Is Cameco any different than many other companies claiming to have strong fundamentals in difficult economic times?

Despite difficult economic times, Cameco posted record revenue in 2008.

Cameco's net earnings reached $450 million in 2008, setting another financial record.

MARCH 18, 2009 Yes, there are several significant differences. The most important has to do with the nature and diversity of the products we produce and sell.

Chief among our products is uranium, which is used in nuclear power plants around the globe. These facilities operate around the clock, providing some of the lowest cost electricity for our complex and energy dependent society. Many other forms of electricity generation have substantially higher fuel costs and may be curtailed or shut in as a consequence of the declining economic conditions. And while in some regions electricity demand may be affected negatively by the recession, the worldwide outlook is for growth necessitating a new era of nuclear plant construction. Even in those regions experiencing a decline in short-term demand, we expect generators of baseload electricity like nuclear to remain unaffected.

Cameco's production is largely committed under long-term sales contracts with price protection either in the form of floor prices in market price related contracts or fixed prices, adjusted for inflation. About 65% of our contracts allow for upside participation when prices are strong. Moreover, our customers are generally large, well capitalized companies with strong credit ratings. Some are state owned and others are regulated by public utility commissions to ensure a reasonable rate of return on their investments. Thus, our customers are there for us even in the current difficult economic circumstances. It is notable that, in the two decades of Cameco's existence, we have never had a customer default on payment for a delivery.

Our sales of conversion services enjoy the same favourable market dynamics and price protection as does uranium. And our electricity segment provides reliable income as a result of Bruce Power's competitive position and balanced contracting strategy in the Ontario market.

A second distinction from the financial outlook of other companies is Cameco's long-term strategy of procuring uranium from a diversity of lower cost operations and sources located in multiple jurisdictions. The value of this strategy has been amply demonstrated in recent years with the operational difficulties Cameco has faced, not to mention the challenges presented by the booming and now collapsing economy.

Finally, Cameco benefits from the conservative financial strategy it has pursued over the years. While we purchased a number of high quality assets last summer, our balance sheet remains robust with net debt to total capitalization still not exceeding 23% at year end.

In March 2009, Cameco raised about $460 million from a bought deal offering of common shares. The net proceeds of the offering are intended to be used to strengthen our capital position, enhance our financial flexibility to allow us to take advantage of opportunities that may emerge from the current industry environment, and for general corporate purposes.

With all of these advantages, Cameco still must improve its competitive position. First, we must continue our quest for operational excellence in everything we do. Second, we know that cost control was very difficult in the booming economy of the past few years, and we must now take advantage of the current economic conditions to catch our breath and better manage this aspect of the business. By seeking continual improvement, we will further distinguish Cameco from others and advance our vision to be a dominant nuclear energy company producing uranium fuel and generating clean electricity.