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Cameco Pleased Bruce Deal Closes

Saskatoon, Saskatchewan, Canada, May 12, 2001

Cameco Corporation is pleased with the announcement today that the Bruce Power Limited Partnership (Bruce Power) has finalized its long-term lease with Ontario Power Generation to operate the Bruce nuclear power plants and has received an operating licence from the Canadian Nuclear Safety Commission.

Cameco has also finalized the agreements related to its 15% interest in Bruce Power and has become the exclusive supplier of fuel to the Bruce nuclear power plants.

"Our partnership with British Energy, the Power Workers' Union and the Society of Energy Professionals underscores the confidence we all share in the future of nuclear electricity," said Bernard Michel, Cameco's chair and chief executive officer. "We are pleased to leverage our uranium expertise in this unique opportunity that builds on Cameco's long-term strategy to grow profitably in the nuclear industry."

Cameco is increasingly optimistic about the impact of the Bruce Power investment on the company's results after the first few years when Bruce Power will incur one-time business improvement charges. Cameco's investment in Bruce Power is $93 million over two years. In addition, Cameco will purchase $43 million of finished fuel inventory for resale to the partnership as needed, mostly during the first year of operation.

The Bruce nuclear power plants consist of four Bruce B reactors currently operating and four Bruce A reactors that are not operating. Bruce Power is planning to bring two of the Bruce A reactors back into operation by the summer of 2003, subject to regulatory approvals. The six nuclear reactors which Bruce Power will operate in 2003 will represent about 4,600 megawatts of electricity capacity, or approximately 15% of Ontario's capacity.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest uranium supplier and the leading supplier of UO2 to Candu operators. The company's uranium products are used to generate electricity in nuclear energy plants around the world, providing one of the cleanest sources of energy available today. Cameco's shares trade on the Toronto and New York stock exchanges.

Statements contained in this news release which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could 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, electricity 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.

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For investor inquiries, please contact:   For media inquiries, please contact:
Bob Lillie
Manager, Investor Relations
Cameco Corporation
Phone:(306) 956-6639
Fax:(306) 956-6318
  Jamie McIntyre
Director, Investor & Corporate Relations
Cameco Corporation
Phone:(306) 956-6337
Fax:(306) 956-6318