This indicator provides information about Cameco’s annual revenue, operating costs, employee wages and benefits, payments to providers of capital, payments to governments, community investments, and economic value retained.

All figures in Canadian dollars (1000s).

On January 1, 2011, we adopted IFRS for Canadian publicly accountable enterprises. Amounts relating to the year ended December 31, 2010 have been revised using IFRS for comparative purposes. Amounts for periods prior to January 1, 2010 are presented in accordance with Canadian GAAP.

Starting in the first quarter of 2013, IFRS 11 – Joint Arrangements requires that we account for our interest in Bruce Power Limited Partnership using equity accounting. Our results for 2012 have been revised for comparative purposes; however, our results prior to 2012 have not been revised.

What it means

Revenue

In 2013, revenue increased over 2012 due to the addition of NUKEM, which was acquired in 2013, as well as a higher realized price for uranium.

Operating costs

The increase in operating costs for 2013 was mainly due to the inclusion of NUKEM.

Employee Wages and Benefits

Employee wages and benefits, including pension and share based compensation costs, were slightly higher than 2012 mainly due to the addition of NUKEM in 2013.

Payments to shareholders and bondholders (providers of capital)

The increase in payments compared to 2012 is primarily due to larger interest payments in 2013. We had issued additional debt late in 2012.

Payments to governments (taxes)

Since 2008, the Canada Revenue Agency (CRA) has disputed the offshore marketing company structure and related transfer pricing methodology we used for certain intercompany uranium sale and purchase agreements, and issued notices of reassessment for our 2003 through 2008 tax returns. We believe the ultimate resolution of this matter will not be material to our financial position, results of operations and cash flows in the year(s) of resolution.

While we are confident that we will be successful in our case, the Canadian Income Tax Act includes provisions that require certain companies to pay 50% of the cash tax plus related interest and penalties at the time of reassessment. Payments to government increased in 2013 largely due to a $36 million payment to the CRA related to a transfer pricing penalty we were assessed for the 2007 taxation year. This was the first transfer pricing penalty assessed since CRA began to issue reassessments with respect to the transfer pricing dispute.

Please see page 32 of our 2013 Management's Discussion and Analysis for more information.

This indicator shows the total dollar amount of services procured from local suppliers at Cameco’s operating sites in northern Saskatchewan, Kazakhstan, and Ontario each year from 2009 to 2013.

What it means

Cameco is committed to utilizing local suppliers wherever we operate. This commitment to local procurement is codified in our procurement of goods and services policy and exemplified by our northern preferred supplier program in northern Saskatchewan, which gives preference to northern owned and operated suppliers. In 2013 alone, we procured over $550 million in services from local companies, including over $450 million from aboriginal and northern owned companies in northern Saskatchewan.

Looking ahead

Cameco will continue to work with local suppliers to increase their capacity and ensure we are able to continue to purchase as many of our services locally as possible. While we have had large local procurement numbers the last two years specifically, we expect these numbers to drop in the next several years as many of our larger projects wrap up.

Definitions

Local Supplier – This term differs from country to country and region to region:

Saskatchewan Local Supplier: For Cameco’s Saskatchewan operating sites a local supplier is a company or joint venture that is at least 51% owned by people or communities from the Northern Administrative District (NAD). The NAD is an area that makes up one-half of the province and is mandated as local to Cameco through provincial surface lease agreements.

Ontario Local Supplier: For Cameco’s Ontario operating sites a local supplier is considered to be one located in the province of Ontario.

Kazakhstan Local Supplier: For Cameco’s Kazakhstan operating site a local supplier is generally considered to be one in the immediate and surrounding communities around Cameco’s operations.

Note: Ontario totals include both goods and services. We do not include our US operations in this indicator yet.

This indicator provides information about the number of local employees at our operations in northern Saskatchewan, and the number of senior managers from those local communities.

What it means

Our corporate social responsibility policy includes a commitment to encourage local employment wherever we operate. Through this policy, Cameco continues to build capacity by hiring qualified local residents whenever possible. While the overall number of local employees in northern Saskatchewan dropped slightly from 2012, our overall percentage was consistent. We continue to have a low number of local residents in senior management positions.

Looking ahead

Cameco will continue to emphasize the hiring of local people at our northern sites, including with our Contractors. In order to help increase the number of senior managers from the local communities, we continue to emphasize our Career Compass program, which is a career development course for aboriginal and northern Saskatchewan employees. To date, 33 local employees have participated in this course.

Definitions

Senior manager: A manager or superintendent level employee.

Local employee: To be considered a local employee in northern Saskatchewan, you must be registered as a resident of Saskatchewan’s north (a designation defined and managed by the Saskatchewan government) at the time of hire.

This indicator provides an overview of Cameco’s investments in infrastructure and services for local communities in Canada, the US and Kazakhstan.

Needs assessments
We have not completed a formal infrastructure needs assessments in our local communities.

Current (or expected) impact of infrastructure and service investments
From 2009-2013, Cameco has invested over $7.1 million in support of infrastructure improvement projects in local communities. Some of our more significant infrastructure investments in 2013 include:

2013 Highlights:

Saskatoon

• In 2013, Cameco made a $1 million donation (over five years) to the Ronald McDonald House in Saskatoon. The donation will help expand the Saskatoon Ronald McDonald house, which provides rooms for families whose children are getting medical treatment. This investment not only helps local children and families, but also northern Saskatchewan families, who have made up 65% of the users of the facility in the last 16 years.

Ontario

• In 2013, Cameco made a $50,000 donation to the Cobourg chapter of Habitat for Humanity for the building of a multi-unit project which will eventually house three families. Cameco has been a long-time supporter of Habitat, who’s mission it is to help low-income families realize the dream of home ownership, and to date has provided financial and volunteer support that have helped 14 families find affordable housing.

