Quarterly Reports - 2009 - Q2

Cameco Corporation (TSX: CCO; NYSE: CCJ) today reported second quarter 2009 net earnings of $247 million ($0.63 per share diluted), $97 million higher than net earnings of $150 million ($0.42 per share diluted) recorded in the second quarter of 2008. For the six months ended June 30, 2009, net earnings were $329 million ($0.85 per share diluted), $45 million higher than net earnings of $284 million ($0.79 per share diluted) recorded in the first half of 2008.

Second quarter 2009 adjusted net earnings1 of $140 million ($0.36 per share adjusted and diluted) were 1% higher than in the second quarter of 2008. This was due to higher earnings in the fuel services and electricity businesses, partially offset by lower results in our uranium and gold businesses.

Adjusted net earnings1 for the first half of 2009 were 20% lower than in 2008 due to lower earnings in the uranium and gold businesses, partially offset by higher results in the fuel services and electricity businesses.

In our uranium business, higher costs of sales adversely affected uranium profits in the second quarter and for the first half of the year. 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 20% to 25% as we expect to purchase additional uranium at prices substantially higher than our costs of production to support our sales activities, including higher trading volumes.

Our gold business was impacted by lower gold production and higher operating costs during the quarter and for the first six months of the year.

In our electricity business, an increase in the realized price led to stronger results in the quarter and for the first half of the year. The increase was due largely to revenue recognized by BPLP under its agreement with the Ontario Power Authority (OPA). In addition, an increase in generation contributed to the improved results for the first six months.

Results in our fuel services business were positively impacted by higher realized prices both during the quarter and for the first half of the year. In addition, during the quarter an increase in sales contributed to the stronger quarterly results.

"Cameco has delivered strong financial results complemented by good performance at the company's operations during the first half of 2009," said Jerry Grandey, Cameco's president and CEO.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise stated. Cameco's unaudited second 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.