 Million in drilling and exploration and has 5 projects shaping up to ultimately become 5 million ounce+ operations.

As of December 31, 2007 Agnico-Eagle's proven and probable gold reserves hit a record of 16.7 million ounces, an increase of 33% over the year end 2006 level. The growth in gold reserves of 4.5 million ounces (prior to considering 2007 gold production) was a result of successful definition drilling at development projects, which converted 1.6 million ounces to reserves and the acquisition of the Meadowbank project

The 100% owned Meadowbank gold project is located in the Kivalliq district of Nunavut and lies in the Third Portage Lake area, approximately 70 km north of the Hamlet of Baker Lake, near the western shore of Hudson's Bay.

Construction of the mine is underway with a 110 kilometre all season road to the site completed. Agnico-Eagle announced an increase of 20% in probable gold reserves, or almost 600,000 ounces to 3.5 milion ounces from 27.7 million tonnes grading 3.9 grams per tonne. The mine is expected to produce an average of 360,000 ounces of gold per year over a nice year minelife. Total cash costs are expected to average $300 per ounce over these years.

Exploration will be ongoing to convert large gold resource, extend zones and test new targets.

Gold resources also continued to grow to record levels. Indicated mineral resources now stand at 2.8 million ounces while the inferred mineral resource stands at 4.7 million ounces Historically, Agnico-Eagle has had great success in converting gold resources to reserves.

With its largest ever exploration program now underway, combined with better drilling access, Agnico-Eagle seeks to achieve its gold reserve target of 18 million to 20 million ounces within the next twelve months. With the growth in gold reserves and resources at several of the key development projects, it is anticipated that the upper end of this target range may be exceeded within the next two years as promising results continue to be encountered outside of the current gold reserve and resource envelopes.

Profits were down 15% in the last quarter of 2007 due largely to the fall in zinc prices, which essentially halved during the year. Zinc is an important by-product at the company's flagship Laronde mine.

The company reported record quarterly net income of $65.2 million, or $0.46 per share for the fourth quarter of 2007. This result includes a gain of $29.8 million, or $0.21 per share, on the reduction of income tax rates. In the fourth quarter of 2006, the company reported net income of $41.9 million, or $0.35 per share. Earnings per share in the fourth quarter of 2007 were diluted by the issuance of approximately 6.9 million common shares on the exercise of the company's outstanding warrants and the issuance of 13.8 million shares earlier in the year in connection with the acquisition of Cumberland Resources Ltd.

Fourth quarter cash provided by operating activities decreased to $43.3 million from $84.5 million in the fourth quarter of 2006, due to lower byproduct metal prices and working capital movements.

"Record financial results were achieved this quarter as we prepare to open the first of our five new gold mines in April," said Sean Boyd. "In addition, with our Kittila mine in Finland set to open this September, our gold output in 2008 is expected to rise more than 50% from the 2007 level," added Mr. Boyd.

Full year 2007 earnings were negatively affected by lower realized prices for zinc and copper, and lower payable production for gold, silver and zinc. The lower production rates were largely the result of the mining of additional tonnes of low-grade zinc ore during the year due to historically high zinc prices. The resulting deferral of ore has resulted in an extension of the mine life by at least two years. Full year 2007 earnings per share were also diluted by the previously mentioned 13.8 million shares issued to acquire Cumberland Resources Ltd. and the 6.9 million shares issued in connection with the warrant exercise.

For 2007, the company recorded cash provided by operating activities of $229.2 million. This is substantially the same as 2006 when cash provided by operating activities totaled $226.3 million. The small increase in cash provided by operating activities was due to working capital movements, offset partly by lower realized byproduct metal prices.

The company's financial position remains strong with cash and cash equivalents of $396.0 million at December 31, 2007 and a substantially undrawn, unsecured, $300 million five year credit facility. The company's cash position decreased $31.6 million in the fourth quarter largely due to the $197.6 million invested in the company's gold growth projects.

Payable gold production(2) in the fourth quarter of 2007 was 60,183 ounces at total cash costs per ounce of minus $184. This compares with payable gold production of 66,022 ounces, at total cash costs per ounce of minus $868, in the fourth quarter of 2006. The increase in total cash costs per ounce in the fourth quarter of 2007 versus the prior period is mainly due to a stronger Canadian dollar, lower byproduct zinc revenues and increased minesite costs.