Cameco

Cameco

March 21, 2005 14:50 ET

Cameco Makes Progress on Adding Nuclear Capacity at Bruce Power


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CAMECO CORPORATION

TSX SYMBOL: CCO
NYSE SYMBOL: CCJ

MARCH 21, 2005 - 14:50 ET

Cameco Makes Progress on Adding Nuclear Capacity at
Bruce Power

SASKATOON, SASKATCHEWAN--(CCNMatthews - March 21, 2005) - Cameco
Corporation (TSX:CCO) (NYSE:CCJ) confirmed today that, together with its
partners TransCanada and BPC Generation Infrastructure Trust, it is
making progress towards restarting the two shutdown reactors at the
Bruce Power site in Ontario.

As part of this process, Bruce Power and the negotiator appointed by the
Ontario government announced today they have reached a tentative
agreement on restarting the two reactors. Cameco has approved in
principle this tentative agreement which requires final government
approval. The process of reaching a mutually acceptable binding
agreement continues, but has not been completed.

Cameco will provide an update on the status of the project once the
company has entered a mutually acceptable, binding agreement with all
parties. Cameco indirectly holds a 31.6% interest in Bruce Power Limited
Partnership, which leases the Bruce nuclear plants in Ontario.

Cameco, with its head office in Saskatoon, Saskatchewan, is the world's
largest uranium producer. The company's uranium products are used to
generate electricity in nuclear energy plants around the world,
providing one of the cleanest sources of energy available today.
Cameco's shares trade on the Toronto and New York stock exchanges.

Statements contained in this news release which are not historical facts
are forward-looking statements that involve risks, uncertainties and
other factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause such differences, without limiting the generality of
the following, include: volatility and sensitivity to market prices for
uranium, electricity in Ontario and gold; the impact of the sales volume
of uranium, conversion services, electricity generated and gold;
competition; the impact of change in foreign currency exchange rates and
interest rates; imprecision in reserve estimates; environmental and
safety risks including increased regulatory burdens; unexpected
geological or hydrological conditions; political risks arising from
operating in certain developing countries; a possible deterioration in
political support for nuclear energy; changes in government regulations
and policies, including trade laws and policies; demand for nuclear
power; replacement of production and failure to obtain necessary permits
and approvals from government authorities; legislative and regulatory
initiatives regarding deregulation, regulation or restructuring of the
electric utility industry in Ontario; Ontario electricity rate
regulations; weather and other natural phenomena; ability to maintain
and further improve positive labour relations; operating performance of
the facilities; success of planned development projects; and other
development and operating risks.

Although Cameco believes that the assumptions inherent in the
forward-looking statements are reasonable, undue reliance should not be
placed on these statements, which only apply as of the date of this
report. Cameco disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new information,
future events or otherwise.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cameco Corporation
    Investor & media inquiries
    Alice Wong
    (306) 956-6337
    or
    Investor inquiries
    Bob Lillie
    (306) 956-6639
    or
    Media inquiries
    Lyle Krahn
    (306) 956-6316
    Website: www.cameco.com