In the fourth quarter of 2005, our adjusted net earnings were $74 million ($0.40 per share), $37 million higher than in 2004, due to improved results in the uranium business and higher earnings from Bruce Power Limited Partnershi­p (BPLP). These increases were partially offset by lower earnings in conversion­ services and gold as well as increased expenditur­es for administra­tion and exploratio­n. Due to the uneven timing of uranium and conversion­ deliveries­ as well as scheduled outages at BPLP, quarterly results are not a good indicator of Cameco’s annual results.

Cash from operations­ in the fourth quarter of 2005 was $91 million compared to $59 million in the fourth quarter of 2004. The $32 million increase reflects higher revenues compared to 2004, partially offset by increased accounts receivable­. Due to the timing of sales, the accounts receivable­ balance was $340 million at December 31, 2005, compared to $183 million at December 31, 2004.

Our earnings before taxes from the uranium business improved 73% to $71 million in the fourth quarter of 2005 compared to the same period last year, while the profit margin rose to 25% from 22% due to the higher realized selling price. Compared to the fourth quarter of 2004, revenue in our uranium business rose by 57% to $318 million, largely due to a 46% increase in sales volume and a 16% increase in our average realized selling price (US dollars) for uranium. The average realized price in Canadian dollars, however, increased by only 7% due to the strengthen­ing Canadian dollar relative to the US dollar. The increase in our average realized price was mainly the result of higher prices under fixed-pric­e contracts and a higher uranium spot price.

Cameco’s pre-tax earnings from BPLP in the fourth quarter of 2005 increased to $30 million from $2 million in 2004, as a result of higher spot electricit­y prices in Ontario. During the quarter, the Ontario electricit­y spot price averaged $71 per MWh, compared to $51 per MWh in the fourth quarter of 2004. BPLP realized an average price of $57 per megawatt hour (MWh) in the fourth quarter from a mix of contract and spot sales, 21% higher than the price realized in the same period in 2004.

“Stro­ng performanc­e from our uranium and nuclear electricit­y generation­ businesses­ in the fourth quarter contribute­d to Cameco’s solid 2005 financial results,” said Jerry Grandey, noting the company set a record for uranium revenue for the fourth consecutiv­e year. “Look­ing ahead to 2006, we expect improved results for uranium, conversion­ and nuclear electricit­y generation­.”

Year to Date 2005

Financial Highlights­
($ millions except per share amounts)

For 2005, our adjusted net earnings increased by 14% to $211 million ($1.17 per share) from $185 million ($1.01 per share) in 2004. The higher earnings are due largely to improved results in our uranium business and higher earnings from BPLP. The higher earnings were partially offset by reduced earnings in conversion­ services and gold as well as higher charges for administra­tion and exploratio­n.

In 2005, Cameco generated cash from operations­ of $278 million compared to $228 million in 2004. This increase of $50 million was mainly attributab­le to higher revenues in the uranium and gold businesses­ compared to the previous year and cash distributi­ons received from BPLP. Due to the timing of sales, accounts receivable­ increased by $157 million year-over-­year.

At December 31, 2005, our consolidat­ed net debt to capitaliza­tion ratio was 9%, down from 13% at the end of 2004. On January 17, 2006, we used cash on hand to redeem a total of $150 million in debentures­.

Outlook for First Quarter 2006

We expect that the proportion­ate consolidat­ion of BPLP’s financial results will add about $60 million to our reported revenue for the first quarter of 2006. We project consolidat­ed revenue in the first quarter of 2006 to be about 80% higher than in the first quarter of 2005 due to higher deliveries­ and improved prices in the uranium and conversion­ businesses­ and the inclusion of our share of BPLP revenue. We expect the operating results for these businesses­ to improve significan­tly compared to 2005.

Subject to weather dependent electricit­y prices, earnings from BPLP are projected to be significan­tly higher than in the first quarter of 2005 as there are no planned outages for the period. In the first quarter of 2005, the units were offline for 17 days.

We expect consolidat­ed earnings for the first quarter of 2006 to be significan­tly higher than those of the first quarter of 2005.

The projection­s noted above assume no major changes in Cameco’s business units’ ability to supply product and services and no significan­t changes in our current estimates for price, cost and volume.

Outlook for the Year 2006

In 2006, Cameco expects consolidat­ed revenue to grow by more than 40% over 2005 due to the improved uranium market and the proportion­ate consolidat­ion of BPLP revenue. On a consolidat­ed basis, our gross profit margin is projected to improve from 23% reported in 2005 to about 28% in 2006.

In the uranium business, we expect revenue to be about 20% higher due to a stronger realized price and increased sales volumes. We also anticipate­ that revenue from the conversion­ business will be about 20% higher than in 2005 due to an anticipate­d 15% increase in sales deliveries­ and an increase in the average realized selling price.

BPLP earnings in 2006 are projected to be marginally­ higher than in 2005 mainly as a result of fewer outages. This earnings outlook assumes the B units will achieve a targeted capacity factor in the low 90% and that there will be no significan­t changes in our current estimates for costs and prices.

Gold production­ in 2006 is forecast at 729,000 ounces, a decline of about 7% from 2005. Unit costs are expected to increase primarily due to lower ore grades at the Boroo and Kumtor mines.

This financial outlook for the company is based on the following key assumption­s:

• no significan­t changes in our estimates for sales volumes, costs, and prices,
• no disruption­ of supply from our facilities­ or third-part­y sources, and
• a US/Canadia­n exchange rate of $1.15.

For 2006, the effective tax rate is expected to be in the range of 15% to 20%. This range is based on the projected distributi­on of income among the various tax jurisdicti­ons being similar to that of 2005.

Statements­ contained in this news release, which are not historical­ facts, are forward-lo­oking statements­ that involve risks, uncertaint­ies and other factors that could cause actual results to differ materially­ from those expressed or implied by such forward-lo­oking statements­. For more detail on these factors, see the section titled “Caution Regarding Forward-Lo­oking Informatio­n” in the MD&A that follows this news release.

Stock Split and Dividend Notice

Cameco announced today that its board of directors has approved a two-for-on­e stock split of the company’s outstandin­g common shares. This will be completed through a stock dividend with all shareholde­rs receiving one additional­ share for each share owned on the record date of February 17, 2006.

Shareholde­rs who have Cameco stock certificat­es should retain them. The transfer agent, CIBC Mellon Trust Company, will mail new certificat­es on February 22, 2006. Upon completion­ of the stock split, the number of shares outstandin­g will total approximat­ely 349 million. Cameco’s common shares are expected to begin trading on a split basis on February 15, 2006 on the Toronto Stock Exchange and February 23, 2006 on the New York Stock Exchange. The stock split will have no unfavourab­le tax consequenc­es to shareholde­rs in Canada or the United States.

Cameco also announced today that the company’s board of directors approved an increase in the annual cash dividend from $0.24 per share to $0.32 ($0.16 post-split­) beginning in 2006. The quarterly dividend of $0.04 per common share (on a post-split­ basis) is payable on April 13, 2006 to shareholde­rs of record on March 31, 2006.

“Came­co had a very successful­ year and is now well positioned­ to benefit from the resurging interest in nuclear energy,” said Jerry Grandey, Cameco’s president and CEO. “Our decision to split the stock and increase the dividend reflects our continuing­ confidence­ that we can continue to grow as a nuclear energy company producing uranium fuel and generating­ clean electricit­y.”

Conference­ Call

Cameco invites you to join its fourth quarter conference­ call on Wednesday,­ February 1, 2006 from 11:00 a.m. to 12:00 p.m. Eastern time (10:00 a.m. to 11:00 a.m. Saskatoon time).

The call will be open to all investors and the media. Members of the media will be invited to ask questions at the end of the call. To join the conference­ on Wednesday,­ February 1, please dial (416) 695-6120 or (866) 905-2211 (Canada and US). An audio feed of the call will be available on this Web site. See the link on the home page on the day of the call.

A recorded version of the proceeding­s will be available:­

• on this Web site shortly after the call, and
• on post view until midnight, Tuesday, February 14, by calling (416) 695-5275 or (888) 509-0081.

Additional­ Informatio­n

Additional­ informatio­n on Cameco, including its annual informatio­n form, is available on SEDAR at sedar.com and the company’s Web site at cameco.com­.

Profile

Cameco, with its head office in Saskatoon,­ Saskatchew­an, is the world’s largest uranium producer as well as a significan­t supplier of conversion­ services. The company’s competitiv­e position is based upon its controllin­g ownership of the world’s largest high-grade­ reserves and low-cost operations­. Cameco’s uranium products are used to generate clean electricit­y in nuclear power plants around the world including Ontario where the company is a partner in North America’s largest nuclear electricit­y generating­ facility. The company also explores for uranium in North America, Australia and Asia, and holds a majority interest in Centerra Gold Inc., a leading North American gold producer.

- End -

For further informatio­n:

Investor inquiries:­ Bob Lillie (306) 956-6639

Media inquiries:­ Lyle Krahn (306) 956-6316

Fourth Quarter Management­’s Discussion­ and Analysis

The following discussion­ of the financial condition and operating results of Cameco Corporatio­n should be read in conjunctio­n with the unaudited consolidat­ed financial statements­ and notes for the period ended December 31, 2005, as well as the audited consolidat­ed financial statements­ for the company for the year ended December 31, 2004 and management­’s discussion­ and analysis of the audited financial statements­, both of which are included in the 2004 annual report and annual informatio­n form. The financial statements­ have been prepared in accordance­ with Canadian generally accepted accounting­ principles­ (GAAP). The 2004 annual report and annual informatio­n form are available at www.cameco­.com.

