STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2013

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

7.     STOCK-BASED COMPENSATION

• The following continuities summarize activity with respect to the Company's outstanding employee stock options:

	Nine Months Ended September 30, 2013					Nine Months Ended September 30, 2012
	Number of Employee Stock Options			Weighted Average Exercise Price		Number of Employee Stock Options			Weighted Average Exercise Price
Outstanding, beginning of period		10,587,126		C$	56.60		8,959,051		C$	62.88
Granted		2,803,000			52.13		3,257,000			36.99
Exercised		(213,500	)		37.06		(140,475	)		37.04
Forfeited		(340,206	)		58.25		(726,500	)		59.80
Expired		(1,340,885	)		54.86		(481,650	)		47.49
Outstanding, end of period		11,495,535		C$	56.03		10,867,426		C$	56.35
Exercisable, end of period		7,413,795		C$	59.35		6,780,014		C$	59.34

• Agnico Eagle estimated the fair value of employee stock options under the Black-Scholes option pricing model using the following weighted average assumptions:

	Nine Months Ended September 30,
	2013		2012
Risk-free interest rate		1.50%		1.25%
Expected life of employee stock options (in years)		2.6		2.8
Expected volatility of Agnico Eagle's share price		35.00%		37.52%
Expected dividend yield		1.80%		2.14%