NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents

For the years ended December 31, 2007 and 2006

($Cdn thousands except per share amounts and as noted)

11. Share Capital

Authorized share capital:

Unlimited number of first preferred shares
Unlimited number of second preferred shares
Unlimited number of voting common shares, and
One Class B share

(a)

Common Shares

Number Issued (Number of Shares) 2007  2006 
Beginning of year 352,292,632  349,570,048 
Issued:    
Shares repurchased
 (9,575,300) – 
Debenture conversions
 –  5,905 
Stock option plan [note 21]
 1,681,366  2,716,679 
Issued share capital 344,398,698  352,292,632 

(b)

Class B Share

One Class B share issued during 1988 and assigned $1 of share capital, entitles the shareholder to vote separately as a class in respect of any proposal to locate the head office of Cameco to a place not in the province of Saskatchewan.

(c)

Share Repurchase Program

On September 6, 2007, Cameco announced an open market share repurchase program for cancellation of up to 17,700,000 of its common shares, representing 5% of its common shares then outstanding. This repurchase program is authorized to be in effect until September 10, 2008. As at December 31, 2007, 9,575,300 shares had been repurchased under this program at a cost of $429,327,000 at an average share price of $44.84. The excess of the repurchase cost of these shares over their book value, amounting to $406,577,000, has been charged to contributed surplus.