What it means

2013 saw a decrease in the overall amount we invested in infrastructure because of a decline in the overall community investment budget, but also because of more requests for non-infrastructure related activities (i.e. community-based programming and events) and the signing of collaboration agreements in Northern Saskatchewan, which has given specific communities direct control over their community investment initiatives. Cameco does not specifically target infrastructure investments, but we receive many requests for investments from local communities to support these types of projects because many of these communities have infrastructure deficits.

Currently, we target four areas for support from our community investment fund:

• youth
• health and wellness
• education and literacy
• community development

Looking ahead

Cameco will continue to provide investments toward infrastructure projects in local communities on a case by case basis.

About this indicator

The community investments measured and reported on in this indicator are also included in the community investment total in EC1.

For this indicator, we have not included any infrastructure that was built primarily for business purposes (i.e. roads) but that local communities may also benefit from. We also do not count any community investment payments provided to communities we have signed collaboration agreements with in northern Saskatchewan.

This indicator provides information about our economic impact on particular geographic areas, including the secondary or indirect impact of Cameco’s operations.

Cameco has completed economic impact assessments in:

• Northern Saskatchewan – The Economic Impact of Cameco Corporation on Saskatchewan with Emphasis on the North. By Eric Howe, Department of Economics, University of Saskatchewan. Feb. 2009.
• Port Hope and Northumberland County, Ontario – Economic and Financial Impact Analysis of Cameco in Port Hope and Northumberland County. By Harry Kitchen, Department of Economics, Trent University. Nov. 2010.
• Wyoming – The Economic Impact of Cameco on Wyoming: Existing Uranium Operations and Planned Expansion. By David T. Taylor and Thomas Foulke, University of Wyoming, Sept. 2010.
• Nebraska – The Economic Impact of Cameco Resources’ Uranium Production on the Nebraska Economy. David T. Taylor and Thomas Foulke, University of Wyoming, Sept. 2010.

Highlights from completed reports

Northern Saskatchewan

Overall, through direct and indirect activities, Cameco’s operations are responsible for 12.2% of the employment in northern Saskatchewan. As well, Cameco, through direct and indirect activities, is responsible for the employment of more than one aboriginal person in 20 in the province of Saskatchewan. Finally, for every one aboriginal person Cameco hires aboriginal employment in Saskatchewan increases by a total of 2.1 employees by the end of the second year.

Port Hope and Northumberland County

In Port Hope, for every dollar a Cameco employee earns, $0.80 is earned by other workers in the local area through secondary spending effects. In Northumberland, this number is $1.40. Further to that, every dollar spent by Cameco in purchasing supplies from a firm in Northumberland or hiring a local tradesman generates $1.10 of additional revenue for other businesses in the area. In Port Hope, this number is $0.40 of additional revenue.

• indirect employment: 981 secondary jobs
• indirect spending: $132 million in secondary expenditure impact through wages and salaries, local procurement, local trades, and charitable contributions

Wyoming

For every uranium job in the mining sector, there are 1.6 other jobs created elsewhere in the Wyoming economy. For every $1.00 of uranium job income in the mining sector, $1.20 of income is generated in other sectors of the Wyoming economy.

• indirect employment: 144 secondary jobs
• indirect labour income (trades): $5 million in secondary labour income
• indirect economic activity: $16.8 million in secondary economic activity

Nebraska

For every direct uranium job in the mining sector, there are 1.8 other jobs created elsewhere in the Nebraska economy. For every $1.00 of uranium job income in the mining sector, $1.40 of income is generated in other sectors of the Nebraska economy.

• indirect employment: 69 secondary jobs
• indirect labour income: $2.5 million in secondary labor income
• indirect economic activity: $7.8 million in secondary economic activity

What it means

Cameco is a major economic contributor everywhere we operate, both directly through salaries, wages, and local procurement, and indirectly through secondary employment and secondary economic activity.

Looking ahead

Cameco will continue to work to understand the economic impact, both positive and negative, we have on communities wherever we operate and will work to update these studies over the next several years.

This indicator presents Cameco’s consumption of direct primary energy, which is calculated by applying a country-specific energy content factor to the consumed volume of non-renewable energy sources at Cameco’s operations. These energy sources include propane, natural gas, diesel and gasoline. Published Canadian energy content factors were applied to energy sources consumed at our operation in Kazakhstan. Cameco does not utilize renewable energy sources directly.

2009-2012 totals do not include our Saskatoon corporate offices. Our 2013 totals do.

What it means

While Cameco’s direct energy usage dropped slightly in 2013, it has stayed relatively consistent since 2011.

Looking ahead

We expect our energy use to increase as we expand and renew our operations and increase production in support of our long-term growth strategy.

This indicator presents our consumption of indirect energy sources, which is calculated by applying an energy content factor published by the National Energy Board of Canada to electricity purchased by Cameco’s operations. Cameco purchases and consumes electricity for its operations from local utilities in the regions where we operate.

2009-2012 totals do not include our Saskatoon corporate offices. Our 2013 totals do.

What it means

Cameco’s indirect energy consumption increased slightly in 2013. This increase is a result of expansion and development activities at two of our northern Saskatchewan sites and a change in production scheduling at another.

Looking ahead

We expect our energy use to increase as we expand and renew our operations and increase production in support of our long-term growth strategy.

This indicator presents the annual volume of water withdrawal in cubic metres (m³). Cameco withdraws water from surface water, collects groundwater, and also withdraws water from municipal water utilities in the areas where we operate. Rainwater that comes into contact with our operations is collected and stored and is reflected in our water withdrawal volumes. Cameco does not withdraw wastewater directly from other organizations.

What it means

Trends in the annual volume of water withdrawn are similar to overall trends in the annual volume of water discharged as summarized under indicator EN21. This is because the volume of water withdrawn is largely estimated based on the volume of water discharged.

