Notes to Consolidated Financial Statements

For the years ended December 31, 2014 and 2013

14. Short-term debt

Cameco borrows directly in the commercial paper market. At December 31, 2015 and 2014, there was no commercial paper outstanding.

NUKEM has a multicurrency revolving loan facility that is available until October 1, 2020. Total funds of €75,000,000 are available under the facility, with the option to increase the facility by an additional €25,000,000. Amounts can be drawn in either Euros or US dollars in the form of bank overdrafts, letters of credit, short-term loans or foreign exchange facilities. Any amounts drawn in Euros bear interest at a rate equal to the comparable EURIBOR on the draw date plus 0.6%, while amounts drawn in US dollars bear interest at a rate equal to the comparable LIBOR on the draw date plus 0.6%.

At December 31, 2015 and 2014, there were no amounts withdrawn against the facility. As of December 31, 2015, NUKEM has $406,000 (US) in letters of credit outstanding against the facility in support of performance obligations under outstanding delivery contracts (2014 – $356,000 (US)).

The terms of the facility contain a financial covenant that requires NUKEM to maintain a minimum working capital to debt ratio of 1.35. The facility also stipulates Cameco as a guarantor for NUKEM’s withdrawals and requires the Company to maintain a credit rating of at least BBB–. Failure to comply with these covenants could result in cancellation of the facility and accelerated payment of any outstanding amounts. As of December 31, 2015, NUKEM and Cameco were in compliance with the covenants and the Company does not expect its operating and investing activities in 2016 to be constrained by them.