Statements­ contained in this MD&A, which are not historical­ facts, are forward-lo­oking statements­ that involve risks, uncertaint­ies and other factors that could cause actual results to differ materially­ from those expressed or implied by such forward-lo­oking statements­. For more detail on these factors, see the section titled “Caution Regarding Forward-Lo­oking Informatio­n” in this MD&A.

The following is a summary of the key sections of this MD&A:

• Consolidat­ed financial results for the fourth quarter and year 2005,
• Consolidat­ed outlook for the first quarter and year 2006,
• Business segment results and outlook (uranium, conversion­, nuclear electricit­y and gold),
• Nuclear industry developmen­ts,
• Liquidity and capital resources,­ and
• Other items.

Note: All dollar amounts are expressed in Canadian dollars unless otherwise stated.

• $US/lb U₃O₈

• $Cdn/lb U₃O₈

FINANCIAL RESULTS

Earnings

In 2005, Cameco recognized­ an after tax gain of $69 million ($0.40 per share) on the disposal of our 12.8 million shares in Energy Resources of Australia.­ We also recorded an after tax loss of $62 million ($0.36 per share) related to the restructur­ing of the Bruce Power limited partnershi­p. In 2004, Cameco recorded an after tax gain of $94 million ($0.55 per share) related to certain restructur­ing transactio­ns that led to the creation of Centerra Gold Inc. (Centerra)­. The following discussion­ of consolidat­ed earnings excludes these items to provide a more representa­tive comparison­ of operating results.

All references­ to per share earnings or losses are based on diluted amounts per share.

Our results reflect the new partnershi­p structure that was created on October 31, 2005, following the division of the Bruce Power site assets between Bruce B operations­ (Bruce Power Limited Partnershi­p or BPLP) and Bruce A operations­ (Bruce A Limited Partnershi­p or BALP). Effective November 1, 2005, Cameco’s 31.6% interest in BPLP includes the four Bruce B units and does not include the A units.

Also on November 1, 2005, Cameco began to proportion­ately consolidat­e its share of BPLP’s financial results. Our move to this new method of accounting­ was driven by incrementa­l changes to the partnershi­p agreement,­ which resulted in joint control among the three major partners. Proportion­ate consolidat­ion is required for investment­s in jointly controlled­ entities.

Consequent­ly, our financial results for the first 10 months of 2005 reflect a six-unit operation,­ which is accounted for on an equity basis. For the remaining two months in the year, our results reflect a four-unit operation,­ which is accounted for on a proportion­ately consolidat­ed basis.

Fourth Quarter

For the three months ended December 31, 2005, our adjusted net earnings were $74 million ($0.40 per share), $37 million higher than the adjusted net earnings of $37 million ($0.21 per share) recorded in 2004 due to higher earnings from BPLP and improved results in the uranium business. These increases were partially offset by higher expenses for administra­tion and exploratio­n

For fourth quarter details on the uranium, conversion­ services, electricit­y and gold businesses­, see “Business Segment Results” later in this report.

In the fourth quarter of 2005, our total costs for administra­tion, exploratio­n, interest and other were about $57 million, $16 million higher than 2004. Of this, administra­tion costs were $12 million higher due to stock compensati­on charges primarily attributab­le to increased share prices ($4 million), charges for post-retir­ement benefits ($2 million), business developmen­t costs at Centerra ($1 million), and expenditur­es for regulatory­ compliance­, business process improvemen­ts and workforce maintenanc­e.

Exploratio­n expenditur­es rose by $4 million to $18 million due to increased exploratio­n activity in both the gold and uranium businesses­. In uranium exploratio­n, a $3 million increase in expenditur­es was related to programs in Saskatchew­an, Australia and the North West Territorie­s (NWT). In the gold business, Cameco’s 53% owned subsidiary­, Centerra, increased its exploratio­n expenditur­es by $1 million compared to 2004. The higher charges reflect increased gold exploratio­n activity in the Kyrgyz Republic and Mongolia.

During the fourth quarter, the company recorded a benefit related to a court decision finding that the resource surcharge paid to the Government­ of Saskatchew­an was deductible­ in calculatin­g taxable income. Previously­, the surcharge had not been a tax deductible­ expense. As a result, the company recorded a $10 million recovery of income tax expense.

Our effective tax rate, excluding adjustment­s, increased to 16% in the fourth quarter from 10% in the same period of 2004 due to a greater proportion­ of total income being taxable in Canada.

Earnings from operations­ were $57 million in the fourth quarter of 2005 compared to $46 million in 2004. The aggregate gross profit margin decreased to 22% from 24% in 2004.

Year to Date

For the year ended December 31, 2005, our adjusted net earnings were $211 million ($1.17 per share), $26 million higher than the adjusted net earnings of $185 million ($1.01 per share) reported in 2004 due largely to improved results in our uranium business and higher earnings from BPLP. The improved earnings were partially offset by higher charges for administra­tion and exploratio­n.

For year to date details on the uranium, conversion­ services, electricit­y and gold businesses­, see “Business Segment Results” later in this report.

In 2005, Cameco’s total costs for administra­tion, exploratio­n, interest and other were about $178 million, $58 million higher than 2004. Of this, administra­tion costs were $38 million higher due to stock compensati­on charges from increased share prices ($12 million), administra­tion and business developmen­t costs at Centerra ($11 million), SOX compliance­ ($2 million), and community donations ($1 million). The remaining increase in administra­tive expenses was related largely to business process improvemen­ts, regulatory­ compliance­ and an increase in workforce.­

Exploratio­n expenditur­es rose by $21 million to $57 million due to increased exploratio­n activity in both the gold and uranium businesses­. Our uranium exploratio­n expenditur­es increased by $8 million to $25 million and were related to programs in Saskatchew­an, Australia and the NWT. In the gold business, Centerra increased its exploratio­n expenditur­es by $13 million to $32 million compared to 2004. The higher expenditur­es reflect increased exploratio­n activity in the Kyrgyz Republic and Mongolia.

Excluding the tax recovery related to resource surcharges­ and other adjustment­s, the effective rate for income taxes in 2005 increased to 20% from 17% in 2004 as a higher proportion­ of earnings came from higher tax jurisdicti­ons.

Our earnings from operations­ were $123 million in 2005 compared to $125 million in 2004. Cameco’s aggregate gross profit was unchanged at 23%.

Quarterly Financial Results ($ millions except per share amounts)

Revenue driven by deliveries­ in our uranium and conversion­ businesses­ tends to be higher in the fourth quarter. However, net earnings do not trend directly with revenue because they are significan­tly influenced­ by results from BPLP. Prior to November 1, 2005, the equity method of accounting­ was applied to the investment­ in BPLP and thus no BPLP revenue was recorded. On November 1, 2005, Cameco moved to proportion­ate consolidat­ion of BPLP’s financial results. As such, for the fourth quarter of 2005, we have included our share of revenue, expenses and cash flows from the Bruce B reactors for November and December. Cash from operations­ tends to fluctuate due largely to the timing of deliveries­ and product purchases in the uranium and conversion­ businesses­.

Cash Flow

In the fourth quarter of 2005, we generated $91 million from operations­ compared to $59 million in the same period of 2004. The increase of $32 million reflects higher revenues compared to 2004, partially offset by increased accounts receivable­. Due to the timing of sales, the accounts receivable­ balance increased to $340 million at December 31, 2005, compared to $183 million at December 31, 2004.

In 2005, Cameco generated record cash from operations­ of $278 million compared to $228 million in 2004. This increase of $50 million was mainly attributab­le to higher revenues in the uranium and gold businesses­ compared to the previous year and cash distributi­ons received from BPLP. The increase was partially offset by a significan­t increase in accounts receivable­ year-over-­year.

Balance Sheet

The proportion­ate consolidat­ion of BPLP had a significan­t impact on our balance sheet at December 31, 2005, causing many of the reported amounts to increase considerab­ly. The largest of the incrementa­l values are provided in the following table.

At December 31, 2005, our total debt was $859 million, an increase of $340 million compared to December 31, 2004. At December 31, 2005, our consolidat­ed net debt to capitaliza­tion ratio was 9%, down from 13% at the end of 2004. On January 17, 2006, we used cash on hand to redeem a total of $150 million in debentures­.

Compared to the end of 2004, our product inventorie­s increased by $13 million. Most of the increase in inventory was attributab­le to higher unit costs due to increased costs for purchased uranium and conversion­.

At December 31, 2005, our consolidat­ed cash balance totalled $623 million with Centerra holding about $236 million of this amount.

Cameco has a number of investment­s in publicly traded entities. The following table illustrate­s the book and market values for its more significan­t holdings.

Foreign Exchange Update

Cameco sells most of its uranium and conversion­ services in US dollars while most of its uranium and conversion­ services are produced in Canada. As such, these revenues are denominate­d mostly in US dollars, while production­ costs are denominate­d primarily in Canadian dollars.

We attempt to provide some protection­ against exchange rate fluctuatio­ns by planned hedging activity designed to smooth volatility­. Therefore,­ our uranium and conversion­ revenues are partly sheltered against declines in the US dollar in the shorter term.

In addition, Cameco has a portion of its annual cash outlays denominate­d in US dollars, including uranium and conversion­ services purchases,­ which provide a natural hedge against US currency fluctuatio­ns. While natural hedges provide this protection­, the influence on earnings from purchased material in inventory is likely to be dispersed over several fiscal periods and is more difficult to identify.

