Notes

Property and Business Acquisitions
(a) AGR Limited
On March 5, 2002, Cameco 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 purchase price was financed with $12.0 million (US) in cash and the contribution of a neighboring property. In exchange, AGR issued 240 million shares to Cameco. The acquisition was accounted for using the purchase method and the results of operations are included in Cameco's consolidated financial statements from the effective date of the purchase.

The values assigned to the net assets acquired are as follows:

	(Millions (Cdn))
	Cash and other working capital	$13.9
	Property, plant and equipment	27.0
	Minority interest	(19.0)
	Net assets acquired	$21.9
	Financed by:
	Cash	$19.6
	Property, at carrying value	2.3
		$21.9

Subsequent to the acquisition, Cameco provided an additional $3.0 million (US) of further exploration in the area in exchange for an incremental 4% interest in AGR (43 million shares), increasing its total interest to 56% at December 31, 2002.

(b) Smith Ranch
On July 22, 2002, Cameco acquired the assets comprising the Smith Ranch in-situ leach (ISL) operation and various other ISL properties from Rio Algom Mining LLC. In exchange for these assets, Cameco assumed the decommissioning liabilities associated with the Smith Ranch operation. At the acquisition date, the value of the liabilities was estimated to be $9.2 million (US). Cameco also secured forward sales commitments for more than 900,000 pounds of uranium concentrates which will yield prices in excess of current long-term indicators. The acquisition was accounted for using the purchase method 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 UEX consist of several uranium exploration properties located in the Athabasca region of Northern Saskatchewan. In acquiring this interest, Cameco transferred its Hidden Bay exploration properties to UEX in exchange for approximately 31 million shares. In addition, Cameco purchased another 2 million shares at a price of $0.25 per share.

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

Investment in Bruce Power L.P. (Bruce Power)
On December 23, 2002, Cameco, TransCanada PipeLines Limited (TransCanada) and the Ontario Municipal Employees Retirement Board (OMERS) amongst others, signed a Heads of Agreement with British Energy plc (British Energy) to purchase its share of Bruce Power. The Master Purchase Agreement with respect to the transaction was completed on January 17, 2003. The transaction is expected to close in February of 2003. It is subject to several conditions including the approval of British Energy's shareholders, the consent of CNSC and clearance under the Canadian Competition Act.

Upon closing, Cameco will increase its ownership interest in Bruce Power from 15% to 31.6%. Each of Cameco, TransCanada and OMERS will directly or indirectly hold a 31.6% interest in Bruce Power with the Power Workers' Union Trust holding a 4% interest and the Society of Energy Professionals Trust holding a 1.2% interest. Cameco's purchase price for the additional interest in Bruce Power will be approximately $198,000,000 subject to closing adjustments. It is intended that the purchase price will be financed with cash and debt.

In addition, Cameco, TransCanada and OMERS have agreed to loan Bruce Power funds to repay $225,000,000, plus accrued interest, in deferred lease payments to OPG. Cameco, TransCanada and OMERS will also assume British Energy's obligations to provide financial guarantees required by the operator licenses, the lease agreement and the power sales contracts. Upon closing, it is estimated that Cameco's financial assurances to Bruce Power will be approximately $200,000,000.

Bruce Power is economically dependent upon its partners to provide necessary financial guarantees. Currently, the government of the United Kingdom, as guarantor of British Energy's obligations, has temporarily provided $261,000,000 of support in the form of letters of credit to Bruce Power. Failure to complete the above transaction may result in the inability of Bruce Power to continue operations and to realize its assets and discharge its liabilities in the normal course of business. Cameco believes it has reasonable remedies available to realize the value of its investment in Bruce Power should the proposed transaction fail to close as anticipated and should British Energy be unable to provide the support and assurances required.

Long-Term Debt
Cameco's contingent obligation under guarantees of the repayment of Kumtor senior debt exceeds the amount included in Cameco's long-term debt at December 31, 2002 by $81.1 million.

Share Capital
a) At December 31, 2002, there were 55,985,873 common shares outstanding.
b) Options in respect of 2,223,750 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 272,550 shares would be granted.

Interest and Other
For the year ended December 31, 2002, earnings include foreign exchange gains of $1.6 million (2001 - $0.8 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