Cameco Update - Cameco Licensed To Operate Cigar Lake Project

December 11, 2001

Cameco Corporation will become the operator of the Cigar Lake uranium project effective January 1, 2002. Cigar Lake is the world's largest undeveloped high-grade uranium project, located in northern Saskatchewan. Cameco owns 50.025% of the project which has proven and probable reserves of 232 million pounds at an average grade of 18%, Cameco's share is 116 million pounds.

The Canadian Nuclear Safety Commission has approved Cameco's license application to become the operator of the Cigar Lake project which is currently operated by the Cigar Lake Mining Corporation (CLMC), a company established by the joint venture partners.

Cameco will manage the operations at the world's two largest uranium deposits, McArthur River and Cigar Lake, securing Cameco's position as the world's dominate uranium operator and producer.

Today's announcement does not affect the ownership of the Cigar Lake project. Cameco and its joint venture partners, Cogema Resources Inc. (37%), Idemitsu Uranium Exploration Canada Ltd. (8%) and TEPCO Resources Inc. (5%) have approved a feasibility study to develop Cigar Lake at a cost of approximately $350 million. Given the time required for licensing and construction, the earliest production is expected to begin at Cigar Lake is 2005, subject to suitable market conditions. At full production, Cigar Lake is expected to produce 18 million pounds U₃O₈ annually.