Cameco Receives Federal Government Approval to Develop McArthur River

Business Wire, May 8, 1997

SASKATOON, SASKATCHEWAN--(BUSINESS WIRE)--May 8, 1997-- Cameco(TSE CCO CC0.IR., ME CCO CCO.IR., NYSE CCJ/CCJ PP. ) Cameco Corporation is pleased to report it has received approval from the government of Canada to develop the McArthur River uranium project in northern Saskatchewan.

The federal government approval today follows the approval received from the provincial government earlier this week and concludes a six-year public review process for the project.

In a news release issued today announcing its approval, the government of Canada states "the McArthur River uranium mining proposal can now proceed through the normal licensing process."

On this timetable, McArthur River remains on schedule for construction to begin this summer for a 1999 production startup.

The McArthur River deposit is the largest, high-grade orebody known in the world with reserves and resources estimated at 416 million pounds U3O8 at an average grade of 15 percent. Cameco, as operator, plans to mine the ore using remote-controlled methods and transport the ore 80 kilometres to the existing Key Lake uranium operation for milling. The resulting mill wastes, or tailings, will be deposited in a specially designed mined-out open pit at the Key Lake operation.

The McArthur River project is owned 56 percent by Cameco, 28 percent by Uranerz Exploration and Mining Limited and 16 percent by Cogema Resources Inc. It is located 620 kilometres north of Saskatoon.

Cameco, with its head office in Saskatoon, Saskatchewan, 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 Corporation

Elaine Kergoat, 306/ 956-6315

306/ 956-6318 (FAX)

www.cameco.com