Cameco Announces Completion of Preferred Securities Offering

Saskatoon, Saskatchewan, Canada, October 14, 1998

Cameco Corporation today announced that it has completed an offering in the United States of $125 million (US) of preferred securities. Each security represents $25 (US) principal amount of junior subordinated debentures with a term of 49 years and an interest rate of 8.75%.

Cameco will use the net proceeds from this offering to replace a portion of the short-term financing used to acquire Uranerz Exploration and Mining Limited (now named UEM Inc.) and Uranerz U.S.A., Inc., which was completed on August 11, 1998. In accordance with Canadian generally accepted accounting principles, the preferred securities will be accounted for as equity on Cameco's balance sheet.

The offering was underwritten by a syndicate managed by Merrill Lynch & Co. and included Morgan Stanley Dean Witter, PaineWebber Incorporated, Prudential Securities Incorporated and Salomon Smith Barney.

Cameco is the world's largest uranium producer. The company's strong competitive position is based on its large high-grade reserves and low-cost operations. Cameco is also one of the largest commercial providers of uranium conversion services in the world.

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