Great Pacific Gold Corp press release

AGNICO EAGLE APPROVES HOPE BAY INVESTMENT DECISION; STRONG ECONOMIC RETURNS WITH EXPECTED ANNUAL GOLD PRODUCTION OF OVER 400,000 OUNCES

2026-05-19

TSXV - TSX Venture Exchange · Gold · Copper · Silver · Tellurium · Platinum · Lead · Zinc · Molybdenum · Arsenic · Canada · Project Development

PR Newswire

Stock Symbol:AEM (NYSE and TSX)

(All amounts expressed in U.S. dollars unless otherwise noted)

TORONTO, May 19, 2026/PRNewswire/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") is pleased to report a positive investment decision for its Hope Bay project, located in Nunavut, Canada. Following significant exploration success in recent years, the Company has completed a preliminary economic assessment (the "2026 Study") which contemplates an underground mining operation supported by a 6,000 tonnes per day ("tpd") processing facility with estimated annual gold production of between 400,000 and 435,000 ounces. The 2026 Study outlines an initial mine life of 11 years, with substantial upside potential from regional exploration across the highly prospective 80-kilometre greenstone belt extending south from the Doris mine to the Boston deposit, where the Company continues to pursue an aggressive exploration program.

[](https://mma.prnewswire.com/media/2982491/Agnico_Eagle_Mines_Limited_AGNICO_EAGLE_APPROVES_HOPE_BAY_INVEST.html)

"We are incredibly proud of our team for transforming Hope Bay from a vision into one of Canada's most important new mines in just five years. With expected annual production of over 400,000 ounces and total cash costs below $1,000 per ounce, based on only half the declared mineral resources drilled, Hope Bay has the potential to evolve into a long-life, district-scale mining camp for decades to come," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "The construction and redevelopment of Hope Bay will support the long‑term sustainability of our Nunavut operating platform at between 800,000 ounces and one million ounces of annual gold production and represents the first major milestone toward delivering our targeted 20% to 30% production growth over the next decade. We are also proud that this investment will contribute to the economic development of Northern Canada and enable meaningful, long‑term economic participation for Indigenous organizations and partners, including the Kitikmeot Inuit Association," added Mr. Al-Joundi.

Highlights from the 2026 Study include:

Development of the next large-scale gold mine in Nunavut Large and high-quality mineral resource base of 5.79 million ounces of gold (31.97 million tonnes grading 5.63 grams per tonne ("g/t") gold) in the measured and indicated category and 3.33 million ounces of gold (17.33 million tonnes grading 5.97 g/t gold) in the inferred category An initial 11‑year mine life which incorporates only approximately 55% of measured and indicated mineral resources and 48% of inferred mineral resources, highlighting substantial upside potential. With continued infill and expansion drilling, the Hope Bay project demonstrates strong prospects to extend mine life and further grow its production profile Startup plan contemplates three mining fronts (Doris at the Doris deposit; and Madrid and Patch 7 at the Madrid deposit) supported by a conventional 6,000 tpd milling facility Average annual steady state gold production of approximately 435,000 ounces and an average of approximately 408,000 ounces over the full initial 11-year mine life

Attractive economics with meaningful upside leverage Initial development capital expenditures1are estimated at approximately $2.4 billion, including reconstruction of the processing facility, addition of a 37 megawatt diesel generator power plant, mobile equipment, upgrades to the tailings facility and approximately 33 kilometres in underground development, positioning the operation for multi-decade potential Cost structure is below the Company's current peer-leading cost profile, with projected average total cash costs per ounce2and all in sustaining costs ("AISC") per ounce2of approximately $958 and $1,214, respectively, using current gold prices of $4,500 per ounce and a C$/US$ exchange rate of 1.36 In this initial phase, the Hope Bay project is expected to generate an after-tax internal rate of return ("IRR") of approximately 26% based on the same assumptions Significant exploration upside is expected to extend mine life through mineral resource conversion and expansion drilling at the Doris and Madrid deposits in the short-term and the potential addition of Boston as a satellite deposit in the medium- to long-term

Project significantly de-risked and execution-ready Detailed engineering is approximately 62% complete, providing a high level of confidence in the capital cost estimate and execution plan Significant surface infrastructure upgrades completed, including enhancements to port facilities, camp infrastructure and water management systems, supporting the ramp-up of construction activities Leveraging the Company's nearly 20 years of proven expertise in Arctic mine construction and operations Key underground access points are advanced, including the Naartok East exploration ramp and the Patch 7 exploration portal and ramp Continued aggressive exploration program planned in the coming years across the broader Hope Bay property

