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)

20. Investment in BPLP

Cameco holds a 31.6% interest in the BPLP partnership, which is governed by an agreement that provides for joint control of the strategic operating, investing and financing activities among the three major partners. Cameco proportionately consolidates its 31.6% interest in BPLP.

Fuel Supply Agreements

Cameco has entered into fuel supply agreements with BPLP for the procurement of fabricated fuel. Under these agreements, Cameco will supply uranium and conversion services and finance the purchase of fabrication services. Contract terms are at market rates and on normal trade terms. During 2007, sales of uranium and conversion services to BPLP amounted to $49,608,000 (2006 – $41,650,000), approximately 2.1% (2006 – 2.3%) of Cameco's total revenue. At December 31, 2007, amounts receivable under these agreements totaled $4,550,000 (2006 – $15,055,000).

Balance Sheets

(Millions) 2007  2006 
Current assets $ 159  $ 129 
Property, plant and equipment 411  417 
Long-term receivables and investments 181  131 
  $ 751  $ 677 
     
Current liabilities $ 97  $ 100 
Long-term liabilities 370  358 
  467  458 
     
Equity 284  219 
  $ 751  $ 677 

Statements of Earnings

(Millions) 2007  2006 
Revenue $ 417  $ 393 
Operating costs 278  256 
Earnings before interest and taxes 139  137 
Interest –  14 
Earnings before taxes $ 139  $ 123 

Statements of Cash Flows

(Millions) 2007  2006 
Cash provided by operations $ 159  $ 163 
Cash used in investing (35) (38)
Cash used in financing (126) (143)