Water withdrawal volumes for 2013 include water withdrawn from our exploration activities in North America and Australia, and from our corporate offices in Saskatoon, Saskatchewan.

Looking ahead

Cameco will continue to monitor and report on our volume of water withdrawn.

Cameco will also continue to focus on improving our water management practices to ensure we withdraw water responsibly in the areas where we operate.

Note: In 2013, we changed how we report on this indicator. This was done to increase the quality, transparency, and utility of the data we report. This has necessitated a recalculation and adjustment of much of our historical data.

This indicator measures the difference between the amount of land Cameco owns or leases for production activities and extractive use and the amount of that land not yet rehabilitated.

This indicator excludes advanced non-operational sites (Kintyre, Yeelirrie, Millennium), office structures, exploration activities, operations in which Cameco does not have operational control, and operations that Cameco does not own (Springfields). Nor does it include rented facilities that Cameco operates (Cobourg).

What it means

In 2013, Cameco added 415 hectares to the amount of land disturbed and not yet rehabilitated. Over half of Cameco’s disturbed lands are from our ISR operations, where the land is more easily reclaimed than at our conventional mining operations. Our operations in northern Saskatchewan have a very low operational footprint and the resulting product mined from those operations provides a large amount of potential energy. For example, our McArthur River operation produces enough uranium each year to meet over 7% of total annual US electricity demand – all from an operation with a surface area footprint of less than 1 square mile.

Looking ahead

Cameco’s footprint will continue to expand over the next several years as our operations expand and there is the potential for new operations. We also continue to look at ways to rehabilitate our disturbed lands. In addition, Cameco Resources made advancements in groundwater restoration in 2013 at our Smith Ranch-Highland and Crow Butte facilities and two mine units at Crow Butte were moved to stability phase. Significant progress was also made at Smith Ranch-Highland that will lead to an additional mine unit(s) being placed in stabilization in 2014.

Definitions

The definition of land disturbed and not yet rehabilitated is dependent on the jurisdiction of the operation as listed below:

• In Saskatchewan total land disturbed and not yet rehabilitated is defined as “Developed’ land.
• In the United States total land disturbed and not yet rehabilitated is defined as “Affected Area”.
• For Ontario total land disturbed is equal to the licensed area of the facility.
• For Kazakhstan total land disturbed is equal to the area of land impacted.

This indicator presents Cameco’s scope 1 (direct) and 2 (indirect) greenhouse gas (GHG) emissions and is presented as tonnes of carbon dioxide equivalents (CO₂e). CO₂e is used to compare the emissions from various GHG sources based on their global warming potential (GWP). Cameco adopted the GWPs published by the International Panel on Climate Change in their Fourth Assessment Report for 2013.

Scope 1 GHG emissions are determined by applying country and activity-specific emission factors to the volumes of fossil fuels consumed at Cameco’s operations. In 2013, for our Canadian and Kazakhstan operations, we adopted the emission factors used by Environment Canada in Canada’s National GHG Inventory (1990-2012). For the operations in the U.S., we have continued to utilize the emission factors published by the US Energy Information Administration (Form EIA-1605). Cameco tracks its fossil fuel consumption through accounting.

Scope 2 GHG emissions are calculated by applying a utility or region-specific emission factor to the quantity of electricity purchased from that utility or region. The quantity of electricity purchased is taken from utility invoices.

2009-2012 totals do not include our Saskatoon corporate offices. Our 2013 totals do.

What it means

Cameco’s GHG emissions dropped slightly in 2013 as compared with 2012, but were similar to 2011 emissions. This decline in GHG emissions was due to the implementation of energy efficiency improvements across several areas at Cameco’s operations, and lower emission factors associated with the provincial electricity utilities in Ontario and Saskatchewan where Cameco operates.

Overall, Cameco’s activities contribute to low carbon fuel production, as nuclear lifecycle GHG emissions are comparable with both wind and hydroelectric.

Looking ahead

We expect our GHG emissions to increase as we expand and renew our operations and increase production in support of our long-term growth strategy.

This indicator presents the total air emissions from our Canadian operations of nitrogen oxides (NOx expressed as NO₂), sulphur dioxide (SO₂), carbon monoxide (CO), volatile organic compounds, total particulate matter (PM), particulate matter less than 10 microns (PM10), particulate matter less than 2.5 microns (PM2.5), ammonia (NH₃), uranium (U), and hydrogen fluoride. Air emissions from our In-Situ Recovery operations in the United States of America and Kazakhstan are not material for this indicator and are not included.

Air emissions of NOx, SO₂, CO, VOCs, PM, PM₁₀, PM_2.5, and NH₃ are calculated using the guidance provided by Environment Canada through the National Pollutant Release Inventory. The total air emissions for these constituents include air emissions released through point sources such as process stacks, storage and handling, fugitive emissions, and as a result of road dust.

Air emissions of uranium and hydrogen fluoride include air emissions released through point sources.

What it means

Trends in air emissions within the five year period are explained by normal process variation, air emissions being below reporting thresholds in previous years, and by process modifications made by Cameco to reduce air emissions of particular constituents such as sulphur dioxide, uranium, and hydrogen flouride.

Looking ahead

Cameco’s objective is to continue to implement practices to minimize the potential for air emissions through process modifications, procedure improvements and other opportunities.

Note: In 2013, we changed how we report on this indicator. This was done to increase the quality, transparency, and utility of the data we report. This has necessitated a recalculation and adjustment of much of our historical data.

This indicator presents the annual volume of planned water discharge in cubic metres (m³) by destination (i.e., surface water, municipal treatment facilities, land, evaporation pond, or deep disposal well), and treatment method (i.e., treated by Cameco, treated by municipal authorities, clean, or untreated). Cameco does not re-use water produced by other organizations.

This indicator also presents water quality information as mass loadings of select constituents for the treated water we discharge to surface water bodies, land application via irrigation, and municipal treatment facilities.

