Cameco Corporation Announces Share Offering

Saskatoon, Saskatchewan, Canada, August 20, 1997

Cameco Corporation announced today that it has agreed to sell 4 million common shares for $51.00 per share to an underwriting group led by RBC Dominion Securities Inc., and including CIBC Wood Gundy Securities Inc., Nesbitt Burns Inc., ScotiaMcLeod Inc., Bunting Warburg Inc., First Marathon Limited, Goldman Sachs Canada, Levesque Beaubien Geoffrion Inc., Midland Walwyn Capital Inc. and TD Securities Inc. on a bought deal basis for sale in Canada, the United States and internationally.

The total value of the sale, before commissions and expenses, is $204 million.

Cameco expects to use the proceeds from the sale of these shares for expenditures related to the company's uranium business which may include development and exploration activities, product purchases or the acquisition of further property interests.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's largest publicly traded uranium company and a growing gold producer. Its 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 has filed a preliminary short form prospectus with all appropriate securities regulatory authorities in Canada and has filed a registration statement with the Securities and Exchange Commission in the United States, which has not yet become effective. The common shares being offered by Cameco may not be sold in the United States nor may offers to buy be accepted from purchasers in the United States prior to the time the registration statement becomes effective.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these common shares in any state of the United States in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Interested US investors may obtain a written prospectus from RBC Dominion Securities Corporation, Financial Square, 24th Floor, New York 10005 or may call (212) 361-2700.

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