Updated Feb. 24, 2010

Production on Target

Our share of production in 2009 was 13.3 million pounds U₃O₈ compared to our target of 13.1 million pounds U₃O₈, and a 15% increase over 2008. Production in 2008 was lower than planned because of operating challenges at the Key Lake mill.

We exceeded our target because of strong results at both McArthur River and Key Lake, and the amendment to the Key Lake operating licence to allow flex production.

New Mining Areas

Zone 2, panel 5 – We completed a new freezewall around this area, developed the initial raisebore chamber and began production in the fourth quarter. This is the first time development has been accomplished through the unconformity into the Athabasca sandstone.

Lower zone 4 – We completed the raisebore chamber on the 530 metre level, completed all freezehole drilling and began freezing the ground.

Planning for the Future

Production

We expect our share of production to be 13.1 million pounds U₃O₈ in 2010.

New Mining Zones

Zone 2, panel 5 – In 2010, we expect to develop two additional raisebore chambers. This area is planned to account for approximately two-thirds of McArthur River mine production in 2010.

Lower zone 4 – We began freezing in January 2010. Once the freezewall is in place and development complete, we expect initial production will begin late in 2010.

Exploration

In 2010, we plan to initiate a multi-year project, the McArthur River expansion, to advance the underground exploration drifts on the 530 metre level to the north and to the south of the existing mine. This work is expected to further delineate zone A and B inferred resources to the north as well as resources to the south. As part of the project, we will also initiate a preliminary assessment to determine the potential options and feasibility for mining these resources.

Surface based exploration will focus on historically known, but under-tested targets south of the mine.