Water quality is reported for selected constituents as mass loadings in the unit of kilograms (kg). Mass loadings are calculated by multiplying the volume of water discharge by the concentration of the constituent in water. An increase in mass loadings may mean either an increase in water flow, or an increase in the constituent concentration in water.

What it means

Water Discharge Quantity

The total volume of clean water discharged to surface water was lower in 2013 as compared with 2012 but remained within the range of variation in volume of clean water discharged over the 5 year period.

Discharges of water to municipal treatment facilities were higher in 2013 as compared with 2012. This is due to an intentional increase in dilution water discharge at the Port Hope Conversion Facility to maintain the pH of the discharge.

The total discharge of treated water to surface water was lower in 2013 as compared with 2012, primarily due to a lower volume of treated water discharged from the Key Lake operation in 2013.

The total discharge of treated water to land via irrigation was higher in 2013 as compared with 2012 but remained within the range of historical variation.

The total discharge of water to deep disposal well was higher in 2013 as compared with 2012. The increase in water discharge reflects the increased focus on groundwater restoration in 2013 as compared with previous years. At Smith Ranch Highland, the deep disposal wells were operating on a more continuous basis in 2013 as compared with 2012.

Water Discharge Quality

We have placed substantial focus on improving the quality of our treated water discharged to surface water, specifically on reducing the concentrations of molybdenum, selenium, and uranium. This focus has involved improvement in our water management practices and treatment technologies and has resulted in a significant decline in the mass loadings of molybdenum, selenium and uranium in treated water discharged to surface water over the past 5 years.

Similarly, we have focused on improving water discharge quality in treated water discharged to land via irrigation. As a result of this focus, 2013 loadings of uranium, selenium and arsenic in treated water discharged to land via irrigation continued to be substantially lower than historical levels seen in the past 5 years.

Looking ahead

Cameco will continue to focus on improving our water management and water treatment practices to ensure we use and discharge water responsibly in the areas where we operate.

Note: In 2013, we significantly changed how we report on this indicator. This was done to increase the quality, transparency, and utility of the data we report, and to better align with evolving regulatory reporting requirements. This has necessitated a recalculation and adjustment of much of our historical data.

This indicator presents the total amount of non-hazardous, hazardous, and low-level radioactive waste we generate in the unit of tonnes. Cameco does not generate intermediate or high level radioactive waste.

The total amount of waste generated in each category is separated and presented by disposal method: diverted or landfilled or stored on site. Diverted materials include those that are recycled, reused, incinerated, repurposed, or reprocessed.

We separate waste into the disposal categories we have defined (diverted or landfilled or stored on site) using internal tracking systems that track the inventory of waste on site and the transfer of waste off site. The amount of waste transferred off site is confirmed through information provided by the receiving organization.

The volume of wastewater disposed to deep injection well is reported in indicator EN21.

What it means

Overall, the amount of waste we generated was lower in 2013 as compared with 2012 and was within the range of variation seen over the last 5 years.

The amount of non-hazardous waste we generated was lower in 2013 – this type of waste is strongly influenced by the construction projects at each site.

In 2013, we continued to focus on diverting our low level radioactive waste through decontaminating and subsequently recycling, incineration, or transfer to a suitable re-processing, milling or recycling facility. This focus is reflected in a similar percentage of low level radioactive waste diverted from 2011 to 2013. We conservatively designate all industrial waste generated in the process of uranium mining, milling, and fuel conversion as low level radioactive waste using zone control practices. The amount of low level radioactive waste generated on an annual basis is therefore related to the number of decommissioning and clean-up projects that occur, in addition to industrial activity at the sites.

The 2013 hazardous waste volume was lower as compared with 2012. Hazardous waste is shipped to or picked up by an approved receiver of hazardous waste once an adequate quantity is available. Some of the inter-annual variation in the amount of hazardous waste is related to this practice.

Looking ahead

We will continue to focus on implementing and improving our 4Rs program (reduce, reuse, recycle, recover) to divert waste that is generated by our activities. The amount of waste we generate varies each year in response to the activities occurring at sites and may increase as we expand our operations, increase production, deal with historic waste and progressively decommission our sites.

Definitions

Non-Hazardous Waste: includes domestic, commercial and industrial materials that become waste such as plastic, tin, paper and cardboard, tires, metal, wood pallets, kitchen cooking oil, and wood.

Low Level Radioactive Waste: includes industrial materials that have become contaminated with radioactive material and are more radioactive than clearance levels and exemption quantities allow. This type of waste loses most or its entire radioactivity within 300 years, and includes industrial materials such as protective equipment, paper, cardboard, equipment, tools, metal, plastic, concrete, sand, sludges, insulation, and wood. The low-level radioactive waste we generate does not typically require heavy shielding during handling and interim storage. Shielding refers to a barrier (like a concrete wall or protective clothing) between stored waste and nuclear energy workers.

Hazardous Waste: includes hazardous recyclable materials, and generally means a waste with hazardous properties that may have potential effects to human health of the environment. The hazardous waste we generate includes materials such as used petroleum fuels (oil, diesel, gas), batteries, paint and paint related materials, compressed gas cylinders, and light fixtures.

This indicator provides information about the amount of solid waste generated annually in the form of tailings, water treatment sludge and slime, the net annual change in our unreclaimed waste rock inventory (including mineralized and non-mineralized rock), and the total mine waste generated for each year.

What it means

Cameco’s tailing production has increased in recent years as a result of increased uranium production, increased processing of mineralized waste rock and slightly lower ore grades at Rabbit Lake. Year over year fluctuation in the overall generation of waste rock is the result of several factors, including the types of waste rock that are generated, which affects where it can be re-used, and the number of projects in progress, which affects the amount of aggregate required. In addition to this, new developments at Cigar Lake and McArthur River have brought more waste rock to surface in the past couple of years. Negative values for the total change in unreclaimed waste rock inventories in some years result from reuse of material or reclamation of historical waste rock piles. In 2012, the unreclaimed waste rock inventory increased due to a slope stabilization project for the Deilmann Tailings Management Facility at Key Lake which required the excavation of 3 million tonnes of sand.

