Cameco acquisition of Power Resources, Inc. and Central Electricity Generating Board Exploration Ltd. complete

Business Wire, Jan 13, 1997

SASKATOON, Saskatchewan and DENVER--(BUSINESS WIRE)--Jan. 13, 1997--Cameco (TSE:CCO CC0.IR.)(ME:CCO CCO.IR.)(NYSE:CCJ CCJ PP.) Cameco Corporation today reports the successful closing of its acquisition of Power Resources, Inc. (PRI) and Central Electricity Generating Board Exploration (Canada) Ltd. (CEGBE Canada) from a subsidiary of Magnox Electric plc, a UK entity.

The final price after closing adjustments was $106.5 million (US).

PRI is one of the largest uranium producers in the United States. CEGBE Canada is involved primarily in Canadian uranium exploration.

Today's purchase adds about 1 million pounds uranium to Cameco's existing annual production of more than 16 million pounds and increases its base of reserves and resources by 37 million pounds (or 10 percent) of uranium reserves and another 85 million pounds (or 40 percent) in the resource category. With the acquisition, Cameco owns a total of almost 400 million pounds reserves and almost 300 million pounds in the resource category.

PRI, with its head office in Denver, owns 74 percent, and is the operator, of the Highland uranium project near Casper, Wyoming. Highland produced 1.2 million pounds uranium in 1996 and has an annual capacity of 2 million pounds. The company uses in situ leach (ISL) technology, a low-cost method of extracting uranium from certain types of deposits.

"Besides increasing our sources of US production and reserves, this purchase rounds out Cameco's strength in the uranium mining industry by providing access to operating expertise in ISL technology," said Bernard Michel, Cameco's chair, president and chief executive officer. "PRI's expertise will be valuable as we pursue other ISL opportunities in this region and around the world. In addition, the strategic location of the Highland mill near Cameco's other ISL properties offers an obvious advantage."

Cameco owns 32 percent of the Crow Butte ISL mine in Nebraska through its wholly owned subsidiary, Geomex Minerals, Inc., and owns additional reserves in Wyoming which could be processed at the Highland facility.

In announcing the closing, Michel also announced the appointment of Crew Schmitt as president and chief executive officer of PRI. Schmitt will be responsible for consolidating Cameco's US uranium activities, increasing production from existing undeveloped reserves and resources and directing the corporation's ISL exploration and acquisition initiatives.

Cameco, with its head office in Saskatoon, is the world's largest publicly traded uranium company and a growing gold producer. Its uranium products are used to generate electricity in nuclear power plants around the world, providing one of the cleanest sources of energy available today.

CONTACT: Cameco Corp., Saskatoon

Rita Mirwald, 306/956-6313

306/956-6312 (FAX)

Elaine Kergoat, 306/222-8148 Cellular Phone

307/359-0889 in Casper, Wyo.