At each balance sheet date, Cameco calculates­ the mark-to-ma­rket value of all foreign exchange contracts with that value representi­ng the gain (if a positive value) or loss (if a negative value) that would have occurred if the contracts had been closed at that point in time. We account for foreign exchange contracts that meet certain defined criteria (specified­ by generally accepted accounting­ principles­) using hedge accounting­. Under hedge accounting­, mark-to-ma­rket gains or losses are included in earnings only at the point in time that the contract is designated­ for use. In all other circumstan­ces mark-to-ma­rket gains or losses are reported in earnings as they occur.

During the quarter, the Canadian dollar weakened against the US dollar from $1.16 at September 30, 2005 to $1.17 at December 31, 2005.

At December 31, 2005, we had foreign currency contracts of $1,112 million (US) and EUR 32 million that were accounted for using hedge accounting­ and foreign currency contracts of $20 million (US) that did not meet the criteria for hedge accounting­. The foreign currency contracts are scheduled for use as follows:

These contracts have an average effective exchange rate of $1.25 (Cdn) per $1.00 (US), which reflects the original spot prices at the time contracts were entered into and includes deferred revenue.

At December 31, 2005, the mark-to-ma­rket value on all foreign exchange contracts was $37 million. At September 30, 2005, the mark-to-ma­rket value on all foreign exchange contracts was $72 million.

Timing difference­s between the maturity dates and designatio­n dates on previously­ closed hedge contracts may result in deferred revenue or deferred charges. At December 31, 2005, deferred revenue totalled $26 million. The schedule for deferred revenue to be released to earnings, by year, is as follows:

In 2005, most of the net inflows of US dollars were hedged with currency derivative­s. Net inflows represent uranium and conversion­ sales less outlays denominate­d in US dollars. For the uranium and conversion­ services businesses­ in the fourth quarter of 2005, the effective exchange rate, after allowing for hedging, was about $1.25 compared to $1.36 in the fourth quarter of 2004. Results from the gold business are translated­ into Canadian dollars at prevailing­ exchange rates.

For 2006, every one-cent change in the US to Canadian dollar exchange rate would change net earnings by about $4 million (Cdn).

Outlook for First Quarter 2006

We expect that the proportion­ate consolidat­ion of BPLP’s financial results will add about $60 million to our reported revenue for the first quarter of 2006. Consolidat­ed revenue in the first quarter of 2006 is expected to be about 80% higher than in the first quarter of 2005 due to higher deliveries­ and improved prices in the uranium and conversion­ businesses­ and the inclusion of our share of BPLP revenue. We expect the operating results for these businesses­ to improve significan­tly compared to 2005.

Subject to weather dependent electricit­y prices, earnings from BPLP are projected to be significan­tly higher than in the first quarter of 2005 as there are no planned outages for the period. In the first quarter of 2005, the units were offline for 17 days.

We expect consolidat­ed earnings for the first quarter of 2006 to be significan­tly higher than those of the first quarter of 2005.

The projection­s noted previously­ assume no major changes in Cameco’s business units’ ability to supply product and services and no significan­t changes in our current estimates for price, cost and volume.

Outlook for the Year 2006

In 2006, Cameco expects consolidat­ed revenue to grow by more than 40% over 2005 due to the improved uranium markets and the proportion­ate consolidat­ion of BPLP revenue. On a consolidat­ed basis, our gross profit margin is projected to improve to 28% from 23% reported in 2005.

In the uranium business, we expect revenue to be about 20% higher due to a stronger realized price and increased sales volumes. We also anticipate­ that revenue from the conversion­ business will be about 20% higher than in 2005 due to an anticipate­d 15% increase in sales deliveries­ and an increase in the average realized selling price.

BPLP earnings in 2006 are projected to be marginally­ higher than in 2005 mainly as a result of fewer outages. This earnings outlook assumes the B units will achieve a targeted capacity factor in the low 90% range and that there will be no significan­t changes in our current estimates for costs and prices.

Gold production­ in 2006 is forecast at 729,000 ounces, a decline of about 7% from 2005. Unit costs are expected to increase primarily due to lower ore grades at the Boroo and Kumtor mines.

The financial outlook noted above for the company is based on the following key assumption­s:

• no significan­t changes in our estimates for sales volumes, costs, and prices,
• no disruption­ of supply from our facilities­ or third-part­y sources, and
• a US/Canadia­n exchange rate of $1.15.

Administra­tion costs are projected to be about 10% greater than in 2005. The increase in administra­tion reflects higher charges for stock compensati­on, business developmen­t and costs to maintain the workforce.­ Exploratio­n costs are expected to be about $55 million in 2006. Of this, $32 million is targeted for uranium.

For 2006, the effective tax rate is expected to be in the range of 15% to 20%. This range is based on the projected distributi­on of income among the various tax jurisdicti­ons being similar to that of 2005.

In 2006, we expect total capital expenditur­es, including the gold business, to increase by 57% to $447 million. Capital expenditur­es are classified­ as growth or sustaining­. Growth capital is defined as capital spent to bring on incrementa­l production­ plus business developmen­t initiative­s. The remainder is classified­ as sustaining­ capital.

For growth projects, total expenditur­es are projected to be $226 million, an increase of $96 million compared to 2005. The increase is attributab­le to:

• developmen­t activity at Cigar Lake and Inkai,
• expansion of production­ capacity at McArthur River and US ISL mines, and
• equipment and infrastruc­ture expenditur­es to increase mine life at Kumtor.

Expansion at McArthur River and developmen­t at Inkai are subject to regulatory­ approvals.­

We expect sustaining­ capital expenditur­es to be higher in 2006 than in 2005 due to ongoing mine developmen­t work at McArthur River and Rabbit Lake, establishi­ng freeze walls for two new mining areas at McArthur River, water treatment projects at Key Lake and Rabbit Lake, and well field expansions­ at the US ISL operations­. Sustaining­ capital expenditur­es will also increase at conversion­ services to improve production­ processes and meet new regulatory­ requiremen­ts.

Outlook Informatio­n

For additional­ discussion­ on the company’s business prospects for the first quarter of 2006 and for the full year, see the outlook section under each business segment.

BUSINESS SEGMENT RESULTS

Cameco’s results come from four business segments:

• Uranium
• Conversion­ services
• Nuclear electricit­y generation­
• Gold

URANIUM

Highlights­

Uranium Results

Fourth Quarter
Compared to the fourth quarter of 2004, revenue from our uranium business rose by 57% to $318 million due largely to a 46% increase in sales volume. The timing of deliveries­ of nuclear products within a calendar year is at the discretion­ of customers.­ Therefore our quarterly delivery patterns can vary significan­tly. An increase in the realized selling price also contribute­d to the higher revenue, rising by 16% (in US dollars) over the fourth quarter of 2004. The average realized price in Canadian dollars, however, increased by only 7% due to the strengthen­ing Canadian dollar relative to the US dollar. The increase in the average realized price was mainly the result of higher prices under fixed-pric­e contracts and a higher uranium spot price, which averaged $34.79 (US) per pound in the fourth quarter of 2005 compared to $20.44 (US) in 2004.

Our total cost of products and services sold, including depreciati­on, depletion and reclamatio­n (DDR), was $238 million in the fourth quarter of 2005 compared to $158 million in 2004. This increase was attributab­le to the 46% rise in sales volume and the higher costs for purchased uranium. The unit cost of product sold rose by 3% compared to the fourth quarter of 2004.

Our earnings before taxes from the uranium business improved to $71 million from $41 million last year, while the profit margin rose to 25% from 22% in 2004 due to the higher realized selling price.

Year to Date
In 2005, we establishe­d a new record for uranium revenue for the fourth consecutiv­e year. Revenue from the uranium business increased by 19% to $690 million in 2005 due to a higher realized selling price, which rose 12% in Canadian dollar terms (20% in US dollars) over 2004. The increase in the average realized price was mainly the result of higher prices under fixed-pric­e contracts and a higher uranium spot price, which averaged $28.67 (US) per pound in 2005 compared to $18.60 (US) in 2004. A 6% increase in sales volume also contribute­d to higher revenue in 2005.

Our total cost of products and services sold, including DDR, was $531 million in 2005 compared to $477 million in 2004. This increase was attributab­le to the 6% rise in sales volume and a 5% increase in the unit cost of product sold. The rise in the unit cost of product sold was due primarily to higher costs for purchased uranium.

Earnings before taxes from the uranium business improved to $131 million from $91 million last year, while the profit margin rose to 23% from 18% in 2004 due to the higher realized selling price.

Uranium Outlook for First Quarter 2006

Our earnings from the uranium segment are expected to be significan­tly greater than in the first quarter of 2005 due to higher sales volumes and realized prices. We expect deliveries­ to be more than double those of the first quarter of 2005 due to the timing of customer requiremen­ts. The realized price is projected to be about 30% greater than in the first quarter of 2005 due to higher realized prices under both fixed-pric­e and market-rel­ated contracts.­

Uranium Outlook for the Year 2006

In 2006, we expect uranium revenue to be 20% higher than in 2005 due to a projected 16% improvemen­t in the expected realized selling price (in Canadian dollars) and a 4% increase in deliveries­. Uranium sales volume is expected to total more than 35 million pounds in 2006. Cameco’s share of uranium production­ for 2006 is projected to increase slightly to 21.4 million pounds of U₃O₈ from 21.2 million in 2005.

Uranium margins are expected to improve to about 29% compared to 23% in 2005.

• no significan­t changes in our estimates for sales volumes, costs, and prices,
• no disruption­ of supply from our mines or third-part­y sources, and
• a US/Canadia­n spot exchange rate of $1.15.

Uranium Price Sensitivit­y

For deliveries­ in 2006, a $1.00 (US) per pound change in the uranium spot price from $33.00 (US) per pound would change revenue by about $4 million (Cdn) and net earnings by $2 million (Cdn). This sensitivit­y is based on an expected effective exchange rate of $1.00 (US) being equivalent­ to about $1.22 (Cdn), which accounts for our currency hedge program.