Looking ahead

Cameco will continue to repurpose as much waste rock as possible at its operations. Current operating mines at Cigar Lake, Rabbit Lake and McArthur River are underground mines which generate limited volumes of waste rock. Efforts to utilize waste rock as underground backfill, for road construction and other uses help to minimize the increase in inventory. In addition to this, Cameco continues to reclaim historic waste rock piles that were generated from open pit mines. For example, in 2013, our Rabbit Lake Operation completed reclamation of the B-Zone waste rock pile, which resulted in over 8 million tonnes of waste rock being reclaimed.

Note: In 2013, we have changed how we report on this indicator. This was done to increase the quality, transparency, and utility of the data we report. This has necessitated a recalculation and adjustment of much of our historical data.

This indicator provides information about the number of significant environmental incidents. We determine significance based on the incident’s actual or potential environmental impact, or by the level of regulatory and public concern about it.

For incidents that involve a release of material, we report the total quantity of material released and any associated impacts.

What it means

Cameco continues to maintain good control of its operations and successfully limits the number of significant environmental incidents.

Looking ahead

Cameco will continue to strive for no significant environmental incidents at our sites.

Definitions

Significant Environmental Incident: Any environmental incident that results in moderate or significant environmental impacts or current and future remediation costs of greater than $1 million or which have a reasonable potential to result in significant negative impact on the company’s reputation with our major stakeholders.

Note: In our 2013 update, we redefined Significant Environmental Incidents in order to try and more accurately capture an incident’s actual risk. Previously, we defined Significant Environmental Incidents as those which rated as a level IV or V in our environmental effect rating scale. We moved away from this definition however, because it was capturing environmental incidents that had only minor impact on the local environment but were ranked as a level IV or V incident based on the potential impact. As a result of this change, in 2013 we had reduced the number of Significant Environment Incidents previously reported from two in 2009, to one. Upon further review this year, we should have reduced the number of these incidents to zero. None of the 2009 incidents previously reported fit the current definition. Both of those incidents received the proper level of attention as per Cameco’s corrective action process and neither had a significant impact on the environment.

This indicator provides information on the number of “significant environmental fines” that we received for non-compliance with environmental laws and regulations, as well as the total number of “non-monetary sanctions.” It does not include significant environmental fines or non-monetary sanctions that are in the appeals process.

What it means

In 2013, Cameco received two non-monetary sanctions. First, Cameco Resources was issued a notice of violation (NOV) by the Wyoming Department of Environmental Quality (WDEQ) in relation to an excursion from an operational bleed in a portion of a wellfield. A characterization and evaluation plan was agreed to with the WDEQ, and the plan is currently underway. Cameco Resources expects to enter into a settlement agreement with the WDEQ to resolve this NOV.

As well, in 2013, JV Inkai received an order to remedy six non-compliances with the Ecology Code revealed during an audit by regional environmental authorities. The non-compliances related to: insufficient road maintenance; monitoring of exhaust gas emissions on transport vehicles; excess sewerage disposal; excess emissions from two boiler houses; hazardous waste passports not registered in the authorized waste register; and unauthorized storage of construction wastes. JV management developed and implemented a remedy plan to address the non-compliances that was approved by the state authorities, and the items are now closed.

Definitions

Significant Environmental Fine: Fines that exceed CDN $100,000 paid by Cameco or a controlled subsidiary in Canada, the US or Kazakhstan to a government authority for non-compliance with environmental laws or regulations.

Non-Monetary Sanctions: An administrative or judicial sanction levied against Cameco or a controlled subsidiary for non-compliance with environmental laws and regulations. Non-monetary sanctions include, but are not limited to, formal actions issued by regulatory authorities at the level of notices of violation or notices of contravention and above pursuant to a graduated enforcement regime.

Note: We did not track non-monetary sanctions prior to 2012.

This indicator provides information about the total number of employees directly employed by Cameco, broken down by employment type (full- or part-time), contract (regular, temporary or casual) and gender.

JV Inkai (Kazakhstan) employed 560 at year end 2013, but is not included in this indicator. Figures as of December 31 each year.

What it means

Cameco is a large employer, with over 3,300 employees worldwide. We continue to be an employer of choice in Canada, where the majority of our workforce resides, being recognized once again in 2013 as a top 100 employer in Canada, one of Financial Post’s Ten Best companies to work for, as well as one of Canada’s best diversity employers and a top employer for young people.

This indicator provides information about our annual rates of hiring and turnover, and the total number of employees who are hired or leave the organization, by gender and age group.

JV Inkai (Kazakhstan) employed 560 at year end 2013, but is not included in this indicator. Figures as of December 31 each year. For this indicator, we do not include temporary or casual employees.

What it means

Cameco’s turnover rate was higher than average last year as the company went through a corporate restructuring as a result of market pressures. Our turnover rate for this indicator is also higher than in our other public disclosures because we have included the impact of restructuring here. If this was not included here, our turnover rate would have been 8.3%.

Looking ahead

Cameco will continue to hire people on an as-needed basis and also work to keep employee turnover as low as possible through proactive retention and talent management programs.

Definitions

Turnover: The number of employees who resign, are dismissed, or retire while employed by Cameco each year.

Note: For this year’s report, we have removed temporary and casual employees from this indicator and have restated data from 2010-2012 as well to reflect this change. Cameco employs temporary employees on short term contracts and as such they may work several terms over the course of the year which artificially inflates the hiring and turnover percentages.

This indicator provides information about the total number and percentage of Cameco employees who are covered by collective bargaining agreements.

JV Inkai (Kazakhstan) employed 560 at year end 2013, but is not included in this indicator. Figures as of December 31 each year.

