Cameco
2008 Business Review
Driven to succeed

Energy consumption is growing. More people and a higher standard of living mean potentially more greenhouse gases. Safe, clean energy that both protects the environment and powers the planet is crucial. And nuclear is poised to play a role in the energy solution.

Nuclear is recognized as a sensible clean-energy option. People, policy-makers and some prominent environmentalists are recognizing the many benefits of nuclear. They're all driven to use this safe and valuable energy as part of the world's energy mix.

Uranium is available, accessible and cost-effective. Active exploration will ensure a long-term reliable supply. Cameco's abundant uranium reserves and leading production position are meeting global demand, which is fuelled by more nuclear power plants than ever.

Cameco is driven to fuel the world.

Note: This document, which includes certain excerpts from Cameco's audited financial statements is intended as a summary of Cameco's business and does not contain complete information. For complete information, and before making any investment decisions, see our annual information form, audited financial statements and notes, management's discussion and analysis (MD&A) and other materials, which are available on SEDAR (sedar.com) and on our website (cameco.com). For complete audited financial statements and notes, and related MD&A, visit our website at cameco.com.

Caution Regarding Forward-Looking Information

Statements contained in this business review that are not current statements or historical facts are "forward-looking information" (as defined under Canadian securities laws) and "forward-looking statements" (as defined in the U.S. Securities Exchange Act of 1934, as amended) which may be material and that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by them. Sentences containing words such as "will", "promise", "remain", "estimate", "should", "strive", "fulfil", "expected", "forward", "position" and "annually", and the negative of these words, or variations of them, are all indicative of forward-looking information and statements.

The forward-looking information and statements included in this business review are subject to material risk factors that could cause actual results to differ materially, and are based upon a number of material assumptions which may prove to be incorrect. For example: our statement that active exploration will ensure a long-term reliable supply of uranium assumes that our exploration efforts will be successful, and is subject to the risk that we are unable to obtain economically viable sources of supply; our comments regarding increasing global electricity demand and future demand for our products and services assume the continuing development of new nuclear generation capacity, and are subject to the risk that greater demand develops for alternative products and services; the estimated dates for resumption of production at Cigar Lake and UF6 conversion operations at Port Hope assume that we will be able to accomplish the necessary steps by those dates, and are subject to the risk that planned work cannot be completed within that time frame, or that other events occur causing further delays; our production estimates for 2008 assume that forecast production levels can be achieved, and are subject to the risk of natural disasters or other occurrences delaying, reducing or suspending production; the statements regarding the ability of our facilities to continue to operate efficiently for many decades are subject to the risk of production delays or suspension, and assume that our planned upgrading investments are successful; our expectations regarding increases in production levels from our existing resource base, new discoveries and acquisitions are subject to the risk that we will not be able to increase those levels, and assume that we will be successful in fully utilizing our existing resource base, making new discoveries and completing desirable acquisitions; our plans to enter the enrichment business assume that we will have the appropriate opportunity to do so, and are subject to the risk that we will not be able to enter that business, or enter it successfully; and our expectations for Cameco in 2008 regarding the resolution of issues and challenges that confronted us in 2007, the transition of the McArthur River mine to a new area, revitalization of the Key Lake and Rabbit Lake mills, production at the Eagle Point mine, the expansion of our mines in Nebraska and Wyoming, the commencement of commercial production at Inkai, the dewatering of the Cigar Lake mine, the resumption of UF6 production at Port Hope, the return to normal operations at the Blind River refinery and continuing normal operations at the Zircatec manufacturing facilities in Port Hope and Cobourg are all based upon the assumption that our current plans can be implemented as anticipated, but are subject to the risk of delays, natural disasters or other unforeseen occurrences. There may be other material risk factors and assumptions that cause actual results to vary materially from the forward-looking information and statements included in this business review. See our annual information form and MD&A, including the sections in them titled "Caution Regarding Forward-Looking Information and Statements."

The forward-looking information and statements contained in this business review represent management's views as of March 7, 2008 and should not be considered current as of any subsequent date. While we anticipate that subsequent developments may cause our views to change, we specifically disclaim any obligation to update our views except to the extent required by applicable securities laws. This forward-looking information is presented for the purpose of assisting Cameco's shareholders in understanding management's current views regarding those future outcomes, and may not be appropriate for other purposes.