Agnico-Eagle Commences Formal Take-over Bid to Acquire Grayd; for $2.80 per Share

Agnico-Eagle Mines Limited (NYSE: AEM) and Grayd Resource Corporation (OTC: GYDRF) jointly announced today that Agnico-Eagle has formally commenced its previously announced take-over bid to acquire all of the outstanding common shares of Grayd at a price of $2.80 per share. The Offer represents a premium of 65.7% to the volume weighted average price of Grayd shares on the TSX Venture Exchange for the 20-day period ended September 16, 2011.

Pursuant to the Offer, Grayd shareholders will be entitled to receive, at their option, for each Grayd share they own, either $2.80 in cash or 0.04039 of an Agnico-Eagle share and $0.05 in cash, in each case subject to pro ration. The maximum amount of cash payable by Agnico-Eagle under the Offer will be equal to one-third of the total consideration (approximately $92 million). The maximum number of shares issuable by Agnico-Eagle under the Offer will be approximately 2.7 million (based on the number of Grayd shares outstanding on September 19, 2011 on a fully-diluted basis), or approximately 1.4% of Agnico-Eagle's outstanding shares on a fully-diluted basis.

The Offer is subject to customary conditions, including that a minimum of 66 2/3% of the outstanding Grayd shares (on a fully-diluted basis) are tendered to the Offer.