Australian uranium production is on the rise. It is currently the second largest uranium-producing country with the largest known reserves.

Cameco does not currently produce uranium in Australia. However, the two joint ventures we entered during 2008 are advanced projects with mineral resources identified by previous operators.

These projects are:

• Kintyre located in Western Australia’s Pilbara region, acquired through a joint venture with Mitsubishi’s Australian subsidiary, Mitsubishi Development Pty Ltd. in mid-2008; and

• Angela, located in the Northern Territory, 25 km south of Alice Springs, is owned through a joint venture with Australia-based Paladin Energy Ltd. and operated by Cameco.

Prior to the Kintyre and Angela acquisitions, Cameco Australia had assembled an extensive prospective land position.

Operating from an office in Darwin, Cameco Australia Pty Ltd. has spent more than $70 million on early stage exploration activities, mostly in the Northern Territory. These projects are located within land positions adjacent to large uranium minesites, both past and present.

Cameco Australia has also done early-stage exploration on leases adjacent to the Kintyre project.

Cameco Australia employs about 30 exploration specialists and support staff.