Quarterly Reports - 2009 - Q1

Cameco Corporation (TSX: CCO; NYSE: CCJ) today reported first quarter 2009 adjusted net earnings of $89 million ($0.24 per share adjusted and diluted), 40% lower than in the first quarter of 2008. This was due to lower earnings in the uranium and gold businesses, partially offset by improved results in the electricity business.

In our uranium business, higher costs of sales adversely affected uranium profits in the first quarter. However, these costs for the year, excluding costs for purchased uranium, are still expected to be within our prior guidance (increasing by between 5% and 10%). Overall costs of sales are forecast to rise by 15% to 20% as we expect to purchase additional uranium at prices substantially higher than our costs of production to take advantage of trading opportunities.

In our electricity business, higher generation led to stronger results. Our gold business was impacted by lower production and higher operating costs.

"Operationally, we are off to a much better start to the year and have set high expectations for 2009," said Cameco's president and CEO Jerry Grandey. "We are also pleased that we have reached an agreement that provides a secure environment for Centerra's continued operation and potential growth in Kyrgyzstan while facilitating our eventual divestiture."

Note: All dollar amounts are expressed in Canadian dollars unless otherwise stated. Cameco's unaudited first quarter financial statements and management's discussion and analysis are available on our company's website cameco.com, on SEDAR at sedar.com and on EDGAR at sec.gov/edgar.shtml.