Highland Uranium Operation Reaches 10-Million Pound Milestone

Denver, Colorado, U.S.A., January 5, 1998

Power Resources, Inc. is pleased to report that the Highland uranium operation, located in Converse County, Wyoming, has reached a 10-year, 10-million pound U₃O₈ production milestone. The Highland operation, which utilizes the environmentally benign and cost competitive in-situ leach method of uranium recovery, began commercial operations in January 1988, and has grown to become the largest uranium production operation in the United States. Highland achieved record annual production of 1.5 million pounds U₃O₈ in 1997. Production in 1996 was 1.2 million pounds U₃O₈.

Highland employees have reached these significant milestones in a safe and responsible manner, working over 1.2 million man-hours since 1984 without a lost-time accident. It is also estimated that Power Resources and its predecessor companies have contributed more than $100 million into the local economy over this period.

"These achievements are a tribute to the hard work and technical competence of our employees, many of whom have been with the company for over a decade. This expertise and work ethic will serve us well as we look to the exciting challenges of the coming decade, including the licensing, development and startup of our Gas Hills operation near Riverton, Wyoming scheduled for 2000. I am also encouraged by 1997 marketing efforts which have doubled our forward sales commitments and underpin our future operations," said Crew Schmitt, Power Resources' president and chief executive officer.

The Highland uranium operation is owned 74.25% by Power Resources (operator) and 25.75% by Geomex Minerals, Inc., which are both wholly owned subsidiaries of Cameco Corporation of Saskatoon, Saskatchewan, Canada, the world's largest publicly traded uranium company and a growing gold producer. Our uranium is 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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For further information, please contact:

Crew Schmitt President & Chief Executive Officer Power Resources, Inc. Phone: (303) 830-2125 Fax: (303) 830-2129

Scott Melbye Vice President, Marketing Power Resources, Inc. Phone: (303) 830-2125 Fax: (303) 830-2129