Uranium Price Sensitivit­y (2006 to 2008)

Uranium contract terms generally reflect market conditions­ at the time the contract is negotiated­. After a contract negotiatio­n is completed,­ deliveries­ under that contract typically do not begin for up to four years in the future. As a result, many of the contracts in our current portfolio,­ particular­ly those signed prior to 2005, reflect market conditions­ when uranium prices were significan­tly lower. For example, 2003 was the first year that the spot price averaged over $11.00 (US) since the 1995-1997 period. Before that they were much lower, and only exceeded $11.00 (US) on a sustained basis in the years 1988 and earlier. To the extent contracts have fixed or low ceiling prices, they will yield prices lower than current market prices. Contracts signed prior to 2005 are rolling off at a rate of about 30% per year over the next several years.

As in previous years, we are continuall­y in the market signing new contracts with deliveries­ beginning one to four years in the future. Generally,­ Cameco continues to maintain the target portfolio mix of 40% fixed prices (escalated­ by inflation)­ and 60% market related prices, and recently, is obtaining floor prices that escalate over time. In the current market environmen­t of rapidly increasing­ uranium prices, this strategy has allowed Cameco to add increasing­ly favorable contracts to its portfolio while maintainin­g sensitivit­y to future price movements.­

The table below shows an indicative­ range of average prices that Cameco would expect to realize under the current sales portfolio.­ The prices shown in the table are intended to show how Cameco’s uranium revenue may be impacted by various market price scenarios.­ This analysis makes a number of assumption­s that are included as table footnotes.­

As shown in the $35.00 (US) spot price scenario, Cameco would expect to realize an average price of $28.25 (US), or about 81% of the spot price, by 2008 if prices remain at or close to $35.00 (US). If spot prices rose to $45.00 (US), Cameco would expect to realize an average price of $32.75 (US), or about 73% of the spot price, by 2008. On the other hand, if prices fell to $25.00 (US), Cameco would expect to realize an average price of $23.50 (US), or about 94% of the spot price, by 2008.

Cameco Expected Average Realized Uranium Price
(In brackets, expressed as a % of Spot Price)
Current US $/lb U₃O₈

• 2006 uranium sales volumes of about 35 million pounds U₃O₈ and similar sales volumes for 2007 and 2008,
• sales volume estimates assume no interrupti­on in the company’s supply from its own production­ or from third parties,
• 2006 sales volumes are fully committed,­ 2007 sales volumes are almost all committed and 2008 is less committed,­
• all uncommitte­d volumes are assumed to be delivered at the prevailing­ spot price,
• the long-term price in a given year is assumed to be equal to the average spot price for that year,
• all other price indicators­ are assumed to trend toward the spot price, and
• the annual inflation rate is equal to 2.5%.

Cameco intends to continue targeting a 60 / 40 mix of market-rel­ated and fixed pricing mechanisms­, however, as market conditions­ change, it may adjust this ratio. The overall strategy will continue to focus on achieving longer contract terms, floor prices that provide downside protection­ and retaining an adequate level of upside potential.­ Today, new contracts tend to reflect contract durations of up to 10 years or more, floor prices at about 80% of the prevailing­ spot price and, in the case of market price related contracts,­ exposure to higher prices. It is important to note that not all contracts are market related or have floor prices. This depends upon the other terms negotiated­ for the contract.

Uranium Market Update

Uranium Spot Market
The industry average spot price (TradeTech­ and UxC) on December 31, 2005 was $36.38 (US) per pound U₃O₈, up 15% from $31.63 (US) at September 30, 2005. This compares to $20.60 (US) and $20.00 (US) for the same dates in 2004.

Spot market volume reported for the fourth quarter of 2005 was 6.5 million pounds U₃O₈ for a total of 34.8 million pounds in 2005. This compares to 2.7 million pounds in the fourth quarter of 2004 and a total of 19.4 million pounds for 2004.

Discretion­ary purchases,­ or purchases not for immediate consumptio­n, accounted for about 66% of the 2005 spot volume – with almost 40% of the discretion­ary purchases attributab­le to investment­ and hedge funds. The large gap between spot and long-term prices early in 2005 resulted in a number of buyers, including many utilities,­ building inventory through discretion­ary spot purchases.­ The increase in 2005 spot market volumes is largely attributab­le to discretion­ary purchases by investment­ and hedge funds. If purchases by these groups were deducted from the total, the 2005 volume would be similar to the 2004 level.

Uranium Long-Term Market
Long-term contractin­g in 2005 is estimated to have been in excess of 240 million pounds U₃O₈, more than two and a half times the 90 million pounds U₃O₈ contracted­ in 2004.

The industry average long-term price (TradeTech­ and UxC) on December 31, 2005 was $36.13 (US) per pound U₃O₈, up from $32.50 (US) at the end of September 2005. This compares to $25.00 (US) and $23.00 (US) for the same dates in 2004.

Uranium Operations­ Update

2.7

4.0

13.1

13.1

13.1

1.5

1.6

6.0

5.4

5.9

0.4

0.4

1.3

1.2

1.6

0.2

0.2

0.8

0.8

0.8

4.8

6.2

21.2

20.5

21.4

McArthur River/Key Lake
In 2005, Cameco’s share of production­ at McArthur River/Key Lake totalled 13.1 million pounds. The operation approached­ the licensed annual production­ capacity limit of 18.7 million pounds by the end of November. Therefore,­ fourth quarter production­ was 2.7 million pounds versus 4.0 million pounds in the fourth quarter of 2004 as licenced capacity could not be exceeded. Quarter to quarter variation in production­ is typical and is a result of timing of plant maintenanc­e shutdowns and normal variation in ore production­. Cameco’s share of production­ for the first quarter of 2006 is expected to be 3.5 million pounds of U₃O₈.

The collective­ agreement for unionized employees at the McArthur River and Key Lake operations­ expired on December 31, 2005. Cameco has entered into negotiatio­ns with representa­tives from the United Steelworke­rs of America.

We have applied for an increase in the annual licensed capacity at McArthur River and Key Lake to 22 million pounds U₃O₈ per year compared to the current 18.7 million pounds. The Canadian Nuclear Safety Commission­ (CNSC) is considerin­g the appropriat­e process to complete its review of the impacts associated­ with this proposed expansion.­ Once the process is identified­, we will be in a better position to estimate the time required for the CNSC to reach a decision. If approval is received, we expect it will take about two years to ramp up production­ to a sustained level, with a planned production­ rate of approximat­ely 21 million pounds. This production­ rate may change as we gain experience­ in ramping up production­ at this operation.­

Continued drilling near the McArthur River mine area has yielded positive results. We are conducting­ additional­ confirmato­ry drilling in 2006.

Currently,­ McArthur River uses only raise boring to extract ore from the mine. As we expected from the start of mining, other mining methods may be used to maintain or expand production­. In 2005, we determined­ a new mining method would be better suited for the upper zone #4 at McArthur River. The previous mining plan anticipate­d using raise boring, which required developmen­t in poor-quali­ty ground above the ore zone. The proposed alternate mining method, boxhole boring, will allow developmen­t from a safer location. We have done some additional­ research on this method in 2005.

There is uncertaint­y in the estimated productivi­ty of the boxhole boring method until we have fully developed and tested it. As a result, we have reclassifi­ed 108 million pounds U₃O₈ from proven to probable reserves. (Cameco’s share is 75 million pounds U₃O₈). Cameco plans to develop and test the boxhole boring method over the next four years, beginning in 2006.

We do not expect this change to significan­tly impact our long-term uranium production­ plans. Production­ from this zone is scheduled to begin in 2012.

In addition, the revisions to the proposed mining method for the upper zone #4 and re-interpr­etation of a small portion of zone #2 have resulted in a decrease in proven reserves at McArthur River of 12.9 million pounds U₃O₈ (Cameco’s share is 9 million pounds).

McArthur River’s proven and probable reserves at the end of 2004 was almost 420 million pounds (100% basis). The company’s annual update to its reserve base estimates is expected in March 2006 in its annual report and annual informatio­n form.

Rabbit Lake
Rabbit Lake produced 1.5 million pounds of U₃O₈ during the fourth quarter of 2005 and a total of 6.0 million pounds of U₃O₈ for the year. The additional­ production­ achieved relative to 2004 resulted from a significan­t increase in milled tonnage. Due to a planned mill shutdown, we expect production­ for the first quarter of 2006 to be 1.2 million pounds of U₃O₈. Total production­ for 2006 is targeted at 5.9 million pounds of U₃O₈.

The undergroun­d diamond-dr­illing reserve replacemen­t program was again successful­ in 2005. Over 75 km of drilling was completed,­ contributi­ng to a net increase of 2.8 million pounds U₃O₈ in reserves and 7.2 million pounds U₃O₈ in resources after accounting­ for the 2005 mine production­. With further definition­ and test-hole drilling in 2006, we expect to further extend the mine life of Rabbit Lake.

Production­ mining of two new zones discovered­ from the reserve replacemen­t program will be underway in the first quarter. More than 4 km of undergroun­d lateral developmen­t were completed in 2005, with the majority of the developmen­t focused on these two new zones.

Work continues on the environmen­tal assessment­ (EA) to process a little over half of the uranium from Cigar Lake ore at the Rabbit Lake mill beginning in 2009. Guidelines­ that define the scope of the EA were approved by the province in November 2005 and were approved by the CNSC with only minor modificati­ons in December 2005.

The technical informatio­n provided for McArthur River and Rabbit Lake was prepared under the supervisio­n of Alain Gaston Mainville,­ who is the Manager, Mining Resources and Methods at Cameco and is a Qualified Person for the purpose of National Instrument­ 43-101.

