What the world needs. Clean, reliable energy. What the world needs. Clean, reliable energy. Cameco’s Experience In Kazakhstan Ken Seitz Vice-President

What the world needs.Clean, reliable energy.

What the world needs.Clean, reliable energy.

Cameco’s Experience In Kazakhstan

Ken SeitzVice-President Marketing Strategy & AdministrationCameco CorporationMarch 8, 2010

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Information of a scientific and technical nature concerning Cigar Lake was prepared under the supervision of Grant Goddard, P. Eng., Cameco’s General Manager, Cigar Lake, and concerning McArthur River was prepared under the supervision of David Bronkhorst, P. Eng., Cameco’s Mine Manager, McArthur River, each of whom is a qualified person for the purpose of NI 43-101.

Please note that the statements made in this presentation, including statements regarding the company’s objectives, projections, outlook, estimates, expectations or predictions, are considered to be forward-looking information and statements under Canadian and US securities laws. This information involves risk and uncertainty and actual results could differ materially. In addition, material factors or assumptions were applied in drawing the conclusions contained in them. Additional information about the material factors that could cause the results to differ materially, and the material factors or assumptions that were applied, are contained in Cameco’s current annual information form and MD&A which are available on SEDAR and EDGAR.

Forward-looking Statement


About Cameco

Crow Butte, Crow Butte, NebraskaNebraska

Rabbit Lake, Rabbit Lake, SaskatchewanSaskatchewan

McArthur River, Saskatchewan

Smith Ranch – Highland, Wyoming


operating serious emerging non-nuclear

122 131

Americas

141 147

Europe

38 49

Russia & E. Europe

7296

Asia2 5

Other388

498

Today 2019

Nuclear Industry TrendsNew Build Outlook - Gross GWe

4 15

India

9

55

China

Source: Cameco


Inkai Project - Kazakhstan


Inkai Background

1992 Cameco sends a technical team to Central Asia to determine if there might be opportunities to develop mining projects in the newly independent republics in the region

1994 Marketing & Investment Agreement signed

1995 Inkai Joint Venture formed

1998 Cameco and Kazatomprom reach agreement on development of the project that will allow it to proceed to the next phase of regulatory approval

1999 Further reserve delineation


Inkai Background

2000 Construction of test mine begins

2002 Test mine completed and 66,000 lbs uranium produced

2003 Feasibility study completed

2004 Joint venture approval of feasibility study and 470,000 lbs U3O8

2005 Submission and approval of EA and design plan

2006 – 2008 Construction of commercial mine

2009 Commercial production


Why Kazakhstan

● Opportunity to facilitate geographic diversification of

uranium production

● 2nd largest uranium reserves and resources globally

● Cameco envisions significant increases in uranium demand

● Kazakhstan will play an important role in supplying this

growing demand

● In order to sustain our position as one of the world’s

largest uranium producers, Kazakhstan is an important

country for Cameco to be active in


Experience In Kazakhstan

● Significant resource potential in Central Asia

● Favourable experience partnering with local partner,

government-owned KazAtomProm

● Development timelines are faster than in the West, but still

lengthy

● Contractual obligations are honored

● Cameco’s positive experience building community support

in Northern Saskatchewan has translated well to Kazakhstan


Experience In Kazakhstan

● Government appreciates the value of the country’s natural

resources and is aggressively pursuing development and

growth opportunities

● Government is particularly interested in “value-added”

opportunities, e.g. vertical integration in the nuclear fuel

cycle

● Local employment is highly valued and key to understanding

local conditions, design standards, and regulations


Evolving Conditions

● Oil, gas, and uranium

are all adding to the

country’s fiscal

strength

● Government is

starting to seek

stronger terms\

● Less incentives being offered to foreign investors

● Increasing focus on safety, health, and environmental issues

● Kazakhstan is a new country in many ways and as a result, the

regulatory regime is rapidly evolving


Evolving Conditions

● In October 2007, President Nursultan Nazarbayev signed an

amendment into law that allows the government to

unilaterally break contracts with energy companies.

● The new law, effective in November 2007, gives Kazakhstan

two paths to terminate contracts with energy companies.

1. One option forces the company into negotiations with the

government.

2. The other option allows for the repudiation of the contract

with a notice period of only two months.


Evolving Conditions

● In May 2009 the state state Kazakhstan's National Security

Committee, under the direction of the Kazakh Prosecutor

General. Arrested the then president of Kazatomprom,

Moukhtar Dzhakishev.

● Allegations that he unlawfully sold state assets

● Embezzling

● Honour contracts – appears stable

● Has significantly slowed decision making


Summary

● Canadian Government is supportive of Cameco’s work in

Kazakhstan and has been instrumental in assisting Cameco’s

business objectives in the country

● Kazakhstan understands its significant resource potential and is

working hard to capitalize on this

● As a result, the country’s economy is growing very quickly

● There are many foreign firms operating successfully in Kazakhstan

● Cameco’s experience has been a positive one

● Cameco maintains an excellent relationship with its partner,

government owned KazAtomProm


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What the world needs. Clean, reliable energy. What the world needs. Clean, reliable energy. Cameco’s Experience In Kazakhstan Ken Seitz Vice-President