What it means

Cameco participates in collective bargaining with its unionized employees in accordance with applicable legislation. Approximately one-quarter of our workforce is covered by collective bargaining agreements.

The following sites have collective bargaining agreements:

• Key Lake
• McArthur River
• Port Hope Conversion Facility
• Cameco Fuel Manufacturing Inc. (Port Hope and Cobourg)

This indicator shows the number and percentage of Cameco’s workers who are represented by formal management-worker occupational health and safety (OHS) committees. These committees help monitor and advise on occupational health and safety programs.

Figures as of December 31 each year. JV Inkai’s workforce numbers (560 at year end 2013) are not represented in the 2013 totals, although all employees there are represented in a formal OHS committee.

What it means

All of Cameco’s employees in Canada, the US, Kazakhstan and Australia are represented by OHS committees.

This indicator provides information about Cameco’s rates of absenteeism, lost-time injuries and work related fatalities. For lost-time injuries and fatalities, we include both employees and contractors in our numbers.

We do not track absentee rates in Australia or Kazakhstan, nor do we track occupational disease rates.

Cameco has had no fatalities at its sites from 2009-2013.

What it means

Cameco continues to maintain a safe working environment for all of its employees. Our LTI rate continues to maintain the overall long-term downward trend we have observed over the past five years. Our safety culture is exemplified by our Blind River location, which in 2013 celebrated seven years LTI free. Cameco’s Crow Butte operation celebrated six years LTI free in 2013.

Looking ahead

Cameco is committed to sustaining safe and healthy workplaces as demonstrated by our excellent safety record. We will continue to strive for zero injuries and maintain a long-term downward trend in the lost-time injury rate. Cameco is currently transitioning to a new method of tracking injuries and anticipates the ability to report the overall injury rate in 2015.

Definitions

Lost-time injury: A work-related injury requiring professional medical assessment and treatment and the employee is not able to return to work for their next scheduled shift. Where there is uncertainty whether the lost-time injury is work related Cameco sites must use the workers compensation decision to accept or deny the claim as the decision criteria. Regulatory acceptance of the lost-time injury claim requires the site to count the injury as work-related.

Lost-time injury rate: Based on the total number of lost-time injuries, you can compute the incidence rate using the following formula: lost-time injury rate = # of LTI cases x (200,000 hours/annual hours worked)

This indicator provides information about the number and percentage of employees who receive formal performance appraisals and career development reviews.

JV Inkai (Kazakhstan) employed 560 at year end 2013, but is not included in this indicator. Figures as of December 31 each year.

What it means

Cameco’s performance management system is guided by four key principles: communication; mutual involvement; consistency; and continual improvement. All of Cameco’s non-unionized employees undertake three formal performance reviews, which include career development discussions, each year.

Definitions

Performance review: A formal meeting between an employee and his or her supervisor, to review and discuss the employee’s performance against goals and expectations established at the start of the year by employees and supervisors.

This indicator provides information about the total number of incidents registered through formal means related to Indigenous rights.

This indicator includes data from Canada, the US and Australia only.

What it means

In 2013, Cameco was named as a defendant in a lawsuit alleging that Cameco’s collaboration agreement with the northern municipality of Pinehouse and the Kineepik Metis Local violated aboriginal and treaty rights. Cameco is vigorously defending the validity of the agreement including bringing an application to strike the statement of claim arguing there is no reasonable cause of action against us.

Looking ahead

Cameco will continue to work with and respect the rights of indigenous peoples wherever we operate through a variety of mechanisms.

Definitions

Incident registered by formal means: Formal allegation of a specific Indigenous rights infringement caused by (or expected to result from) a Cameco project or activity.

This allegation can take the form of

• a complaint filed through a judicial proceeding
• a formal objection filed with the regulator
• activities identified by Cameco’s corporate responsibility team as failing to comply with Cameco’s internal policy directives.

This indicator provides information about the number of Cameco mining and processing operating sites on (or adjacent to) indigenous territories, as well as the percentage of formal agreements in relation to the overall number of our operating sites that are on or adjacent to an Indigenous Territory.

Highlights

Operating Sites Adjacent to Indigenous Territories – Cameco currently has:

• four operating sites in northern Saskatchewan on traditional territory; and
• one operating site in Ontario adjacent to indigenous lands.

Formal Agreements – Cameco currently has:

• Three formal agreements with indigenous communities that apply to its four operating sites in traditional territory in northern Saskatchewan.
• Eighty percent of our operating sites adjacent to indigenous territory are subject to a formal agreement with an indigenous community.

This indicator includes data from Canada, the US and Australia only.

What it means

In northern Saskatchewan, Cameco has entered into three formal agreements with indigenous communities that cover the four operating sites we have on traditional territory. In 1999, we signed an impact management agreement with the communities of the Athabasca Basin, including Black Lake and Fond du Lac Denesuline First Nations along with the four local northern municipalities (Hatchet Lake First Nation has also participated in the programming implementation of that agreement but was not a signatory). We also have collaboration agreements with English River First Nation and the northern village of Pinehouse and the Metis Local situated there. All of these agreements provide indigenous communities with workforce and business development programs, dedicated community engagement programs, community investment monies, and mechanisms to collaborate around environmental stewardship.

Though not considered here as “formal agreements”, Cameco also has:

• several trappers compensation agreements with trappers in northern Saskatchewan who continue to trap on our near our operating sites. These agreements encourage trappers to continue trapping, and provide them with a yearly cash distribution and, for some, an allotment of oil and/or gasoline; and
• a signed memorandum of understanding with the Mississauga First Nation in relation to Cameco’s Blind River refinery in Ontario. The MOU commits the parties to work together co-operatively towards mutual gain, and focuses primarily on socio-economic development projects related to youth, education, health and wellness, and community development.

