Cameco Receives Construction Approval for McArthur River Uranium Mine

Saskatoon, Saskatchewan, Canada, August 25, 1997

Cameco Corporation reports it has received approval from the Atomic Energy Control Board (AECB) of Canada to begin construction of the McArthur River uranium project in northern Saskatchewan.

The AECB's regulatory approval granted August 22 provides the licence to construct surface and underground facilities and service infrastructures at the McArthur River site, which hosts the world's largest known high-grade uranium deposit.

"We are extremely pleased to receive this approval," said Bernard Michel, Cameco's chair, president and chief executive officer. "Construction crews and equipment are now beginning work so that we can meet our target for production startup in late 1999."

Cameco, as operator of the McArthur River project, plans to mine the orebody using remote-controlled methods and transport the ore 80 kilometres to the existing Key Lake uranium operation for milling.

The McArthur River project is owned by Cameco (56%), Uranerz Exploration and Mining Limited (28%) and Cogema Resources Inc. (16%). It contains reserves and resources estimated at 416 million pounds U₃O₈ at an average grade of 15% U₃O₈. Total capital costs to bring the project to production are estimated at more than $400 million.

Total employment at the McArthur River and Key Lake sites is expected to peak at 600 during the two-year construction period and then level off to about 530 people during production.

The construction licence issued by the AECB is the final step in a multi-phase, six-year review process which included public hearings conducted by a joint federal-provincial panel. In February 1997, the panel recommended approval of the project, subject to certain conditions. In May 1997, the Saskatchewan and federal governments announced their approval of the project's development. Before production can begin in 1999, the project will require operating licences from both the AECB and Saskatchewan provincial regulators.

Michel said the six-year review process was a meaningful one. "As operator of this project, we appreciate the input of everyone, particularly northerners, who participated in the public review process. We will continue to work diligently to ensure that safety and environmental goals are achieved and that benefits of the McArthur River project continue to flow to all stakeholders."

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 power plants around the world, providing one of the cleanest sources of energy available today.

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