Notes

Property and Business Acquisitions
(a) AGR Limited
On March 5, 2002, Cameco's wholly-owned subsidiary, Cameco Gold Inc. (CGI), acquired a 52% interest in AGR Limited (AGR). AGR is an Australia-based exploration company whose principal asset is a 95% interest in the Boroo gold deposit located in Mongolia. The Boroo project is currently in the development stage. The total purchase price of $16.8 million (US) was financed with $12.0 million (US) in cash and a promissory note in the amount of $4.8 million (US). In exchange, AGR issued 240 million shares to CGI. The promissory note matures on February 26, 2003 and is expected to be settled by the transfer to AGR of a 60% interest in CGI's Gatsuurt gold exploration property which neighbors Boroo. CGI has also committed to provide an additional $3 million (US) for further exploration near the Boroo and Gatsuurt properties in return for an incremental 4% interest in AGR.

The fair values of the net assets acquired are as follows:

	(Millions (Cdn))
	Cash	$16.9
	Other working capital	4.4
	Property, plant and equipment	28.9
	Minority interest	(23.2)
	Net assets acquired	$27.0
	Financed by:
	Cash	$19.3
	Promissory note	7.7
		$27.0

(b) Smith Ranch
On July 22, 2002, Cameco, through a wholly-owned subsidiary, purchased the assets comprising the Smith Ranch in - situ leach (ISL) operation, and various other ISL properties located in Wyoming from Rio Algom Mining LLC. The purchase price of $11.0 million (US) was satisfied through Cameco assuming the decommissioning liabilities associated with the mine. In addition, Cameco purchased approximately $6.0 million (US) of Rio Algom's uranium concentrate inventory. The acquisition was accounted for using the purchase method of accounting and the results of operations are included in Cameco's consolidated financial statements from the effective date of the purchase.

(c) UEX Corporation
On July 18, 2002, Cameco acquired a 35.3% ownership interest in UEX Corporation (UEX), a company traded on the Toronto Stock Exchange (TSX). The principal assets of the company consist of several uranium exploration properties located in the Athabasca region of Northern Saskatchewan. In acquiring its interest, Cameco transferred its Saskatchewan Hidden Bay exploration properties to UEX in exchange for approximately 31 million common shares of UEX. In addition, Cameco purchased another 2 million common shares at a price of $0.25 per common share.

Cameco recorded a gain of $2.7 million on the initial transfer of its Hidden Bay properties to UEX. The equity method is being used to account for this investment.

Long-Term Debt
Cameco's long-term revolving credit facility matures in February 2003. Accordingly, all amounts supported by this facility have been classified as current liabilities. At September 30, 2002, such amounts totalled $99.0 million.

Cameco's contingent obligation under guarantees of the repayment of Kumtor senior debt exceeds the amount included in Cameco's long-term debt at September 30, 2002 by $81.0 million.

Share Capital:
a) At September 30, 2002, there were 55,982,123 common shares outstanding.
b) Options in respect of 2,253,600 shares are outstanding under the stock option plan and are exercisable up to 2010. Upon exercise of certain existing options, additional options in respect of 276,550 shares would be granted.

Interest and Other
For the nine months ended September 30, 2002, earnings include foreign exchange gains of $2.0 million (2001 - $1.2 million).

Income Tax Expense

Comparative Figures
Certain comparative figures for the prior period have been reclassified to conform to the current period's presentation.

Segmented Information