"Over nearly 20 years, we have consistently created value through the drill bit across our Nunavut assets. At Hope Bay, the discovery of the new mineralized zone at Patch 7 was transformative, with high‑grade and thick mineralized intercepts defining a new mining area within the Madrid deposit. This success reflects the strength and agility of our exploration team, which quickly identified this high‑potential opportunity following the acquisition of the project and delivered results through an aggressive and well‑executed exploration program over the last five years," said Guy Gosselin, Agnico Eagle's Executive Vice President, Exploration. "Patch 7 underscores the significant exploration upside of the Hope Bay greenstone belt, and we remain highly encouraged by the opportunity to continue growing mineral resources both at depth and laterally at Doris and Madrid in the near term, at the Boston deposit in the medium-to long-term and continue to unlock further value across the highly prospective 80‑kilometre belt," added Mr. Gosselin.

Significant exploration potential to grow underground mineral resources The 2026 Study is based on a mineral resource estimate which relies on a drill database cut-off of August 28, 2025. The Company has since drilled more than 130 holes totalling over 100,000 metres at Hope Bay to the end of April 2026 in an ongoing exploration program. Recent exploration results show the potential to significantly expand the underground mineral resource between Suluk and Patch 7, to the south of Patch 7 towards Patch 14, and at depth Over the next three years, as part of the Company's exploration budget, more than $100 million in exploration spending is planned at Hope Bay, primarily focused on conversion and expansion drilling of the current underground mineral resource. Work in 2026 includes continued testing and extension of the Patch 7 zone and the resumption of diamond drilling at Boston

Continue to enhance value through optimization studies and regional exploration focus The Boston deposit is located approximately 50 kilometres south of the Madrid deposit and hosts approximately 1.01 million ounces of gold in indicated mineral resources (5.48 million tonnes grading 5.72 g/t gold) and 0.47 million ounces of gold in inferred mineral resources (2.85 million tonnes grading 5.14 g/t gold). It contains some of the highest-grade intersections identified at Hope Bay to date and remains open in all directions. Resuming exploration efforts at Boston aims to test known gold mineralization in the southern portion of the Hope Bay greenstone belt, exploring the gap between Madrid and Boston where fertile rocks and structures are expected to potentially increase economic mineralization Ongoing district‑scale exploration across Hope Bay's extensive land position will focus on satellite targets and the highly prospective corridor between the Madrid and Boston deposits. This area, which lies along the same greenstone belt and major deformation zones, has seen only limited shallow drilling historically and is expected to be a core focus of the Company's exploration strategy in the coming years, alongside continued advancement of the Boston deposit. Regional work will also incorporate geophysics, geochemistry, and modern exploration techniques to refine targeting and support the identification of additional deposits across the belt

| | | 1Development capital expenditure is non-GAAP measures that is not standardized under IFRS Accounting Standards. For a description of the composition and usefulness of this non-GAAP measure, see "Note Regarding Certain Measures of Performance" below. | | 2Total cash costs per ounce and all-in sustaining costs per ounce (or "AISC" per ounce) are non-GAAP measures that are not standardized financial measures under IFRS Accounting Standards and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of their composition and usefulness of these non-GAAP measures, see "Note Regarding Certain Measures of Performance" below. |

The Company recognizes the alignment between its investment in the redevelopment of Hope Bay and Canada's focus on advancing strategic resource development in the North. The Hope Bay project is expected to generate significant long-term benefits for Canada, including an estimated C$2.6 billion annually in exports, the creation of more than 2,000 direct and indirect jobs, and meaningful economic participation for Indigenous organizations and partners, including the Kitikmeot Inuit Association ("KIA"). Agnico Eagle welcomes the federal government's C$25 million funding commitment to the Hope Bay Wind Project, led by Inuit-owned Kitikmeot Tugliq Limited Partnership, which will add four megawatts of wind power and four megawatts of battery storage to the site's power system. This project is expected to reduce diesel consumption by approximately three million litres per year, lower greenhouse gas emissions and improve energy security as Hope Bay advances into construction and operation phases.

"Canadians have been talking about the massive opportunity of the Hope Bay deposit since the 1990s – but the time for talking is over, and it's time to build. Our government welcomes the ambition of this project and is pleased to support the accompanying opportunity for both clean energy development and energy security. The Arctic is the place where natural resource wealth, Indigenous leadership, national security, and economic growth and prosperity come together, and by accelerating our efforts on all those fronts, we not only can build Canada Strong, but we will build Canada Strong," said the Honourable Tim Hodgson, Minister of Energy and Natural Resources of Canada.

