1997 overview

Neil Brown, general foreman, construction and services, and his fellow employees helped increase Cameco's share of uranium production to a record 19 million pounds in 1997.

Cameco Corporation, with its head office in Saskatoon, Saskatchewan, Canada, is the world's largest publicly traded uranium company and a growing gold producer. Its Canadian operations include the world's two largest, high-grade uranium mines, located in Saskatchewan and Canada's only uranium processing facilities, located in Ontario. Through its wholly owned American subsidiaries, Cameco obtains uranium from the largest US uranium operation located in Wyoming and another facility in Nebraska. Cameco's uranium products are used to generate electricity in nuclear power plants around the world, providing one of the cleanest sources of energy available today. The company also has gold mining operations in Saskatchewan and in Kyrgyzstan in Central Asia. Cameco explores for minerals in North America, South America, Australia and Asia.

Earnings from Operations per Share ($) Earnings from operations increased modestly from the record levels established in 1996, despite low commodity prices.	Cash Flow per Share ($) Strong cash flows will allow Cameco to finance its next generation of uranium mines.
Net Earnings per Share ($) As anticipated, deferred taxes were the primary cause of reduced net earnings in 1997.	Uranium Production (Cameco's share million lbs U3O8) Cameco's record uranium production in 1997 increased 16% over the previous year and accounted for 61% of Canadian production.

McArthur River Project Saskatchewan, Canada Cameco received all the regulatory approvals to start construction at the McArthur River project and remains on track to begin production in late 1999. McArthur River is the world's largest known, high-grade uranium deposit.
Highland Operation Wyoming, US Cameco, through it US subsidiaries, acquired sole ownership of the Highland operation, the largest US uranium producer, as well as a number of exploration properties in the region.		Kumtor Operation Kyrgyzstan The Kumtor gold operation achieved commercial production and produced more than 500,000 ounces. Cameco is one-third owner of this large gold operation.

A note to shareholders
Unlike many resource companies, Cameco does not publish production costs, sales volumes or realized prices. The company is one of only a small number of uranium products in an industry with few buyers. Generally, our competitors - including state-owned enterprises or large companies in which uranium makes only a supplementary contribution to earnings - do not release this information. For Cameco to do so would compromise our competitive position and ultimately, our shareholders' investment.

Forward-looking statements:
Certain statements contained in this annual report, including information under the headings; to our shareholders, marketing, uranium operations, gold operations, environment and safety and management's discussion and analysis, constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. Such factors include among others; volatility and sensitivity to market prices for uranium and gold, competition, the impact of changes in foreign currency exchange rates, environmental risks, political risk arising from operating in certain developing countries, changes in government regulations, and policies including trade laws and policies, demand for nuclear power, replacement of production, receipt of permits and approvals from government authorities as well as other operating and development risks. As a result of the foregoing and other factors, no assurance can be given as to the future results, levels of activity and achievements.