The Pinos Altos property in northern Mexico has probable gold reserves of 3.6 million ounces, as well as a large silver reserve of 100 million ounces. Average annual production is anticipated to be approximately 175,000 ounces of gold and 2.6 million ounces of silver. Since acquiring the property in 2006, we have invested heavily in exploration with continued promising results. 2008 In Review   Construction of the Pinos Altos project is advancing as planned and we have successfully engaged local contractors in support of this work. Earthworks, concrete and structural installations are near completion and the mechanical installation of the grinding mills and other key components is well under way. Infrastructure projects including warehouse, shops, power line and communications installations are also well advanced. Underground development had reached nearly 3.7 kilometres of lateral advance by the end of 2008, and the underground mine is expected to be on target to produce ore by the beginning of 2010. By year-end, the open pit mine had completed 10.1 million tonnes of preproduction excavation and the first ore was delivered to stockpile. Underground and open pit mining operations at Pinos Altos are being performed by locally hired Agnico-Eagle employees with support and cross-training from the company’s operations in Canada. Three surface drills and two underground drills operated at Pinos Altos during the year. Drilling also continued on the new Creston Mascota zone, located seven kilometres northwest of the main Santo Nino deposit. The successful campaign produced new resources and reserves at Santo Nino, Creston Mascota, extensions of the mineralized zone laterally and at depth in Oberon de Weber, extensions of the resources and reserve potential at Cerro Colorado and infill results which allowed conversion of resources at San Eligio. Outlook Mine commissioning and first gold production are expected to take place before the end of the third quarter of 2009. Gold production for the partial year is anticipated to be approximately 42,000 ounces at estimated total cash operating costs of $354 per ounce. The company plans to invest $11 million in exploration at Pinos Altos in 2009, which includes drilling from the underground decline. The focus will be on resource conversion and on expansion of the Santo Nino, Cerro Colorado, Reyna de Plata and Creston Mascota zones. A feasibility study is currently under review that considers putting the Creston Mascota zone into production as a stand-alone heap leach operation. The deposit contains 0.4 million ounces of gold reserves included in the Pinos Altos reserve statement. Study results are expected during the second quarter of 2009.