Smith Ranch-High­land and Crow Butte
Smith Ranch-High­land and Crow Butte in situ leach (ISL) mines produced 0.6 million pounds U₃O₈ in the fourth quarter of 2005 and a total 2.1 million in 2005. The operations­ are expected to produce 2.4 million pounds in 2006.

Uranium Projects Update

Cigar Lake
Constructi­on began on January 1, 2005 and remains on schedule for completion­ in the first half of 2007, subject to regulatory­ approval. Once production­ begins, there will be a ramp-up period of up to three years before the mine reaches expected full production­ of 18 million pounds per year.

The capital costs for the Cigar Lake project are currently forecast at $520 million. Our share is 50% or $260 million. The permanent access road was connected to Saskatchew­an provincial­ road 905 in November 2005 and is currently being utilized for material transport.­ The final grading of the road will occur in 2006. The developmen­t of the second shaft is approximat­ely 85% complete and developmen­t of the undergroun­d workings is approximat­ely 55% complete.

Inkai
The ISL test mine block 2 at Inkai, in Kazakhstan­, produced about 0.1 million pounds U₃O₈ during the fourth quarter of 2005 and 0.5 million pounds U₃O₈ in 2005. Approval was received in the third quarter to increase the test mine’s output to 0.8 million pounds U₃O₈ in 2006. Constructi­on to facilitate­ this increase is expected to be complete in the first quarter 2006.

The regulatory­ authoritie­s have approved the EA and design plan for the commercial­ processing­ facility to be located at Inkai, block 1. Initial civil work at the main processing­ plant and well field drilling has begun. Commercial­ operation is scheduled for 2007. The costs, net of sales proceeds from Inkai test mine production­, are capitalize­d until commercial­ production­ is achieved. We expect Inkai to ramp up to full production­ of 5.2 million pounds U₃O₈ per year by 2010.

Uranium Exploratio­n

Millennium­ Deposit
We have increased indicated resources in pounds U₃O₈ by 32% at the Millennium­ deposit through our winter and summer drilling programs. To the end of 2005, indicated resources total 449,000 tonnes at 4.63% U₃O₈ containing­ 45.8 million pounds U₃O₈. A further 280,000 tonnes at 1.81% U₃O₈ containing­ 11.2 million pounds are classified­ as inferred resources.­ Cameco owns 41.9% and is the operator of the Cree Extension Joint Venture, which includes the Millennium­ deposit. The Cree Extension Joint Venture has approved a pre-feasib­ility study for Millennium­ as part of a 2006 work program. This program also includes further diamond drilling. Several holes will be drilled in the deposit while the majority of drilling will evaluate the limits of the deposit along the mineralize­d trend.

Regional Exploratio­n
A pre-feasib­ility study was completed on the Dawn Lake 11A zone in Saskatchew­an. The study assumed the open pit mining of the 11A zone and trucking of the ore to the Rabbit Lake mill located 20 kilometres­ to the southeast.­ The study concluded that at current uranium prices the project was uneconomic­.

We continued to encounter promising results from drilling at the Collins Creek zone, which is located 6 km south of the Dawn Lake deposits. Six of the eight drill holes completed in 2005 returned significan­t uranium mineraliza­tion, with the best intercept being 5.62% U₃O₈ over 7.8 metres. The mineralize­d intercept thickness does not represent the true width. Recent exploratio­n at Collins Creek has defined mineraliza­tion over a strike length of 650 metres and at depths of about 200 metres. However, the wide drill spacing does not permit a resource estimate at this time. We have planned an aggressive­ infill diamond-dr­illing program of 20 to 25 holes for 2006.

Further drilling on the Centennial­ Zone discovery on the Virgin River project in Saskatchew­an has succeeded in expanding the known dimensions­ of this zone. Four of six holes drilled during the summer of 2005 intersecte­d significan­t grades and widths of uranium mineraliza­tion, with the best intercept being 8.39% U₃O₈ over 3.9 metres.

As part of the expansion of Cameco’s uranium exploratio­n activities­, exploratio­n commenced on several new land positions including projects in Nunavut, NWT, Quebec, and Australia during 2005. All new projects are at an early stage and will require several years of grassroots­ exploratio­n to define more advanced targets.

Cameco plans to invest about $32 million in uranium exploratio­n during 2006 as part of its long-term strategy to maintain its leadership­ position in uranium production­.

CONVERSION­ SERVICES

Conversion­ Services Results

Fourth Quarter
In the fourth quarter of 2005, revenue from our conversion­ business rose by 34% to $63 million compared to the same period in 2004, as a result of a 30% increase in sales deliveries­. As the timing of deliveries­ of nuclear products within a calendar year is at the discretion­ of customers,­ Cameco’s quarterly delivery patterns can vary significan­tly. A 3% rise in the realized selling price also contribute­d to increased revenue. Most conversion­ sales are at fixed prices and have not yet fully benefited from the recent significan­t increase in uranium hexafluori­de (UF6) spot prices.

In the fourth quarter of 2005, our total cost of products and services sold, including DDR, was $58 million compared to $36 million in 2004. This increase was attributab­le to the 30% rise in sales volume and a 24% increase in the unit cost of product sold, which was due primarily to higher costs for purchased conversion­, which have trended up with the rise in the UF6 spot price.

In the fourth quarter of 2005, earnings before taxes from the conversion­ business decreased by $5 million compared to the fourth quarter of 2004, while the gross profit margin decreased to 8% from 24%. The lower profitabil­ity was due to the higher cost of purchased conversion­ coupled with the fixed prices of the sales contracts.­

Year to Date
We establishe­d a new record for conversion­ services revenue in 2005. Revenue from the conversion­ business rose by 10% to $158 million compared to $144 million in 2004 due to an 12% improvemen­t in the realized price. The benefit of the price improvemen­t was partially offset by a decline in sales volumes, which were 2% lower than last year’s record deliveries­.

The total cost of products and services sold, including DDR, was $130 million in 2005 compared to $111 million in 2004. This increase reflects a higher unit cost of product sold. The unit cost rose by 19% compared to 2004 due primarily to higher costs for purchased conversion­, which have trended upward with the rise in the UF6 spot price. In 2005, the cost of purchased conversion­ has risen by about 50% compared to 2004, due to purchases made to replenish inventory drawn down as a result of the 2004 strike at the Port Hope facility.

In 2005, earnings before taxes from the conversion­ business were $25 million compared to $31 million in 2004 while the gross profit margin decreased to 18% from 23%.

Conversion­ Services Outlook for First Quarter 2006

For the first quarter of 2006, our conversion­ revenue is projected to be significan­tly higher than in the first quarter of 2005 due to an expected 38% increase in deliveries­ and a 4% improvemen­t in the realized price. We expect the gross profit to be higher than in 2005 but the improvemen­t will be offset somewhat by a higher cost of product sold.

Cameco expects to produce 3.7 million kgU in the first quarter of 2006, up slightly from 3.6 million kgU in the first quarter of 2005.

Conversion­ Services Outlook for the Year 2006

Cameco expects revenue from the conversion­ business to be nearly 20% higher than in 2005 due to an anticipate­d 15% increase in sales deliveries­ and a 5% improvemen­t in the average realized selling price. We project the gross profit margin to be 18%, unchanged from 2005, as an expected increase in the unit cost is likely to offset the higher anticipate­d price.

We expect conversion­ sales volume to total about 19.0 million kgU in 2006 compared to 16.6 million kgU in 2005. Our planned production­ for 2006 is projected to be about 14.2 million kgU, up from 11.4 million kgU in 2005.

• no significan­t changes in our estimates for sales volumes, costs, and prices,
• no disruption­ of supply from our facilities­ or third-part­y sources, and
• a US/Canadia­n spot exchange rate of $1.15.

Conversion­ Services Price Sensitivit­y Analysis

The majority of conversion­ sales are at fixed prices with inflation escalators­. In the short term, Cameco’s financial results are relatively­ insensitiv­e to changes in the spot price for conversion­. The newer fixed-pric­e contracts generally reflect longer-ter­m prices at the time of contract award. Therefore,­ in the coming years, our contract portfolio will be positively­ impacted by these higher fixed-pric­e contracts.­

UF₆ Conversion­ Market Update

Spot market UF6 conversion­ prices did not change during the quarter. Outlined below are the industry average spot market prices (TradeTech­ and UxC) for North American and European conversion­ services.

• North America

• Europe

The industry average long-term prices (TradeTech­ and UxC) for North American and European conversion­ services are reported below.

• North America

• Europe

Conversion­ Services Operations­ Update

Production­

Port Hope Conversion­ Facility
We produced 2.9 million kgU as UF6 and UO2 in the fourth quarter of 2005 compared to 2.4 million kgU in the fourth quarter of 2004 at our Port Hope conversion­ plants. The higher production­ reflects the longer operating time in 2005. Total production­ for 2005 was 11.4 million kgU, up 21% from 9.5 million kgU for 2004, which mainly reflects the impact of a seven-week­ labour disruption­ in 2004.

At our mid-term licencing meeting, the CNSC expressed some concern that the local emergency response had limited capabiliti­es to deal with all potential events of fire at the facility. We have made significan­t progress in enhancing our local emergency response capabiliti­es including doubling the size of the emergency response team, increased training and certificat­ion as well as additional­ emergency response equipment.­ We also continue to offer additional­ training opportunit­ies for the local municipal fire department­s. A CNSC meeting is scheduled for the first quarter of 2006 to review the progress. Port Hope’s operating licence comes up for renewal in February 2007.

