Cameco Gold Acquires Interest In Menzies Gold

Business Wire, April 24, 1997

TORONTO--(BUSINESS WIRE)--April 24, 1997--(TSE CCO CC0.IR., ME CCO CCO.IR., NYSE CCJ/CCJ PP.) Cameco Gold Cameco Gold Inc. today announced it will acquire a 9 percent interest in Menzies Gold NL of Australia through the purchase of 9,850,000 newly issued shares at an issue price of 63 cents (AUS) for a total of $6,205,500 (AUS) [about $6.7 million (CDN)], subject to the approval of the Australian Foreign Investment Review Board.

Menzies has announced that it will undertake a renounceable rights issue to shareholders consisting of one share for each eight shares held, at a price of 60 cents (AUS) per share, with one free unlisted option for each two shares subscribed for under the rights issue, exercisable at 63 cents (AUS) per share at any time until February 1999. Cameco Gold will take up its rights entitlement of 1,231,250 shares and, in addition, has agreed to take up any shortfall under the rights issue to a maximum limit of 6,250,000 shares.

Depending on the level of subscription to the rights issue, Cameco could acquire up to 7,481,250 additional shares, giving it a 14 percent interest in Menzies, at a maximum additional cost of $4,488,750 (AUS) [about $4.9 million (CDN)], not including options outstanding or options attached to the rights shares.

In conjunction with this investment, Cameco Gold and Menzies entered into an exploration and development agreement whereby Cameco Gold will have a right of first opportunity to become Menzies' partner in current or future exploration projects, subject to existing joint-venture agreements. In addition, the companies will co-operate in the acquisition of gold exploration properties in Southeast Asia.

Menzies is an Australian exploration company (ASX:MZG) with various exploration interests in Southeast Asia. Its primary asset is a 55 percent interest in the Bau goldfields in Sarawak, Malaysia. Two deposits discovered there--the Pejiru and Jugan deposits--are currently estimated to contain resources of 500,000 ounces and 600,000 ounces gold respectively. In addition, Menzies has a 55 percent interest in a further five mining tenements covered by the Sarawak regional agreement.

In announcing the arrangement, Cameco Gold president Bill Allan said that through this strategic alliance, Cameco Gold will pursue a dynamic exploration program throughout Southeast Asia. "Menzies brings a significant land position within highly prospective terrain, a solid exploration team with a focused, methodical exploration approach and a broad spectrum of interest, knowledge and capability covering all of Southeast Asia."

Cameco Gold is a wholly owned subsidiary of Cameco Corporation (TSE, ME:CCO; NYSE:CCJ), the world's largest publicly traded uranium and a growing gold producer. Its gold assets include a one- third interest in the large Kumtor operation in Kyrgyzstan, Central Asia, where production began in 1997, and a two-thirds interest in the small Contact Lake operation in Saskatchewan.

CONTACT: Cameco Gold Inc.

Bill Allan, 416/204-1955

416/ 204-1954 (FAX)