Cameco Makes Progress on Adding Nuclear Capacity at Bruce Power

    News Editors

    SASKATOON, Saskatchewan--(BUSINESS WIRE)--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.



    Cameco Corporation (TSX:CCO) (NYSE:CCJ)

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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

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: ENERGY MINING/METALS SOURCE: Cameco Corporation

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