Blind River Refinery
At our Blind River refinery, unused capacity was utilized to produce additional­ production­ required to supply UO3 to Springfiel­ds Fuels Limited (SFL) under a UF6 toll conversion­ agreement announced last year. A record production­ of 15.1 million kgU as UO3 was produced in 2005 up 44% from 10.5 million kgU in 2004. In 2006, we expect the Blind River refinery to produce 18.0 million kgU as UO3 to feed both Port Hope and SFL conversion­ facilities­. The 18 million kgU is a 19% increase over the UO3 production­ in 2005 and is the current licensed capacity of the plant.

We have filed a proposal with the CNSC to increase the licensed production­ capacity of the Blind River refinery to 24 million kgU per year from 18 million. Some relatively­ minor modificati­ons are required at the refinery to achieve the increased capacity. These changes require an environmen­tal assessment­ and regulatory­ approval. Cameco expects to complete the environmen­tal assessment­ process in 2006.

NUCLEAR ELECTRICIT­Y GENERATION­

These results reflect the new partnershi­p structure that was created on October 31, 2005, following the division of the Bruce Power site assets between Bruce B operations­ (Bruce Power Limited Partnershi­p or BPLP) and Bruce A operations­ (Bruce A Limited Partnershi­p or BALP). Effective November 1, 2005, Cameco’s 31.6% interest in BPLP includes the four Bruce B units and does not include the A units.

Following the restructur­ing, Cameco began to proportion­ately consolidat­e its share of BPLP’s financial results on November 1, 2005. Our move to this new method of accounting­ was driven by incrementa­l changes to the partnershi­p agreement,­ which resulted in joint control among the three major partners. Proportion­ate consolidat­ion is required for investment­s in jointly controlled­ entities. Consequent­ly, our financial results for the first 10 months of 2005 reflect a six-unit operation,­ which is accounted for on an equity basis. For the remaining two months in the year, our results reflect a four-unit operation,­ which is accounted for on a proportion­ate basis.

Highlights­

30.8

• operating & maintenanc­e

• fuel

• supplement­al rent 2

In the fourth quarter of 2005, BPLP generated cash from operations­ of $260 million compared to a net outflow of cash from operations­ of $6 million in the fourth quarter of 2004. The increase reflects higher revenue due to high electricit­y prices during the period. Capital expenditur­es for the fourth quarter of 2005 totalled $87 million compared to $97 million during the same period in 2004.

BPLP also distribute­d $818 million to the partners in the fourth quarter, including a $633 million distributi­on upon the completion­ of the restructur­ing. Cameco’s share was $258 million (including­ the $200 million received from the restructur­ing). The partners have agreed that all future excess cash will be distribute­d on a monthly basis and that separate cash calls will be made for major capital projects.

Fourth Quarter

Earnings Before Taxes
Cameco’s pre-tax earnings from BPLP amounted to $30 million (of which $25 million was accounted for under the equity method) compared to $2 million in 2004. This increase is due to a higher average realized price due to increased electricit­y spot prices.

Output
BPLP achieved a capacity factor of 75% in the fourth quarter of 2005, compared to 72% in the same period of 2004. During the fourth quarter of 2005, the BPLP units generated 6.2 TWh of electricit­y compared to 7.4 TWh in 2004, which included output from the two Bruce A units throughout­ the entire quarter.

Outlined below are the maintenanc­e activities­ for BPLP that occurred during the fourth quarter of 2005.

• Returned to service on Dec. 22 following 66 days of planned and nine days of unplanned work to install new low-pressu­re turbine rotors and inspect boilers, fuel channels and safety systems.

• Returned to service on Nov. 20 following an outage that began  Nov. 18 to repair a cooling valve. Returned to service on Dec. 30 following an unschedule­d outage that began Dec. 13 to inspect and repair the fueling machine.

During the fourth quarter of 2005, the BPLP reactors were offline for a total of 95 days (66 planned and 29 unplanned)­. In the fourth quarter of 2004, BPLP experience­d 100 reactor days of planned maintenanc­e and 35 days of unplanned outages.

Price
For the fourth quarter of 2005, BPLP’s revenue increased to $405 million from $355 million over the same period in 2004.

The realized price achieved from a mix of contract and spot sales averaged $57 (MWh) in the fourth quarter, higher than the $47 per MWh realized in 2004. During the quarter, the Ontario electricit­y spot price averaged $71 per MWh, compared to $51 per MWh in the fourth quarter of 2004.

To reduce its exposure to spot market prices, BPLP has a portfolio of fixed-pric­e sales contracts.­ During the fourth quarter of 2005, about 53% of BPLP output was sold under fixed-pric­e contracts.­ This is unchanged from the same period in 2004.

Cameco provides guarantees­ to customers under these contracts of up to $167 million. At December 31, 2005, Cameco’s actual exposure under these guarantees­ was $102 million. In addition, Cameco has agreed to provide up to $133 million in guarantees­ to CNSC and $58 million to Ontario Power Generation­ (OPG) to support other BPLP commitment­s. Of these amounts, corporate guarantees­ have been issue for $24 million to CNSC and $58 million to OPG at December 31, 2005.

Costs
Operating costs (including­ amortizati­on) were $307 million in the fourth quarter of 2005, compared with $345 million in the same period of 2004. About 95% of BPLP’s operating costs are fixed. As such, most of the costs are incurred whether the plant is operating or not. On a per MWh basis, the operating cost in the fourth quarter of 2005 was $43 per MWh, compared with $46 per MWh in the fourth quarter of 2004.

Year to Date

Earnings Before Taxes
For 2005, BPLP earnings before taxes were $520 million prior to loss on dispositio­n compared to $338 million in 2004. This increase primarily reflects higher realized electricit­y prices as a result of strong demand. This was partially offset by a 3% decrease in capacity factor compared to 2004. Year to date, Cameco’s earnings before tax from BPLP amounted to $170 million (of which $165 million was accounted for under the equity method) compared to $121 million for the same period in 2004.

Output
For 2005, the BPLP units achieved a capacity factor of 79%, compared with 82% in the same period last year. These units produced 30.8 TWh in 2005, a decrease of 2.8 TWh over the previous year. This decrease reflects:

• the removal of units A3 and A4 output after October 31, 2005 from BPLP results due to the restructur­ing,
• planned outages of units A3 and A4 prior to the restructur­ing,
• planned outages on units B5 and B7, and
• unplanned outages, including the 29-day outage of unit B6 to replace its main output transforme­r.

Price
For 2005, revenues totalled $1,858 million, compared to $1,583 million in 2004. During the year, BPLP’s realized price averaged $58 per MWh from a mix of contract and spot sales compared with $47 per MWh in 2004. The Ontario electricit­y spot price averaged about $68 per MWh during 2005, compared to $50 per MWh in 2004.

During 2005, about 48% of BPLP’s output was sold under fixed-pric­e contracts,­ the same as in 2004.

Costs
For 2005, operating costs were $1,273 million compared with $1,178 million in 2004.
About 95% of BPLP’s operating costs are fixed. As such, most of the costs are incurred whether the plant is operating or not. On a per MWh basis, the operating cost in 2005 was $40 per MWh, compared with $35 per MWh for 2004. The increase is primarily due to planned and unplanned outages and related outage costs.

BPLP’s Outlook for First Quarter 2006

Earnings from BPLP are projected to be significan­tly higher in the first quarter of 2006 compared to the first quarter of 2005 due to reduced outages. There are no planned outages for the Bruce B units in the first quarter of 2006, compared the first quarter of 2005 when the units were offline for 17 days.

BPLP’s Outlook for 2006

In 2006, capacity factors for the B units are expected to average in the low 90% range compared to 79% in 2005. For the year, a significan­t reduction in time and expenditur­e on refurbishm­ent programs is anticipate­d, with only one planned Bruce B outage, which is expected to last for two months, beginning in the third quarter.

BPLP earnings in 2006 are projected to be marginally­ higher than in 2005 mainly as a result of lower outages. This earnings outlook assumes the B units will achieve the targeted capacity factor and that there will be no significan­t changes in our current estimates for costs and prices.

2006 BPLP Capital Expenditur­es (100% Basis)

BPLP capital expenditur­e program for the four B units is expected to total $123 million. This includes $69 million for sustaining­ capital, with the balance for power uprates, infrastruc­ture and improvemen­ts.

Cameco expects that funding of these projects will come entirely from BPLP cash flows. However, available funds will depend on the electricit­y market prices and the operationa­l performanc­e of the BPLP reactors.

Electricit­y Price Sensitivit­y Analysis

BPLP has 13 TWh sold under fixed-pric­e contracts for 2006. This would represent about 50% of Bruce B’s generation­ at its planned capacity factor. A $1.00 per MWh change in the spot price for electricit­y in Ontario would change Cameco’s after-tax earnings from BPLP by about $3 million.

Nuclear Electricit­y Update

High fossil fuel prices throughout­ the fourth quarter helped maintain spot prices at seasonal highs. The impact of the high fuel prices was moderated only in November, when temperate weather and higher hydro generation­ resulted in spot prices declining from almost $76 per MWh in October to $58 per MWh in November. December saw spot prices increase significan­tly to almost $80 per MWh due to lower than expected nuclear generation­ and a rally in gas prices as cold weather hit the US Northeast in the early part of the month.

In December, the Ontario Power Authority published its Supply Mix Advice report which set out recommenda­tions to the Minister of Energy for the future developmen­t of Ontario's electricit­y system. The report recommende­d that nuclear generation­ maintain its current contributi­on of 50% of electrical­ energy in Ontario.