2026 Study Economic Analysis and Operating and Financial Highlights

The forecast parameters surrounding the 2026 Study were based on a preliminary economic assessment, that is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized. The basis for the preliminary economic assessment and the qualifications and assumptions made by the qualified persons who undertook the preliminary economic assessment are set out below.

The Company believes Hope Bay has the potential to produce an annual average of approximately 435,000 ounces of gold during steady state production, with initial production possible as early as 2030. Over an expected 11-year mine life, a total of approximately 22.8 million tonnes of ore with an average grade of 6.50 g/t gold is expected to be milled, yielding total gold production of approximately 4.5 million ounces.

Using a gold price of $3,600 per ounce and a C$/US$ exchange rate of 1.35, the Hope Bay project's total cash costs per ounce and AISC per ounce are expected to be approximately $942 and $1,199, respectively. Initial capital costs are estimated at approximately $2.4 billion. Total sustaining capital expenditures3are estimated at approximately $1.1 billion. On this basis, the Hope Bay project is expected to yield an after-tax IRR of 19% and an after-tax net present value ("NPV") of approximately $2.7 billion (at a 5% discount rate).

Using current gold prices of $4,500 per ounce and a C$/US$ exchange rate of 1.36, the Hope Bay project's total cash costs per ounce and AISC per ounce are expected to be approximately $958 and $1,214, respectively. Initial capital costs are estimated at approximately $2.4 billion. Total sustaining capital expenditures are estimated at approximately $1.1 billion. On this basis, the Hope Bay project is expected to generate an after-tax IRR of 26% and an after-tax NPV of approximately $4.3 billion (at a 5% discount rate).

The initial capital costs of approximately $2.4 billion comprise approximately $1.5 billion related to surface infrastructure, primarily for the reconstruction of the processing plant and the addition of a 37 megawatt diesel power plant, approximately $0.7 billion related to underground development and underground infrastructure at Doris, Madrid and Patch 7 mining fronts and approximately $0.2 billion related to mobile equipment.

Additional details regarding the project are set out below.

| _ | | 3Sustaining capital expenditure is non-GAAP measures that is not standardized under IFRS Accounting Standards. For a description of the composition and usefulness of this non-GAAP measure, see "Note Regarding Certain Measures of Performance" below. |

| Hope Bay Project Summary | | | | | (All numbers are approximate) | | | | | Estimated total production | | 4.5 | million ounces of gold | | Total mill feed | | 22.8 | million tonnes of ore | | Average gold grade | | 6.50 | g/t | | Average metallurgical recovery | | 94.0 % | average life of mine for gold doré | | Payable metal | | 100 % | gold doré | | Refining costs | | $1.96 | /oz | | Average annual gold production | 2030 | 319,000 | oz | | | 2031 | 380,000 | oz | | 2032-2038 (average) | 435,000 | oz | | | | 2039 | 382,000 | oz | | | 2040 | 357,000 | oz | | Royalty | | 2.4 % | NSR | | NTI Payments* | 2030-2034 | 2 % | on operating profit | | | 2035-2040 | 7 % | on operating profit | | Minesite costs per tonne | 2030 | C$255 | C$/t (excludes royalties) | | 2031 | C$233 | C$/t (excludes royalties) | | | 2032-2038 (average) | C$224 | C$/t (excludes royalties) | | | 2039 | C$219 | C$/t (excludes royalties) | | | 2040 | C$215 | C$/t (excludes royalties) | | | Average total cash costs on a by-product basis | $942 | /oz | | | Average AISC on a by-product basis | | $1,199 | /oz | | Mine life | | 11 | years | | Capital expenditures | | | | | Development capital | | | | | | H2 2026 | $428 | million | | | 2027 | $797 | million | | | 2028 | $591 | million | | | 2029 | $520 | million | | Sustaining capital (annual) | | | | | 2030-2034 (average) | $152 | million | | | 2035-2039 (average) | $73 | million | | | | Total | $3,461 | million | | Reclamation costs | | $196 | million | | Economic assumptions: | | | | | Gold price | | $3,600 | /oz | | C$/US$ exchange rate | | 1.35 | | | Effective tax rate | | 33 % | |

| * NTI Payments are made to the Nunavut Tunngavik Inc. ("NTI"), which are similar in nature to net profits royalty payable under the Crown royalty regime. The lower effective annual rate from 2030-2034 reflects higher operating and capital expenditure deductions available in those years. |