Definitions

Adjacent
Means the tenure boundaries of an applicable Cameco operating site are physically contiguous with the boundaries of an indigenous territory.

Indigenous Territory
Can mean two things:

1. Indigenous lands: Land in relation to which indigenous peoples hold or formally claim title or an equivalent interest (e.g. the interest in “reserve” land in Canada). This may include areas where ownership is claimed by multiple parties; or
2. Traditional territory: Land on which indigenous peoples (a) historically exercised traditional activities (e.g. hunting, fishing, trapping, or gathering) and (b) still do today.

This indicator provides information about the number and percentage of Cameco operations in Canada, the US and Kazakhstan that have local community engagement activities, impact assessments and development programs.

Community engagement activities

This includes various local community engagement activities that are carried out by Cameco operations to support Cameco’s ‘supportive communities’ measure of success. This would include activities such as community visits, community meetings, events, web materials, investments, print publications, presentations, etc.

Impact assessments

These include socio-economic impact assessments conducted by operations either to meet requirements for environmental impact assessments and/or for standalone local economic impact assessments. These are conducted as required and span an extended timeframe, often over several years.

Development programs

Community development programs are formalized programs or agreements developed with local communities, groups and/or organizations, such as impact management agreements and/or memorandums of understanding. These are developed as required and often span an extended timeframe, over several years.

What it means

Community engagement is an important aspect of operational activities across Cameco sites. Year over year there has been an increase in local community activities, assessments, and programs initiated by our operations. In 2013, Cameco signed a collaboration agreement with English River First Nation in Northern Saskatchewan. The agreement provides a suite of benefits and commitments to English River in return for support of our operations if we fulfill our responsibilities outlined in the agreement.

Looking ahead

Cameco will continue to place a priority on engaging local communities in a myriad of ways wherever we operate. Cameco has a long history of working with local communities through our five pillar strategy, which provides workforce and business development opportunities, as well as a robust community engagement program.

Note: For this indicator we include the Cameco Fuel Manufacturing and Port Hope Conversion facilities as one operation as they operate in the same location.

This indicator provides information about significant disputes relating to the land use and customary rights of local or Indigenous peoples where we operate.

Cameco was not involved in any significant disputes related to land use or customary rights with local communities and Indigenous peoples during the reporting period.

This indicator includes data from Canada, the US and Australia only.

What it means

We respect the rights of indigenous peoples and we invest considerable time in building relationships with local communities through our various engagement activities, including working with communities and traditional land users to understand local land use.

Looking ahead

Cameco will continue to work with Indigenous groups that have an interest in our operations and ensure that we understand and respect their lands, rights and communities.

Definitions

Significant disputes: Disputes that have been elevated to:

• a legal proceeding
• a formal objection filed with the applicable regulator
• a blockade or other form of civil disobedience
• the need to use a dispute resolution mechanism included in an agreement between the community and Cameco.

This indicator looks at the extent to which local communities or indigenous groups used grievance mechanisms to resolve disputes relating to land use and customary rights and the status or outcome of those processes.

Cameco was not involved in any disputes related to land use or customary rights with local communities and indigenous peoples during the reporting period and as a result, no grievance mechanisms were engaged.

What it means

While local communities and indigenous peoples have several grievance mechanisms available to them, we have had no significant disputes relating to land use and customary rights where their use would have been appropriate.

This indicator looks at the number of operations Cameco has with preliminary decommissioning plans, as well as the financial provisions attached to those plans for reclamation activities.

This indicator excludes advanced non-operational sites (Kintyre, Yeelirrie, Millennium), office structures, exploration activities, operations in which Cameco does not have operational control, and operations that Cameco does not own (Springfields). Nor does it include rented facilities that Cameco operates (Cobourg).

What it means

Currently 90% of Cameco’s operations have preliminary decommissioning plans with adequate funding attached, with the exception being JV Inkai in Kazakhstan.

Looking ahead

A decommissioning plan for JV Inkai is currently under development and should be finalized in the next couple of years.

Definitions

Decommissioning Plan: Conceptual plans that describe the activities required after the operating life of a mine that are needed to reclaim the site to defined final end-state objectives and an associated cost estimate for labour, materials, equipment, waste management, environmental assessment, monitoring, and administration to carry out the plan. Regulators review our conceptual decommissioning plan on a regular basis. As the site approaches or goes into decommissioning, a final decommissioning plan is created, which usually requires regulatory approval. This can result in further regulatory process, as well as additional requirements, costs and financial assurances.

This indicator provides information about Cameco’s involvement in public policy development in Canada, the US, Australia and Kazakhstan, and our marketing and business development interests in emerging markets like China and India.

Overview of reporting period (2009-2013)

Cameco is involved in consultation and discussions with government bodies and regulatory agencies where we operate about public policy positions and laws and regulations that affect our business.

These include:

• climate change and clean energy
• environmental assessments and regulatory oversight
• aboriginal rights and the duty to consult
• a national recovery strategy for the woodland caribou
• nuclear industry rules, regulations and international co-operation
• handling and transportation of hazardous goods
• foreign ownership

Industry associations

Cameco is a member of many industry associations, including, but not limited to:

• the Uranium Producers of America
• the Saskatchewan Mining Association
• the Mining Association of Canada
• the Canadian Nuclear Association
• the World Nuclear Association
• Australian Uranium Association

What it means

On many issues, the success of our company intersects with decisions made by governments at the provincial and federal level, and decisions made by foreign governments. Advocating our positions on issues of key importance to the company is at the core of our efforts to inform government decision making. In 2013, Cameco advocated at the federal government level for closer nuclear co-operation with China, India and Kazakhstan. Cameco also continued to advocate for our positions on a number of regulatory issues at both the provincial and federal level, one notable example being the national recovery strategy for the woodland caribou.

This indicator provides information about legal actions initiated against Cameco under national or international law designed to regulate anti-competitive behaviour and address anti-trust or monopoly practices.

