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)

6. Intangible Assets and Goodwill

  Cost Accumulated
Depreciation
2007 Net 2006 Net
Intangible assets $ 118,819 $ 10,107 $ 108,712 $ 114,019
Goodwill   146,772   N/A   146,772   180,139
Total $ 265,591 $ 10,107 $ 255,484 $ 294,158

The intangible asset value relates to intellectual property acquired with Zircatec Precision Industries, Inc. in 2006 (note 23).

Cameco's goodwill is related to its investment in Centerra, which is denominated in United States dollars. Accordingly, the amount of goodwill is remeasured to reflect the current foreign exchange rate at each financial statement date.

In 2007, Centerra acquired the outstanding 5% non-controlling interest in one of its subsidiaries. The book value of the minority interest acquired in the transaction was in excess of the purchase price and, as a result, goodwill was reduced by $6,046,000.