Project Economic Sensitivity

The economics of the Hope Bay project are most sensitive to the gold price, C$/US$ exchange rate, capital expenditures, operating costs and the diesel price. The estimated sensitivity of IRR, NPV, total cash costs per ounce and AISC per ounce to these factors are set out in the tables below.

| Sensitivity Factor | 2026 Study Basis | IRR

(%) | NPV

($M) | Total Cash Cost

($/oz) | AISC

($/oz) | | $100/oz change in gold price | $3,600 | 0.73 | 174 | 2 | 2 | | $0.01 change in C$/US$ | 1.35 | 0.19 | 25 | 6 | 7 | | 10% change in initial capital expenditures | $2.4B | 1.62 | 149 | – | – | | 10% change in sustaining capital expenditures | $1.1B | 0.29 | 52 | – | 25 | | 10% change in operating costs per tonne | C$224/t | 0.67 | 154 | 85 | 85 | | 10% change in diesel price during construction | $0.85/L* | 0.05 | 5 | – | – | | 10% change in diesel price during production years | $0.85/L* | 0.06 | 16 | 8 | 9 |

| * Diesel price includes transportation and taxes. |

Taxes, NTI Payments and Royalties

The Hope Bay project is subject to Canadian income taxes at a 27% rate (15% federal and 12% Nunavut) and applicable mining royalties in the Nunavut Territory. The Hope Bay property is situated on both Crown Mining Leases and Nunavut Tunngavik Inc. ("NTI") exploration concessions. Production from the Madrid North deposit is subject to a net profits royalty payable under the Crown royalty regime in accordance with the Nunavut Mining Regulations ("NMR"). The royalty rate is based on a sliding scale to a maximum of 13%. The Doris deposit and Patch 7 zone are subject to a similar royalty payable to NTI ("NTI Payments"). The NMR royalties will be reflected in the income tax and effective tax rate while the NTI Payments will be reflected in production cost but excluded from total cash costs per ounce and AISC per ounce. Additionally, production from the Hope Bay property is subject to net smelter return royalties of 2.4% (1.4% to Kitikmeot Inuit Association and 1% to Triple Flag Precious Metals Corp.).

Hope Bay Project Description

The Hope Bay project is located in the Kitikmeot region of Western Nunavut, Canada, approximately 125 kilometres southwest of Cambridge Bay and east of Bathurst Inlet, about 160 kilometres north of the Arctic Circle. The project comprises a large, contiguous land package covering approximately 1,951 square kilometres, extending roughly 80 kilometres north–south and 20 kilometres east–west, and includes a combination of Crown mineral claims, Crown mining leases, a production lease, and land access agreements providing surface and subsurface mineral rights on Inuit‑owned lands.

Hope Bay hosts the Doris, Madrid and Boston deposits, which contain orogenic‑style gold mineralization associated with major deformation zones within the Hope Bay greenstone belt. The Company's broader Hope Bay property portfolio encompasses the Hope Bay greenstone belt and the adjacent Elu greenstone belt, together representing a highly prospective district‑scale land position.

[[Hope Bay – Property and Regional Geology Map]](https://edge.prnewswire.com/c/link/?t=0&l=en&o=4691198-1&h=1439782699&u=https%3A%2F%2Fs205.q4cdn.com%2F243646470%2Ffiles%2FPressReleaseImages%2FHope-Bay%2FHBay_Regional-Geology-map_2026.png&a=%5BHope+Bay+%E2%80%93+Property+and+Regional+Geology+Map%5D)

Mineral exploration in the Hope Bay area started in 1964, focusing first on silver prospects and then turning to gold following the discovery of the Boston, Doris and Madrid gold deposits in the 1990s under the operatorship of BHP Minerals Canada Limited. Miramar Hope Bay Limited continued exploration from 2000 to 2007, then Newmont Mining Corporation took over the project and proceeded with advanced exploration until 2011. TMAC Resources Inc. acquired the Hope Bay project in 2013. TMAC developed the Doris deposit beginning in 2015, with a planned mining and processing rate of approximately 2,000 tpd. Commercial production was declared in 2017, and a total of 475,331 ounces of gold were produced at an average grade of 9.56 g/t gold through September 2021. Agnico Eagle acquired TMAC and the Hope Bay project in February 2021 and put the mining operations on care and maintenance in September 2021 to focus on exploration, leading to a renewed and enhanced vision for the project highlighted in this news release.