This includes information about pending or completed actions and the outcomes of pending or completed actions, including any decisions or judgments.

There were no legal actions initiated against Cameo related to anti-competitive behaviour during the reporting period.

What it means

Cameco is committed to compliance with competition and anti-trust laws everywhere we operate.

This indicator provides information about administrative or judicial fines and non-monetary sanctions levied against Cameco for failure to comply with laws and regulations, including:

• national, sub-national, regional, and local regulations
• international declarations, conventions or treaties.

This includes the total monetary value of significant fines and the number of non-monetary sanctions. It does not include fines or non-monetary sanctions related to environmental or labelling regulations, transportation matters and fines or sanctions we are in the process of appealing.

What it means

In 2012, JV Inkai was ordered to pay additionally accrued taxes as a result of: (a) an unfavourable tax inspection arising from JV Inkai’s interpretation of legislative norms related to the deductibility of interest and foreign exchange expenses where loan principle is spent for investment activities or construction; and (b) reduction of VAT offset due to incorrect issuance/signing of tax invoices by JV Inkai vendors for the period of 2008-2010. JV Inkai appealed the additional accruals but did not succeed. Although these accrued taxes are not considered a fine, JV Inkai was, as a result, required to pay interest penalties in the amount of USD $233,528 for late payment of the accrued taxes in 2012. Following the assessment, JV Inkai started calculating its taxes based on the methodology proposed by the Republic of Kazakhstan tax inspectors. In early 2013, JV Inkai was required to pay additional penalties in the amounts of (a) USD $575,301 and (b) USD $110,707 relating to the same unfavourable tax inspection.

Definitions

Significant fine: Fines that exceed CDN $100,000 paid by Cameco or a controlled subsidiary in Canada, the US, Europe or Kazakhstan to a government authority for non-compliance with government laws or regulations, other than environmental laws and regulations.

Non-Monetary Sanction: An administrative or judicial sanction levied against Cameco or a controlled subsidiary for non-compliance with laws and regulations that results in either (i) a Level IV or V incident under Cameco’s corrective action process standard; or (ii) a criminal conviction for Cameco or one of its controlled subsidiaries.

This indicator provides information about Cameco’s failure to comply with dangerous goods labelling requirements defined by transport regulations and reported to regulatory agencies in Canada, the US, Australia and Kazakhstan.

What it means

Over the past five years, Cameco has had only very minor violations of labelling requirements. In 2013, Cameco had four labelling incidents, two which resulted in warnings. Cameco received warnings for not displaying the proper VRI code on a package and for incorrectly displaying labels on empty drums in storage. The other two incidents, which did not result in warnings, were the result of missing labels on a sample drum, and the other for not having the required placards on a vehicle leaving one of our sites.

Definitions

Labeling non-compliance: The types of information that must be correctly presented on our product labels are:

• radioactive category
• subsidiary hazard(s) – when applicable
• proper shipping name
• UN number – a number issued by the United Nations which is used to quickly identify dangerous substances for emergency response, handling and storage during transport
• VRI code (international vehicle registration code – when applicable)
• name of consignor/consignee
• type and weight of package
• placards

Note: We have restated our historical data to include formal findings included within an internal or regulatory agency inspection report, which we track as incidents resulting in a warning.

This indicator provides information about monetary fines imposed by regulatory agencies for non-compliance with laws and regulations related to providing products and services (transportation and customs related fines) in Canada, the US, Australia and Kazakhstan.

There have been no fines levied against Cameco for non-compliance with transport and customs laws and regulations during the reporting period.

What it means

Cameco complies with all transportation and customs regulations wherever we operate.

Definitions

Provision of products: Transportation of products, on or off-site.

This indicator provides information about the level of public support for Cameco’s operations in Saskatchewan, northern Saskatchewan, Port Hope (Ontario), and the US.

What it means

Cameco continues to enjoy strong support for our operations wherever we operate. 2013 saw our numbers slip slightly in most jurisdictions, except in Wyoming where we saw a 4% increase, but all numbers continue to hover within the norm.

Looking ahead

Cameco will continue to monitor support in all the regions in which we operate. We expect the strong support we receive from the communities in which we operate to continue as we continue to engage communities on our projects, provide financial support of community projects, and provide opportunities to community members through employment and business.

This indicator provides information about the average radiation dose to workers at our mining and milling and fuel services divisions in Saskatchewan, Ontario, Kazakhstan and the US.

What it means

Our average radiation dose to workers remains consistently low at under 1 mSv (by comparison, typical background radiation doses to members of the public are 2-3 mSv per year). Cameco exposure rates are far below the maximum annual dosage limit of 50 mSv and 100 mSv over a five-year dosimetry block (note that the US sites do not have this long-term limit in their regulations).

Looking ahead

We will continue to take appropriate measures to limit and monitor radiation exposures at our operations. It is possible that the average dose may increase somewhat as the workforce at Cigar Lake transitions from construction and development activities to production over the next several years.

Note: The values in the table represent the arithmetic average dose of all employees and contractors at our operations. Another metric used in our annual report is the full-time equivalent average, which normalizes the doses to a standard work year of 2000 hours. Both are valid metrics.

This indicator provides information about Cameco’s scores and ranking in the Globe and Mail’s Board Games, an annual assessment of corporate governance at more than 200 companies in the S&P/TSX index.

The scoring system includes criteria designed to assess practices that go beyond mandatory governance requirements in the areas of board composition, shareholding and compensation, shareholder rights and disclosure.

This is an externally developed assessment process and the methodology used changes from year to year, including in 2013.

What it means

While Cameco’s overall score and ranking dropped from 2012, our governance practices have not weakened. This is an external process that does not allow for company input into the methodology, which often changes from year to year, or the assessment process. In 2013, the methodology changed, additional questions were included and the scoring was modified.