STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

7.     STOCK-BASED COMPENSATION

• The following summary sets out activity with respect to Agnico Eagle's outstanding stock options:

	Three Months Ended March 31, 2014					Three Months Ended March 31, 2013
	Number of Stock Options			Weighted Average Exercise Price		Number of Stock Options			Weighted Average Exercise Price
Outstanding, beginning of period		11,283,535		C$	56.02		10,587,126		C$	56.60
Granted		3,180,000			28.04		2,803,000			52.13
Exercised		(78,475	)		28.03		(212,500	)		37.06
Forfeited		(146,500	)		50.80		(156,500	)		61.88
Expired		(1,702,650	)		62.77		(1,294,635	)		54.44
Outstanding, end of period		12,535,910		C$	48.24		11,726,491		C$	56.05
Options exercisable, end of period		8,102,660		C$	54.52		7,505,295		C$	59.41

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

	Three Months Ended March 31,
	2014		2013
Risk-free interest rate		1.56%		1.49%
Expected life of stock options (in years)		2.6		2.7
Expected volatility of Agnico Eagle's share price		42.5%		35.0%
Expected dividend yield		3.83%		1.73%