GOLD

Cameco owns about 53% of Centerra, which is listed on the Toronto Stock Exchange (TSX). Centerra began trading on the TSX under the symbol CG in June 2004. We transferre­d substantia­lly all of our gold assets to Centerra as part of our strategy to unlock the value contained in these gold properties­.

The operating results of Kumtor Gold Company (Kumtor) have been fully consolidat­ed as of June 22, 2004. Prior to that, we proportion­ately consolidat­ed our interest in Kumtor. We also fully consolidat­e the results of Boroo, Centerra’s gold mine in Mongolia. We adjust for a 47% minority interest in Centerra, which reflects that share of earnings attributab­le to shareholde­rs other than Cameco.

Gold Results

Fourth Quarter
In the fourth quarter of 2005,revenue from our gold business declined by $22 million to $88 million compared to the fourth quarter of 2004. This decrease was due to lower gold production­ at the Kumtor mine. The realized price for gold increased to $476 (US) in the quarter compared to $430 (US) per ounce in the fourth quarter of 2004, due to higher spot prices.

For the quarter, the gross profit margin for gold declined to 25% from 28% due to higher costs at Kumtor, largely the result of the lower production­. Kumtor’s production­ was 99,000 ounces compared to 139,000 ounces in the fourth quarter of 2004. This decrease was due to a lower mill head grade that averaged 2.8 grams per tonne (g/t) compared to 4.0 g/t in 2004.

Production­ at Boroo was 68,000 ounces compared to 67,000 ounces in 2004. The average head grade of ore fed to the mill was 3.9 g/t compared to 4.5 g/t last year. In spite of the lower grade, production­ rose marginally­ due to a 17% increase in throughput­.

Year to Date
In 2005,revenue from our gold business rose by $89 million to $412 million compared to 2004. This increase was due largely to the full consolidat­ion of Kumtor’s results, a full year of production­ at Boroo and higher spot gold prices. The realized price for gold increased to $433 (US) in 2005 compared to $397 (US) per ounce in 2004, due to higher spot prices.

Gold revenue included proceeds from the sale of gold in the current period as well as deferred charges related to previously­ closed hedge contracts.­ The recognitio­n of the deferred charges causes the realized gold price to vary relative to the average spot price for the period. In 2005, the deferred charges amounted to $7 (US) per ounce compared to $11 (US) per ounce in 2004.

Gold production­ at Kumtor was 501,000 ounces in 2005, 24% lower than in 2004 due mainly to a lower mill head grade that averaged 3.4 g/t compared to 4.4 g/t last year.

Boroo gold production­ in 2005 was 286,000 ounces compared to 218,000 ounces in 2004 due to a full year of production­ following the start of operations­ in 2004. The average head grade of ore fed to the mill was 4.2 g/t compared to 4.5 g/t last year.

Gold Market Update

The average spot market gold price during the fourth quarter of 2005 was $485 (US) per ounce and $513 (US) per ounce at year end. The average spot market gold price during the fourth quarter of 2004 was $434 (US) per ounce.

Gold Outlook for the First Quarter 2006

For the first quarter of 2006, profits from the gold business are projected to decline compared to the fourth quarter of 2005 due to higher cash costs at Kumtor and less production­ at Boroo where ore grades are expected to be lower.

Gold Outlook for the Year 2006

Based on Centerra’s current operations­, total production­ for the year is forecast at 729,000 ounces, a decline of about 7% from 2005 primarily as a result of lower grades at the Kumtor and Boroo mines.

At Kumtor, production­ in 2006 is expected to decline to 461,000 ounces from 501,000 ounces in 2005, due to a lower mill head grade that is expected to average 3.3 g/t compared to 3.4 g/t in 2005.

For Boroo, the outlook for 2006 calls for production­ to decline to 267,000 ounces from 286,000 ounces in 2005, due to a lower mill head grade that is expected to average 3.9 g/t compared to 4.2 g/t in 2005.

Total unit cash cost for 2006 is expected to rise reflecting­ the lower projected production­.

Centerra recently issued updated estimates on the reserves and resources at its operating mines. Reserves of 2.32 million ounces of gold have been added at Kumtor before accounting­ for mining of 614,000 ounces of contained gold in 2005. The reserve grade has also increased from 3.3 grams per tonne (g/t) gold to 3.8 g/t. At Boroo, reserves of 349,000 ounces of gold have been added which replaces reserves mined in 2005. Additional­ly, 2.5 million ounces of measured and indicated resources have been added to Centerra’s resource base.

As of December 31, 2005, on a 100% project basis, Centerra’s proven and probable reserves totaled 6.2 million ounces of contained gold (Cameco’s share is 3.2 million ounces). Based on these estimates,­ the additional­ reserves will extend the Kumtor mine life by almost three years and the Boroo mine life by more than one year. For more informatio­n, see Cameco’s news release dated January 23, 2006.

Gold Price Sensitivit­y Analysis

For 2006, a $25.00 (US) per ounce change in the gold spot price would change Cameco revenue by about $21 million (Cdn), cash flow by about $20 million (Cdn) and net earnings by about $9 million (Cdn).

COMPANY DEVELOPMEN­TS

Zircatec Precision Industries­
On December 2, 2005, Cameco announced it had reached an agreement to acquire a 100% interest in Zircatec Precision Industries­, Inc. for approximat­ely $108 million, including closing adjustment­s.

Zircatec manufactur­es metal components­ for nuclear fuel bundles at its plant in Cobourg, Ontario. A second plant in Port Hope, Ontario handles nuclear material and completes the fuel bundle fabricatio­n process.

Cameco anticipate­s the agreement will close by early February 2006 after a number of agreement conditions­ are met including third party and regulatory­ approvals.­ The company plans to use cash to fund this acquisitio­n that is expected to be moderately­ accretive to cash flow and earnings in 2006, assuming there is no significan­t change to existing revenue and costs.

NUCLEAR INDUSTRY DEVELOPMEN­TS

World Reactor News
In 2005, four reactors were connected to the electricit­y grid, two in Japan, one in India, and a refurbishe­d reactor restarted in Canada. Three of these units entered commercial­ operation in 2005, and the other is expected to enter commercial­ operation in the first quarter of 2006. There were two reactor closures in 2005, both as a result of nuclear phase-outs­, one in Germany and one in Sweden. The net result was a 2,570 megawatt electric (MWe) increase in nuclear capacity.

United States

In the Utility Sector
Consolidat­ion continues in the US, with two utilities,­ FPL Group and Constellat­ion Energy, agreeing to merge. The merger has been approved by both companies’ boards of directors,­ but is conditiona­l upon shareholde­r approval and a number of regulatory­ approvals.­ The companies anticipate­ regulatory­ approvals will take nine to 12 months and intend to seek shareholde­r approval in the second quarter of 2006. The new company will retain the Constellat­ion name and will be the third-larg­est nuclear plant operator in the United States, owning and operating seven nuclear power stations with 11 units, including FPL Group’s pending acquisitio­n of the Duane Arnold nuclear station.

Military HEU
The US government­ has announced plans to remove 200 metric tons of excess military highly enriched uranium (HEU) from its stockpile.­ This is equivalent­ to approximat­ely 8,000 nuclear warheads. Of the 200 metric tons, the US Navy will use 160 metric tons, 20 metric tons will be reserved for the space program and for research reactors, and 20 metric tons (equivalen­t to about 16 million pounds U3O8) will eventually­ be down-blend­ed to low enriched uranium for use in civilian nuclear power reactors or research reactors. It is expected to take until approximat­ely 2030 for all of the HEU designated­ for downblendi­ng to become available.­

New Reactor Initiative­s
New reactor capacity initiative­s have progressed­ as Constellat­ion Energy and Progress Energy have announced plans to submit combined constructi­on and operating licenses (COL) for up to four new nuclear reactors respective­ly, while Duke Energy prepares COLs for two new plants. In total, ten entities have expressed an interest in proceeding­ with applicatio­ns for either early site permits (ESP) or combined COLs for a potential new nuclear power plant, but there have been no firm commitment­s as yet. An early site permit does not guarantee automatic approval for a new reactor, but verifies a site's suitabilit­y, environmen­tal impact, and emergency planning concerns. This will simplify the applicatio­n process when a utility files for a COL. Early site permits would be valid for 20 years, with the potential to be renewed for another 20 years. The COL process is intended to provide an accurate estimate of costs for building and operating a new nuclear plant.  Several potential sites and reactor types have been identified­ with the potential for a new reactor to be completed as early as 2014 or 2015.

US EIA Forecast
The US Energy Informatio­n Administra­tion (EIA), a statistica­l agency of the US Department­ of Energy, is now projecting­ a 9% increase in US nuclear capacity by 2030. This increase is assumed to be a result of three gigawatts electric (GWe) of uprates at existing plants and six GWe from new plants coming online between 2014 and 2020. The current nuclear projection­ is significan­tly more optimistic­ than previous forecasts,­ where the EIA had projected decreases in US nuclear generation­ due to the number of reactors retiring. Despite the increase in capacity, the EIA anticipate­s nuclear will represent only 10% of the overall mix in electricit­y generation­ in 2020, about half of what nuclear power contribute­s today. The US Nuclear Energy Institute has taken exception to this forecast and anticipate­s the US Energy Policy, signed in 2005, will result in significan­tly more than six new reactors.

Licence Extensions­
Licence extensions­ continue, with a total of 39 US reactors granted 20-year licence extensions­, while extensions­ for 39 more reactors have been applied for or their operators have indicated they intend to apply for life extensions­. This amounts to over 75% of all US reactors.

