Cameco Updates McArthur River/Key Lake Forecast

Engineering and Mining Journal, Oct 2008

Cameco Corp. announced it has updated the 2008 production forecast for the combined McArthur River/Key Lake operations. Uranium ore is mined at McArthur River and subsequently milled at Key Lake (Cameco's share of production is approximately 70%). The Key Lake mill completed a three-week planned maintenance shutdown on August 9, 2008. According to the company, restarting the mill was a longer process than anticipated due to equipment challenges experienced during startup. The issues have been resolved with equipment upgrades that are expected to improve future performance.

After reviewing production progress to date, Cameco anticipates its share of uranium production may be up to 800,000 million lb less than the 13.1 million lb previously anticipated. The McArthur River mine continues to produce ore as planned. The announcement does not affect the 2009 production estimate for Cameco's share of the McArthur River/Key Lake operations which is still 13.1 million lb. Cameco's uranium deliveries to customers will continue as planned.