The Cree Extension-Millennium project is a Cameco-operated joint venture located in the southeastern portion of the Athabasca Basin, approximately 35 km north of the Key Lake operation. The project includes the Millennium deposit which was discovered in 2000.

Resources

2012 UPDATE

This year we:

• continued work on the environmental assessment
• completed a summer drill program, which increased our indicated and inferred mineral resource estimate
• carried out additional studies and design work to advance the project

In June, we closed an agreement with AREVA Resources Canada Inc. to purchase AREVA's 27.94% interest in the Millennium project for $150 million. With the closing, our interest in the Millennium project increased to 69.9%. The remaining 30.1% is owned by JCU (Canada) Exploration Co.

The purchase agreement provides AREVA with a 4% royalty on revenue from 27.94% of any production that exceeds 63 million pounds U₃O₈ from the project.

We have received comments from the regulators on our draft environmental impact statement and are working to address the questions and issues they have raised.

Highway 905 to 914 connector

In co-operation with several uranium industry partners in Saskatchewan, we have been working with the provincial government on a plan to connect our McArthur River and Cigar Lake mine sites by completing Highway 914 in the Athabasca Basin. This crucial connection will expand access to milling infrastructure across the northern part of the province and provide additional options for the milling of Millennium and other regional sources of ore. It will also enhance transportation efficiency and offer an alternate route in and out of northern Saskatchewan. The Government of Saskatchewan has agreed to fund half of the cost of the final road subject to the decision to develop the Millennium deposit. The industry partners will share the remaining cost.

PLANNING FOR THE FUTURE

Our plan for 2013 is to:

• submit the final environmental impact statement to regulators
• complete an exploration drill program to test targets near the deposit
• continue to advance the project toward a development decision at a pace aligned with market opportunities, using our stage gate process