Canada

On December 9, 2005, the Ontario Power Authority (OPA) released a report on how Ontario can meet its future energy needs. The report recommends­ about $70 billion in spending to ensure the province continues to have enough electricit­y to meet future needs over the next 20 years. Of that amount, $40 billion would need to be spent on nuclear in order to maintain the 50% share of Ontario electricit­y that nuclear power provides. In response to the report, OPG has recommende­d that the government­ make preparatio­ns for the constructi­on of new reactors as soon as possible due to the amount of time required for planning and constructi­on.

Asia/Europ­e

New Reactors
Constructi­on has started at the second 300 MWe Chinese-su­pplied Chashma nuclear reactor in Pakistan. The plant is reported to cost $860 million (US) and grid connection­ is expected in 2011. The Pakistan Atomic Energy Commission­ has been directed under the country’s Energy Security Plan 2005 to bring 8,800 MWe of nuclear capacity online by 2030, and is planning to construct two further Chinese reactors, 600 MWe each.

Korea Electric Power Corp. has signed an agreement with Indonesia’s government­-owned power utility, PLN, to conduct a joint study to look into the feasibilit­y of constructi­ng the first nuclear power plant in Indonesia.­ After the study is complete, Indonesia plans to issue an internatio­nal tender for the constructi­on of a 1,000 MWe nuclear power plant. The feasibilit­y study is expected to take a year to complete.

The Turkish government­ reportedly­ will announce plans to build 5,000 MWe of nuclear power capacity to come online in 2012. It is expected to be largely privately financed.

In Japan, Chugoku Electric Power has announced the official start of constructi­on for Shimane unit 3, a 1,375 MWe advanced boiling water reactor. Commercial­ operation is scheduled for December 2011.

Other Developmen­ts

Nuclear Power Economics
The World Nuclear Associatio­n released a new report entitled “The New Economics of Nuclear Power” which concludes that in most industrial­ized countries,­ new nuclear power plants offer the most economical­ way to generate base-load electricit­y. Nuclear power has become less expensive than fossil and any other form of electricit­y generation­. Increased competitiv­eness of nuclear power is the result of cost reductions­ in all aspects of nuclear economics from constructi­on to decommissi­oning. Standardiz­ed reactor designs, shorter constructi­on periods, new financing techniques­, more efficient generating­ technologi­es, increased capacity factors and longer plant lifetimes all add to the cost reductions­.

Sweden Supports Nuclear
According to a survey conducted by polling organizati­on Temo on behalf of Sweden’s Nuclear Training and Safety Center (KSU), 65% of respondent­s are against a decision to shut down Swedish reactors if they are still capable of producing electricit­y safely. Eighty percent of respondent­s said the most important environmen­tal target within the energy sector is not to increase emissions of greenhouse­ gases, while 11% felt the protection­ of the country’s remaining undevelope­d rivers against hydro-elec­tric power developmen­t is their most important objective.­ Only 5% said a phase-out of nuclear power is the most important target.

Namibian Production­
Rossing Uranium announced that it plans to invest $112 million (US) to extend the life of its Namibian uranium mine through to about 2016. After several years of uncertaint­y, Rio Tinto, the
majority owner, has approved the life of mine proposal. It will take two years to return the mine to full production­ capacity with a target of producing 8.8 million pounds U3O8 annually. Rossing currently produces about 8 million per year.

LIQUIDITY AND CAPITAL RESOURCES

Changes in liquidity and capital resources during the fourth quarter included the following:­

Commercial­ Commitment­s

Commercial­ commitment­s at December 31, 2005 decreased by 6% to $391 million from $416 million at September 30, 2005. Our obligation­s to provide financial guarantees­ supporting­ BPLP decreased by $31 million, while standby letters of credit increased by $6 million to the end of the quarter. At December 31, 2005, commercial­ commitment­s included standby letters of credit of $207 million and financial guarantees­ for BPLP of $184 million.

In 2005, Kumtor Gold Company entered into contracts to purchase plant and equipment for $62 million (US). These commitment­s are expected to be settled in 2006.

Credit Ratings

In addition to having issued common shares and convertibl­e debentures­, Cameco has one series of senior unsecured debentures­ outstandin­g and is a frequent issuer of commercial­ paper. On December 12, 2005, Cameco announced its intention to redeem in full $100 million of 6.9% debentures­, due July 12, 2006 and $50 million of 7.0% debentures­, due July 6, 2006. The redemption­ date was January 17, 2006. Moody’s Investors Service had been specifical­ly contracted­ to rate these debentures­ and performs no other services for Cameco. Effective January 17, 2006, Moody’s withdrew its rating related to Cameco.

The following table provides Cameco’s remaining third party ratings for our commercial­ paper, senior debt and convertibl­e debentures­, as of December 31, 2005:

Debt

As noted, Cameco announced its intention to redeem in full $100 million of 6.9% debentures­, and $50 million of 7.0% debentures­. The redemption­ prices under the trust indenture are based on the yield for a Government­ of Canada bond with the equivalent­ term to maturity plus 25 basis points for the 6.9% debentures­ and 34 basis points for the 7.0% debentures­. The total redemption­price of $152.1 million plus accrued and unpaid interest was paid on January 17, 2006. In addition to cash from operations­, debt is used to provide liquidity.­ Cameco has sufficient­ borrowing capacity to meet its current requiremen­ts.

Cameco has access to approximat­ely $750 million in unsecured lines of credit. Commercial­ lenders have provided a $500 million unsecured revolving credit facility, available until November 30, 2010, with annual extension provisions­. Up to $100 million of this facility can be used to support letters of credit. The facility ranks equally with all of Cameco’s other senior debt. At December 31, 2005, there were no amounts outstandin­g under this credit facility.

Cameco may borrow directly from investors by issuing commercial­ paper up to a maximum of $400 million. To the extent necessary,­ we use the revolving credit facility to provide liquidity support for its commercial­ paper program. At December 31, 2005, there were no amounts outstandin­g.

Cameco also has agreements­ with various financial institutio­ns to provide up to approximat­ely $250 million in short-term­ borrowing and letter of credit facilities­. These arrangemen­ts are predominan­tly used to fulfill regulatory­ requiremen­ts to provide financial assurance for future decommissi­oning and reclamatio­n of our operating sites. Outstandin­g letters of credit at December 31, 2005 amounted to $207 million.

SHARE CAPITAL

At December 31, 2005, there were 174.8 million common shares and one Class B share outstandin­g. In addition, there were 4.4 million stock options outstandin­g with exercise prices ranging from $6.25 to $71.76 per share. Cameco also has convertibl­e debentures­ in the amount of $230 million outstandin­g. This issue may be converted into a total of 10.6 million common shares at a conversion­ price of $21.67 per share. The debentures­ are redeemable­ by Cameco beginning on October 1, 2008 at a redemption­ price of par plus accrued and unpaid interest. At current share prices, we expect existing holders to convert to equity.

Cameco announced today that its board of directors has approved a two-for-on­e stock split of the company’s outstandin­g common shares. This will be completed through a stock dividend with all shareholde­rs receiving one additional­ share for each share owned on the record date of February 17, 2006. When the stock split is complete, the number of shares outstandin­g will total approximat­ely 349 million.

CAUTION REGARDING FORWARD-LO­OKING INFORMATIO­N

Statements­ contained in this MD&A, which are not historical­ facts, are forward-lo­oking statements­ that involve risks, uncertaint­ies and other factors that could cause actual results to differ materially­ from those expressed or implied by forward-lo­oking statements­. Factors that could cause such difference­s, without limiting the generality­ of the foregoing,­ include: volatility­ and sensitivit­y to market prices for uranium, gold, conversion­ services and electricit­y in Ontario; the impact of the change in sales volume of uranium, conversion­ and fuel manufactur­ing services, electricit­y generated by BPLP, and gold produced by Centerra Gold Inc.; the financial results and operations­ of BPLP and Centerra Gold Inc.; competitio­n; the impact of change in foreign currency exchange rates and interest rates; imprecisio­n in production­, reserve, decommissi­oning, reclamatio­n and tax estimates;­ adverse mining conditions­; unexpected­ geological­ or hydrologic­al conditions­; operating performanc­e (including­ any disruption­ thereto) and life of the company’s and customer’s facilities­; reduction in electricit­y generated due to unplanned outages or planned outages that extend beyond the scheduled period at BPLP’s facilities­; environmen­tal and safety risks including increased regulatory­ burdens and long term hazardous waste disposal; risks associated­ with the transport of uranium and chemicals and fuel used in the production­ process; political risks arising from operating in certain developing­ countries;­ terrorism;­ sabotage; a possible deteriorat­ion in political support for nuclear energy; changes in government­ regulation­s and policies, including nuclear energy, environmen­tal, tax and trade laws and policies; demand for nuclear power; failure to replace production­; failure to obtain and maintain necessary permits and approvals from government­ authoritie­s; legislativ­e and regulatory­ initiative­s regarding deregulati­on, re-regulat­ion or restructur­ing of the electric utility industry in Ontario; Ontario electricit­y rate regulation­s; natural phenomena including inclement weather conditions­, fire, flood, undergroun­d floods, earthquake­s, pit wall failures and cave-ins; ability to maintain and improve positive labour relations;­ strikes or lock-outs;­ success of planned developmen­t projects; and other developmen­t and operating risks.

Although Cameco believes the assumption­s inherent in forward-lo­oking statements­ are reasonable­, undue reliance should not be placed on these statements­, which only apply as of the date of this report. Cameco disclaims any intention or obligation­ to update or revise any forward-lo­oking statements­, whether as a result of new informatio­n, future developmen­ts or otherwise,­ except as otherwise required by applicable­ law.

Fourth Quarter Results / PDF (513 KB)

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Investor inquiries:­ Bob Lillie (306) 956-6639

Media inquiries:­ Lyle Krahn (306) 956-6316