July 29, 2005 09:57 ET

Cameco Will Not Invest in New Brunswick Reactor

SASKATOON, SASKATCHEWAN--(CCNMatthews - July 29, 2005) - Cameco Corporation (TSX:CCO) (NYSE:CCJ) confirmed today that it will not invest in the Point Lepreau nuclear generating station in New Brunswick. Point Lepreau, which is indirectly owned by the provincial government, is a 680-megawatt, Candu reactor similar to the Bruce reactors in Ontario.

Bruce Power Inc. submitted a proposal, on behalf of Cameco, TransCanada Corporation and BPC Generation Infrastructure Trust, to operate and refurbish the reactor. New Brunswick has decided to proceed with refurbishing the reactor and Bruce Power's proposal was not accepted.

"It is another positive sign for the nuclear industry that New Brunswick has chosen to make a substantial investment in refurbishing its reactor after carefully considering the alternatives," said Jerry Grandey, Cameco's president and CEO. "We continue to look for other opportunities that are consistent with our vision to become a dominant nuclear energy company producing uranium fuel and generating clean electricity."

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.

Contact Information

  • Cameco Corporation
    Investor & media inquiries:
    Alice Wong
    (306) 956-6337
    Investor inquiries:
    Bob Lillie
    (306) 956-6639
    Media inquiries
    Lyle Krahn
    (306) 956-6316