Cameco Reports Strong Increase In First Quarter Revenues and Earnings.

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Cameco Reports Strong Increase In First Quarter Revenues and Earnings.

Business Editors

SASKATOON, Saskatchewan--(BUSINESS WIRE)--April 29, 2002

Cameco Corporation (NYSE:CCJ)(TSE:CCO.) today reported its financial results for the three months ended March 31, 2002.

HIGHLIGHTS OF THE QUARTER

-- on our web site, www.cameco.com, shortly after the call, and -- on post view until midnight on Tuesday, May 14 by calling 416/695-9728 (no code required) Three months Three months ended ended Change Financial Highlights March 31/02 March 31/01 % ---------------------------------------------------------------------- Revenue ($ millions) 124 70 77 Earnings from operations ($ millions) 11 3 267 Cash provided by operations ($ millions) 134 28 379 Net earnings attributable to common shares ($ millions) 5 1 400 Earnings per share ($) 0.09 0.01 800 Average uranium spot price for the period ($US/lb U3O8) 9.79 7.72 27 Cameco's average realized gold price for the period (US$/ounce) 284 288 (1) Average spot market gold price for the period (US$/ounce) 290 264 10 This report is organized under the following major headings:

1. Consolidated financial results

2. Updates on markets, operations and strategy, and

3. Outlook.

1. CONSOLIDATED FINANCIAL RESULTS

First Quarter. For the three months ended March 31, 2002, net earnings attributable to common shares increased by $4 million to $5 million ($0.09 per share) compared to $1 million ($0.01 per share) in 2001. This improvement was attributable to the uranium business where profits rose due to a higher realized selling price and increased volume. These improvements were partially offset by lower earnings from the gold business, which were the result of a higher unit cash cost for the quarter.

Earnings from operations were $11 million in the first quarter of 2002 compared to $3 million in 2001. The aggregate gross profit margin declined to 18% from 22% in 2001.

Cash flow from operating activities of $134 million was $106 million higher than i...

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