NYMEX Uranium Closing Prices As Of September 21 2007

December 2007 Contract

$85

January 2008 Contract

$90

February 2008 Contract

$90

Cameco Expanding Uranium Interests

The uranium bull market has dramatically increased the market caps of uranium producers. The world's largest uranium miner, Cameco Corp., is seeking to increase production while avoiding paying inflated prices for smaller uranium producers.

Other large uranium player such as Uranium One and Areva have spent billions this year making acquisitions. In contrast, Cameco is choosing to make smaller investments in joint ventures with smaller uranium prospectors. These joint ventures provide powerful leverage for Cameco, giving the company up to 70% stakes in prospective developments.

Recent Cameco investments and joint ventures:

Cameco acquired a 10% stake in Western Uranium for $20.5 million.

Cameco acquired 19.5% of UNOR inc.

$19 million investment in Cue Capital to explore for uranium in Paraguay.

Joint venture with Vena Resources to explore for uranium in Peru.

Cameco Issues Update On Cigar Lake

Cameco issued the following information in a press release on Thursday........

The following information provides an update on major activities at Cigar Lake since the second quarter report.

Cameco continues to make progress on its remediation plan, following the flooding of the underground development at Cigar Lake last year. The initial remediation activities included drilling holes to the source of the inflow and to a nearby tunnel, pumping concrete through the drill holes, sealing off the inflow with grout and drilling dewatering holes. Regulatory approval is required for each phase of the remediation plan.

All of the holes for pouring concrete and dewatering are now complete as well as reinforcement of the adjacent tunnel. Pouring of the concrete plug in the tunnel at the vicinity of the inflow began at the end of July and is nearly complete. Pouring cement and injecting grout into the rock fall pile and up into the location of the water inflow source has commenced and at this point it is expected to take another six to 10 weeks to complete. The effectiveness of the plug will need to be assessed and will not be known until dewatering is underway.

Cameco is also drilling a number of new diamond drill holes to assess the pore water pressure and rock quality and structure to determine if depressurization, reinforcement or other precautionary measures may be necessary in two other areas of the mine prior to dewatering. We expect this assessment to be complete by year end.

The next steps of the remediation will include dewatering the mine, verifying that the inflow is sufficiently sealed, and installing the contingency surface freezing pipes, if required. Subsequent remediation activities will include restoring underground areas and resumption of mine development and may include ground freezing in the area of the inflow. Following regulatory approval, dewatering pumps and infrastructure are now installed and electrical work is underway.

A revised production forecast will be provided after the decision is made on the timing of the second shaft completion, the mine has been dewatered and the condition of the underground development has been assessed. As previously announced, completing the second shaft as a priority item and the delay in some remediation activities would set back the planned production startup date from 2010 to 2011.

This update on Cigar Lake will replace the scheduled update for September 19 unless there are material developments to report. The next update will be available with the third quarter report.

The scientific and technical information related to Cigar Lake in this news release was prepared under the supervision of C. Scott Bishop, a professional engineer employed by Cameco as the chief mine engineer of the Cigar Lake project and a qualified person for the purpose of National Instrument 43-101.

Cameco Plans To Buy Back Common Stock

Uranium producer Cameco has announced that it will repurchase up to 5% of the company's common shares. This represents an investment of roughly $750 million based on today's trading price.

"Cameco's strong financial position provides us with the opportunity to invest further in the nuclear industry," said Jerry Grandey, Cameco's president and CEO. "We are committed to strengthening our core asset base for the long term. And, in the near term, as attractive assets have not been available at reasonable valuations, the best investment today is repurchasing our own shares."

Cameco plans to use cash on hand to finance the stock repurchase and will purchase the shares on the open market between September 11 2007 and September 10 2008.

NYMEX Uranium Closing Prices As Of August 31 2007

December 2007 Contract

$80

January 2008 Contract

$80

March 2008 Contract

$80